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Market may open higher on firm Asian stocks

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Capital Market
Last Updated : Oct 29 2014 | 9:45 AM IST

The market may open higher on firm Asian stocks Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could rise 40.50 points at the opening bell. Asian stocks rose today, 29 October 2014 before the Federal Reserve reviews monetary policy. The market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month October 2014 series to November 2014 series. The near month October 2014 derivatives contract expire tomorrow, 30 October 2014.

Among corporate news, L&T will be in focus after its wholly owned IT subsidiary -- L&T Infotech -- after trading hours yesterday, 28 October 2014, said it has completed the acquisition of Pune based Information Systems Resource CentrePvt. Ltd. (ISRC). ISRC was a subsidiary of Otis Elevator Co., which is apart of UTC Building & Industrial Systems, a unit of United Technologies Corp. L&T Infotech plans to leverage the technology capability and experience of ISRC in order to enhance its value-add to UTC.

Bharat Heavy Electricals (Bhel) after trading hours yesterday, 28 October 2014, said it has secured a contract worth Rs 422 crore for setting up a 444 megawatts (MW) Hydro Electric Project (HEP) in Uttarakhand. Bhel's scope of work in the contract envisages engineering, procurement and construction of all hydro generating sets and associated electro mechanical works and is to be executed in a tight schedule of 48 months. The order has been placed by THDCIL, formerly known as Tehri Hydro Development Corporation.

Dr Reddys Laboratories after trading hours yesterday, 28 October 2014, said it has launched Sirolimus Tablets, 1 mg and 2 mg -- a generic version of Rapamune tablets -- in the US market on Monday, 27 October 2014. The Rapamune tablets brands had annual US sales of about $206 million for twelve months ended August 2014, according to IMS Health data.

Hero MotoCorp after trading hours yesterday, 28 October 2014, said that the company is confident of clocking over 90,000 units of scooters in retail sales in this month, which will be the company's all-time high monthly retail scooter sales. The company further said that it is raising scooter production capacity to about 1 lakh units per month by January 2015. Like the previous year, Hero MotoCorp is confident of clocking good double digit growth in scooters this year as well. The company has lined up two new scooter models for launch over the next few months, Hero MotoCorp said.

Separately, the Reserve Bank of India has on Monday, 28 October 2014, notified that foreign institutional investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 49% of the paid up capital of Hero MotoCorp under the Portfolio Investment Scheme. The Reserve Bank has stated that the company has passed resolutions at its Board of Directors' level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs. The purchases could be made through primary market and through stock exchanges.

TCS turns ex-dividend today, 29 October 2014, for an interim dividend of Rs 5 per share for the year ending March 2015.

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Oil and Natural Gas Corporation (ONGC) announced that it signed a Memorandum of Understanding (MOU) with Petrovietnam Exploration Production Corporation (PVEP - a wholly owned subsidiary of Vietnam Oil and Gas Group (Petrovietnam), for mutual cooperation for exploration in the NELP Blocks of ONGC in Andaman and Cauvery Basins, subject to due diligence and negotiations on terms of participation.

ONGC Videsh also signed a Heads of Agreement (HOA) with PVEP for mutual cooperation for exploration in Blocks 102/10 & 106/10 of PVEP and Block 128 of ONGC Videsh in offshore Vietnam, subject to due diligence and negotiations on terms of participation, the company said.

ONGC Videsh forayed into Vietnam as early as 1988, when it was awarded the exploration license for Block 06.1. Presently the Block is producing natural gas. The company also got exploration Blocks 127 and 128 in 2006. Block 127 was relinquished after completing the work programme. Block 128 is currently under exploration, ONGC said in a statement.

State Bank of India announced after market hours on Tuesday, 28 October 2014, that it has fixed 21 November 2014 as record date for 10-for-1 stock split.

Container Corporation of India, Dish TV India, Dr Reddy's Laboratories, Excel Crop Care, Grasim Industries, MphasiS, Oriental Bank of Commerce, Raymond, State Bank of Bikaner & Jaipur, State Bank of Travancore, Sesa Sterlite, Tech Mahindra, Thomas Cook (India) will announce their July-September 2014 earnings today, 29 October 2014.

Gains in European stocks and US index futures aided gains for Indian stocks, with the 50-unit CNX Nifty regaining the psychological 8,000 level on Monday, 28 October 2014. The S&P BSE Sensex jumped 127.92 points or 0.48% to settle at 26,880.82 on that day, its highest closing level since 22 September 2014.

The provisional data released by the stock exchanges after trading hours on Tuesday, 28 October 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 108 crore on that day.

Asian stocks rose today, 29 October 2014 before the Federal Reserve reviews monetary policy. Key benchmark indices in Indonesia, South Korea, Singapore, Japan, China, Hong Kong, and Taiwan were up 0.39% to 1.38%.

US stocks rose on Tuesday, 28 October 2014, as strong earnings eased concerns about the outlook for corporate America.

Among economic data, US consumer confidence data, hit its highest since 2007 in October. The report overshadowed a separate read that showed new orders for capital goods by US businesses fell the most in eight months in September.

A two-day meeting of the Federal Open Market Committee (FOMC) on US monetary policy review ends today, 29 October 2014. The Fed is expected to announce the end of quantitative easing after the meeting. Investors will be looking to see if the Fed drops the "considerable period" for keeping rates low at its two-day policy meeting. As several Fed officials have come out with dovish comments recently, investors largely expect that guidance to be reiterated.

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First Published: Oct 29 2014 | 8:29 AM IST

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