Market may edge higher in early trade tracking firm Asian stocks

The market may edge higher in early trade tracking mostly higher Asian stocks. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 7.50 points at the opening bell. A latest domestic data showed Gross Domestic Product (GDP) increased at improved pace by 4.8% in Q2 September 2013.

Metal stocks may gain on positive economic data in China. China is the world’s largest consumer of copper and aluminum.

Mahindra Mahindra’s Farm Equipment Sector (FES) on Sunday, 1 December 2013 announced its tractor sales numbers for November 2013. The company’s overall sales rose 13% at 23119 units in November 2013 over November 2012. Domestic sales rose 13% to 22343 units in November 2013 over November 2012. Exports rose 8% to 776 units in November 2013 over November 2012.

Speaking on the sector’s monthly performance, Rajesh Jejurikar, Chief Executive, Tractor and Farm Mechanization, Mahindra Mahindra. said “Following the festive season, we are happy to keep up our sales momentum with a growth of 13% in November 2013. On the back of a good monsoon, we expect the robust demand for tractors to continue during the remaining months of this financial year.”

MM also announced its auto sales numbers which stood at 39,255 units during November 2013. The company’s domestic sales dropped 22.44% to 36,261 units in November 2013 over November 2012. Exports jumped 115.7% to 2994 units in November 2013 over November 2012. The Passenger Vehicles segment (which includes UVs and Verito) sales fell 31.83% to 16,771 units in November 2013 over November 2012. The 4-wheelers commercial segment had sold 13,186 units while the 3-wheelers segment clocked 5,861 units in November 2013.

Speaking on the monthly performance, Pravin Shah, Chief Executive, Automotive Division, Mahindra Mahindra said, “Post the festive season month of October, the auto industry has turned to further de-growth and continues to remain subdued. Unless some concrete measures are provided for its revival, we do not foresee any immediate turnaround. Factors such as increase in input costs and the depreciating rupee have not helped in any way. At Mahindra, we continue to focus on operational excellence to augment our overall performance and remain cautiously optimistic of the situation”.

Tata Motors’ total sales (including exports) of Tata commercial and passenger vehicles in November 2013 were 40,863 vehicles. The company’s domestic sales of Tata commercial and passenger vehicles for November 2013 were 37,192 units.

The company’s sales of commercial vehicles in November 2013 in the domestic market were 26,816 units, LCV sales were 19,993 units, while MHCV sales stood at 6,823 units. Sales of passenger vehicles for November 2013 were at 10,376 units. Sales of the Nano/ Indica/ Indigo range in November 2013 were 7,910 units. The Sumo/ Safari/ Aria/ Venture range sales were 2,466 units. The company’s sales from exports were 3,671 units. in November 2013.

LT said after market hours on Friday, 29 November 2013 it is evaluating alternatives for monetisation of certain assets of its subsidiary LT Infrastructure Development Projects (LT IDPL), including a potential initial public offering and listing in Singapore of selected road assets of LT IDPL, through a business trust in Singapore. The proposed transactions are subject to various factors including approvals and market conditions and may or may not be completed, LT said. In the meantime, shareholders and other investors are reminded to exercise caution when deal in the company’s shares, pending any definite announcement from the company, LT said in a statement.

LT IDPL is primarily engaged in public-private partnership projects in India, with business interests spread across sectors involving roads and bridges, ports, metro rail, wind energy and power transmission lines. It has experience in identifying and assessing viability of projects, achieving financial closure, project management, operations and maintenance of infrastructure assets across various sectors as well as divestiture.

Power Grid Corporation of India (PGCIL) has fixed the price band for the follow on public offer (FPO) at Rs 85 to Rs 90 per share. The price band has been approved by the company’s board of directors at its meeting held on Friday, 29 November 2013.

PGCIL is coming up with a FPO which includes 13% of fresh issue of shares and 4% disinvestment of shares by Government of India (GoI). The issue opens on 3 December 2013 and closes on 5 December 2013 for institutional investors and 6 December 2013 for retail category of investors employees. A discount of Rs 4.50 per share (which is 5% of the top end of the price band) will be available to retail investors and eligible employees on the issue price on allotment.

50% of the net issue is allocated to Qualified Institutional Buyers (QIBs), 35% for Retail category and 15% for High Network Investors (HNI). Above 0.38% of the issue is reserved for employees. Retail category and employees shall be given a discount of 5% on the issue price. With the above, the GoI holding of PGCIL will come down to 57.89% from the present level of 69.42%. Presently, there is no plan for further dilution of equity in PGCIL, in the medium term, the company said.

Bank stocks will be in focus after the Reserve Bank of India (RBI) on Friday, 29 November 2013, said that commercial banks will now have the option to pay interest on savings accounts and term deposits at intervals shorter than quarterly intervals. Banks were hitherto required to pay interest on savings deposits and term deposits at quarterly or longer intervals.

Shares of infrastructure companies will be in focus after the Securities and Exchange Board of India (Sebi) on Friday, 29 November 2013, relaxed fundraising rules for infrastructure debt mutual funds in its continued bid to channel long-term capital to finance infrastructure projects in the country. Sebi said that it will allow foreign feeder funds that get at least 20% of their managed assets from long-term investors such as sovereign wealth funds, pension funds and insurance funds to qualify as strategic investors.

PSU OMCs and auto stocks will be in focus after diesel prices were hiked by 50 paise per litre, but petrol rates remain unchanged. The price increase, excludes local sales tax or VAT and were effective from Sunday, 1 December 2013. In January 2013, the government allowed PSU OMCs to raise diesel prices in small measures at regular intervals while completely deregulating diesel prices sold to institutional or bulk buyers. The government has already freed pricing of petrol.

Idea Cellular said its board of directors have subject to approval of the shareholders, approved increase in the aggregate investment limit of Foreign Institutional Investors (FIIs) from 24% to 49% of the paid-up equity capital of the company. Further to the above, an Extraordinary General Meeting of the members of the company has been convened on 26 December 2013, inter-alia, for obtaining approval of the members for the proposed increase in the aggregate investment limit of FIIs from 24% to 49% of the paid-up equity capital of the company.

Videocon Industries said that the board of directors of the company at its meeting held on 29 November 2013 proposed to seek shareholders approval, authorizing the board, to issue equity shares or any other convertible instruments for an amount not exceeding Rs 5000 crore, at an appropriate time, by way of follow on issue, private placement basis, qualified institutional placement basis, American depository receipts (ADRs), global depository receipts (GDRs), foreign currency convertible bonds (FCCBs) or any other mode or mechanism, subject to necessary approval and consent.

Marico after market hours on Friday, 29 November 2013 said it has stopped manufacturing activities at its Dehradun Camp Road Plant and initiated steps for a closure of the plant. The Dehradun Camp Road plant was set up in 2003 for manufacture of cosmetics. Marico said it believes that this closure has no significant bearing on the performance of the company.

Pharma stocks will be in focus as Cabinet considered on Friday, 29 November 2013, the proposal of the Ministry of Commerce and Industry, for review of the policy on foreign direct investment in the pharmaceutical sector. The Cabinet decided that the current policy in brownfield and greenfield projects in the pharmaceutical sector will continue subject to the additional condition that in all cases of FDI in brownfield pharma, there will not be any non-compete clause in any of the inter se agreements.

On macro data front, India’s Gross Domestic Product (GDP) increased at improved pace of 4.8% in Q2 September 2013 compared to 4.4% growth recorded in Q1 June 2013. The economic activities which registered significant growth in Q2 September 2013 over Q2 September 2012 were ‘agriculture, forestry and fishing’ at 4.6%, ‘electricity, gas and water supply’ at 7.7% ‘construction’ at 4.3%, ‘financing, insurance, real estate and business services’ at 10% and ‘community, social and personal services’ at 4.2%.

The growth rates in ‘mining and quarrying’ is estimated at (-) 0.4%, ‘manufacturing’ at 1.0%, and ‘trade, hotels, transport and communication’ at 4.0% in this period.

The fiscal deficit touched Rs 4.58 lakh crore during April-October 2013, or 84.4% of the full-year target, data released by the government after trading hours on Friday, 29 November 2013, showed. In the annual budget presented in February, Finance Minister P. Chidambaram had committed to narrow the fiscal deficit to 4.8% of gross domestic product (GDP) this fiscal year from 4.9% a year ago.

Markit Economics will unveil HSBC India Manufacturing PMI, which gauges the business activity of India’s factories, for November 2013 on today, 2 December 2013. The HSBC Manufacturing PMI compiled by Markit was unchanged at 49.6 in October, remaining below the watershed 50 mark that separates growth from contraction.

The Reserve Bank of India (RBI) announces next Mid-Quarter Review of Monetary Policy for 2013-14 on 18 December 2013. The Third Quarter Review of Monetary Policy for 2013-14 is scheduled 28 January 2014.

Key benchmark indices surged on Friday, 29 November 2013, with market sentiment boosted by data showing that domestic institutional investors (DIIs) turned buyers of equities for the first time this month on Thursday, 28 November 2013, and that foreign institutional investors (FIIs) remained net buyers of Indian stocks on Thursday, 28 November 2013. The SP BSE Sensex garnered 257.02 points or 1.25% to settle at 20,791.93 on that day, its highest closing level since 19 November 2013.

Foreign institutional investors (FIIs) bought shares worth a net Rs 745.16 crore on Friday, 29 November 2013, as per provisional data from the stock exchanges.

Most Asians stocks gained on Monday after Chinese manufacturing growth beat analyst estimates in November. Key benchmark indices in Indonesia, Singapore, Hong Kong and Taiwan were up 0.8% to 0.62%. Key benchmark indices in China, South Korea, and Japan were down 0.11% to 0.25%.

Chinese manufacturing growth beat analyst estimates in November, indicating the nation’s economic recovery is sustaining momentum amid government efforts to rein in credit growth. The Purchasing Managers’ Index was 51.4, the National Bureau of Statistics and China Federation of Logistics and Purchasing said yesterday. A separate gauge from HSBC Holdings Plc and Markit Economics today was 50.8, topping analysts’ projections. Numbers above 50 signal expansion.

US stocks ended mixed on Friday as the Dow Jones Industrial Average and the SP 500 index dipped in thin holiday trading, but technology stocks helped lift the Nasdaq Industrial Composite index to a 13-year high.

Investors are keeping a close watch on economic data in the United States as the Federal Reserve monitors the pace of recovery to gauge when it will begin to reduce monetary stimulus for the US economy, which has been aimed at encouraging growth. The US government will release the influential US non-farm payrolls data for November 2013 on 6 December 2013. The Fed has said improvement in the labor market is a key factor in its policy assessment.

The Federal Open Market Committee (FOMC) holds a two-day policy meeting on interest rates in the United States on 17-18 December 2013. The US central bank currently buys bonds worth $85 billion a month in a bid to hold interest rates low and encourage economic growth in the world’s biggest economy. Minutes of the Fed’s October meeting released on 20 November 2013 showed officials may reduce their $85 billion a month of bond buying if the economy improves as anticipated.

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Market may edge higher in early trade tracking firm Asian stocks