Nifty Set For Higher Start; Dr Reddys Lab in Focus

The Nifty is likely to open higher on Thursday, according to futures trading on Singapore Stock Exchange (SGX CNX Nifty), which traded 0.34 per cent or 26.50 points up as of 08.24 a.m.

Asian shares mostly traded higher, which will help sentiments in domestic equities, traders said. MSCI's broadest index of Asia-Pacific shares outside Japan edged up about 0.4 per cent, after Wall Street put in a nearly flat performance ahead of the US Thanksgiving holiday. (Read)

However, the rupee (66.32/dollar) is likely to come under pressure tracking losses in the euro. The dollar index, which tracks the greenback against a basket of six rivals, touched an eight-month high of 100.170 overnight after a spate of US economic data reinforced views that the Federal Reserve will raise interest rates next month.

Foreign investors, who have been net sellers in domestic cash markets this month, sold a net Rs 540 crore of shares on Tuesday; domestic investors bought shares worth net Rs 532 crore.

Among individual stocks, drugmaker Dr Reddy's Lab (Rs 3,388.60) will be in focus after the US Food and Drug Administration said it might withhold approval of the company's fresh drugs and stop imports if no corrective action is taken. (Read)

The US regulator had earlier issued a warning letter to Dr Reddy's Laboratories over quality issues. The FDA said it had found several violations with regard to current good manufacturing practices (CGMP) at three of its plants.

On Tuesday, the Sensex had closed down 44 points or 0.17 per cent at 25,776, while the Nifty had ended 18 points lower at 7,832. Markets were closed for Gurunanak Jayanti on Wednesday.