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 25.50 points at the opening bell.

Investors bid for 42.04 crore shares of ONGC of a total of 42.77 crore shares on offer in an auction of 5% government stake-sale in the firm through the stock exchanges mechanism on 1 March 2012 as per data on National Stock Exchange. The Government of India held 74.14% stake in ONGC as on 31 December 2011.

India's largest bike maker by sales Hero MotoCorp reported a 10.89% rise in its total sales at 5,23,465 units in February 2012 over February 2011.



Trading for the new month began on a weak note as key benchmark indices declined close to 1% on Thursday, 1 March 2012. The BSE Sensex fell 168.71 points or 0.95% to settle at 17,583.97, its lowest closing level since 27 February 2012.

Foreign institutional investors (FIIs) sold shares worth a net Rs 126.52 crore on Thursday, 1 March 2012, as per provisional data from the stock exchanges. FIIs bought shares worth a net Rs 25075.21 crore in February 2012, as per provisional data from the stock exchanges. FIIs had bought shares worth a net Rs 10357.70 crore in January 2012, as per data from Securities & Exchange Board of India (Sebi).

The stock exchanges are holding a special 1-1/2 hour trading session tomorrow, 3 March 2012, as the Bombay Stock Exchange (BSE) is testing its Disaster Recover Site (DR). Trading will begin at 11:15 IST and conclude at 12:45 IST on that day.

India's merchandise exports in January 2012 rose by 10.10% to $25.35 billion while imports during the same month climbed by 20.25% to $40.10 billion, data released by the Government showed on Thursday, 1 March 2012. As a result, the trade deficit for January stood at $14.76 billion compared with $10.33 billion in the corresponding month a year earlier.

India's manufacturing sector expansion slowed slightly in February from a month ago, although the pace of growth remained healthy as new orders touched a 10-month high, a business survey showed on Thursday. The HSBC manufacturing Purchasing Managers' Index (PMI), compiled by Markit, eased to 56.6 in February from 57.5 in January, which was an eight-month high. The index has held above the 50 mark that separates growth from contraction for almost three years.

The Indian economy expanded 6.1% in the October-December quarter from a year earlier, the weakest pace in more than two years, hurt by slower growth in manufacturing output and a contraction in mining production, according to data released by the government on Wednesday, 29 February 2012. Growth in gross domestic product was slower than the 6.9% expansion posted in the July-September quarter. It was also below expectations for a 6.4% expansion, according to the median estimate of a poll of economists carried out by Capital Market. The government expects the economy to grow 6.9% in the current fiscal year that ends March 31, the weakest pace in three years.

India's fiscal deficit during April to January was Rs 4.35 lakh crore or 105.4% of the full-year target, government data showed on Wednesday.

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

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.

Asian shares rose Friday, led by gains in financial stocks. Key benchmark indices in China, Hong Kong, Taiwan, Japan, Singapore, Hong Kong and Indonesia rose by between 0.11% to 0.78%.

Japanese government data out Friday showed a sharper-than-expected drop in household spending and a modest rise in unemployment, although deflation was slightly better than forecast.

U.S. stocks ended Thursday's session with gains, helped by a drop in weekly jobless claims to the lowest level since March 2008, and with financial shares among the top gainers.

The number of Americans filing first-time claims for unemployment benefits last week fell 2,000 to 351,000, the lowest since March 2008. The four-week average dropped 5,500 to 354,000, the Labor Department said. Separately, government data showed spending climbed 0.2% as incomes rose 0.3% in January, both less than expected. Another report from the government had construction spending slipping 0.1% in January, marking the first monthly drop since July. And, the Institute for Supply Management said its manufacturing index fell to 52.4% last month from 54.1% in January.