Don’t miss the latest developments in business and finance.

Market may open lower on weak Asian stocks

Image
Capital Market
Last Updated : Nov 08 2013 | 11:55 PM IST

The market may open lower on weak Asian stocks. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could fall 25.50 points at the opening bell. Asian stocks fell on Friday after faster US economic growth fueled concern the Federal Reserve may reduce stimulus sooner than expected.

Tata Motors and Punjab National Bank unveil Q2 results today, 8 November 2013.

Car major Maruti Suzuki India after trading hours on Thursday, 7 November 2013, said its production declined 5.51% to 1.01 lakh units in October 2013 over October 2012. The car major had said on 1 November 2013 that its total sales rose 1.9% to 1.05 lakh vehicles in October 2013 over October 2012.

IT stocks may edge higher on positive economic data in US. US is the biggest outsourcing market for the Indian IT firms.

On a consolidated basis, Tech Mahindra's net profit rose 4.7% to Rs 718 crore on 16.3% increase in revenues to Rs 4771 crore in Q2 September 2013 over Q1 June 2013. Operating profit (EBITDA) jumped 28.5% at Rs 1111 crore in Q2 September 2013 over Q1 June 2013. The result was announced after market hours on Thursday, 7 November 2013.

Vineet Nayyar, Executive Vice Chairman, Tech Mahindra, said, "The Digital World is the next phase of our growth and we are ready to ride that wave. I am confident of our alignment with the needs of next generation consumers, with industry best practices and core strengths that our solutions bring."

C P Gurnani, Managing Director & CEO, Tech Mahindra said, "The winning trio for us this quarter - growth across verticals, regions and practices reflects the Tech Mahindra's new found energy and alignment to win large deals, as well as participate with customers in their transformation journey. Our judicious investments in building Connected Solutions and relentless focus on enhancing customer experience is showing results."

More From This Section

Debt was at Rs 335 crore as of 30 September 2013; down by Rs 412 crore during the quarter. Cash and cash equivalent at Rs 3273 crore as of 30 September 2013.

Metal stocks may gain on positive trade data in China. China is the world's largest consumer of copper and aluminum.

The Cabinet Committee on Economic Affairs has approved the proposal of Follow on Public Offer (FPO) of Power Grid Corporation of India (PGCIL) of 78.70 crore equity shares of Rs 10 each constituting 17% of existing paid-up capital which comprises fresh issue of 60.18 crore equity shares (13% of existing paid-up capital) and offer for sale (disinvestment) of 18.51 crore equity shares (4% of existing paid-up capital) of government's stake.

Additional resources generated through the issue of the FPO will be utilized by PGCIL in its investment programmes. Once the approval is received, action will be taken for implementation of the decision immediately in consonance with terms and conditions.

At the end of Financial Year 2012-13, PGCIL owned and operated Extra High Voltage Transmission line network of about 1,00,100 circuit kilometers (ckms) and 168 substations with transformation capacity of more than 1,64,700 Mega Volt Amperes (MVA). PGCIL wheels about 50% of the total power generated in the country through its transmission network. The inter-regional power transfer capacity of National Grid is about 31,850 Mega Watt (MW) which is envisaged to be enhanced to 65,500 MW by the end of the XII Plan. The Capital Expenditure (CAPEX) in the XII Plan is expected to be approximately Rs 1.25 lakh crore after considering the investment for new initiatives. PGCIL is a highly leveraged company and the FPO will help in raising funds of the order of Rs 5,600 crore to meet its investment programme for the next two financial years and in meeting with the CERC allowed norms of 30 percent equity contributions to investment during FY 2013-14 & FY 2014-15.

Key benchmark indices edged lower in what was a highly volatile trading session on Thursday, 7 November 2013 after global credit rating agency Standard and Poor's (S&P) warned that it may lower India's rating to speculative grade from investment grade next year if the government that takes office after the general election fails to provide a credible plan to reverse the country's low economic growth. The S&P BSE Sensex fell 72.17 points or 0.35% to settle at 20,822.77 on that day, its lowest closing level since 28 October 2013.

Foreign institutional investors (FIIs) bought shares worth a net Rs 479.24 crore on Thursday, 7 November 2013, as per provisional data from the stock exchanges.

Asian stocks fell on Friday after faster US economic growth fueled concern the Federal Reserve may reduce stimulus sooner than expected. Key benchmark indices in Singapore, China, Japan, Hong Kong, Taiwan, Indonesia and South Korea shed 0.31% to 0.87%.

China's trade surplus expanded more than forecast to $31.1 billion last month from $15.21 billion in September. Exports grew 5.6% after contracting last month.

China's leaders will meet in Beijing on November 9-12 to map out economic policies as the country heads for its slowest annual growth in more than two decades.

US stocks dropped on Thursday as speculation the Federal Reserve may scale back stimulus amid faster-than-estimated economic growth overshadowed a move by the European Central Bank to cut a key interest rate.

Data yesterday showed growth in the world's biggest economy accelerated to a 2.8% annualized rate last quarter, faster than the 2% median market estimates. Fewer Americans filed applications for unemployment benefits last week, indicating firings haven't picked up following the partial government shutdown. Jobless claims decreased by 9,000 to 336,000 in the week ended Nov. 2 from 345,000 the prior period, the Labor Department reported in Washington.

The US government will today, 8 November 2013, release nonfarm payrolls figures for October 2013. The job data is a key economic indicator that has been watched closely in recent months to see whether the US Federal Reserve will roll back its bond-buying program.

In Europe, the European Central Bank (ECB) cut its benchmark interest rate to a record low after a drop in inflation to the slowest pace in four years threatened its mission to keep prices stable. Policy makers meeting in Frankfurt on Thursday reduced the main refinancing rate by a quarter point to 0.25%.The Bank of England kept its benchmark rate at a record-low 0.5% in London on Thursday, while its bond-purchase plan stayed at 375 billion pounds ($603 billion).

Powered by Capital Market - Live News

Also Read

First Published: Nov 08 2013 | 8:35 AM IST

Next Story