The market may extend Tuesday's losses on weak Asian stocks. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could fall 21.50 points at the opening bell. Asian stocks fell on Wednesday as oil dropped and emerging-market and commodity-linked currencies weakened amid concern that China's economy may be faltering.
A group of investors in Maruti Suzuki India has reportedly ratcheted up pressure on India's top carmaker to abandon a plan for its Japanese parent to build a new plant to make cars for the Indian firm, saying it would hurt shareholders.
Suzuki Motor Co, which owns 56% of Maruti, in January announced plans to invest $488 million on a new plant in India and shelved an earlier plan for Maruti to set up the factory itself.
A group of 16 big fund managers said in a letter to Maruti management, dated March 5, that the plan would shift manufacturing activity away from the Indian company and turn it into a "shell company" of its parent, report added.
"The decision of the MSIL board is ill-conceived in its entirety and results in outsourcing of the core manufacturing activity that is fundamental and critical for MSIL," the letter said, referring to Maruti Suzuki. "This clearly is not in the best interest of MSIL and its shareholders and is in fact significantly detrimental to them," the investors said, in a rare case of shareholder activism in India.
A smaller group of shareholders sent a previous letter last month, saying they were concerned that the contract for the plant in Gujarat state meant the Japanese carmaker, rather than Maruti, would reap the benefits of rising domestic sales. Under the plan, Maruti will buy vehicles produced by Suzuki at the new plant and sell them in the open market. Maruti currently produces and sells its own cars.
Maruti will continue to produce cars at its existing factories in Manesar and Gurgaon in north India, which have a capacity of 1.5 million vehicles per year, but incremental production would be sourced from the Suzuki plant. The second letter was signed by HDFC Asset Management, DSP BlackRock Investment Managers, Axis Asset Management and Birla Sun Life Mutual Fund, among others, report said.
Metals producer Sesa Sterlite reportedly said it may have to cut jobs if the Supreme Court sets a limit on the amount of iron ore it can mine in Goa when and if it allows mining to restart in what used to be the country's top exporter.
Goa expects to resume mining before the monsoon that starts in June, its chief minister said last month. A panel appointed by the court is due to give its recommendation on the issue by March 15.
A blanket ban on production and exports imposed in late 2012 to stop illegal mining, coupled with a similar step in neighbouring Karnataka, have cut India's exports of the ore by 85%, or 100 million tonnes, over the past two years.
"If our production is set at 70% of our current capacity, for example, we'll have to look at reducing our manpower by 30 percent and so on," Aniruddha Joshi, a vice president at the company, said, adding that making redundancies was just one option. "Options available would be firing people, allowing people to retire and reusing them in other operations."
Sesa Sterlite, a unit of billionaire Anil Agarwal-controlled Vedanta Resources Plc, employs about 3,200 in Goa and had a capacity to produce 14.5 million tonnes of ore before the ban.
Sesa Sterlite sent a notice to lay off 1,050 employees in Goa, a proposal that was rejected by both federal labour ministry and the state's labour department. The mining restrictions in Goa and Karnataka is already estimated to have cut 200,000 jobs, according to industry group the Federation of Indian Mineral Industries. Some companies have shed their iron ore businesses too.
Although the mining ban in Karnataka was lifted in April last year, only a few mines have reopened pending forest clearances, delays in renewal of leases and other issues. But Goa's chief minister said in February that once the Supreme Court gives its go-ahead, the state will ensure other hurdles are cleared sooner.
Goa could produce 25 million tonnes of iron ore per year on a "sustainable basis", Manohar Parrikar had said. Its exports hit about 50 million tonnes in the 2010-11 fiscal year, with most of that going to China.
State-run Bharat Heavy Electricals (Bhel) announced after market hours Tuesday, 11 March 2014, that S. Ravi, part time non-official director has ceased to be director on the board of the company, on completion of his tenure on 9 March 2014.
Oil & Natural Gas Corporation (ONGC) announced after market hours Tuesday, 11 March 2014, that the tenure of Dr. D. Chandrasekharam, Independent Director of the company has ended on 10 March 2014 after expiry of the term of three years from the date of his joining of ONGC board i.e. effective from 11 March 2011. Further the company has informed that, Ministry of Petroleum & Natural Gas, Government of India vide letter dated 11 March 2011 had appointed him as non-official part time Director of the company for a period of 3 years from the date of joining of Board of ONGC.
DLF announced after market hours Tuesday, 11 March 2014, that DLF Home Developers (DHDL), a wholly owned subsidiary of DLF, received its final tranche of payment of Rs 93.5 crore on the sale of balance shares of Galaxy Mercantile (GML), a joint venture company of DHDL, IDFC and others. In November 2011, IDFC had contracted to acquire 100% stake in the JV company owning 1.3 million square feet (mill. sq. feet) IT Park located in Sector 62, Noida, Uttar Pradesh. The above transaction is in line with the DLF's objective of divesting its non-core assets, the company said.
Eicher Motors turns ex-dividend for a dividend of Rs 30 per share for the year ended 31 December 2013.
The National Stock Exchange (NSE) after trading hours on Tuesday, 11 March 2014, said it has decided to include L&T Finance Holdings and Just Dial for trading in the futures and options (F&O) segment. The market lot of these two securities for the purpose of trading in the F&O segment shall be informed to members on Wednesday, 12 March 12, 2014, through a separate circular, NSE said.
Industrial production is expected to remain in contraction mode in January 2014. Industrial production is seen contracting 0.5% in January 2014, as per the median estimate of a poll of economists carried out by Capital Market. Industrial output fell 0.6% in December 2013, after contracting a revised 1.3% in November 2013. The government will unveil industrial production data for January 2014 after market hours today, 12 March 2014.
Inflation based on the combined consumer price index (CPI) of urban and rural India is projected at 8.2% in February 2014, further easing from 8.79% in January 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil data on inflation based on the combined consumer price index (CPI) for urban and rural India for February 2014 after market hours today, 12 March 2014.
Inflation based on the wholesale price index (WPI) is seen easing at 4.9% in February 2014, from 5.05% in January 2014, as per the median estimate of a poll of economists carried out by Capital Market. The data on inflation based on the wholesale price index (WPI) for February 2014 is due at 12:00 IST on Friday, 14 March 2014.
The Reserve Bank of India next undertakes monetary policy review on 1 April 2014. Citing price pressures, the Reserve Bank of India raised its key lending rates by 25 basis points after Third Quarter Review of Monetary Policy for 2013-14 on 28 January 2014.
The next major trigger for the stock market is the outcome of the upcoming Lok Sabha elections. Lok Sabha elections will be held between 7 April 2014 and 12 May 2014 in nine phases. The counting of votes will be take place on 16 May 2014. The term of the current Lok Sabha expires on June 1 and the new House has to be constituted by May 31. Along with the Lok Sabha election, Andhra Pradesh (AP), including the regions comprising Telangana, Odisha and Sikkim will go to polls to elect new assemblies. AP, Odisha and Sikkim assemblies come to end on June 2, June 7 and May 7 respectively.
Key benchmark indices edged lower in choppy trade on Tuesday, 11 March 2014 after provisional data showed that India's merchandise exports fell 3.67% year-on-year in February 2014. The S&P BSE Sensex lost 108.41 points or 0.49% to settle at 21,826.42 on that day, its lowest closing level since 6 March 2014.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1,471.23 crore on Tuesday, 11 March 2014, as per provisional data from the stock exchanges.
Asian stocks fell on Wednesday as oil dropped and emerging-market and commodity-linked currencies weakened amid concern that China's economy may be faltering. Key benchmark indices in Indonesia, South Korea, Hong Kong, Taiwan, Singapore and Japan were down 0.34% to 2.17%. China's Shanghai Composite rose 0.22%.
US stocks edged lower for the second day in a row on Tuesday without any big economic news or blowout company earnings to respond to. The Labor Department said Tuesday that employers posted 3.9 million job openings in January, up 1.5% from December, a sign that hiring should remain steady in coming months. However, the increase fell short of what the market was expecting.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review on 18-19 March 2014. After a monetary policy review, the FOMC on 29 January 2014 announced it will reduce monthly bond purchases by another $10 billion to $65 billion.
Germany told Russia it must switch course in Crimea by next week or risk more sanctions as Ukraine's deposed president warned of a possible civil war. The European Union will discuss harsher penalties on March 17 barring "obvious changes in Russia's actions," German Foreign Minister Frank-Walter Steinmeier said in Estonia. A planned March 16 referendum in Crimea on whether to join Russia should be halted, he said. Toppled President Viktor Yanukovych told reporters in Russia that lawlessness is spreading in Ukraine, fomented by the "fascists and ultranationalists" who are in charge in Kiev.
The recovery in developed economies is on track although slowing activity in big emerging markets means global growth will be only moderate at best in the near term, the OECD said on Tuesday. Exceptionally bad winter weather in North America and a sales tax hike in Japan are also disrupting the pace of recovery, the Paris-based Organisation for Economic Cooperation and Development said. Against that backdrop, the OECD urged the European Central Bank and the Bank of Japan to keep up their monetary stimulus, if not increase it, while it said the US Federal Reserve was right to begin winding down its bond-buying programme.
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