Market may extend recent losses on weak Asian stocks

The market may extend recent losses on weak Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 41 points at the opening bell. Asian stocks fell on Monday after a U.S. payrolls report showed fewer jobs were added to the world's largest economy than the most pessimistic forecast, adding to concern the global economy is slowing. Key benchmark indices fell for the third straight day on Friday, 1 June 2012 to hit their lowest closing level in over a week as global stocks faltered as investors dumped risky assets after data showing downbeat manufacturing activity from China to Europe raised doubts about global economic recovery. The BSE Sensex was down 253.37 points or 1.56% to 15,965.16, its lowest closing level since 23 May 2012. Foreign institutional investors (FIIs) sold shares worth a net Rs 220.37 crore on Friday, 1 June 2012, as per provisional figures from the stock exchange. PSU OMCs and select auto stocks will be in focus as state fuel retailers Saturday, 2 June 2012 decided to cut retail gasoline prices following heated protests from the ruling Congress party's key allies, opposition parties and consumers. The cut of Rs 2.02 in the price of a liter of gasoline announced by Indian Oil Corporation follows an 11.5% increase in gasoline prices in late May. The three retailers have freedom to revise gasoline rates every two weeks, in line with the benchmark global prices. Car market leader Maruti Suzuki India signed State Support Agreement (SSA) with the Government of Gujarat for purchase of land near Mehsana to set up an all new manufacturing facility. The Agreement was signed by Mr. Shinzo Nakanishi, Managing Director and CEO, Maruti Suzuki India and Mr. Maheshwar Sahu, Principal Secretary (Industry and Mines), Government of Gujarat in the presence of Gujarat Chief Minister, Mr. Narendra Modi. The new infrastructure in Gujarat will be a complete vehicle manufacturing facility. Government of Gujarat has allocated around 700 acres land to Maruti Suzuki India for this manufacturing facility. This land purchase by the company is in line with long term management view on expansion of its manufacturing facilities in India to meet future market demand. Based on the market demand the manufacturing facility near Mehsana will be added to the company's existing manufacturing facilities at Gurgaon and Manesar in Haryana. This new facility will take Maruti Suzuki's combined manufacturing capability to 2 million units by 2015-16. In addition to Maruti Suzuki, company's vendors and ancillary suppliers are expected to invest in Gujarat at matching levels. Maruti Suzuki Gujarat plant will be located around 100 km from Ahmedabad. The new facility is around 300 km from Mundra port and hence would be well suited for Company's exports initiatives. Maruti Suzuki will continue to increase its production at Manesar facility, where a third assembly line, (Manesar C plant, 2.5 lakh units annually) is expected to go on stream by mid 2013-14. Hero MotoCorp (HMCL), the world's largest two-wheeler manufacturer, reported its best-ever monthly sales in May 2012, thus underlining the robust momentum the company has sustained since embarking on its solo journey. Marking its 10th consecutive month of over five lakh sales, Hero MotoCorp total sales rose 11.3% to 5,56,644 two-wheelers in May 2012 over May 2011. The company's sales in May this year surpassed its previous highest of 5,51,557, recorded only last month (April'12). Mr. Anil Dua, Senior Vice-President (Marketing and Sales), Hero MotoCorp said, "We have been setting new industry benchmarks month after month which is an indication not only of our progress in our journey but also the trust of our valued customers. The first two consecutive months of the new fiscal recording highest-ever sales for the company has clearly been a great start for us. Notwithstanding the slowdown in the overall economy and the prevailing sentiment in the country, we are cautiously optimistic that the expected normal monsoon and the consequent good harvest should perk up the mood in the coming months. “We remain committed to our multi-focal strategy of new launches, network expansion, rural drive, compelling communication and on-ground customer activation. We currently have about 5000 customer touch points, and we plan to add another 400 touch points to our network this year,” he added. Hero MotoCorp (HMCL) has said that a meeting of the board of directors of the company will be held on 4 June 2012, to consider and approve the proposal of amalgamation of HIPL with HMCL. Indraprastha Gas (IGL) said that the High Court of Delhi has pronounced the judgement on June 01, 2012 in favour of IGL in IGL Vs. PNGRB matter. As per the judgement, PNGRB order dated April 09, 2012 has been quashed. The court has said PNGRB has no power to fix any component of network tariff or compression charges for any entity such as petitioner having its own distribution network. ACC's cement dispatches rose 3.01% to 2.05 million tonnes and cement production rose 0.49% to 2.02 million tonnes in May 2012 over May 2011. Power Grid Corporation of India said that its board of directors at its meeting held on 29 May 2012, has approved investment approvals which include Fibre Optic Communication System for Central Sector Sub-stations & Generating Stations in Southern Region' at an estimated cost of Rs. 174.16 crore with a commissioning schedule of 30 months from the date of Investment approval. Line Bays and Reactor at POWERGRID Sub-station for Raichur - Sholapur Transmission Line for Synchronous interconnection between SR and WR' at an estimated cost of Rs. 75.74 crore with a commissioning schedule of 21 months from the date of Investment approval. Common System associated with East Coast Energy Private Limited and NCC Power Projects Limited LTOA Generation Projects in Srikakulam Area - Part-A' at an estimated cost of Rs. 1909.24 crore with a commissioning schedule of 36 months from the date of Investment approval. System Strenghtening - XVIII in Southern Regional Grid' at an estimated cost of Rs. 1263.26 crore with a commissioning schedule of 29 months from the date of Investment approval. AugmentatIon of Transformer and Bays in Western Region' at an estimated cost of Rs. 65.51 crore with a commissioning schedule of 24 months from the date of Investment approval. Asian markets skidded Monday as investors took their first chance to react to much weaker-than-expected U.S. jobs data, adding to ongoing worries about global growth, including the drag from Europe's debt crisis. Key benchmark indices in China, Hong Kong, Japan, Indonesia, South Korea, Taiwan and Singapore shed by between 1.29% to 2.54%. China's non-manufacturing industries expanded at the slowest pace in more than a year, as export orders declined and weakness in real estate countered strength in retailing and leasing, an official survey indicated. The purchasing managers' index fell to 55.2 in May from 56.1 in April, the National Bureau of Statistics and China Federation of Logistics and Purchasing said in Beijing. Rating agency Moody's Investors Service said it had lowered its ratings ceiling on Greek domestic debt issuers due to the rising risk of the country exiting the euro zone, but added it did not consider that the most likely scenario for the country. Moody's said it lowered its assessment of the highest rating that can be assigned to a domestic debt issuer in Greece to Caa2, below the highest existing rating by the firm on any Greek security, which is B1 for certain covered bonds. Greek voters return to the polls on 17 June 2012 after the splintered results of a May 6 parliamentary election left no party able to put together a government. U.S. stocks fell more than 2% on Friday, dragging the Dow Jones Industrial Average into negative territory for the year after a dismal U.S. jobs report added to fears that Europe's spiraling debt crisis was dragging down the world economy. The U.S. economy added just 69,000 jobs in May, less than half what expected and well below what is seen as needed to keep the jobless rate moving lower. Readings for the prior two months were also revised down, while the unemployment rate rose for the first time in almost a year, to 8.2%.