Market may open weak ahead of exit polls; Dr Reddy's in focus

Tracking global cues as well as volatility on the domestic front, the market could see a weak opening on Thursday. Investors will be sitting on the fence ahead of the key exit polls data for assembly elections in five states that is set to release later on Thursday. Trends on SGX Nifty indicate a weak opening, which it is down over half a percent. Asian markets have had a subdued start as traders are eyeing commodity prices. Japan’s Nikkei is up over 0.30 percent on the back of weakness in the yen against the dollar. The Korean market was trading marginally in the green, while the Singapore straits is higher almost half a percent.In the US markets, Wall Street closed mostly lower as investors dealt with plunging oil prices and digested scorching ADP employment data. The Dow was lower by 0.30 percent, while the S&P 500 was down 0.23 percent. In Europe, markets closed slightly higher as investors digested corporate earnings as well as fresh economic data from Germany and the UK. The key event to watch out here would be the European Central Bank (ECB) meet. It is widely expected to keep monetary policy on hold as it casts a cautious eye ahead of high-risk elections in the Netherlands and France. Although economic growth and inflation are both picking up, the ECB is expected to resist calls to tighten policy, pointing to political risks, weak underlying price growth and a still fragile recovery nearly a decade after the bloc's economic woes began.In India, after a volatile session, equity benchmarks ended lower for second consecutive session on Wednesday as investors awaited exit polls for assembly elections due on Thursday and the US Federal Reserve’s policy meeting next week. The 30-share BSE Sensex plunged 184 points in mid-day trade but short covering in select stocks helped it recoup some losses in last couple of hours of trade. The index was lower by 97.62 points at 28,901.94 while the 50-share NSE Nifty slipped 22.60 points to 8924.30.Dr Reddy’s could be on under pressure after the company received 13 observations for its Duvvuda oncology facility by the US Food and Drug Administration. The USFDA observations are a setback for Dr Reddy’s (DRL) as it was expecting a clean chit from the US drug regulator inspection. The company didn’t specify the nature of these observations. The Reserve Bank of India opposed the consent terms filed by Tata-Docomo. It said that the 'put' clause in the Tata-Docomo agreement was illegal. The Delhi High Court questioned the central bank's autonomy, asking if it is acting independently or at behest of the finance ministry.Sources have informed CNBC-TV18 that the government was likely to sell its stake in IDBI bank only next financial year. The government may infuse Rs 1,000 to 1,500 crore into the bank this year. The dollar held gains as a stronger-than-expected US private-sector jobs figures in February sealed expectations that the Federal Reserve will raise interest rates next week. The ADP national employment report showed that private payrolls grew the most since December 2015. Traders now price in an 85.2 percent chance of a Fed rate hike next week. In the commodities segment, losses in crude oil accelerated to close at their lowest level of the year. Crude prices fell after another rise in domestic inventories. The energy information administration reported US stockpiles added 8.2 million barrels of crude in the past week. Meanwhile, gold hit a 1-month low after the US jobs data shattered estimates. Investors now await February non-farm payrolls data due on Friday as a barometer of the US economy after Fed Chair Yellen said last week that the central bank was poised to lift rates provided jobs and inflation data held up.