The market may open flat to slightly higher. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 2.50 points at the opening bell.
Metal stocks will be in focus after data showed a China's manufacturing gauge rose to a 16-month high in August. China is the world's largest consumer of copper and aluminum.
PSU OMCs and auto stocks will be in focus as petrol price was hiked by a steep Rs 2.35 per litre, and diesel by 50 paise per litre effective Sunday, 1 September 2013. PSU OMCs suffer under recoveries on domestic sale of diesel, LPG and kerosene at controlled prices. 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.
Power Grid Corporation of India (PGCIL) after market hours on Friday, 30 August 2013 said that pursuant to its selection as the successful bidder under Tariff based competitive bidding, the company has acquired Vizag Transmission (VIZAG TL), the special purpose vehicle (SPV) to establish the transmission system for system strengthening in Southern Region for import of power from Eastern Region on build, own operate and maintain (BOOM) basis on 30 August 2013 from REC Transmission Projects Company (the Bid Process Cordinator).
Hindalco Industries after market hours on Friday, 30 August 2013 said that 2.88 crore warrants issued to promoter group company have transferred to other promoter group companies.
Earlier, Hindalco had on 22 March 2012 allotted 15 crore warrants on preferential basis to promoter group companies. The warrant holder is entitled to apply for and be allotted one equity share at Rs 144.35 per share.
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Post transfer of 2.88 crore warrants, the final position of 15 crore warrants stood at ICH Holdings with 12.10 crore warrants, Turquoise Investments and Finance with 2.50 crore warrants, TGS Investment and Trade with 39 lakh warrants and Umang Commercial Company has 1 lakh warrants.
Tata Motors' total sales (including exports) of Tata commercial and passenger vehicles in August 2013 were 49,611 vehicles. The company's domestic sales of Tata commercial and passenger vehicles for August 2013 were 44,717 units. The company's sales of commercial vehicles in August 2013 in the domestic market were 33,153 units, LCV sales were 24,904 units, while M&HCV sales stood at 8,249 units. Sales of passenger vehicles for August 2013 were at 11,564 units. Sales of the Nano/ Indica/ Indigo range in August 2013 were 8,761 units. The Sumo/ Safari/ Aria/ Venture range sales were 2,803 units. The company's sales from exports were 4,894 vehicles in August 2013.
Mahindra & Mahindra (M&M), India's leading SUV manufacturer, announced its auto sales fell 17.32% to 37,897 units in August 2013 over August 2012. The Passenger Vehicles segment (which includes the UVs and Verito) sold 15,821 units in August 2013, as against 21,831 units during August 2012. The company's domestic sales stood at 35,159 units during August 2013, as against 42,826 units during August 2012. The 4 wheeler commercial segment which includes passenger and load vehicles sold 13,718 units, while the 3 wheeler segment clocked 5,149 units in August 2013. Exports for the month of August 2013 stood at 2,738 units.
Speaking on the monthly performance, Pravin Shah, Chief Executive, Automotive Division, Mahindra & Mahindra said, 'The auto industry which is currently going through one of its most challenging phases, is in desperate need of some short-term fiscal stimulus. The weakening rupee, resulting in increased inflation, is impacting cost of operations. Immediate action by the government is needed so as not to lose out on the upcoming festive season wherein sales could look up and bring some cheer for the auto industry and add additional revenue to the government."
On macro front, India's economy grew at the slowest quarterly rate since the global financial crisis in the three months through June, lower than expected and hurt by a contraction in mining and manufacturing, government data showed on Friday, 30 August 2013. The GDP grew 4.4% in Q1 and was the slowest growth since the Jan-March quarter of 2009. Manufacturing fell an annual 1.2% during the quarter while mining fell by 2.8%, the data showed. While, farm output rose 2.7%.
Markit Economics will unveil HSBC India Manufacturing PMI, which gauges the business activity of India's factories, for August 2013 today, 2 September 2013.
Meanwhile, the Reserve Bank of India clarified on media reports that there was no such proposal under its consideration at this juncture of various options of converting idle gold, including that available with temple trusts, into bullion.
A recovery in the rupee triggered by comments by Prime Minister Dr. Manmohan Singh in parliament that the government isn't looking at imposing restrictions on the movement of capital out of the country triggered rally on the domestic bourses on the last trading session of the month on Friday, 30 August 2013. The S&P BSE Sensex jumped 218.68 points or 1.19% to settle at 18,619.72 on that day, its highest closing level since 14 August 2013.
Foreign institutional investors (FIIs) sold shares worth a net Rs 78.85 crore on Friday, 30 August 2013, as per provisional data from the stock exchanges.
Asian stocks were mixed on Monday after a gauge of China's manufacturing rose to a 16-month high, boosting investor confidence in the global economic recovery. Key benchmark indices in China, South Korea, Indonesia, and Taiwan fell by 0.01% to 0.51%. Key benchmark indices in Hong Kong, Japan and Singapore rose by 0.47% to 1.67%.
China's economy is strengthening after a two-quarter slowdown, with a manufacturing gauge rising to a 16-month high in August as new orders jumped and overseas demand rebounded. The Purchasing Managers' Index was at 51.0, the National Bureau of Statistics and China Federation of Logistics and Purchasing said in Beijing. A separate manufacturing PMI released by HSBC Holdings Plc and Markit Economics rose to 50.1 last month from 47.7 in July, the biggest gain in three years and the first reading above 50 since Apr
South Korea's exports expanded at a faster pace in August than the previous month in a sign of economic recovery, the Ministry of Trade, Industry and Energy said Sunday, beating market expectations.
US stocks fell in a thinly traded session on Friday, 30 August 2013 as the S&P 500 index recorded its steepest decline since May 2012 and investors avoided making large bets before a long weekend with the situation about Syria still uncertain. US stock markets remain closed today, 2 September 2013, for the Labor Day holiday.
President Barack Obama has decided to seek congressional authority to attack Syria for alleged chemical weapons prompting criticism that he's undermined US credibility.
Investors across the globe are eyeing the next policy meeting of the Federal Open Market Committee (FOMC) scheduled this month, with their focus squarely on the timing of tapering of Federal Reserve's bond purchases. The FOMC holds a two-day policy meeting on 17-18 September 2013 to decide on interest rates in the United States. The US central bank currently buys $85 billion a month in US debt and mortgage-backed securities in a bid to hold interest rates low and encourage economic growth. Federal Reserve Chairman Ben Bernanke has on several occasions stressed that the tapering process is dependent on an improvement in data. Fed's bond-buying program has kept global markets flush with liquidity in recent years.
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