Market may open in green on firm Asian stocks; SBI Q2 results eyed

The market may open on a positive note on firm Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a gain of 26.50 points at the opening bell. State Bank of India, Ranbaxy Laboratories, Indian Oil Corporation, GMR Infrastructure and Power Finance Corporation unveil June-September 2011 quarter results today, 9 November 2011.

Key benchmark indices ended marginally higher on Tuesday, 8 November 2011, as index heavyweight Reliance Industries (RIL) inched up in volatile trade. The BSE Sensex rose 6.92 points or 0.04% to settle at 17,569.53, its highest closing level since 31 October 2011.



Foreign institutional investors (FIIs) bought shares worth Rs 456.28 crore on Tuesday, 8 November 2011 as per provisional figures on the stock exchanges. FII inflow totaled Rs 600.35 crore in three trading sessions from 3 November 2011 to 8 November 2011 as per data from the stock exchanges.

Bank of India announced after market hours on Tuesday that its board of directors has decided to issue up to 4 crore fresh equity shares for face value of Rs 10 each at an appropriate premium through preferential issue to promoter viz. the Government of India or by any other mode as permitted and at an appropriate time.

Infrastructure Development Finance Company (IDFC)'s consolidated net profit jumped 54.93% to Rs 524.27 crore on 40.94% increase in income from operations to Rs 1714.92 crore in Q2 September 2011 over Q2 September 2010. The result was announced after market hours on Tuesday.

Premier Foods has chosen Wipro Technologies, the global IT, consulting and outsourcing business of Wipro, as a strategic technology partner. As part of the five year strategic relationship, Wipro will be supporting both systems and processes to enhance efficiency of Premier Foods' supply chain. This relationship will enable Premier Foods to realise quantifiable benefits for a known budgetary expenditure with minimal exposure to variable costs.

Reliance Infrastructure announced after market hours on Tuesday that consolidated net profit inched up 0.4% to Rs 361.63 crore on 48.50% increase in total income to Rs 5855.34 crore in Q2 September 2011 over Q2 September 2010.

The current week is a truncated trading week. The stock market remains closed tomorrow, 10 November 2011 on account of Gurunanak Jayanti.

Stock-specific activity may dominate trade in the near-term with the earnings season as its peak. Investors will closely watch the management commentary at the time of announcement of Q2 September 2011 results, which will provide cues on futures earnings outlook.

DLF, Tata Steel, Hindalco, Pantaloon Retail (India), Mahindra Satyam, Rural Electrification Corporation and CEAT unveil quarterly results on Thursday, 10 November 2011. Jet Airways (India), GE Shipping, Reliance Capital, Housing Development & Infrastructure and Tata Chemicals unveil Q2 results on Friday, 11 November 2011. Coal India, National Aluminium Company and Shipping Corporation of India report Q2 results on Saturday, 12 November 2011. Sun Pharma unveils Q2 results on Sunday, 13 November 2011. Tata Motors, Mahindra & Mahindra, Tata Power, Bhel, Jaiprakash Associates, Bhushan Steel, JSW Steel and India Cements unveil Q2 results on 14 November 2011. Tech Mahindra unveils Q2 results on 15 November 2011.

Trinamool Congress chief and West Bengal Chief Minister Mamata Banerjee has issued a fresh threat to the government, saying her party will withdraw support if the government hikes diesel and LPG prices. This is a climbdown of sorts for Mamata, after she failed to have her way on the petrol hike issue, when Prime Minister Manmohan Singh refused to commit to a rollback in the petrol price hike during a meeting with the Trinamool MPs. Mamata has reportedly asked the Centre to compensate her state for years of Left rule that she claims stripped the state treasury bare. Mamata also reportedly said that the issues of the West Bengal financial package and petrol price rise are separate and should not be mixed up.

PSU OMCs last week raised petrol prices by between Rs 1.80 per litre to Rs 1.91 per litre. That was the 13th increase in petrol prices since the fuel was decontrolled in June last year, and second since the middle of last month when prices were raised by more than Rs 3 a litre.

India's October exports rose an annual 10.8% to $19.9 billion, while imports for the month rose 21.7 percent to $39.5 billion, the trade secretary said on Tuesday, citing provisional data. India's trade deficit in October is seen at $19.6 billion, the highest in four years, Rahul Khullar said. At this rate, the trade deficit for the year could breach the $150 billion mark, he added.

India's service sector contracted for a second straight month in October, as new business grew at its weakest pace since May 2009, dragged by sagging global demand and tight monetary policy, a survey showed on Thursday, 3 November 2011. The seasonally adjusted HSBC Markit Business Activity Index, based on a survey of around 400 firms, slumped to 49.1 in October, its lowest reading in two-and-a-half years and below the 50-mark which separates growth from contraction. It was at 49.8 in September.

India's manufacturing activity in October expanded--though modestly--indicating an improvement in business conditions from a month ago as growth in new orders accelerated, a survey showed Tuesday, 1 November 2011. The seasonally adjusted HSBC Purchasing Managers' Index, prepared by Markit, rose to 52 in October from 50.4 in September. A figure above 50 indicates expansion.

The food price index rose 12.21%, its highest in 9 months, and the fuel price index climbed 14.50% in the year to October 22, government data on Thursday, 3 November 2011, showed. In the previous week, annual food and fuel inflation stood at 11.43% and 14.70% respectively. The primary articles price index was up 12.08% compared with an annual rise of 11.75% a week earlier.

India needs to guard against imported inflationary pressure as the euro-zone continues to reel under the debt crisis, Prime Minister Manmohan Singh said on Wednesday, 2 November 2011. "In an increasingly interdependent world, we have to be wary of contagion effects," Mr. Singh said in a statement before his departure to attend a conference of the Group of 20 industrial and developing economies in Cannes, France.

Bad loans are not threatening the entire banking system and the policy guidance given so far would hold until further notice, a deputy governor of the Reserve Bank of India, Subir Gokarn, said at a televised event on Tuesday, 8 November 2011.

RBI announced a 25 basis points hike in its key policy rate viz. the repo rate to 8.5% after half-yearly review of the monetary policy on 25 October 2011. The central bank cut its GDP growth forecast for the current fiscal year through March 2012 to 7.6% from 8% earlier. But it retained its March-end inflation projection of 7%. RBI said the projected inflation trajectory indicates that the inflation rate will begin falling in December 2011 (January 2012 release) and then continue down a steady path to 7% by March 2012. It is expected to moderate further in the first half of 2012-13. This reflects a combination of commodity price movements and the cumulative impact of monetary tightening. Further, moderating inflation rates are likely to impact expectations favourably.

Mr. Sudipto Mundle, a member of the Reserve Bank of India's technical advisory committee on monetary policy, on Thursday, 3 November 2011, said he expects inflation to ease in the January-March quarter as global commodity prices will begin to cool by then, helped by a favorable base. However, it will still overshoot the RBI's March-end projection of 7%, possibly ending the fiscal year at as high as 8%, he added. Mr. Mundle expects the economy to grow 7%-7.5% this fiscal year, below the RBI's 7.6% forecast.

Asian shares rose on Wednesday, 9 November 2011, after Italian Prime Minister Silvio Berlusconi said he would resign, raising hopes the debt-ridden country would proceed with reforms to contain the euro zone's sovereign debt crisis from spreading. Key benchmark indices in China, Hong Kong, Indonesia, Japan, South Korea, Singapore and Taiwan rose by between 0.24% to 2.22%. Berlusconi said he would step down after parliament approves a budget law that includes austerity reforms to cut debt and bring borrowing costs under control. Votes on the budget measures and his resignation could come this month. Berlusconi won a vote on the ratification of the budget, but he failed to obtain an absolute majority in the Chamber of Deputies, leading to calls for him to step down.

Meanwhile, Greece remained undecided on its next leader. Party leaders were locked in talks on a unity coalition, with the European Union seeking an immediate deal to save the country's finances. European Union finance ministers also failed to make progress on Tuesday on ways to shore up sagging banks and avert a credit squeeze, as rising borrowing costs for Italy make it more difficult for European banks to borrow as they are increasingly reluctant to lend to one another.

US stocks closed higher on Tuesday for a second day in a row as late-day news about Europe sparked an afternoon rally that erased early weakness.