Market may edge higher on positive Asia; NHPC lists today

The key benchmark indices may open higher tracking positive Asia as China's manufacturing showed improvement. Meanwhile, shares of state-run hydropower generator NHPC will debut on the bourses today, 1 September 2009. NHPC had raised Rs 6,048 crore through the recently concluded public issue, which were priced at the top end of the Rs 30- 36 band by the Indian government.

Auto stocks will be in action as Auto companies are set to announce sales figures for the month of August 2009 today.

Investors will also keenly watch the Export Import data for the month of July 2009 due to be announced by the government today.

The key benchmark indices took a breather on Monday, 31 August 2009 after strong gains in the past seven trading sessions as a setback in Chinese stocks offset optimism arising from India's strong Q1 GDP growth data. The BSE 30-share Sensex fell 255.70 points or 1.61% to 15,666.64 on Monday. The market had urged in the past seven days supported by positive global cues. The BSE Sensex jumped 1112.70 points or 7.51% in seven trading sessions to settle at 15,922.34 on Friday, 28 August 2009 from 14,809.64 on 19 August 2009.

India's gross domestic production (GDP) grew 6.1% in Q1 June 2009 compared with the year-earlier, figures released by the Central Statistical Organisation announced on Monday, 31 August 2009. The segment grouping financing, insurance, real estate and business services led growth in GDP, gaining 8.1% on year. The category including trade, hotels, transport and communication was also up 8.1%. Agriculture, forestry and fishing, by comparison, rose just 2.4% on year. Manufacturing was up 3.4% on year in the April-June 2009 quarter.

The GDP growth was lower than 7.8% achieved in Q1 June 2008 but it accelerated from the 5.8% expansion in Q4 March 2009. Planning Comission deputy chairman Montek Singh Ahluwalia the worst may be over for the economy. He said the economy is expected to improve in the coming quarters. Finance Secretary Ashok Chawla said the economy is slowly bouncing back.

Asian stocks rose today as China's manufacturing expanded at the fastest pace in 16 months.

China's Shanghai Composite Index, which yesterday fell by the most since June 2008, added 0.12 %. The official Purchasing Managers' Index rose to a seasonally adjusted 54 from 53.3 in July 2009, the Federation of Logistics and Purchasing said.

Other Asian stocks, Hong Kong, Japan, South Korea, Singapore and Taiwan rose by between 0.41% to 1.6%.

The US markets ended lower on Monday, 31 August 2009 as market cut losses after broad-based selling following a steep sell-off in China's Shanghai Composite Index.

The Dow fell 47.92 points, or 0.5%, to 9,496.28. The S&P 500 index declined 8.31 points, or 0.8%, to 1,020.62, while the Nasdaq dropped 19.71 points, or 1%, to 2,009.06.

In economic news, the Chicago institute for supply management reported its gauge of business activity in the Midwest region rose to 50 from 43.3 in July, the highest reading since September 2008.