The market may open flat to slightly higher. Trading of Nifty futures on the Singapore stock exchange indicates that the CNX Nifty could gain 1.50 points at the opening bell. Markit Economics will unveil the result of a monthly survey on the performance of India's services sector for February 2013 today, 5 March 2013. The HSBC Markit services Purchasing Managers' Index, which gauges business activity from a survey of over 400 companies ranging from banks to hospitals, jumped to 57.5 in January from 55.6 in December 2012. Services make up over 60% of India's economy.
Mahindra & Mahindra (M&M) after trading hours on Monday, 4 March 2013, said its consolidated net profit after minority interest jumped 50.8% to Rs 1254.30 crore on 16.6% growth in gross revenue plus other income to Rs 19066.80 crore in Q3 December 2012 over Q3 December 2011. M&M said that group companies like Mahindra Finance and Mahindra Holidays significantly improved their performance in Q3 December 2012.
Mahindra & Mahindra Financial Services successfully raised Rs 867 crore through a Qualified Institutional Placement (QIP) of its equity shares in Q3 December 2012 which resulted in a dilution of M&M's holding in the company. This resulted in a deemed divestiture profit of Rs 275.6 crore in the group consolidated accounts, M&M said.
Shares of sports utility vehicles (SUV) makers will be in focus on reports that SUV makers have raised prices after the government raised excise duty on SUVs to 30% from 27% in Union Budget 2013-14 announced on 28 February 2013. M&M has reportedly raised the prices of its Scorpio, Quanto, XUV500 and Rexton modes by about Rs 11,000 to about Rs 40,000. Tata Motors has increased the prices of its Sumo, Safari and Aria models by between Rs 20,000 and Rs 35,000.
Shares of merchandise exporters will be in focus after Finance Minister P. Chidambaram said Monday, 4 March 2013, said that the government will soon announce more measures -- including sops for exporters -- to boost economic growth. Some of these steps will be announced in parliament during the debate on the Budget, Mr. Chidambaram told industry representatives at a customary address held on Monday, 4 March 2013, after the budget announcement on 28 February 2013.
Mahindra Satyam before market hours today, 5 March 2013, announced a new leadership team to pursue rapid growth from Australia, New Zealand (ANZ) and the Middle East markets. Bobby Gupta will take over as Head of ANZ operations after successfully transforming the MENA operations and build a world-class team and capabilities, Mahindra Satyam said in a statement. Replacing Bobby in MENA is G B Kumar, a well known IT industry veteran with over 20 years experience in product and services, sales, marketing, business and solution development across Asia Pacific, India, Japan and China, Mahindra Satyam said.
Mahindra Satyam earns 24% of its revenues from the Rest of the World market, which comprises of the geographies Australia, New Zealand, Middle East & other geographies in Asia & Africa. With good traction seen in BFSI, Manufacturing, Resources, Airlines and Government, the company aims to grow rapidly with the new leadership change, Mahindra Satyam said.
GMR Infrastructure after trading hours on Monday, 4 March 2013, said that the GMR Group has entered into a Share Purchase Agreement to sell its 70% interest in GMR Energy (Singapore) Pte (GMRE) to FPM Power Holdings (FPM Power) for a total equity value of 660 million Singapore dollars. Out of this, FPM Power will invest 60 million Singapore dollars in GMRE as the Balance Equity. This sate translates to an Enterprise Value (100% basis) for GMRE of 1,612 million Singapore dollar or about $1.293 billion on project completion by end 2013. The transaction is subject to approval from Project Finance lenders to GMRE and is expected to close by end of March 2013.
GMRE is a company established for the construction, operation and maintenance of a 2X400 MW (gross) Natural Gas fuelled power plant on Jurong Island, Singapore. The GMRE power plant is nearly 96% complete and expected to commence operations by the end of 2013. GMR Infrastructure (Singapore) Pte owns 66.4% of GMRE and 3.6% is held by GMR Infrastructure. The balance 30% stake in GMRE is held by PETRONAS who will continue to stay invested in the project.
The divestment of the entire 70% stake will result in a profit of Rs 1356 crore and releases capital amounting to Rs 1616 crore for the GMR Group, GMR Infrastructure said.
Commenting on the divestment of the stake, GMR Group Chairman Mr. G. M Rao said: "GMR Energy Singapore is a solid testimony of GMR's ability to identify a good opportunity, develop and execute a World Class Power Project of high efficiency in a developed country like Singapore. The project is completely on schedule and within the budget. The divestment is the off-shoot of the Group's well thought out strategy of an Asset Right-Asset Light and Cash Flow based model that the Group has embarked in the recent times. This is the second such strategic move after last month's divestment of 74% stake in the GMR Jadcherla road project at a premium. The Cash flows will help GMR Energy to focus on our Domestic Energy Business & accelerate ongoing Projects totaling to 5,790 MW. We acknowledge the significant contribution made by the local Management Team and also our existing partners PETRONAS in bringing the project to this stage. PETRONAS have fully supported GMR's divestment and will continue to stay invested in the project."
Infosys after trading hours on Monday, 4 March 2013, announced that it plans to add approximately 200 new jobs in the next fiscal year at its Cumberland location in Cobb County, and expects additional expansion in the metro Atlanta area over the next couple of years. Infosys has identified Atlanta as a strategic hub for growth in the United States. The infrastructure, cosmopolitan culture, and talent available in Atlanta attracted Infosys BPO (its Business Process Outsourcing subsidiary) to set up an onshore operations center to deliver high-end business process services to North American clients. Cobb County offers a secure, easily accessible and central location with world-class space available for large-scale business process operations, Infosys said in a statement.
Key benchmark indices edged lower in choppy trade on Monday, 4 March 2013, as weakness in global stocks dampened investor sentiment. The S&P BSE Sensex lost 40.56 points or 0.21% to 18,877.96 on that day, its lowest closing level since 28 February 2013.
Foreign institutional investors (FIIs) sold shares worth a net Rs 30.10 crore on Monday, 4 March 2013, as per provisional data from the stock exchanges.
Finance Minister P. Chidambaram on Monday, 4 March 2013, said that the fiscal deficit for the current fiscal year ending 31 March 2013 could turn out to be lower than the projected 5.2% of gross domestic product.
Data on advance tax payment for the final installment of the current fiscal year which is 15 March 2013, could provide cues on the likely Q4 March 2013 corporate earnings.
The Central Statistics Office (CSO) will unveil data on industrial production for January 2013 and also data on the combined consumer price index for rural and urban India for February 2013 on 12 March 2013. The CSO will unveil data on inflation based on the wholesale price index for February 2013 on 14 March 2013.
The Budget Session of the Parliament which began on 21 February 2013 will conclude on 10 May 2013. In order to enable the Standing Committees to consider the Demands for Grants of Ministries/Departments and prepare their Reports, the two Houses will adjourn for recess on 22 March 2013 to meet again on 22 April 2013.
The government has lined up a number of key bills for consideration and passing during the Budget session of the parliament, which include The Forward Contracts (Regulation) Amendment Bill, 2010, The Pension Fund Regulator and Development Authority Bill, 2011, The Land Acquisition, Rehabilitation and Resettlement Bill, 2011, The National Food Security Bill, 2011 and The Insurance Laws (Amendment) Bill, 2008.
Reduction of promoter stake to meet the Securities & Exchange Board of India (Sebi) mandated minimum public shareholding of 25% for private companies and 10% for state-run firms will result in supply of equity in the market over the next few months. As per the Sebi mandated minimum public shareholding rule, private-sector companies must cut founders' stake to adhere to the rules by 13 June 2013, while the deadline for state-run firms is 13 August 2013. PSU divestment will also add to share sale glut in FY 2014. The government has set a target of Rs 40000 crore from divestment of government stake in state-run firms and Rs 14000 crore from divestment of stake in non-government companies for FY 2014.
The Reserve Bank of India (RBI) undertakes mid-quarter review of Monetary Policy 2012-13 on 19 March 2013. The central bank on 29 January 2013 signaled after a monetary policy review that there is less room for aggressive policy rate cuts amid any negative surprise emanating from inflation and the twin deficits viz. the current account deficit and the fiscal deficit.
Asian stocks climbed on Tuesday, 5 March 2013, amid speculation central bankers around the world will continue stimulus measures and as China maintained its economic-growth target for 2013. Key benchmark indices in China, Hong Kong, Indonesia, Japan, Singapore, Taiwan and South Korea rose by 0.05% to 0.69%.
China maintained its economic-growth target at 7.5% for 2013 while setting a lower inflation goal of 3.5%, setting up a challenge for new leaders to keep prices in check without harming expansion.
China's services sector cooled in February after new business receded from eight-month highs, a private survey showed on Tuesday, in line with slower factory activity that suggests a modest rebound in the world's second-biggest economy this year. The HSBC Services Purchasing Managers' Index (PMI) fell to 52.1 from January's 54.0, after seasonal adjustments, but still held above 50 to show the increasingly important services sector was growing on a monthly basis
US stocks rose on Monday as speculation the Federal Reserve will continue stimulus measures overshadowed concern over spending cuts and China's economy.
US Federal Reserve Vice Chairman Janet Yellen said yesterday the US central bank should press on with $85 billion in monthly bond buying.
The Federal Open Market Committee (FOMC) holds a two-day meeting on the interest rates in the United States on 19 and 20 March 2013
The Governing Council of the European Central Bank (ECB) holds a meeting on euro area interest rates on Thursday, 7 March 2013. The euro area comprises the 17 European Union countries that have introduced the euro since 1999.
The Monetary Policy Committee (MPC) of the Bank of England (BoE) holds a meeting on interest rates in the UK on Thursday, 7 March 2013.
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