The market may open lower on weak Asian stocks. Trading of Nifty futures on the Singapore stock exchange indicates that the CNX Nifty could fall 17.50 points at the opening bell.
Bharat Heavy Electricals (Bhel) will be in focus after the Ministry of Heavy Industries & Public Enterprises after trading hours on Tuesday, 12 March 2013, said that the enhanced powers delegated under the 'Maharatna' status would help Bhel tap bigger opportunities for equity participation in large size power projects. The 'Maharatna' status will also help the power equipment major in pursuing merger and acquisition opportunities in the areas of transportation, transmission, power & energy sectors. The 'Maharatna' status will also help Bhel to build its businesses including in defence and exports, the Minister of Heavy Industries and Public Enterprises, Mr. Praful Patel said in written reply to a question in Rajya Sabha. The 'Maharatna' status will also help Bhel position its senior level executives to oversee/manage new entities. The Government of India had granted the 'Maharatna' status to Bhel on 1 February 2013.
Tata Steel announced after market hours Tuesday, 12 March 2013, that the company, through its subsidiary Tata Steel Minerals Canada (TSMC), has entered into a framework arrangement with Labrador Iron Mines Holdings (LIM) to establish a strategic relationship between TSMC and LIM whereby the two companies have agreed to co-operate with each other in various aspects of their respective iron ore operations in the Labrador Trough. The Labrador Trough is a 1,100-kilometre long, 160-kilometre wide iron ore bed in the Labrador-Quebec region in Canada. The trough has delivered more than 2 billion tonnes of ore in last 50 years and has attracted mining investments of $15 billion from leading global companies. It is estimated that the annual iron ore production of this region would increase from current 35 million tonnes to about 65 million tonnes by 2015, Tata Steel said in a statement.
LIM and TSMC operate adjacent DSO iron ore projects spread over the Provinces of Newfoundland & Labrador and Quebec. Having plans to potentially utilize the same infrastructure, both companies have decided to work together to exploit the significant scope of synergies in operations and logistics. As per the understanding between the two companies, LIM will transfer 51% interest in the Howse deposit to TSMC. The Howse deposit is estimated to contain 28 million tonnes of iron ore resources. Additionally, the strategic relationship will include multi-part co-operation agreements in areas of logistics and various ancillary mutual support and potential off-take arrangements including development of a rail line that will pass through LIM's rail yard facilities and connect TSMC's processing plant with the main rail line and further exploration of Howse deposit. In consideration of all of the above, LIM will receive up to 30 million Canadian dollars. TSMC will also transfer its "Timmins 4" deposit having resource of 1.7 million tons to LIM at a consideration of 3 million Canadian dollars recoverable from sales. TSMC also has an option to further increase its ownership of Howse deposit to 70% for a consideration of 25 million Canadian dollars.
Tata Steel established its presence in this region through an acquisition of 19.9% stake in New Millennium Iron Corporation (NML) in 2008. Tata Steel subsequently increased its stake to 27% in NML and also chose to exercise its option to participate in NML's DSO Project in 2010. Tata Steel holds 80% in the DSO project through TSMC. TSMC was formed as a joint venture between NML and Tata Steel to develop the DSO Project. The DSO has 125 million tonnes of resources spread over 25 deposits. While the mine has commenced its production in September 2012 and has produced 300,000 tonnes of ore, the construction of the processing plant within a mega-dome is in full-swing. The TSMC facility, when fully commissioned, will be able to roll out 6 mtpa of sinter fines.
Commenting on the strategic relationship with LIM, Canada, Mr. H.M. Nerurkar, MD of Tata Steel said: "Tata Steel's raw material strategy focuses on adding value accretive assets to its portfolio to increase its raw material security. We have large investments in the Labrador Trough area and this transaction with LIM further reinforces our presence in the region. The proposed arrangement with LIM is expected to enhance the raw material security for the group and streamline the logistics of the DSO Project, which is expected to come on stream in 2013".
Jaiprakash Associates announced after market hours Tuesday, 12 March 2013, that it has redeemed the entire outstanding amount, including the redemption premium and final interest on 0.5% foreign currency convertible bonds (FCCB-II) issued on 9 March 2006 and that the FCCB-II issue of the company thus stands fully redeemed on its due date i.e. 9 March 2013.
Bank of Baroda said after market hours on Tuesday, 12 March 2013 that the Allotment Committee of the bank has issued and allotted 1,01 crore shares at issue price of Rs 838.85 aggregating to Rs. 849.99 crore to Government of India (President of India) on preferential basis.
Shares of auto companies will be in focus after the Ministry of Heavy Industries & Public Enterprises on Tuesday, 12 March 2013, said that that the Auto Mission Plan 2006-16 is the cornerstone of the government's policy for comprehensive and continued development of the auto sector. Further initiatives have also been taken in various other areas in order to strengthen the auto sector in the country. These initiatives include the setting up of Auto Sector Skill Development Council (ASDC), support to R&D projects through automotive cess funding, starting a Rs 2288 crore project, namely National Automotive R&D Infrastructure Project (NATRiP) for setting up of world class infrastructure for homologation and testing, setting up of the National Automotive Board (NAB) as a repository of auto R&D expertise and an apex coordinating body to address the need of collaborative R&D and for synergizing the activities of NATRiP centres. Giving this information in written reply to a question in Rajya Sabha, Mr. Praful Patel, Minister of Heavy Industries and Public Enterprises said that the Department of Heavy Industries reviews the implementation of all these initiatives regularly and gives suggestions on policy formulation and implementation to the concerned stakeholders, including Ministry of Finance and Planning Commission for adequate allocation of funds in the budget each year.
Key benchmark indices edged lower in choppy trade on Tuesday, 12 March 2013 after the latest data showed that the consumer price inflation edged up further in February 2013. The S&P BSE Sensex fell 81.29 points or 0.41% to 19,564.92 on that day, its lowest closing level since 7 March 2013.
Foreign institutional investors (FIIs) bought shares worth a net Rs 733.25 crore on Tuesday, 12 March 2013, as per provisional data from the stock exchanges.
Inflation based on the wholesale price index (WPI) is projected to remain unchanged compared to the level in January 2013, at 6.6% in February 2013, according to the median estimate of a poll of economists carried out by Capital Market. The Central Statistics Office (CSO) will unveil data on inflation based on the wholesale price index for February 2013 tomorrow, 14 March 2013.
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.
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.
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 ongoing 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.
Asian stocks edged lower on Wednesday amid concern shares have risen too fast following a three-week rally. Key benchmark indices in China, Hong Kong, Indonesia, Japan and Singapore shed by 0.24% to 0.45%. Key benchmark indices in Indonesia and Taiwan rose by 0.02% to 0.21%. South Korea's Kospi was flat.
U.S. stocks ended mostly lower on Tuesday, but the blue-chip Dow Jones Industrial Average staged a late-session turnaround to finish at a record high.
House Republicans on Tuesday introduced a plan to cut the deficit to $528 billion in fiscal 2014 and then to $69 billion by 2016, kicking off a debate that is expected to bring a 10-year budget proposal from Senate Democrats on Wednesday. Automatic spending cuts began to take effect March 1 after politicians failed to come to an agreement to avoid a process known as sequestration.
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.
Investors will watch bond sales from highly-indebted euro zone countries to gauge the degree of anxiety. Italy will offer three-year and 15-year bonds at an auction later on Wednesday, while Spain plans to sell bonds due 2029, 2040 and 2041 at a special, off-calendar auction on Thursday.
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