Sensex, Nifty may see cautious opening;

 ITC, Wipro in focus While the market may look to carry forward its pre-Budget rally, investors may also be cautious ahead of key earnings as well as mixed global cues. ITC, Wipro will be in focus as the former will declare its results, while the Street may react to Wipro's negative earnings that were declared on a pre-Budget rally during the previous three trading sessions, the market may tread with caution, amid mixed cues and ahead of a key earnings week next week. The SGX Nifty is trading 0.39 percent lower at the time of writing. Asian markets were trading positive in early morning trade. Nikkei was up over 0.30 percent as investors digested better-than-expected inflation data. December core consumer prices fell 0.2 percent year-on-year, at its slowest since February. In the US, equities closed mixed after hitting new record highs, as investors digested several key earnings reports. 

The Dow Jones rose about 30 points, with Goldman Sachs contributing the most gains, hitting a new record high and holding on to its 20,000-level. About 30 percent of S&P 500 companies have reported quarterly earnings, with 70 percent exceeding analyst expectations on the bottom line and 56 percent beating sales estimates. Tensions between the US and Mexico escalated after Trump’s views that the latter should pay for the wall at the border or skip the scheduled meeting. The construction is set to cost USD 14 billion. The Republican Party leadership has said that Congress will clear the funds for the wall. Mexican President Enrique Pena Nieto has said that he would not be attending a previously-scheduled meeting with Trump. This the first in a series of actions to crackdown on illegal immigrants and bolster national security. Trump has also cut federal grants to sanctuary cities that protect immigrants. European markets end mixed Thursday. Technology and healthcare stocks were the best performers as investors remained confident that Trump would carry on implementing his campaign pledges, including cutting taxes and deregulation.

 FTSE 100 was trading flat with a negative bias, while the DAX was up 0.3 percent. Back home, the pre-Budget rally continued for third straight session Wednesday, with the Sensex rising 361 points intraday and the Nifty closing January series above 8600 level, aided by banking & financials, FMCG and infra stocks. Benchmark indices came back to pre-demonetisation level on account of stable earnings. The 30-share BSE Sensex was up 332.56 points or 1.21 percent at 27708.14 and the 50-share NSE Nifty surged 126.95 points or 1.50 percent to 8602.75, the highest closing level since November 1, 2016. Among stocks to watch would be Wipro, ITC, Bharti Airtel and Ashok Leyland due to developments on the earnings front. Wipro disappointed the street once again as topline missed expectations. The company also slashed its fourth quarter guidance to 1-2 percent. IT services revenue in dollar terms, which closely tracks by the street, declined 0.7 percent quarter-on-quarter to USD 1902.8 million but constant currency growth was 0.6 percent. From the auto pack, Ashok Leyland’s earnings were below estimates as profits declined 13 percent year on year. High discounts and gross margin pressure due to high raw material cost weighed in on the earnings. 

Later in the day, ITC will declare its December quarter results  poll sees a 3 percent decline in profit. Cigarette revenue growth and volumes will be crucial as majority on street expect 2-3% decline in cigarette volumes. The stock will also be on the radar for excise duty announcements in the Union Budget. The dollar gained against the Mexican Peso after the Nieto cancelled the said meeting with Trump. The dollar index saw a rebound from 7-week lows. Crude prices declined marginally after 2 percent surge overnight as plentiful supplies and bulging inventories put a cap on gains. Meanwhile, gold fell to a two-week low on the back of a strengthening dollar and a rise in yields from US treasury bonds 

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