Market may open flat to slightly higher

Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a gain of 7 points at the opening bell.

Bank of Baroda said after market hours on Thursday, 23 February 2012 that a meeting of the board of directors of the bank will be held on 27 February 2012, to consider proposed preferential issue of equity shares in favour of Life Insurance Corporation of India (LIC)/ Mutual Funds (MF).

Key benchmark indices fell for the second straight day to reach their lowest closing level in more than a week on Thursday, 23 February 2012 as profit booking emerged after recent strong rally in share prices. The BSE Sensex shed 66.75 points or 0.37% to settle at 18,078.50, its lowest closing level since 14 February 2012.



Foreign institutional investors (FIIs) bought shares worth a net Rs 104.55 crore on Thursday, 23 February 2012, as per provisional data from the stock exchanges. FIIs have bought shares worth a net Rs 14483.61 crore in this month so far (23 February 2012), as per provisional data from the stock exchanges. The inflow this month comes on the top of heavy purchases last month. FIIs bought shares worth a net Rs 10357.70 crore in January 2012, as per data from Securities & Exchange Board of India (Sebi).

The government is working with state governments for early implementation of a goods and services tax (GST), Finance Minister Pranab Mukherjee said on Wednesday, 22 February 2012.

India's economy is expected to grow an annual 7.1% in the current financial year that ends in March, and 7.5 to 8% in the next financial year, C. Rangarajan, chairman of Prime Minister Manmohan Singh's economic advisory council said. The economy has lost momentum as euro zone debt woes coupled with high interest rates and policy paralysis at home have hit capital investment. Rangarajan released the document 'Review of the Economy 2011-12' at a Press Conference in New Delhi on Wednesday, 22 February 2012. He said a likely overshoot in fiscal deficit over the budgeted 4.6% of gross domestic product is a matter of concern and the government must lay out a roadmap for fiscal consolidation.

The initial public offer (IPO) of commodity exchange Multi Commodity Exchange of India (MCX) was subscribed 4.48 times by second day of bidding for the IPO on Thursday, 23 February 2012. The issue closes today, 24 February 2012. MCX on Tuesday, 21 February 2012, raised Rs 95.62 crore from 12 anchor investors.

The government said on Tuesday that inflation based on the consumer price index (CPI) rose 7.65% in January 2012. The annual CPI data released for the first time on Tuesday measures retail prices in major food groups, fuel, clothing, housing and education across rural and urban India. The new CPI price series is gradually expected to displace wholesale price data as the primary indicator of inflationary trends.

Finance Minister Pranab Mukherjee will present the annual budget for 2012/13 on 16 March 2012, while the railways budget will be presented on 14 March 2012. The budget session of parliament will start on 12 March 2012. The government will present on March 15 the Economic Survey for 2011/12, a document on the state of economy prepared by the economic division in the ministry of finance. The annual budget is usually presented on the last working day of February. However, the budget has been delayed this time due to the ongoing assembly polls. Polling for assembly elections in five states concludes in early March 2012. The counting of the votes takes place on 6 March 2012, with the results due on the same day.

Reports indicate that the finance ministry is considering a proposal to increase excise duty from 10% to 12%, although still lower than the level before the 2008 financial crisis. The move is aimed at helping the government improve its fiscal situation but it is expected to push up the cost of almost all manufactured goods from food products to consumer durables and automobiles.

Asia markets edged lower in a choppy session on Friday after recent strong gains. Key benchmark indices in Hong Kong, Indonesia, Singapore, South Korea, and Taiwan fell by between 0.01% to 1.09%. Key benchmark indices in China and Japan rose by between 0.02% to 0.06%.

U.S. shares advanced on Thursday as better-than-expected jobs and home-price data buoyed sentiment.