Market may edge lower in early trade; auto stocks in focus

Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 10.50 points at the opening bell. Mahindra Satyam unveils Q3 results today, 1 February 2012. Asian stocks edged higher.

Auto and cement stocks will be in focus as companies from these two sectors unveil sales figures for January 2012 starting from today, 1 February 2012.

IDBI Bank announced after market hours on Tuesday that net profit fell 9.74% to Rs 409.81 crore on 21.73% rise in total income to Rs 6281.04 crore in Q3 December 2011 over Q3 December 2010. The figures of the current period include working results of the two erstwhile wholly owned subsidiaries namely IDBI Homefinance. and IDBI Gilts. consequent to their merger with the Bank w.e.f. January 01, 2011. Accordingly the figures of the previous period are not strictly comparable.



Key benchmark indices surged on Tuesday, 31 January 2012 as firm global stocks lifted sentiment. The BSE Sensex rose 330.25 points or 1.96% to settle at 17,193.55, its highest closing level since 27 January 2012.

Foreign institutional investors (FIIs) bought shares worth Rs 624.10 crore on Tuesday, 31 January 2012, as per provisional data from the stock exchanges.

Investors' focus is currently on Q3 results. Marico, RCF and Corporation Bank announce Q3 results tomorrow, 2 February 2012. Dr. Reddy's Laboratories, Power Finance Corporation, Hindustan Copper and HPCL report Q3 results on Friday, 3 February 2012. Hindustan Unilever, National Aluminium Company and India Cements announce Q3 results on 6 February 2012.

Mahindra & Mahindra and GMR Infrastructure unveil Q3 results on 7 February 2012. ONGC, Power Grid Corporation of India and Tech Mahindra unveil Q3 results on 8 February 2012. Tata Steel, Hindalco, ACC and Ambuja Cements unveil quarterly results on 9 February 2012. Tata Power, BPCL, Britannia Industries, Sun TV Network and Neyveli Lignite Corporation unveil Q3 results on 10 February 2012. JSW Steel announces consolidated Q3 results on 10 February 2012. The company has already announced its stand-alone results.

Aditya Birla Nuvo and Ashok Leyland announce Q3 results on 11 February 2012. Indian Oil Corporation, Sun Pharmaceuticals Industries and Steel Authority of India (Sail) unveil Q3 results on 13 February 2012. Tata Motors and Shipping Corporation of India unveil Q3 results on 14 February 2012. Ranbaxy Laboratories announces Q4 December 2011 results on 23 February 2012.

Supreme Court on Tuesday said that Janata Party chief Subramanian Swamy had the locus standi to seek sanction from the Prime Minister for prosecution of disgraced former Telecom Minister A. Raja in 2G scam. Sanction by competent authority for prosecution of a public servant has to be granted within a time frame, the apex court said in a statement. The Supreme Court left it to the Parliament to frame guidelines for prosecution in the 2G scam. But, the court added that sanction for the prosecution in the 2G scam should come in three months.

The government on Tuesday, 31 January 2012, lowered slightly its estimate of the country's growth in gross domestic product for the last fiscal year ended 31 2011, to 8.4% from 8.5%.

The growth rate of eight core industries has slowed down to 3.1% in December last year from 6.3% in the same month previous year, as per latest data. These eight core sectors have a combined weight of 37.9% in the Index of Industrial Production (IIP).

The Reserve Bank of India (RBI), last week, took liquidity easing measures by cutting the cash reserve ratio (CRR) requirement for banks by 50 basis points to 5.5% from 6% at Third Quarter Review of Monetary Policy 2011-12. The central bank said that as a result of the reduction in the CRR by 50 basis points, around Rs 32000 crore of primary liquidity will be injected into the banking system. The central bank said the large structural deficit in the system presents a strong case for injecting permanent primary liquidity into the system.

The RBI kept its key lending rate viz. the repo rate unchanged at 8.5%. RBI has cut the baseline projection of GDP growth for 2011-12 to 7% from 7.6%. The growth-inflation balance of the monetary policy stance has now shifted to support growth, while at the same time ensuring that inflationary pressures remain contained, the central bank said.

The reduction in CRR can be viewed as a reinforcement of the guidance that future rate actions will be towards lowering interest rates, RBI said. However, the timing and magnitude of future rate actions is contingent on a number of factors, RBI said. In the absence of credible fiscal consolidation, the Reserve Bank of India will be constrained from lowering the policy rate in response to decelerating private consumption and investment spending, it said. The forthcoming Union Budget must exploit the opportunity to begin this process in a credible and sustainable way, the RBI said.

The budget for 2012/13 ending March will be presented after elections scheduled in five states, Finance Minister Pranab Mukherjee said on 2 January 2012. Polling for assembly elections in five states concludes in early March 2012. The annual budget is usually presented on the last working day of February.

A record voter turnout of 77% in Punjab and high 70% polling in Uttarakhand on Monday, 30 January 2012, threw political parties into a tizzy as the current round of assembly polls reaches the halfway mark with a major four-cornered contest looming in Uttar Pradesh (UP) besides a smaller, but no less hard fought showdown in Goa. Seven-phase polling for assembly elections in Uttar Pradesh begins on Saturday, 4 February 2012.

Asian stock markets reversed initial losses on Wednesday ahead of upcoming manufacturing surveys. Key benchmark indices in China, Hong Kong, Indonesia, Japan, China, South Korea, and Taiwan rose by between 0.14% to 0.55%. Singapore's Straits Times fell 0.15%.

Data from South Korea showed its exports to the European Union for the January 1-20 period fell 44.8% from a year earlier, while preliminary trade data showed the country's exports fell 6.6% in January from a year earlier, against a rise of 0.7% forecast.

Global manufacturing surveys due later this session include from China, the euro zone and the Institute for Supply Management index from the United States. The euro zone flash inflation for January and U.S. January employment data from ADP are also due.

Wall Street closed its best month since October on a flat note on Tuesday as weaker-than-expected economic reports surprised investors after a stream of positive data in recent months. U.S. home prices and business activity in the U.S. Midwest missed expectations and consumer confidence fell unexpectedly.