Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could surge 50.50 points at the opening bell. Market sentiment may be boosted by positive measures announced by Reserve Bank of India (RBI) after market hours on Monday, 7 October 2013 to improve liquidity conditions in the banking system. Asian markets were mostly higher on Tuesday.
Bank stocks will be in focus after the RBI on Monday evening announced measures to improve liquidity conditions in the banking system.
State Bank of India after market hours on Monday, 7 October 2013 announced the appointment of Arundhati Bhattacharya, Managing Director, State Bank of India as Chairman, State Bank of India, for a period of three years from the date of her taking over the charge of the post i.e. 7 October 2013, or until further orders, whichever is earlier.
Godrej Consumer Products (GCPL) said after market hours on Monday, 7 October 2013 that on 7 October 2013 it has entered into an agreement to acquire a 30% stake in Bhabani Blunt Hair Dressing (B:blunt). B:blunt is a premier hair salon company with one of the strongest consumer franchises in this space. Since launching the chain in 2005, Adhuna Bhabani Akhtar and Osh Bhabani have grown the brand across India. B: blunt, today has a pan-India presence with 17 outlets and 4 academies, GCPL added.
GlaxoSmithKline Pharmaceuticals said after market hours on Monday, 7 October 2013 that it has come to the company's knowledge that in the major pockets of the country its products are not being purchased by the trade from 15 September 2013. On account of the above, sales of the company continue to be affected, it added.
The Reserve Bank of India (RBI) on Monday evening announced measures to improve liquidity conditions in the banking system. The RBI announced a reduction in the marginal standing facility (MSF) rate by 50 basis points to 9% with immediate effect. The central bank has also decided to provide additional liquidity through term repos of 7-day and 14-day tenor for a notified amount equivalent to 0.25% of net demand and time liabilities (NDTL) of the banking system through variable rate auctions on every Friday beginning from 11 October 2013. The notified amount and tenor of the term repo auctions will be announced prior to the dates of the auctions, the RBI said in a statement. Starting with the Mid-Quarter Review of September 2013, the RBI began a calibrated withdrawal of exceptional measures undertaken since July 2013. This was done with a view to normalising liquidity conditions, the RBI said. RBI said that open market purchase operations of Rs 9974 crore were conducted on Monday, 7 October 2013, to inject liquidity into the banking system.
Indian stocks staged a strong intraday rebound and closed with mild losses on Monday, 7 October 2013 as investors assessed the impact on monetary stimulus for the US economy as US lawmakers wrangled over the debt limit and as a partial US government shutdown entered a seventh day. The S&P BSE Sensex was down 20.85 points or 0.1% to 19,895.10, its lowest closing level since 1 October 2013.
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Foreign institutional investors (FIIs) bought shares worth a net Rs 494.13 crore on Monday, 7 October 2013, as per provisional data from the stock exchanges.
Asian markets were mostly higher on Tuesday. Key benchmark indices in Taiwan, Hong Kong, Indonesia, rose by 0.08% to 0.42%. Singapore's Straits Times index rose 0.03%. Key benchmark indices in Japan and South Korea fell by 0.07% to 0.43%. Mainland Chinese markets, resumed trading today, 8 October 2013 after remaining closed since Oct. 1 for the National Day holidays.
The HSBC China Services Purchasing Managers' Index fell to 52.4 in September from 52.8 in August, HSBC Holdings PLC said on Tuesday. A reading above 50 in the gauge of nationwide service-sector activity indicates on-month expansion and below that means contraction.
US stocks declined on Monday, with the S&P 500 index closing at a four-week low, as a stalemate on Capitol Hill over preventing a government default persisted.
President Barack Obama on Monday called on lawmakers to raise the debt limit by next week, saying he was open to bargaining fiscal terms after the step is made and government operations are once again funded.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 29-30 October 2013. The lack of data may make it harder for the Federal Reserve to assess the economy's strength as policy makers mull the timing of reductions in bond buying. Government data from payrolls to retail sales will be delayed as long as the shutdown continues. On 18 September 2013, the Fed surprised economists and investors with its decision to delay scaling back its stimulus amid concerns about the strength of the economic recovery.
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