Market may open lower

The market may open lower as most Asian stocks edged lower triggered after data showed weaker-than-expected ‘flash' China manufacturing purchasing managers index (PMI). Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 22.50 points at the opening bell.

Non banking financial companies (NBFCs) offering loan against gold will be in focus as the Reserve Bank of India (RBI) directed all NBFCs not to sanction loan beyond 60% of the value of gold jewellery. The RBI further said that the NBFCs whose financial assets consist of loans against gold jewellery to the tune of 50% or more, will have to maintain 12% tier-I capital by April 1, 2014. RBI said NBFCs should not grant any advance against bullion / primary gold and gold coins and they have to disclose the percentage of gold loans to their total assets in balance sheet. Incidentally the directive follows government proposing a hike in import duty on the precious metal and imposition of excise duty on unbranded-jewellery. Finance Minister Pranab Mukherjee in the Budget proposed raising custom duty on gold from 2% to 4%.



Key benchmark indices edged higher to hit highest closing level in nearly one week on Wednesday, 21 March 2012 on firm European stocks and as US index futures gained. The BSE Sensex was up 285.53 points or 1.65% to 17,601.71, its highest closing level since 15 March 2012.

Foreign institutional investors (FIIs) bought shares worth a net Rs 622.64 crore on Wednesday, 21 March 2012, as per provisional data from the stock exchanges. FIIs have made substantial purchases of Indian stocks recently. Their inflow totaled Rs 7049.46 crore in nine trading sessions from 9 to 21 March 2012, as per provisional data from the stock exchanges.

Asian stocks were mostly lower after private survey showed China's manufacturing sector activity shrank in March. Key benchmark indices in China, Hong Kong, South Korea and Singapore fell by between 0.11% to 0.38%. Key benchmark indices in Indonesia, Japan and Taiwan rose by between 0.09% to 0.94%.

China's manufacturing sector activity shrank in March for a fifth successive month, with the overall rate of contraction accelerating and new orders sinking to a four-month low, the HSBC flash purchasing managers index showed on Thursday. The PMI, the earliest indicator of China's industrial activity, fell back from February's four month high, slipping to 48.1, within a whisker of the level that economists at HSBC consider a crucial level dividing decline from growth.

U.S. stocks closed mostly lower Wednesday with energy shares hit by Baker Hughes Inc.'s weak forecast and Hewlett-Packard Co.'s restructuring plans dragging on the Dow Junes Industrial average. National Association of Realtors' (NAR) report said that home sales fell 0.9% in February to 4.59 million versus an upwardly revised 4.6 million in January. The NAR said the January and February levels were the best in five years. Economic reports in the days ahead include a housing-price index later today in the global day and data on single-family homes on Friday.