The market may open slightly lower as most Asian stocks edged lower. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could fall 8 points at the opening bell. Asian stocks fell on Monday as American lawmakers struggled over an accord to raise the US debt limit and restore government operations.
Reliance Industries and IndusInd Bank announce their Q2 results today, 14 October 2013.
On the macro front, data on inflation based on the wholesale price index (WPI) and the consumer price index (CPI), both, for September 2013, are due today, 14 October 2013. The annual rate of inflation based on the combined consumer price index (CPI) for urban and rural India is seen easing a bit 9.4% in September 2013 from 9.52% in August 2013, as per the median estimate of a poll of economists carried out by Capital Market. The CPI had decelerated to 9.52% in August 2013 from 9.64% in July 2013. Inflation for the category 'food and beverages' stood at 11.06% in August 2013.
The annual rate of inflation, based on the monthly wholesale price index (WPI) is seen easing slightly to 6% in September 2013 from 6.1% in August 2013, as per the median estimate of a poll of economists carried out by Capital Market. The WPI had accelerated to 6.1% in August 2013 from 5.79% in July 2013.
Industrial production growth slowed to 0.6% in August from an upwardly revised 2.75% pace in July, hurt by weak investment and consumer demand, government data showed on Friday. The manufacturing sector, which constitutes about 76% of industrial production, crawled up 0.1% from a year earlier, the federal statistics office said. Capital goods production, a barometer for investments in the economy, contracted by 2% in August from a year earlier.
A strong beginning to the earnings season, with IT major Infosys raising its revenue guidance for the full year, gains in rupee against the dollar and data showing that foreign funds remained net buyers of Indian stocks on Thursday, 10 October 2013, cheered bulls on Friday, 11 October 2013. The S&P BSE Sensex jumped 255.68 points or 1.26% to settle at 20,528.59 on that day, its highest closing level since 19 September 2013.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1010.45 crore on Friday, 11 October 2013, as per provisional data from the stock exchanges.
Asian stocks fell on Monday as American lawmakers struggled over an accord to raise the US debt limit and restore government operations. Key benchmark indices in Singapore, South Korea, and Taiwan fell 0.01% to 0.61%. China's Shanghai Composite rose 0.18%. Stock markets in Japan, Indonesia and Hong Kong were shut for holidays.
China's exports unexpectedly fell in September and inflation jumped on food prices, signaling constraints on the nation's recovery as Premier Li Keqiang seeks to sustain growth without adding monetary stimulus. Overseas shipments dropped 0.3% from a year earlier, customs data showed on 12 October, while imports rose a more-than-forecast 7.4%. Consumer prices rose 3.1% as food costs advanced the most since May 2012, statistics bureau figures showed in Beijing.
US stocks rose on Friday over hopes talks between the White House and Congress will lead to a spending package needed to fund the government and put to rest concerns the country will hit its debt ceiling and risk default.
Investors across the globe are closely monitoring political developments in the United States as a partial government shutdown continued for the second week. Senate Majority Leader Harry Reid was negotiating with Minority Leader Mitch McConnell after talks between President Barack Obama and House Speaker John Boehner broke down. The talks are shifting away from Republican efforts to curtail Obama's signature health-care law to rescinding a tax on medical devices to focus on the level of spending and the duration of the deficit-ceiling extension. The Treasury Department's Oct. 17 deadline for raising the debt ceiling is rapidly approaching. Failure to raise the debt limit could be catastrophic for the US economy. Without an increase to the debt limit, the US will exhaust its borrowing authority on Thursday, 17 October 2013, and would run out of funds to pay all of its bills sometime between October 22 and October 31, according to the Congressional Budget Office.
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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