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Market likely to open lower on weak Asian stocks

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Capital Market
Last Updated : Aug 16 2013 | 11:55 PM IST

Weakness in Asian stocks hints at a lower opening of Indian stocks, which were closed on Thursday, 15 August 2013, on account of Independence Day. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could slide 39.50 points at the opening bell. Asian stocks stumbled Friday after some weak earnings and worries the Federal Reserve would soon pare its bond purchases slammed Wall Street.

Mahindra & Mahindra (M&M) after market hours on Wednesday, 14 August 2013, said it plans to invest Rs 200 crore to strengthen its current product line-up of trucks and buses. The company plans to invest Rs 300 crore to explore new product lines in the LCV, ICV and MCV range, it said.

Bharti Airtel may be watched on reports Singapore Telecommunications (SingTel) will increase its stake in Bharti Airtel to 32.34% from 30.76%. South-East Asia's biggest telecom company SingTel will buy 3.62% stake of Bharti Airtel's holding company Bharti Telecom for $302 million (Rs 1851 crore). Bharti Telecom currently holds 43.57% stake in Bharti Airtel. The deal is expected to be completed by 28 August 2013.

National Aluminum Company (Nalco)'s net profit fell 28.41% to Rs 159.70 crore on 7.89% decline in total income to Rs 1739.26 crore in Q1 June 2013 over Q1 June 2012. The company announced Q1 result after market hours on Wednesday, 14 August 2013.

United Breweries reported 22.63% rise in net profit to Rs 120.96 crore on 11.9% rise in total income to Rs 1362.66 crore in Q1 June 2013 over Q1 June 2012. The company announced Q1 result after market hours on Wednesday, 14 August 2013

NHPC after market hours on Wednesday, 14 August 2013 said that a memorandum of understanding has been signed between the company and Uttar Pradesh New & Renewable Energy Development Agency, Department of Additional Sources of Energy, Government of Uttar Pradesh on 8 August 2013 at Lucknow for implementation of solar power project in Uttar Pradesh. Initially, a 50 megawatt solar energy power project is proposed to be implemented at Parason, Tehsil Kalpi, Dist. Jalaun, Uttar Pradesh.

The Reserve Bank of India on Wednesday, 14 August 2013 announced measures including reducing the limit for Overseas Direct Investment (ODI) under automatic route for all fresh ODI transactions, from 400% of the net worth of an Indian Party to 100% of its net worth. This reduced limit would also apply to remittances made under the ODI scheme by Indian Companies for setting up unincorporated entities outside India in the energy and natural resources sectors. This reduction in limit, however, would not apply to ODI by Navratna PSUs, ONGC Videsh and Oil India in overseas unincorporated entities and incorporated entities, in the oil sector. The RBI also announced reduction in the limit for remittances made by Resident Individuals, under the Liberalised Remittance Scheme (LRS Scheme), from $200,000 to $75,000 per financial year. Resident Individuals have, however, now been allowed to set up Joint Venture (JV)/Wholly Owned Subsidiary (WOS) outside India under the ODI route within the revised LRS limit.

While current restrictions on the use of LRS for prohibited transactions, such as, margin trading and lottery would continue, use of LRS for acquisition of immovable property outside India directly or indirectly will, henceforth, not be allowed, RBI said.

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The present set of measures is aimed at moderating outflows. However, any genuine requirement beyond these limits will continue to be considered by RBI under the approval route.

Key benchmark indices surged on Wednesday, 14 August 2013, with market sentiment boosted data showing that foreign funds remained net buyers of Indian stocks on Tuesday, 13 August 2013. The S&P BSE Sensex jumped 137.75 points or 0.72% to 19,367.59, its highest closing level since 29 July 2013. Stock markets were closed on Thursday, 15 August 2013, on account of Independence Day.

Foreign institutional investors (FIIs) bought shares worth a net Rs 247.96 crore on Wednesday, 14 August 2013, as per provisional data from the stock exchanges.

Asian stocks stumbled Friday after some weak earnings and worries the Federal Reserve would soon pare its bond purchases slammed Wall Street. Key benchmark indices in China, Hong Kong, Indonesia, Singapore, South Korea and Japan were down by 0.51% to 1.35%. Taiwan's Taiwan Weighted index rose 0.04%.

US stocks dropped on Thursday for a second day, with the Dow industrials posting their first back-to-back triple-digit drop since June, as Treasury yields spiked to 2011 highs and Wal-Mart Stores Inc. and Cisco Systems Inc. cut their forecasts.

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First Published: Aug 16 2013 | 8:30 AM IST

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