The BSE Sensex should drop early on Friday after disappointing earnings from Oil & Natural Gas Corp <ONGC.BO> and Hero Honda Motors <HROH.BO>, and weak global cues.
After markets had closed on Thursday state-run energy explorer ONGC reported a more-than-expected 24.5 percent drop in quarterly profit, as a rise in crude oil prices meant it had to make higher subsidy payouts.
Top motorcycle maker Hero Honda posted a 1.6 percent fall in quarterly net profit, its first decline in 11 quarters, and analysts said margins would remain under pressure in the current quarter as well.
Anil Dhirubhai Ambani group companies – Reliance Infrastructure <RLIN.BO>, Reliance Power <RPOL.BO> and Reliance Natural Resources <RENR.BO> are due to unveil their June quarter earnings on Friday.
The MSCI's measure of Asian markets other than Japan down 0.3 percent by 0248 GMT, while Japan's Nikkei dropped 1.5 percent.
The Nifty India stock futures in Singapore were down 0.5 percent.
On Thursday, the 30-share BSE index closed up 0.2 percent at 17,992. The benchmark is up 1.6 percent so far in July.
STOCKS TO WATCH
* Trucks and bus maker Ashok Leyland <ASOK.BO> on plans to buy a 26 percent stake in British bus maker Optare <OPET.L>.
* Power utility and infrastructure firm Lanco Infratech <LAIN.BO>, after it won contract to set up three units of 1,980 MW thermal power project in Maharashtra.
* Titagarh Wagons <TITW.BO> after its newly acquired unit in France received an order to manufacture 112 rail wagons for a European client.
* Arvind Ltd <ARVN.BO> after it reported quarterly net profit ore than doubled helped by a gain from the sale of property. The company said it was likely to announce more land development projects later this year.
* Realty firm Omaxe Ltd <OMAX.BO> after it posted a 38.7 percent rise in its April-June net profit.
* National Fertilizers Ltd <NAFT.BO>, makeres of fertilisers and industrial chemicals, after it reported a fall of 25 percent in quarterly profit.
* Power project contractor Kalpataru Power <KAPT.BO> after its board approved a 5-for-1 stock split.
(Reporting by Ami Shah and Ketan Bondre; Editing by Ranjit
Gangadharan)
