Market may open lower; ONGC in focus

Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 21.50 points at the opening bell. Automobile and cement shares will be in focus as companies from these two sectors start unveiling monthly sales volume data for February 2012 from today, 1 March 2012.

The Government of India (GoI) will sell 5% stake in ONGC through an auction today, 1 March 2012. The government will sell 42.77 crore shares or 5% of its holding in the offering and the floor price for the issue has been set at Rs 290 a share. The government will raise at least Rs 12400 crore from the stake sale at floor price of Rs 290. GoI currently owns 74.14% stake in ONGC. After the stake-sale, its holing will fall to 69.14%.



The auction of government stake-sale in ONGC will take place through a separate window provided by the stock exchanges. The stock exchanges will collect 100% of the order value in cash for each bid.

Sun Pharmaceutical Industries said after market hours on Wednesday that USFDA has granted an approval for its Abbreviated New Drug Application (ANDA) for generic version of Zyprexa Zydis®, Olanzapine ODT, 5 milligrams (mg), 10 mg, 15 mg and 20 mg.

The Union Cabinet will reportedly consider a proposal today, 1 March 2012, to allow cash-rich PSUs to buyback shares and acquire stakes in other state-run firms. It will also look at permitting financial institutions to buy the Centre's stake in companies through bulk sales as the government searches for options to partially meet its disinvestment target and rein in fiscal deficit. The Cabinet had considered a similar proposal in January but could not arrive at a decision as some ministries had opposed the move.

Key benchmark indices eked out small gains on Wednesday, 29 February 2012, on firm global stocks, with strong intraday gains erased by data showing slowdown in GDP growth in Q3 December 2011. The BSE Sensex rose 21.56 points or 0.12% to settle at 17,752.68, its highest closing level since 24 February 2012.

Foreign institutional investors (FIIs) bought shares worth a net Rs 579.63 crore on Wednesday, 29 February 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).

HSBC's manufacturing purchasing managers' index (PMI), which indicates the health of the manufacturing sector will be out today, 1 March 2012. The index compiled by Markit, had surged to 57.5 in January 2012 from 54.2 in December 2011. The 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.

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 stocks were mixed on Thursday after US stocks faltered on Wednesday as Federal Reserve Chairman Ben Bernanke dashed hopes of additional quantitative easing and expressed a cautious view on the domestic recovery. Key benchmark indices in China, Hong Kong, and Indonesia fell by between 0.1% to 0.51%. Key benchmark indices in Japan, Taiwan, and Singapore rose by between 0.13% to 0.35%. South Korean stock markets were closed for a holiday.

Meanwhile, a pair of key Chinese manufacturing surveys -- one from a government-backed group and another from HSBC -- offered a split decision on the sector. The official China manufacturing Purchasing Managers' Index rose to 51, indicating mild expansion. However, HSBC's subsequent PMI release printed at 49.6, just below the 50 mark that separates overall growth from contraction.

US stocks dropped on Wednesday as Federal Reserve Chairman Ben Bernanke dashed hopes of additional quantitative easing and expressed a cautious view on the domestic recovery. The Fed chairman remained cautious on his view of the recovery, warning that the US rebound remains "uneven and modest." In economic headlines, the Commerce Department revised its estimate of fourth-quarter US economic growth to 3% from an initial estimate of 2.8%.