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Last Updated : Sep 16 2014 | 10:45 AM IST

The market may extend Monday's losses on weak Asian stocks. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could fall 20 points at the opening bell. Asian stocks declined today, 16 September 2014, ahead of the start of a Federal Reserve policy meeting today, 16 September 2014. Meanwhile, India's merchandise exports registered a small increase of 2.35% in August 2014.

On macro front, India's merchandise exports registered a small increase of 2.35% at $26.95 billion in August 2014 over August 2013, data released by the government after trading hours yesterday, 15 September 2014, showed. Imports rose 2.08% at $37.79 billion in August 2014 over August 2013. Oil imports declined 14.97% at $12.83 billion in August 2014 over August 2013. Non-oil imports jumped 13.82% at $24.95 billion in August 2014 over August 2013. The trade deficit increased to $10.83 billion in August 2014, from $10.68 billion in August 2013.

Among corporate news of prominent companies, Tata Motors Group global wholesales, including Jaguar Land Rover, fell 9.73% to 73,524 units in August 2014 over August 2013. Global wholesales of all Tata Motors' commercial vehicles and Tata Daewoo range declined 19.6% to 30,536 units in August 2014 over August 2013. Global wholesales of all passenger vehicles slipped 1.11% to 42,988 units in August 2014 over August 2013.

Larsen & Toubro (L&T) after market hours on Monday, 15 September 2014 said that its construction division has won new orders worth Rs 2050 crore across various business segments in August 2014 and September 2014.

Wipro after market hours on Monday, 15 September 2014 said that the company's joint-venture subsidiary, Wipro Arabia has on Monday, 15 September 2014, entered into a strategic partnership with Saudi-based Saudi Electricity Company (SEC), the largest power utility company in the Middle East serving approximately 5 million customers in the Kingdom of Saudi Arabia (KSA). As part of this engagement, Wipro will implement and rollout the plant maintenance and project system functionality of the SAP ERP application for SEC's distribution business line across KSA.

Cipla after market hours on Monday, 15 September 2014 announced the signing of a non-exclusive licensing agreement with Gilead Sciences, Inc. for manufacturing and distribution of medicines for the treatment of hepatitis C. Under this licensing agreement, Cipla will be allowed to manufacture and market Sofosbuvir, Ledipasvir in 91 countries including its home markets India and South Africa under Cipla's own brand names. It also covers countries like Egypt which has a high incidence of Hepatitis C. The countries within the agreement account for more than 100 million people living with hepatitis C globally representing 54% of the total global infected population. As per the agreement, Cipla has the option of receiving a technology transfer of the manufacturing process from Gilead.

Cadila Healthcare and Gilead Sciences, Inc. on Monday, 15 September 2014 announced that they have signed a non-exclusive licensing agreement which will allow the generic manufacture of sofosbuvir and investigational single tablet regimen of ledipasvir/ sofosbuvir for distribution in 90 developing countries, including India.

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Epirus Biopharmaceuticals Inc reportedly said India's drug regulator has approved its copy of a top-selling arthritis treatment, paving the way for its launch in the country early next year. The company's Indian partner, Ranbaxy Laboratories will sell a copycat version of Johnson & Johnson's and Merck & Co Inc's infliximab, an anti-inflammatory drug with annual sales of about $6 billion. Infliximab, sold under the brand name Remicade, is used to treat rheumatoid arthritis, Crohn's Disease, psoriasis and other inflammatory conditions. In India, it sells at about Rs 70,000 ($1,150) per month.

The Jharkhand government has reportedly ordered closure of five bauxite mines of aluminium major Hindalco Industries in the state as these mines have been operating under second deemed renewal.The state government had issued similar closure notice to 12 iron ore mines of Tata Steel and Steel Authority of India along with Hindalco on September 8. The central government had ordered in July demanding closure of all mineral mine leases which fall under second deemed renewal.

Trading for the week started on a weak note as key benchmark indices dropped on Monday, 15 September 2014, after data showing a muted 0.5% growth in industrial production in July 2014 raised doubts about economic recovery. The S&P BSE Sensex declined 244.48 points or 0.9% to settle at 26,816.56 on that day, its lowest closing level since 28 August 2014.

The provisional data released by the stock exchanges after trading hours on Monday, 15 September 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 74.59 crore on that day.

Asian stocks declined today, 16 September 2014, ahead of the start of a Federal Reserve policy meeting today, 16 September 2014. Key benchmark indices in Indonesia, South Korea, China, Singapore, Taiwan and Japan fell by 0.13% to 0.51%. South Korea's Kospi rose 0.32%.

The morning session on the Hong Kong Stock Exchange was canceled due to Typhoon Kalmaegi.

Foreign direct investment into China, a gauge of external confidence, slumped to a four-year low amid widening antitrust probes into multinational companies. Inbound investment was $7.2 billion in August, down 14% from a year earlier, the Ministry of Commerce said on its website today in Beijing after a 17% drop in July. It was the first back-to-back decline of more than 10% since 2009.

US stocks closed mostly lower on Monday, 15 September 2014, with losses led by technology and small-cap stocks as investors continued to unload riskier position ahead of this week's pivotal Federal Reserve policy meeting.

Economic data yesterday showed US industrial production unexpectedly declined in August for the first time in seven months as automakers slowed assembly lines.

Investors will look to Federal Open Market Committee (FOMC) meeting for fresh guidance on US interest rates. A two-day policy meeting of the Federal Open Market Committee (FOMC) ends tomorrow, 17 September 2014. At the end of a two-day meeting, the FOMC is widely expected to announce cut in Fed's monthly bond-buying program by another $10 billion to $15 billion, staying on track to end the program at its October meeting. The Fed is likely to raise short-term interest rates next year from their current near-zero levels, where they have been since December 2008.

The Fed will also announce US economic projections after the policy meet. Fed now releases economic projections four times a year (March, June, September, and December). Traditionally, the Fed forecasts covered GDP, the PCE price index, and the civilian unemployment rate. However, the forecast report additionally now includes forecasts for the appropriate timing of the next change in the fed funds rate and the expected fed funds rate at the end of the next two years. The policy meet will be followed by a press conference by Federal Reserve Chairwoman Janet Yellen on 17 September 2014.

The Federal Reserve after two-day policy meeting on 30 July 2014, said it would reduce its purchases of mortgage and Treasury bonds by $10 billion to $25 billion monthly from $35 billion earlier, as widely expected.

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First Published: Sep 16 2014 | 8:25 AM IST

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