Market expected to open flat

Indian stocks will today, 15 July 2013, react to weak macroeconomic data which was announced after trading hours on Friday, 12 July 2013. While industrial production registered a surprise contraction in May 2013, consumer price inflation accelerated in June 2013. Trading of CNX Nifty futures on the Singapore stock exchange indicates a flat opening on the domestic bourses today, 15 July 2013. The government unveils data on inflation based on the wholesale price index (WPI) for June 2013 today, 15 July 2013. Asian stocks edged higher on Monday, 15 July 2013, after a report showed China's economy grew 7.5% in the second quarter, matching economists' estimates.

Industrial production declined 1.6% in May 2013, as against a downwardly revised 1.9% growth in April 2013, data released by the government after trading hours on Friday, 12 July 2013, showed. The continuous decline in the output of mining sector remained the major drag on the growth of industrial production, while the output of manufacturing sector also declined in May 2013. The output of the mining sector declined 5.7% and that of the manufacturing sector declined 2% in May 2013. However, the electricity generation grew 6.2% in May 2013, restricting further decline in the output of industrial production in May 2013.

The industrial production growth for the month of April 2013 has been revised downwards to 1.9% from 2.3% reported earlier, while the growth for the month of February 2013 has been scaled up slightly to 0.6% from 0.5% reported earlier.

Consumer price inflation accelerated in June 2013, another data released by the government after trading hours on Friday, 12 July 2013, showed. The combined consumer price index (CPI) for urban and rural India edged up to 9.87% in June 2013 from 9.31% in May 2013.

Shares of public sector oil marketing companies (PSU OMCs), car major Maruti Suzuki and two-wheeler makers will be in focus after PSU OMCs announced hike in price of petrol by Rs 1.55 a litre as the falling rupee made imports costlier. Actual increase will be higher and will vary from city to city depending on local taxes. The new price is effective from midnight Sunday. Meanwhile, the price of diesel was kept unchanged.

FMCG and agri-sector stocks will be in focus after the latest data showed a further pick-up in sowing of kharif crops. The Centre on Friday, 12 July 2013, said that as per reports received from state governments, the total sown area in the country stands at 517.65 lakh hectare (lh) as on 12 July 2013, compared with 341.49 lh at this time last year.

Glenmark Pharmaceuticals after market hours on Friday, 12 July 2013, confirmed that its subsidiary, Glenmark Generics, has filed abbreviated new drug applications (ANDAs) for Lacosamide Tablets, and Oral solution with the United States Food and Drug Administration (USFDA) with a Paragraph IV Certification for the Orange-Book listed patent. Glenmark's ANDA products are generic versions of VIMPAT, which are indicated for an adjunctive therapy in the treatment for partial-onset seizures in adults with epilepsy.

According to IMS Health data, the VIMPAT tablets and solution had annual sales of approximately $353 million in the United States for the twelve months ended 31 March 2013.

On 10 July 2013, UCB, INC., UCS Pharma GmbH, Research Corporation Technologies, Inc. and Harris FRC Corporation filed suit against Glenmark Generics and Glenmark Generics Inc. in the United States District Court for the District of Delaware, seeking to prevent Glenmark from commercializing its ANDA product prior to the expiration of US Patent. This lawsuit was filed under the provisions of the Hatch-Waxman Act. If Glenmark is successful in its challenge of the patent, it will garner 180-day exclusivity for its products.

Tata Steel turns ex-dividend today, 15 July 2013, for final dividend of Rs 8 per share for the year ended 31 March 2013 (FY 2013).

JSW Steel turns ex-dividend today, 15 July 2013, for final dividend of Rs 10 per share for the year ended 31 March 2013 (FY 2013).

Piramal Enterprises turns ex-dividend today, 15 July 2013, for final dividend of Rs 17.50 per share for the year ended 31 March 2013 (FY 2013).

Key benchmark indices surged on Friday, 12 July 2013, after IT major Infosys kicked off the Q1 earnings season by reiterating its revenue guidance for the current year. The S&P BSE Sensex jumped 282.41 points or 1.44% to settle at 19,958.47, its highest closing level since 30 May 2013.

Foreign institutional investors (FIIs) bought shares worth a net Rs 644.82 crore on Friday, 12 July 2013, as per provisional data from the stock exchanges.

The government unveils data on inflation based on the wholesale price index (WPI) for June 2013 today, 15 July 2013. WPI inflation is seen inching up a bit at 4.8% in June 2013, from 4.7% in May 2013, as per the median estimate of a poll of economists carried out by Capital Market.

Asian stocks edged higher on Monday, 15 July 2013, after a report showed China's economy grew 7.5% in the second quarter, matching economists' estimates. Key benchmark indices in China, Hong Kong, South Korea, Taiwan and Singapore were up 0.16% to 0.46%. Indonesia's Jakarta Composite fell 0.66%.

China's economy grew 7.5% in the second quarter compared to a year earlier, while industrial production for June rose 8.9% from year-ago levels, slowing from May's 9.2% growth, the National Bureau of Statistics said Monday. The gross domestic product result was down from the first quarter's 7.7% advance. June retail sales rose 13.3% on an annual basis, beating May's 12.9% increase to extend an upward trend for the data point.

Urban fixed-asset investment -- watched as an indicator of construction spending -- grew an average 20.1% in the January-June period, down from 20.4% in January-May. Fixed-asset investment is reported on a year-to-date basis.

US stocks on Friday, 12 July 2013, recorded a third week of gains, with the Dow industrials and the S&P 500 tallying record closes following upbeat earnings from two major banks. The Dow Jones Industrial Average climbed 3.38 points to 15,464.30, an all-time closing high that had it up 2.2% from the week-ago close. Up 3% for the week and also finishing at a record, the S&P 500 added 5.17 points, or 0.3%, to 1,680.19, with financials pacing its gains. Up for a seventh session in its longest winning stretch since July 2011, the Nasdaq Composite gained 21.78 points, or 0.6%, to 3,600.08, giving it a weekly rise of 3.5%. The major indexes offered little reaction to reports that had consumer confidence dropping in July.

US Federal Reserve Chairman Ben Bernanke is due to deliver testimony on monetary policy in Washington on 17 and 18 July 2013. The minutes of the Fed's June meeting released on 10 July 2013 showed that while "several members judged that a reduction in asset purchases would likely soon be warranted," many want to see further improvement in the labor market before reducing the central bank's $85 billion-a-month quantitative easing program. The Fed currently buys $85 billion a month in government and mortgage bonds in an effort to keep interest rates low and stimulate economic growth. At a press conference following the June 18-19 meeting, Bernanke said the central bank could start reducing its $85 billion in monthly bond purchases later this year if the economy continues to improve in line with its forecasts.