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Wednesday, July 31, 2013

Market may edge lower in early trade

The market may edge lower in early trade tracking mostly down Asian stocks. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could fall 16 points at the opening bell.

Bharti Airtel, HCL Technologies, ICICI Bank, and JSW Steel will unveil April-June 2013 quarter results today, 31 July 2013.

Jindal Steel & Power's (JSPL) consolidated net profit rose 28.27% to Rs 494.28 crore on 2.65% decline in total income to Rs 4593.55 crore in Q1 June 2013 over Q1 June 2012. The result was announced after market hours on Tuesday, 30 July 2013.

JSPL's board of directors at a meeting held on Tuesday, 30 July 2013, inter alia, has authorized Sub Committee of board of directors of the company to examine a buy-back of shares from the existing shareholders of the company and to seek or cause to be sought requisite clarifications, consents and approvals (including without limitation, from the lenders to the company), and to accordingly provide their recommendations in this regard to the board of directors for further consideration and evaluation and for taking such formal decision or action as the board of directors may deem fit, pursuant to applicable laws, market conditions and other relevant considerations.

NTPC's board of directors at a meeting held on Tuesday, 30 July 2013, accorded the investment approval for Feroze Gandhi Unchahar Thermal Power Project (1x500 MW) to be implemented in Uttar Pradesh at an appraised current estimated cost of Rs 3363.12 crore.

Petronet LNG's net profit declined 16.81% to Rs 225.32 crore on 19.87% growth in total income to Rs 8459.44 crore in Q1 June 2013 over Q1 June 2012. The result was announced after market hours on Tuesday, 30 July 2013.

IFCI's net profit fell 41.12% to Rs 55.11 crore on 15.76% decline in total income to Rs 561.53 crore in Q1 June 2013 over Q1 June 2012. The result was announced after market hours on Tuesday, 30 July 2013.

Grasim Industries turns ex-dividend today, 31 July 2013, for dividend of Rs 22.50 per share for the year ended 31 March 2013 (FY 2013).

Nestle India turns ex-dividend today, 31 July 2013, for interim dividend of Rs 18 per share for the year ending 31 December 2013.

The Government of India (GoI) has intimated to the stock exchanges its intention to offload stake aggregating to approximately 7.64% of the total paid-up equity share capital in National Fertilizers through an offer for sale (OFS) of 3.74 crore equity shares of face value of Rs 10 each of the company. The OFS would take place on a separate window of Stock Exchanges on Wednesday, 31 July 2013, from 9:15 IST to 15:30 IST. The floor price for the OFS has been fixed as Rs 27 per share. The GoI currently holds 97.64% stake in National Fertilizers. On successful completion of OFS, the GoI's stake in the company would come down to 90% thereby adhering to Sebi's minimum public shareholding rule of 10% in public firms by 8 August 2013.

Meanwhile, the ruling Congress party approved on Tuesday the creation of a new Telangana state, a move that has revived deep political divisions and raised fears of violence in the area, home to global firms including Google. The decision to break up Andhra Pradesh and establish Telangana comes ahead of elections next year.

Key benchmark indices dropped for fifth day in a row on Tuesday, 30 July 2013 after the Reserve Bank of India (RBI) kept its key lending rate viz. the repo rate steady after a monetary policy review, as the central bank focused on managing the currency volatility rather than pushing for growth. The S&P BSE Sensex lost 244.94 points or 1.25% to 19,348.34 on that day, its lowest closing level since 10 July 2013.

Foreign institutional investors (FIIs) bought shares worth a net Rs 256.45 crore on Tuesday, 30 July 2013, as per provisional data from the stock exchanges.

Asian stocks fell on Wednesday before US economic growth data and the conclusion of a Federal Reserve policy meeting today, 31 July 2013. Key benchmark indices in Japan, Singapore, South Korea, Indonesia and Taiwan fell by 0.16% to 0.69%. Key benchmark indices in Hong Kong and China rose by 0.31% to 0.95%.

Meanwhile, the results of two separate surveys on Chinese manufacturing activity in July are due tomorrow, 1 August 2013.

Taiwan's economy expanded at a faster-than-estimated pace in the second quarter as domestic consumption improved, even as a slowdown in China damps the outlook for the island's exports. Gross domestic product rose 2.27% from a year earlier after increasing 1.67% in the first quarter, the statistics bureau said in a preliminary report in Taipei today.

US stocks closed mixed to higher on Tuesday in quiet trading as many investors remained on the sidelines ahead of the Federal Reserve's Wednesday announcement on interest rates and monetary policy.

The Federal Open Market Committee's (FOMC) two-day policy meeting ends today, 31 July 2013, with expectations that it will offer further clues on how long it will maintain its bond purchases. In his two-day testimony to Congress, which concluded on 18 July 2013, Federal Reserve Chairman Ben Bernanke said plans to taper asset purchases were not on a preset path and stressed intentions to be very responsive to data. Additionally, Bernanke said recent data have been "mixed" and it was "way too early" to make a judgment on when the central bank will slow down the pace of its asset purchases. 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.

In Europe, the European Central Bank (ECB) and the Bank of England (BoE) will announce their policy decisions tomorrow, 1 August 2013.