Market may open higher on firm Asian stocks

The market may open higher on firm Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a gain of 17 points at the opening bell. Bharti Airtel, ONGC, Power Grid Corporation of India and Tech Mahindra unveil Q3 results today, 8 February 2012.

Singapore state investor Temasek Holdings is reportedly selling 1.38% stake in ICICI Bank. Temasek held 3.98 crore shares of ICICI Bank, or 3.46% as of 31 December 2011, via its unit Allamanda Investments Pte

GMR Infrastructure announced after market hours on Tuesday that net profit jumped 344.06% to Rs 75.98 crore on 196.79% rise in total income to Rs 429.04 crore in Q3 December 2011 over Q3 December 2010.



Key benchmark indices snapped a five-day winning streak on Tuesday, 7 February 2012 as weakness in European shares triggered on profit taking on the domestic bourses after recent strong rally in share prices, which was driven by heavy buying of Indian stocks by foreign institutional investors (FIIs). The BSE Sensex shed 84.86 points or 0.48% to settle at 17,622.45, its lowest closing level since 3 February 2012.

Foreign institutional investors (FIIs) bought shares worth Rs 618.84 crore on Tuesday, 7 February 2012, as per provisional data from the stock exchanges. FIIs have bought shares worth Rs 6307.77 crore in first five trading sessions this month, as per provisional data from the stock exchanges. FIIs made substantial purchases of Indian stocks 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).

Tata Steel, Hindalco, ACC, Ambuja Cements and HPCL unveil quarterly results tomorrow, 9 February 2012. DFL, Tata Power, BPCL, Reliance Communications (RCom), Britannia Industries, Sun TV Network, Essar Oil and Neyveli Lignite Corporation unveil Q3 results on Friday, 10 February 2012. JSW Steel announces consolidated Q3 results on Friday, 10 February 2012. The company has already announced its stand-alone results.

Aditya Birla Nuvo, Oil India and Ashok Leyland announce Q3 results on Saturday, 11 February 2012. State Bank of India, Cipla, Reliance Power, Indian Oil Corporation, Coal India, Sun Pharmaceuticals Industries and Steel Authority of India (Sail) unveil Q3 results on 13 February 2012. Tata Motors, Reliance Infrastructure, Jaiprakash Associates, Videocon Industries and Shipping Corporation of India unveil Q3 results on 14 February 2012. Ranbaxy Laboratories and ABB unveil Q4 December 2011 results on 23 February 2012.

The Indian economy is estimated to grow 6.9% in the current fiscal year through March 2012 (FY 2012), sharply slower than the 8.4% expansion reported last year, according to a government forecast released on Tuesday, 7 February 2012. The new expectation is due to weaker growth in manufacturing and farm output, data from the ministry of statistics and implementation showed. The government expects manufacturing output to grow 3.9% this fiscal year compared with a 7.6% increase a year earlier. Farm output is expected to rise 2.5%, compared with 7% last year. In December 2011, the government had cut its growth projection for FY 2012 to between 7.25% and 7.75% from an initial forecast of 9%.

India is facing some challenges on its stable rating outlook and the balance of risk factors for its rating may be shifting slightly toward the negative, said Standard & Poor's Ratings Services on Monday, 6 February 2012, in a report titled "Several Factors Could Weigh On India's Current Stable Sovereign Rating In 2012." High inflation, a weak government fiscal position, and slower economic growth have hurt investor confidence in the rupee, triggered a capital outflow, and weighed on the stable sovereign outlook on India in 2012, the report said. S&P has an investment grade BBB- rating with a stable outlook on India.

The government is likely aim to shrink its budget deficit by at least 0.4 percentage point of gross domestic product next fiscal year, as it attempts to boost government revenue and cut subsidies, a news agency quoted an unnamed senior finance ministry official as saying on Monday, 6 February 2012. Under a medium-term fiscal consolidation plan, the government is tasked with shrinking the fiscal deficit to 3.5% by March 2014. Getting back to a tight fiscal road is critical, and the government may have to take some tough steps such as cutbacks in social spending and streamline subsidies to help keep a lid on government expenditure, the official said.

The official said the government is likely to add more services to boost indirect taxes as a slowing economy limits chances of a sharp rise in personal income tax and corporate tax revenue. However, raising service tax rates seems unlikely ahead of the roll out an ambitious Goods and Services Tax, the official added.

India's services sector grew at its fastest pace in six months during January 2012 as new business swelled, extending the previous couple of months' positive trend into the new calendar year, a survey showed on Friday, 3 February 2012. The HSBC Business Activity Index, compiled by Markit and based on a survey of around 400 firms, bounced to 58 in January from 54.2 in December. That was the third month the index has been above the 50-mark separating growth from contraction.

India's manufacturing sector grew at its fastest pace in eight months in January 2012 as factory output surged the most on record on increased domestic and foreign demand, a survey showed last week. The HSBC manufacturing purchasing managers' index (PMI), compiled by Markit, jumped to 57.5 from 54.2 in December. The factory output sub-index jumped to 62.9 in January from 55.8 in December, the biggest rise from one month to the next on record. Both the output and the new orders indexes rose to their highest level since May last year.

India's trade deficit widened to $12.7 billion in December from $8.0 billion a year earlier as export growth slowed due to falling global demand. But imports, specially in the non-oil segments, continued to grow. For the April-December period, the trade gap was $133.2 billion, compared with $96.2 billion a year earlier. India's merchandise exports in December grew 6.7% from a year earlier to $25.0 billion while imports rose 19.8% to $37.7 billion.

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, a minister said on Tuesday, 7 February 2012. The budget session of parliament will start on 12 March 2012, Pawan Kumar Bansal, minister of parliament affairs, told reporters. 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, he said. 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.

Asian stocks today opened with gains for a third day after Toyota Motor Corp raised its profit forecast and Greek leaders worked on a rescue plan with the nation's creditors. Key benchmark indices in China, Hong Kong, Japan, Indonesia, South Korea, Taiwan, and Singapore rose by between 0.03% to 1.53%.

Greek Prime Minister Lucas Papademos held a meeting yesterday with the European Commission, the European Central Bank and the International Monetary Fund, to put the final touches on terms required for a 130 billion-euro ($172 billion) aid package. Failure to secure the 130 billion euro rescue package could push Greece into a chaotic default and threaten the stability of the entire euro zone.

US stocks rose slightly on Tuesday, but with the outcome of discussions on a bailout package for Greece uncertain, investors are unlikely to make big bets in coming days.

Federal Reserve Chairman Ben Bernanke on Tuesday told the U.S. Senate budget committee there has been a modest increase in the long-term normal rate of U.S. unemployment, noting it was a cause of concern to monetary-policy makers. Meanwhile, the Bureau of Labor Statistics reported the number of U.S. job openings jumped 8.3% in December, to 3.4 million, as employers continue to increase the number of positions they are looking to fill. Other data showed credit-card debt in the U.S. surged for a second-straight month as Americans increased borrowing to spend for the holiday season.