Market may open lower on weak Asian stocks

The market may open lower on weak Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 13 points at the opening bell. Tata Steel, Hindalco Industries, ACC, Ambuja Cements and HPCL unveil quarterly results today, 9 February 2012.

Tech Mahindra announced after market hours on Wednesday that consolidated net profit rose 14.8% to Rs 276 crore on 8.4% rise in revenues to Rs 1445 crore in Q3 December 2011 over Q2 September 2011.

Vineet Nayyar, Vice Chairman, MD and CEO of Tech Mahindra said, “We have had a satisfactory quarter, with growth in both revenue and margins. This is a result of our investments in growth markets, and in emerging technologies. We continue to focus on delivering enhanced value to our customers in an uncertain economic environment"



PowerGrid Corporation of India announced after market hours on Wednesday that net profit rose 36.88% to Rs 809.23 crore on 20.08% rise in total income to Rs 2576.20 crore in Q3 December 2011 over Q3 December 2010.

Key benchmark indices edged higher amid volatility in the second half of the trading session on Wednesday, 8 February 2012. The 50-unit S&P CNX Nifty attained its highest closing level in 27 weeks. The barometer index, BSE Sensex, attained its highest closing level in more than 14-1/2 weeks. The BSE Sensex advanced 84.87 points or 0.48% to settle at 17,707.32, its highest closing level since 28 October 2011.

Foreign institutional investors (FIIs) bought shares worth Rs 384.24 crore on Wednesday, 8 February 2012, as per provisional data from the stock exchanges. FIIs have bought shares worth Rs 6692.01 crore in first six trading sessions this month, as per provisional data from the stock exchanges. The inflow early this month comes on the top of heavy purchases last month. FIIs bought shares worth a net Rs 10357.70 crore in January 2012, as per data from Securities & Exchange Board of India (Sebi).

DFL, Tata Power, BPCL, Reliance Communications (RCom), Britannia Industries, Sun TV Network, Essar Oil and Neyveli Lignite Corporation unveil Q3 results tomorrow, 10 February 2012. JSW Steel announces consolidated Q3 results on Friday, 10 February 2012. The company has already announced its stand-alone results.

Aditya Birla Nuvo, Oil India and Ashok Leyland announce Q3 results on Saturday, 11 February 2012. State Bank of India, Cipla, Reliance Power, Indian Oil Corporation, Coal India, Sun Pharmaceuticals Industries and Steel Authority of India (Sail) unveil Q3 results on 13 February 2012. Tata Motors, Reliance Infrastructure, Jaiprakash Associates, Videocon Industries and Shipping Corporation of India unveil Q3 results on 14 February 2012. Ranbaxy Laboratories and ABB unveil Q4 December 2011 results on 23 February 2012.

The Indian economy is estimated to grow 6.9% in the current fiscal year through March 2012 (FY 2012), sharply slower than the 8.4% expansion reported last year, according to a government forecast released on Tuesday, 7 February 2012. The new expectation is due to weaker growth in manufacturing and farm output, data from the ministry of statistics and implementation showed. The government expects manufacturing output to grow 3.9% this fiscal year compared with a 7.6% increase a year earlier. Farm output is expected to rise 2.5%, compared with 7% last year. In December 2011, the government had cut its growth projection for FY 2012 to between 7.25% and 7.75% from an initial forecast of 9%.

India is facing some challenges on its stable rating outlook and the balance of risk factors for its rating may be shifting slightly toward the negative, said Standard & Poor's Ratings Services on Monday, 6 February 2012, in a report titled "Several Factors Could Weigh On India's Current Stable Sovereign Rating In 2012." High inflation, a weak government fiscal position, and slower economic growth have hurt investor confidence in the rupee, triggered a capital outflow, and weighed on the stable sovereign outlook on India in 2012, the report said. S&P has an investment grade BBB- rating with a stable outlook on India.

Finance Minister Pranab Mukherjee will present the annual budget for 2012/13 on 16 March 2012, while the railways budget will be presented on 14 March 2012. The budget session of parliament will start on 12 March 2012, Pawan Kumar Bansal, minister of parliament affairs, said recently. The government will present on March 15 the Economic Survey for 2011/12, a document on the state of economy prepared by the economic division in the ministry of finance. The annual budget is usually presented on the last working day of February. However, the budget has been delayed this time due to the ongoing assembly polls. Polling for assembly elections in five states concludes in early March 2012.

The government is likely aim to shrink its budget deficit by at least 0.4 percentage point of gross domestic product next fiscal year, as it attempts to boost government revenue and cut subsidies, a news agency quoted an unnamed senior finance ministry official as saying on Monday, 6 February 2012. Under a medium-term fiscal consolidation plan, the government is tasked with shrinking the fiscal deficit to 3.5% by March 2014. Getting back to a tight fiscal road is critical, and the government may have to take some tough steps such as cutbacks in social spending and streamline subsidies to help keep a lid on government expenditure, the official said.

The official said the government is likely to add more services to boost indirect taxes as a slowing economy limits chances of a sharp rise in personal income tax and corporate tax revenue. However, raising service tax rates seems unlikely ahead of the roll out an ambitious Goods and Services Tax, the official added.

India's trade deficit widened to $12.7 billion in December from $8.0 billion a year earlier as export growth slowed due to falling global demand. But imports, specially in the non-oil segments, continued to grow. For the April-December period, the trade gap was $133.2 billion, compared with $96.2 billion a year earlier. India's merchandise exports in December grew 6.7% from a year earlier to $25.0 billion while imports rose 19.8% to $37.7 billion.

Asian shares fell on Thursday, pressured by a stronger-than-expected reading on Chinese consumer inflation, uncertainty over ongoing Greek debt negotiations and weak data from Japan. Key benchmark indices in China, Hong Kong, Indonesia, Japan, South Korea, and Singapore declined by between 0.03% to 0.88%. Taiwan's Taiwan Weighted rose 0.11%.

China's annual inflation rate accelerated to 4.5% in January, well ahead of market expectations and breaking a five-month trend of easing price pressures as consumers ramped up spending during the Chinese Lunar New Year holiday season.

South Korea's central bank kept its key rate on hold at 3.25% for an eighth straight month on Thursday. Japan's core machinery orders, considered a key leading economic indicator, fell 7.1% in December compared to a year earlier, the government reported Thursday.

U.S. shares had ended Wednesday with mild gains, with sentiment held in check by Greece's prolonged talks with its institutional lenders.

Greek Prime Minister Lucas Papademos' office reportedly released a statement late Wednesday saying the key political parties have reached an agreement in principle on measures required for the country to receive its next aid package. While most provisions were agreed by the ruling and opposition leaders, details over adjustment to pensions remain as a sole sticking point, according to reports.