STOCKS TO WATCH: DLF, RIL, ONGC, Sterlite

MUMBAI: The rupee dropped early on Thursday following weakness in other regional units but the domestic shares open would be closely watched for clues on direction of foreign fund flows.

The partially convertible rupee was at 47.665/675 per dollar, weaker than its Wednesday close of 47.52/53. On Tuesday, the rupee had climbed to 47.43 ��� its highest level since June 12.

Oil prices fell to near $71 a barrel as investors eyed rising US crude inventories and signs of a weak economy. Benchmark crude for September delivery was down 58 cents to $71.39 a barrel on the New York Mercantile Exchange.

Reliance Industries and state-run explorer Oil and Natural Gas Corp will be watched following the easing of oil prices.

Sterlite Industries and other metal counters will also be in focus after copper prices fell nearly 3 percent.

DLF Ltd is looking to exit its life insurance joint venture with the US-based Prudential Financial as it continues to sell non-core businesses that demand fund infusion. The realtor is scouting for a potential buyer for its 74 per cent stake in DLF Pramerica
Life Insurance. Shares of the realty major may witness some action on the news.

The Tata Group is preparing to buy out US insurer American International Group from its joint venture, Tata AIG Life Insurance.

The plan of National Highways Authority of India to offer 126 road projects worth about Rs 1 trillion this year may face hurdles due to a clause introduced in qualification norms. The clause mandates that a bidder must have built twice its bid size of projects in the last five years. Shares of infrastructure companies may be watched on the news.

IT services provider Allied Digital Services is evaluating European and Australian firms in infrastructure management space worth about $100 million. Shares of the company, which ended 1.6 per cent higher at Rs 385, may see an upside.

Vishal Retail, whose cash flow is under stress, is to offer shares to some of its big manufacturers and suppliers in lieu of cash. Shares of the retailer may see some action on this development.

Public sector banks will be closed for an extended weekend with bank unions calling for a two-day strike. Bank employees will strike work on Thursday and Friday (August 6 and 7) bringing to a standstill most banking activity for the next four days.

Lupin Pharma will launch a new branded generic drug in the US every year for specialised therapeutic areas, as it looks to squeeze more from the market that contributes a third of its bottomline, where branded medicines command a higher margin.

Wipro expects to close a number of big-ticket outsourcing deals each valued above $100 million ��� in the second quarter of 2009-10. Meanwhile, bigger rival Infosys is pursuing 12 to 15 deals worth $1 billion in this quarter. This is likely to keep technology stocks in the limelight.