Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could fall 4.50 points at the opening bell. Data on advance tax payment for the final installment of the current fiscal year which is due today, 15 March 2013, could provide cues on the likely Q4 March 2013 corporate earnings.
The Reserve Bank of India (RBI) on Thursday, 14 March 2013, said that it has decided in consultation with the Government of India and the Securities and Exchange Board of India (SEBI), to permit foreign institutional investors (FIIs) to use, in addition to already permitted collaterals, their investments in corporate bonds as collateral in the cash segment of the equity markets and government securities and corporate bonds as collaterals in the equity futures and options (F&O) segment. The operational guidelines in this regard will be issued separately by Sebi, RBI said in a notification. With the proposed changes coming into effect, henceforth, FIIs will be eligible to offer government securities/corporate bonds (acquired by FIIs in accordance with provisions of Schedule 5 to Notification No. FEMA 20 dated 3 May 2000), cash and foreign sovereign securities with AAA ratings in both cash and F&O segments, RBI said.
The Government of India has decided to sell 12.88 crore equity shares of National Aluminium Company (Nalco), constituting 5% of the total paid up equity share capital of the company, with an option to sell additional 12.88 crore shares, in aggregate constituting 10% of the equity share capital of the company through Offer for Sale (OFS) via the stock exchanges mechanism today, 15 March 2013. The floor price for the OFS has been set at Rs 40 per share. Shares of Nalco dropped 4.43% to settle at Rs 44.25 on BSE on Thursday, 14 March 2013.
Bharat Heavy Electricals (Bhel) will be in focus after the Minister of Heavy Industries and Public Enterprises Mr. Praful Patel on Thursday, 14 March 2013, said that a number of steps have been taken by Bhel for enhancing its performance which include introduction of upgraded modules -- 270 MW, 525 MW and 600 MW thermal units and also the super-critical thermal sets of 660 MW, 700 MW and 800 MW ratings suiting the local conditions. Bhel has scaled up its capacity to deliver 20,000 MW of power equipment (main plant & machinery) per annum, Patel said in written reply to a question in Lok Sabha.
The minister further stated that Bhel spent nearly Rs 1199 crore i.e. 2.42% of turnover during 2011-12 on R&D and filed 351 patents/copyrights, making the company one of the highest patent filers in the country after CSIR. The minister also said that Bhel is placing high importance on people development. The company is also pursuing initiatives in diversification and mergers & acquisitions (M&A), Patel said.
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Key benchmark indices snapped three-day losing streak on Thursday, 14 March 2013, after the latest data showed that the non-food manufacturing inflation or core inflation eased to three-year low of 3.8% in February 2013 from 4.1% in January 2013. The S&P BSE Sensex jumped 207.89 points or 1.07% to settle at 19,570.44 on that day, its highest closing level since 11 March 2013.
Foreign institutional investors (FIIs) bought shares worth a net Rs 607.12 crore on Thursday, 14 March 2013, as per provisional data from the stock exchanges.
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 India Meteorological Department will issue its first forecast of 2013 southwest monsoon in April 2013.
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 higher on Friday, 15 March 2013, after US weekly jobless claims unexpectedly dropped and as Japan's upper house confirmed Haruhiko Kuroda as central bank governor. Key benchmark indices in Hong Kong, Indonesia, Japan, Singapore and Taiwan rose by 0.02% to 0.85%. Key benchmark indices in China and South Korea fell by 0.05% to 0.48%.
Kuroda, an advocate of aggressive monetary policy easing, was confirmed as Bank of Japan governor today, 15 March 2013, by parliament's upper house, along with deputy governor nominees Kikuo Iwata and Hiroshi Nakaso. Current governor Masaaki Shirakawa and his deputies step down on March 19.
Meanwhile, the Japanese government upgraded its assessment of the economy for the third straight month, citing improvements in industrial production and corporate profits.
US stocks edged higher on Thursday, 14 March 2013, lifting the S&P 500 index to within 2 points of its all-time closing high, as investors embraced the latest confirmation of an expanding economy.
A faster-than-expected increase in US retail sales and a decline in weekly jobless claims added to signs the world's biggest economy is recovering. The Labor Department reported initial applications for unemployment benefits declined by 10,000 to 332,000 last week. Separately, the Labor Department reported a 0.7% jump in producer prices in February, boosted by a rise in gasoline prices.
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.
In Europe, European political chiefs paved the way for finance ministers to wrangle a rescue for Cyprus today, 15 March 2013, as the euro area seeks progress toward a bailout that's been batted about for nine months. Cyprus requested a bailout in June and a deal on aid has been delayed by debate on how to cut the island nation's debt. The previous government had rejected key demands by the so-called troika that oversees euro-area bailouts. German Finance Minister Wolfgang Schaeuble said on Thursday, 14 March 2013, that there's a willingness to help Cyprus, provided the nation is willing to undertake the necessary reforms.
A two-day European Union summit in Brussels ends today, 15 March 2013, with a 27-nation discussion of foreign policy, to be followed by a euro-area ministers' meeting.
The European Central Bank (ECB) on Thursday, 14 March 2013, said that Greece has made significant progress in rebuilding its challenged economy but more work must be done. Significant progress has been made, but a few issues remain outstanding, the euro-zone central bank said in a statement, after a two week review process conducted by staff teams from the European Commission, the ECB and the International Monetary Fund--known as the Troika. Additional "technical work" will be necessary to settle those issues, the ECB said, adding that the Troika mission to Greece intends to take a short break to allow this work to be completed. The mission plans to return to Athens in early April to continue its work, the statement said.
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