Market may open lower on weak Asian stocks

The market may open lower on weak Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 10 points at the opening bell. Asia stocks fell in choppy trade Thursday, as investors looked ahead to European Central Bank and Bank of England meetings expected to unveil more easing. Key benchmark indices edged higher for the second straight day on Wednesday, 4 July 2012 after data showed that foreign funds remained buyers of Indian stocks on Tuesday, 3 July 2012. The BSE Sensex rose 37.10 points or 0.21% to settle at 17,462.81, its highest closing level since 19 April 2012. Foreign institutional investors (FIIs) bought shares worth a net Rs 239.19 crore on Wednesday, 4 July 2012, as per provisional data from the stock exchanges. Telecom stocks will be in focus as Department of Telecommunications Wednesday released an initial set of rules for a proposed sale of telecom bandwidth, but it was silent on the keenly awaited starting price and other key issues. The government will auction eight blocks of bandwidth in the 1800 megahertz band, the telecom department said. The 1800 MHz and 900 MHz frequency bands are used by operators of the popular Global System for Mobile communications, or GSM, technology. Each block will be of 1.25 megahertz, and the validity of the spectrum auctioned will be 20 years, the statement said. It added that the auction will be open to all, including companies affected by a Supreme Court cancellation of telecom licenses. The telecom department said it will announce other details later, such as the starting auction price, the terms of payment, annual spectrum usage charges as well as deadlines for rollout of services. Bajaj Auto turns ex-dividend today, 5 July 2012, for dividend of Rs 45 per share for the year ended 31 March 2012 (FY 2012). Bajaj Finserv turns ex-dividend today for dividend of Rs 1.50 per share for FY 2012. IndusInd Bank turns ex-dividend today, 5 July 2012, for dividend of Rs 2.20 per share for FY 2012. Yes Bank turns ex-dividend today, 5 July 2012, for final dividend of Rs 4 per share for FY 2012. Zee Entertainment Enterprises turns ex-dividend today, 5 July 2012, for dividend of Rs 1.50 per share for FY 2012. India's services sector in June expanded for the eighth straight month although at a slower clip, but new orders picked up and firms hired workers at the fastest pace in a year, a business survey showed on Wednesday. HSBC's services purchasing managers' index, which gauges the activity of around 400 firms in India, dropped to 54.3 in June from 54.7 in May. However, it has kept above the 50 mark that signifies growth since November. The survey showed order books filled at their strongest pace in four months, riding high on domestic consumption. India's factory output rose at a faster pace as production and employment levels increased but reduced foreign demand has taken its toll on new export orders, another PMI showed early this week. Farm Minister Sharad Pawar on Tuesday, 3 July 2012, said that the two-week delay in the monsoon rains' progress across India is not cause for concern and sowing of summer crops is likely to pick up from this month as rainfall improves. The amount of monsoon rain was 31% below the long-term average at this point in the June-September season, Mr. Pawar said. The progress of the monsoon, which reached the mainland four days later than scheduled, has been erratic this year. The delay has affected sowing of summer crops in five states, Mr. Pawar said. Sowing has been affected as the rains have failed to advance from the central region to the grain-bowl northern states in the last few days. The rains usually cover most of the country by July 1. The monsoon rains--which make up around 70% of India's annual rainfall--are crucial to the nation's agriculture sector and broader economy. More than 60% of the country's farmland is rain-fed. India's merchandise 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. Investors and analysts will closely watch the management commentary that would accompany the result which could cause revision in their future earnings forecast of the company for the current year or the next year. 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. IT heavyweights, Infosys and TCS unveil Q1 results on 12 July 2012. HDFC Bank declares its Q1 results on 13 July 2012. Axis Bank announces Q1 results on 17 July 2012. Bajaj Auto reports Q1 results on 18 July 2012. Kotak Mahindra Bank and Dr Reddy's Laboratories unveil Q1 results on 19 July 2012. Asian Paints announces Q1 results on 20 July 2012. Mahindra & Mahindra announces Q1 results on 8 August 2012. Asia stocks fell in choppy trade Thursday, as investors looked ahead to European Central Bank and Bank of England meetings expected to unveil more easing. Asia markets took their lead from a weaker European session, with US markets closed for the July Fourth holiday. Key benchmark indices in China, Hong Kong, Indonesia, Japan, South Korea, Taiwan and Singapore fell by between 0.08% to 1.46%. Important Chinese economic data is due over the next few days. During a five-day period from 9 to 13 July 2012, China will unveil data on second quarter gross domestic product, data for June 2012 on fixed-asset investment, inflation, industrial production and bank lending. Weak manufacturing data in the euro zone early this week has supported market expectations of possible easing measures from the European Central Bank to spur growth. The European Central Bank (ECB) at a policy meeting on interest rates today, 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 today, 5 July 2012. US markets were closed on Wednesday, 4 July 2012, for Independence Day holiday. Automated Data Processing (ADP) will release employment report on US private-sector payroll growth in June 2012 today, 5 July 2012. ISM will also release today 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.