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A flat opening on the cards

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Capital Market
Last Updated : Dec 03 2014 | 9:45 AM IST

Trading of CNX Nifty futures on the Singapore stock exchange indicates a flat opening on the domestic bourses today, 3 December 2014. The HSBC India Services PMI for November 2014 is due today, 3 December 2014. Asian stocks edged higher today, 3 December 2014, with Japan's benchmark index climbing toward a seven-year high, after the yen weakened and automakers posted better-than-estimated US car sales.

TCS after market hours on Tuesday, 2 December 2014, announced the launch of its big data product TCS Active Archive, powered by technology from EMC, one of the most influential leaders in cloud computing, virtualization, big data, and IT security and protection. Specially designed for big data environments, the solution offers as high level of performance, scalability, security and cost controls for archiving, retrieving and managing the growing volume and variety of enterprise data, TCS said in a statement.

Hero MotoCorp after market hours on Tuesday, 2 December 2014 said the company has roped in golf champion Tiger Woods as its brand ambassador. The company did not share the financial details of the deal, but media reports suggested that a four-year deal between the company and Tiger Woods is pegged it at about Rs 200 crore.

ABB India announced after market hours yesterday, 2 December 2014, that it has designed, manufactured, installed and commissioned a 1,200-kilovolt (kV) circuit breaker the highest AC voltage level in the world. Once the 1200 kV ultrahigh-voltage switchgear is fully operational, it will have a switching capacity of 10,400 megawatts - a switch capable of turning 'ON' or 'OFF' the electricity generated by 10 large power plants or the combined average annual electrical load of Switzerland and Denmark, within milliseconds. The circuit breaker is deployed at the 1,200 kV national test station constructed by Power Grid Corporation of India (PGCIL), India's central transmission utility, at Bina in the central Indian state of Madhya Pradesh.

CEAT will be in focus as shares allotted by the company to institutional investors under Qualified Institutional Placement (QIP) are admitted for trading on the bourses today, 3 December 2014. A total of 44.94 lakh shares will be admitted for trading. CEAT had priced the issue of shares to institutional investors at Rs 890 per share

The HSBC India Services PMI for November 2014 is due today, 3 December 2014. Adjusted for seasonal factors, the headline HSBC India Services PMI Business Activity Index -- a single question tracking changes in activity at Indian services companies on a month-by-month basis -- fell to 50 in October, from 51.6 in September.

The Ministry of Finance after trading hours yesterday, 2 December 2014, said that it is encouraging that the Reserve Bank of India (RBI) has taken note of the structural change in the outlook for inflation. Responding to the Monetary Policy Statement issued by the RBI, the finance ministry said that the government looks forward to the RBI supporting the revival of growth and employment. In the weeks ahead, the government and RBI will work towards a monetary policy framework that will help institutionalize the gains achieved on the inflation front, so as to reduce inflationary expectations and further support the revival of investment and growth, the finance ministry said in a statement. The RBI kept its main lending rate viz. the repo rate unchanged at 8% after a monetary policy review, yesterday, 2 December 2014, saying it still needs more proof that inflation is under control before it can start lowering lending rates. In the statement accompanying the rate decision, RBI Governor Raghuram Rajan said that the current slowdown in consumer prices may be short-lived. Rajan said the risk to the January 2016 target of 6% appear evenly balanced under the current policy stance.

The Indian government intends to get the Insurance Laws Amendment Bill that seeks to enhance FDI limit in capital starved insurance sector passed during the winter session of parliament which began on 24 November 2014. The government is also likely to introduce the constitutional amendment bill for the goods & services tax in the winter session of parliament.

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Amid divergent trend in various constituents of the index, key benchmark indices edged lower on Tuesday, 2 December 2014 as the Reserve Bank of India (RBI) kept its main lending rate viz. the repo rate unchanged at 8% after a monetary policy review and said that risks to the January 2016 target of 6% appear evenly balanced under the current policy stance. The Sensex fell 115.61 points or 0.4% to settle at 28,444.01, its lowest closing level since 27 November 2014.

Foreign portfolio investors (FPIs) bought shares worth a net Rs 106.82 crore on Tuesday, 2 December 2014, as per provisional data.

Asian stocks edged higher today, 3 December 2014, with Japan's benchmark index climbing toward a seven-year high, after the yen weakened and automakers posted better-than-estimated US car sales. Key benchmark indices in Singapore, Taiwan, Hong Kong, China, Japan, Indonesia and South Korea rose by 0.1% to 1.61%.

The HSBC China services purchasing managers index rose to 53 in November from 52.9 in October, HSBC Holdings PLC said today, 3 December 2014 pointing to modest economic resilience outside the nation's factory sector. A reading above 50 indicates month-to-month expansion while a level below that points to contraction. New orders in the service sector grew at their fastest pace in 30 months, compared with a much weaker showing in factory activity, HSBC said.

Meanwhile, China's official nonmanufacturing purchasing managers' index rose to 53.9 in November from 53.8 in October, data from the China Federation of Logistics and Purchasing showed today, 3 December 2014.

US stocks edged higher on Tuesday, 2 December 2014 sending the Dow Jones Industrial Average to a record, as biotechnology and energy companies rallied and data on construction spending boosted confidence in the economy.

November car and light truck sales were second-highest in eight years, according to figures from Autodata. Sales rose to a seasonally adjusted annual rate of 17.2 million, up from 16.5 million in October and the best level since August.

In economic news, data released on Tuesday, 2 December 2014 showed construction spending grew more than estimated in October. Construction spending rose 1.1% in October to a seasonally adjusted annual rate of $971 million.

Stanley Fisher, vice chairman of the Federal Reserve, speaking in Washington, D.C., reportedly said that continued labor market improvement and some signs that inflation is beginning to stir would be enough for the US central bank to start to raise interest rates. If inflation continues to move lower, the Fed will have to take that into account, Fischer reportedly said.

The European Central Bank (ECB) will meet tomorrow, 4 December 2014 to discuss monetary policy. The ECB has pledged more stimulus if needed to revive inflation.

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First Published: Dec 03 2014 | 8:26 AM IST

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