Market may open higher on firm Asian stocks

The market may open higher on firm Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a gain of 28.50 points at the opening bell. Asian stocks rose for a fifth day on Tuesday on expectations that central banks from Washington to Frankfurt and Beijing may ease monetary policy to shore up growth after manufacturing unexpectedly shrank in the U.S. Among corporate news, Ambuja Cements, owned by Switzerland's Holcim, the world's second-largest cement producer, said cement shipments rose 7.2% to 1.79 million tonnes in June 2012 over June 2011. Production rose 7.9% to 1.78 million tonnes in June 2012 over June 2011. ACC announced after market hours on Monday that cement shipments rose 2.61% to 1.96 million tonnes in June 2012 over June 2011. Production rose 4.23% to 1.97 million tonnes in June 2012 over June 2011. Hero MotoCorp's total sales rose 4.26% to 5,34,091 units in June 2012 over June 2011. With sales of 5,34,091 units in the month of June, HMCL's cumulative sales for the first quarter (April-June) of this financial year (2012-13) has touched 16,42,292 units - its highest-ever sales in any single quarter. Commenting on the sales performance, Anil Dua, Senior Vice-President (Marketing & Sales), Hero MotoCorp said, “With this quarterly performance, Hero MotoCorp has yet again set a new benchmark in the industry. It is all the more heartening as these numbers have come against the backdrop of an overall dampened sentiment in the industry and the economy. We have been growing consistently and going forward, we are confident of keeping up this momentum. With new product launches and foray into new international markets, we are looking forward to a lot of exciting action in the coming months.” Key benchmark indices snapped a four-day rising streak on Monday, 2 July 2012 as investors booked profits. The BSE Sensex was down 31 points or 0.18% to 17,398.98. Foreign institutional investors (FIIs) bought shares worth a net Rs 591.06 crore on Monday, 2 July 2012, as per provisional data from the stock exchanges. India's factories in June stepped up production and hired workers at the fastest rate in more than two years, but sagging demand abroad took a toll on growth in new export orders, a survey showed on Monday. The HSBC manufacturing Purchasing Managers' Index (PMI) rose to 55.0 in June, a four-month high, from 54.8 in May. It has kept above the 50 mark that divides growth and contraction for more than three years. The services purchasing managers' index for June 2012 is expected to be out this week. The services sector grew at its fastest pace in three months during May. HSBC's services purchasing managers' index, compiled by Markit, rose almost two points to 54.7 in May from 52.8 in the previous month. India's exports fell 4.16% to $25.68 billion in May, while imports fell 7.36% to $41.9 billion, government data showed on Monday. May's trade deficit was $16.3 billion, while oil imports rose 14.02% year-on-year to $14.99 billion, data showed. The next major trigger for the stock market is Q1 June 2012 corporate earnings, which will start trickling from the second week of July 2012. A deceleration in top line growth of India Inc amid economic slowdown and slowdown in investment cycle will weigh on bottom line growth in Q1 June 2012 as the core operating profit margin could be negatively impacted by deceleration in top line growth. HDFC announces Q1 results on 11 July 2012. Infosys announces its Q1 results on 12 July 2012. HDFC Bank declares its Q1 results on 13 July 2012. Bajaj Auto reports Q1 results on 18 July 2012. Dr Reddy's Laboratories announces Q1 results on 19 July 2012. Asian stocks climbed for a fifth day on Tuesday on expectations that central banks from Washington to Frankfurt may ease monetary policy to spur economic growth. Key benchmark indices in China, Hong Kong, Indonesia, Japan, South Korea, Singapore and Taiwan rose by between 0.45% to 1.48% China's services sector expanded at its fastest pace in three months in June, an official survey showed on Tuesday, but left intact market expectations that Beijing will deliver more policy measures to support growth in the near future. The latest survey by the National Bureau of Statistics and the China Federation of Logistics and Purchasing (CFLP) showed the purchasing managers' index for the country's non-manufacturing sector rose to 56.7 from 55.2 in May, the best reading since a 10-month high of 58.0 recorded in March. A reading above 50 indicates expanding activity and one below 50 signals contraction, according to the survey methodology. A batch of Chinese economic data due out over the next few weeks will cast new light on the scale of the ongoing economic slowdown in the world's second biggest economy. Figures due out later, over a five-day period from July 9 include second quarter gross domestic product, as well as such indicators as June fixed-asset investment, inflation, industrial production and bank lending. The European Central Bank (ECB) at a policy meeting on interest rates on Thursday, 5 July 2012, is expected to cut its benchmark rate by 25 basis points to an all time low of 0.75% from 1%. The Bank of England's monetary policy committee is expected to ease monetary policy further by expanding its debt-purchase program at scheduled meeting on Thursday, 5 July 2012. U.S. manufacturing unexpectedly shrank in June for the first time since the economy emerged from a recession three years ago, indicating a mainstay of the expansion may be faltering, a report showed yesterday. This week is a truncated trading week for US stock markets. US market remains closed on Wednesday, 4 July 2012, for Independence Day holiday. Important US economic data is due for release this week. On Tuesday, 3 July 2012, the US Commerce Department will release US factory orders data for May 2012. On the same day, US car makers will release their US sales figures for June. On Thursday, 5 July 2012, Automated Data Processing (ADP) will release employment report on US private-sector payroll growth in June 2012. On the same day, ISM will release US services-sector index for June. On Friday, 6 July 2012, the US Labor Department will release the influential US non-farm payroll figures and the unemployment rate for June 2012.