Market may open lower on weak Asian stocks

The market may edge lower in early trade tracking weak Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 36 points at the opening bell.

Key benchmark indices eked out small gains on Tuesday, 10 April 2012 on reports the monsoon rains, crucial to farm output, will arrive in time this year. The BSE Sensex advanced 21.70 points or 0.13% to settle at 17,243.84, its highest closing level since 4 April 2012.

Foreign institutional investors (FIIs) sold shares worth Rs 328.66 crore on Tuesday, 10 April 2012, as per provisional data from the stock exchanges. FIIs had sold shares worth Rs 269.43 crore on Monday, 9 April 2012.



Bharti Airtel is reportedly in advanced discussions with US chipmaker Qualcomm to buy its fourth-generation licences for about Rs 6,000 crore, an acquisition that will allow the country's largest telecom firm to quickly launch 4G services in the key markets of Delhi and Mumbai. Fourth-generation, or 4G, services offer users Internet access at three times the speed of 3G and require broadband airwaves. The company had said on Tuesday it has launched wireless broadband services in Kolkata, becoming the first company to offer high-speed Internet services using fourth-generation technology in India.

Airline stocks will be in focus on reports the cabinet is likely to soon take a decision on a proposal to allow foreign airlines to pick up stake in domestic carriers, most of which are facing a financial crisis. The cash-crunch Indian airlines are facing several problems including rising fuel prices and strong competition. Currently, India does not permit foreign airlines to buy stake in domestic airlines, although foreign investors are allowed to hold 49%.

The government released the revised consolidated foreign direct investment (FDI) policy on Tuesday, relaxing norms of investment by foreign institutional investors (FIIs) in commodity exchanges. Now, FIIs will not require government approval to invest in these exchanges. The cap on FII investment, however, remains at 23%. The department of industrial policy and promotion (DIPP) under the commerce and industry ministry said government approval would nonetheless be required for the FDI component of investment up to 26% in commodity exchanges.

The next major trigger for the market is Q4 March 2012 and year ending March 2012 (FY 2012) earnings. Investors will focus on the guidance provided by the management for the year ending March 2013 (FY 2013) to gauge the earnings outlook.

IT bellwether Infosys announces Q4 March 2012 results on Friday, 13 April 2012. Lube oil major Castrol announces Q1 March 2012 results on 16 April 2012. Private sector bank HDFC Bank unveils FY 2012 results on 18 April 2012. HCL Tech unveils Q3 March 2012 results on the same day. ACC, Ambuja Cements and Hindustan Zinc unveil quarterly results on 19 April 2012. IndusInd Bank reports FY 2012 results on the same day. Cairn India reports FY 2012 results on 20 April 2012. TCS unveils FY 2012 results on 23 April 2012.

ICICI Bank unveils FY 2012 results on 27 April 2012. Axis Bank and Siemens announces quarterly results on the same day. Maruti Suzuki India unveils FY 2012 results on 28 April 2012. Titan Industries, Godrej Consumer Products, Exide Industries and Dabur India unveil FY 2012 results on 30 April 2012. FMCG giant Hindustan Lever unveils FY 2012 results on 1 May 2012. Shree Cement unveils FY 2012 results on 15 May 2012. Housing finance major HDFC announces FY 2012 results on 7 May 2012. Colgate Palmolive (India) unveils FY 2012 results on 30 May 2012.

On the macro front, data on industrial production for February 2012 and that on inflation for March 2012 could provide cues on the central bank's likely policy stance at the monetary policy review for 2012-13 due on 17 April 2012.

The government will unveil industrial production data for February 2012 tomorrow, 12 April 2012. Industrial production grew 6.8% in January 2012, lower than 7.5% growth recorded in January 2011.

On Friday, 13 April 2012, the government will unveil data on inflation based on the wholesale price index (WPI) for March 2012. The annual rate of inflation, based on monthly WPI, stood at 6.95% (provisional) for the month of February, 2012 (over February 2011) as compared to 6.55% (provisional) for the previous month and 9.54% during the corresponding month of the previous year.

Most Asian shares fell on Wednesday as uncertainty over global growth prospects, and resurfacing worries about debt restructuring in the euro zone, prompted investors to continue trimming their risk exposures. Key benchmark indices in Hong Kong, Japan, Indonesia, and Singapore fell by between 0.12% to 1.16%. Key benchmark indices in China and Taiwan rose by between 0.15% to 0.27%.

Japanese core machinery orders rose 4.8% in February, the Cabinet Office said Wednesday.

US stocks fell sharply on Tuesday, building on a four-session series of declines, as worries over rising borrowing costs for European countries weighed on investor sentiment ahead of the start of earnings season.