Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could fall 15.50 points at the opening bell tracking mostly lower Asian stocks. Most Asian stocks edged lower amid concern Europe's stimulus plans may not solve the euro region's economic woes and after an unexpected drop in American wages clouded the outlook for US interest rates.
Among corporate news, HDFC Bank will be in focus after the finance ministry on Friday, 9 January 2015, said a proposal related to foreign investment in HDFC Bank has been recommended for consideration of the Cabinet Committee on Economic Affairs (CCEA). HDFC Bank has sought approval from the government for issue of equity shares of the bank aggregating to an amount of Rs 10000 crore to NRIs/FIIs/FPIs subject to the aggregate foreign shareholding not exceeding 74% of the post issue paid up capital. Currently, there is a ban on purchases of shares of HDFC Bank by foreigners. The Reserve Bank of India (RBI) had 16 Dec 2013 notified that foreign share holding through foreign institutional investors (FIIs)/Non Resident Indian (NRI)/Persons of Indian Origin (PIO)/foreign direct investment (FDI)/ADR/Global Depository Receipt (GDR) in HDFC Bank had crossed the overall limit of 49% of the bank's paid-up capital. Therefore, no further purchases of share of HDFC Bank would be allowed through stock exchanges in India on behalf of FII/NRI/PIO/FDI/ADR/GDRs, the RBI had said.
Tata Steel announced after market hours on Friday, 9 January 2015, that hot metal production rose 2.8% to 2.38 million tonnes in Q3 December 2014 over Q3 December 2013. Crude Steel production rose 5.6% to 2.29 million tonnes in Q3 December 2014 over Q3 December 2013. Saleable steel production was higher by 3.3% to 2.22 million tonnes in Q3 December 2014 over Q3 December 2013, Sales increased by 3.05% to 2.13 million tonnes in Q3 December 2014 over Q3 December 2013.
Telecom stocks will be in focus after the Department of Telecommunications (DoT) on Friday, 9 January 2015, issued notice inviting applications (NIA) for auction of spectrum in 2100 MHz, 1800 MHz, 900 MHz and 800 MHz bands. The details of 2100 MHz bands would be announced later, the Ministry of Communications & Information Technology said a statement on Saturday, 10 January 2015. Spectrum has been put on offer in 15 service areas (SAs) in 1800MHz band, 17 SAs in 900MHz and 20 SAs in 800MHz band. The spectrum auction is scheduled to commence on 25 February, 2015 and will be conducted on-line. The validity of spectrum in this auction will be 20 years. The auction format is simultaneous, multiple-round ascending auction.
On the macro front, data to be released today, 12 January 2015, is expected to show industrial production growth remaining muted in November 2014 and consumer price inflation accelerating in December 2014. Industrial production is seen rising 1.6% in November 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil industrial production data for November 2014 after trading hours today, 12 January 2015. Industrial production had witnessed a surprise contraction of 4.2% in October 2014.
The rate of inflation based on the consumer price index (CPI) is seen accelerating to 5.4% in December 2014 from 4.4% in November 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will release the data on CPI inflation for December 2014 after trading hours today, 12 January 2015.
The Reserve Bank of India (RBI) aims to limit consumer-price gains to 8% by January 2015 and 6% by January 2016. Over the longer term, the RBI aims to limit consumer-price gains to 4%, within a 2% band.
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The rate of inflation based the wholesale price index (WPI) is projected at 0.5% for December 2014, as per the median estimate of a poll of economist carried out by Capital Market. WPI inflation stood at zero in November 2014. The government will release data on WPI for December 2014 at 12 noon on Wednesday, 14 January 2015.
The seventh annual Vibrant Gujarat Summit, a global investor conference was inaugurated by Prime Minister Narendra Modi on Sunday, 11 January 2015. The Summit ends tomorrow, 13 January 2015.
IT stocks led the rally on the bourses in what was a highly volatile trading session on Friday, 9 January 2015. The Sensex garnered 183.67 points or 0.67% to settle at 27,458.38 on that day, its highest closing level since 5 January 2015.
Foreign portfolio investors sold shares worth a net Rs 297.99 crore on Friday, 9 January 2015, as per provisional data.
Most Asian stocks edged lower amid concern Europe's stimulus plans may not solve the euro region's economic woes and after an unexpected drop in American wages clouded the outlook for US interest rates. Key indices in South Korea, Indonesia, Singapore, China and Taiwan were off 0.07% to 0.77%. Hong Kong's Hang Seng rose 0.18%. Japanese stock market remained close for a holiday.
US stocks fell on Friday, 9 January 2015, following a two-day rally as December's jobs report gave a mixed view of the economy, with financial shares leading the way lower.
US job growth increased briskly in December, but wages posted their biggest decline in at least eight years in a sign the tightening labor market has yet to give much of a boost to workers. Nonfarm payrolls increased by 252,000 last month after an upwardly revised jump of 353,000 in November, the Labor Department said. The jobless rate fell 0.2 percentage point to a 6-1/2-year low of 5.6%, but that was mainly because people left the labor force.
The drop in labor participation and a surprise five-cent, or 0.2 percent, decrease in average hourly earnings, which nearly erased November's gains, took some shine off the otherwise upbeat report.
Meanwhile in Europe, the uncertainties over the status of Greece including its possible exit from the eurozone are likely to persist until the early election in the country later this month. Greece is set to hold snap elections on 25 January 2015 after it failed to elect a new president in a third round of voting late last year. The Greek leftist opposition party Syriza leads opinion polls ahead of national elections on 25 January 2015. Syriza has demanded debt relief from the eurozone and promised to roll back the austerity and reform measures that the country has undertaken in exchange for the international bailout that the government negotiated in 2012.
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