Market may open in green on positive Asia

The key benchmark indices may open higher tracking positive Asia but resistance seen after recent surge in prices. Investors will closely watch advance tax numbers of India Inc which falls due today.

Companies' advance tax numbers and the second quarter September 2009 results next month would be key triggers for the market in the near term. Indian firms have to pay 30% of the estimated tax liability for the year by the second installment of advance tax which falls due today, 15 September. Higher advance tax payment will mean their profits may be higher in Q2 September 2009 over Q2 September 2008 and vice versa.

Meanwhile, Securities & Exchange Board of India (Sebi) panel has reportedly recommended rotation of audit partners, selection of the chief financial officer by a company's audit committee and standardisation of earnings disclosure, in an attempt to prevent another accounting scandal such as Satyam Computer.

The committee has also proposed that companies publish their balance sheets, which show the assets and liabilities, halfyearly , against the present annual system. This would help investors know the company's solvency position, instead of just the profitability which comes out in quarterly results. The SEBI committee has invited comments and suggestions on these proposals before a final recommendation.

Stocks in Asia edged higher in a volatile trade today. The key benchmark indices in Japan, South Korea, Singapore and Taiwan rose by between 0.11% to 0.8%.

But, China's Shanghai Composite fell 0.1%.A U.S. decision to impose added duty on Chinese-made tires is an abuse of World Trade Organization safeguard measures, the Chinese commerce ministry said on Tuesday. The Ministry of Commerce said on Sunday it would launch its own investigation into chicken parts and automotive imports from the United States.

The US markets ended higher on Monday 14 September 2009 with the S&P 500 closing at the highest level in almost a year. Gains in industrial and financial shares helped the market overcome an early slump.

The Dow added 21.39 points, or 0.2%, to 9,626.80. The S&P 500 index rose 6.61 points, or 0.6%, to 1,049.34. The Nasdaq Composite Index rose 10.88 points, or 0.5%, to 2,091.78.

The key benchmark indices snapped last six days' gains on Monday 14 September 2009 as world stocks fell on the eve of the first anniversary of the collapse of US investment back Lehman Brothers. The BSE 30-share Sensex fell 50.11 points or 0.31% to 16,214.19 on that day.

The market slipped on Monday after a sharp rally in the past six days. The Sensex had jumped 865.97 points or 5.62% in six trading days to 16,264.30 on 11 September 2009 from a recent low of 15,398.33 on 3 September 2009 as a revival of monsoon rains, strong response to the initial public offer of Oil India and firm global stocks boosted sentiments.

As per the provisional figures on NSE, foreign funds sold shares worth Rs 44.4 crore and domestic funds sold shares worth Rs 6.11 crore on Monday, 14 September 2009.

The weather office said on Thursday, 10 September 2009 rainfall was 21% above average in the week to 9 September 2009 continuing the upturn since mid-August but total seasonal rainfall was a fifth short of normal since the season began with the driest June in eight decades. More than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains. Higher rainfall in the past week has helped India's 81 biggest reservoirs fill up much faster than normal for this time of year. Reservoirs are important for hydropower, which accounts for a quarter of India's generation capacity. They also provide water to irrigate winter crops.

However, India's drought has spread to nearly half its more than 600 districts, particularly in sugar-producing areas, but the government said its grain stocks were bigger than last year and sugarcane output would not fall. Finance Minister Pranab Mukherjee said the country had enough grains to face the drought but there was a shortfall in lentils and edible oils.

India's industrial output rose a decent 6.8% in July 2009 though the growth was lower than a 6.9% rise in the same month last year data showed on Friday 11 September 2009. The industrial output for the month of June 2009 was revised upwards to a solid 8.2%.

But analysts are concerned that a sharp surge in food prices in the past few days due to scanty rains may stoke inflationary pressures in the economy. Interest rates could rise on higher inflation which in turn may impact a nascent economic recovery and corporate profits.

The wholesale price index (WPI) fell 0.12% in the year through 29 August 2009, lower than an annual decline of 0.21% in the previous week, data released by the government showed on Thursday, 10 September 2009. The food article index surged 14.8%.