Firm opening on cards

Stocks may edge higher at the onset of the trading session, extending Tuesday's (31 August 2010)'s strong intraday rebound. Data showing resumption of buying by foreign funds and firm Asian markets, will support share prices. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicate that the Nifty could gain 35.50 points at the opening bell.



Auto and cement stocks will be in focus as companies start unveiling sales data for the month just gone by. HSBC will release manufacturing Purchasing Manager's Index (PMI) for August 2010 today, 1 September 2010. The manufacturing PMI had edged up to 57.6 in July 2010 from 57.3 in June 2010, when it slipped from a multi-year high.

HSBC may also unveil the services sector PMI for August 2010 this week. The index, which shows business activity in the services sector, had eased to 61.7 in July 2010 from 64 in June 2010.

Foreign funds bought shares worth a net Rs 287.88 crore on Tuesday, 31 August 2010, as per the provisional data released by the stock exchanges. Domestic funds dumped shares worth a net Rs 595.33 crore on that day.

The economy grew at a robust pace in the first quarter, the latest data showed. The gross domestic product (GDP) grew 8.8% in Q1 June 2010. The manufacturing sector grew 12.4%, mining sector expanded 8.9%, construction sector grew 7.5%, and farm sector expanded at 2.8%. Output in the combined sectors -- trade, hotels, transport and communication, jumped 12.2%.

The economy could grow better than 8.5% in the fiscal year that ends in March 2011, Planning Commission deputy chairman Montek Singh Ahluwalia said on Tuesday, 31 August 2010. Government spending is expected to pick up after the June-September monsoon rains, Ahluwalia said.

Asian stocks edged higher on Wednesday, 1 September 2010, on positive economic data in US and China. The key benchmark indices in Hong Kong, China, South Korea, Indonesia, Taiwan, Singapore and Japan were up by between 0.26% to 1.3%.

China's official purchasing managers' index rose to 51.7 in August from 51.2 in July, according to figures released Wednesday by the China Federation of Logistics and Purchasing. The reading was a tad lower than market expectations. A reading over 50 indicates an increase in manufacturing activity.