Sensex scales 3 week high

Key benchmark indices gained for the fifth straight trading session as data showing that foreign funds remained net buyers of Indian stocks on Monday, 10 September 2012 boosted sentiment. The Sensex was up 86.17 points or 0.49%, up close to 175 points from the day's low and off about 15 points from the day's high. The barometer index, BSE Sensex scaled its highest closing level in 3 weeks. The 50-unit S&P CNX Nifty hit its highest closing level in nearly 3 weeks. The market breadth was positive. From a recent low of 17,313.34 on 5 September 2012, the Sensex has gained 539.61 points or 3.11% in five trading sessions. The Sensex has gained 423.39 points or 2.42% in this month so far (till 11 September 2012). The Sensex has jumped 2,398.03 points or 15.51% in calendar 2012 so far (till 11 September 2012). From a 52-week low of 15,135.86 on 20 December 2011, the Sensex has risen 2717.09 points or 17.95%. From a 52-week high of 18,523.78 on 22 February 2012, the Sensex has lost 670.83 points or 3.62%. Coming back to today's trade, index heavyweight Reliance Industries (RIL) was marginally lower. Index heavyweight and cigarette maker ITC gained. HDFC hit a 52-week high. Infosys rose after the company said its BPO firm, McCamish Systems has increased its presence in the USA, and in the Voluntary Group Life Insurance Business. Shares in Sesa Goa and Sterlite Industries tumbled after Goa, a key iron ore producing state in India, temporarily suspended all mining activities. PSU OMCs gained as oil minister Mr. Jaipal Reddy said Tuesday that he has sent a note to a cabinet panel to seek approval for an increase in diesel and cooking fuel prices. The key benchmark indices edged lower in early trade on mostly lower Asian stocks. Market retreated from intraday high on fresh selling in morning trade. Indices cut intraday losses hit intraday high in mid-morning trade. Market advanced to intraday high in early afternoon trade. It reversed losses to hit fresh intraday high in afternoon trade. Market extended gains to strike intraday high in mid-afternoon trade. Market extended gains in late trade. Foreign institutional investors (FIIs) bought shares worth a net Rs 728.20 crore from the secondary equity markets on Monday, 10 September 2012, as per data from Securities & Exchange Board of India (Sebi). The BSE Sensex was up 86.17 points or 0.49% to 17,852.95, its highest closing level since 21 August 2012. The index rose 101.07 points at the day's high of 17,867.85 in late trade. The index fell 89.40 points at the day's low of 17,677.38 in early trade. The S&P CNX Nifty was up 26.55 points or 0.5% to 5,390, its highest closing level since 23 August 2012. The index hit a high of 5,393.35 and a low of 5,332.10 in intraday trade. The BSE Mid-Cap index rose 0.27% and underperformed the Sensex. The BSE Small-Cap index gained 0.58% and outperformed the Sensex. The total turnover on BSE amounted to Rs 1776 crore, marginally lower than Rs 1778 crore clocked on Monday, 10 September 2012. The market breadth, indicating the overall health of the market, was positive. On BSE, 1,574 shares rose and 1,263 shares fell. A total of 132 shares were unchanged. Among the 30-share Sensex pack, 17 gained while the rest declined. Index heavyweight Reliance Industries (RIL) shed 0.1% to Rs 790.35. RIL has bought back 3.9 crore shares for about of Rs 2793.51 crore till 4 September 2012 under its ongoing share buyback program. RIL has set maximum buyback price of Rs 870 per share. The company has set aside Rs 10440 crore for share buyback. The buyback program opened on 1 February 2012 and closes on 19 January 2013. RIL chairman Mukesh Ambani said at the company's Annual General Meeting in June 2012 that the company's buyback program represents a highly accretive use of cash by the company and it will supplement earnings growth from operations, for higher EPS (earnings per share), in the near future. RIL on 27 August 2012 said it has scheduled a planned maintenance turnaround of one of the diesel hydrotreater units of the DTA refinery at its Jamnagar, Gujarat complex for a period of approximately two and half weeks starting 28 August 2012. This opportunity will also be utilised to carry out other maintenance and inspection jobs during the shutdown period, RIL said in a statement. During the period the other diesel hydrotreating unit of the DTA refinery along with other units including crude processing levels are planned at normal levels, RIL said. Index heavyweight and cigarette maker ITC rose 1.04% to Rs 266.90. The stock had scaled a record high of Rs 271.50 on 30 August 2012. In a block deal of 57.4 lakh shares on the BSE on Monday, 10 September 2012), ITC had picked up another 1% in hospitality major EIH. With this, the Kolkata-based conglomerate has increased its holding in EIH to 16%. Shares of EIH rose 1.01%. ITC had reported strong Q1 June 2012 results. ITC's net profit jumped 20.21% to Rs 1602.14 crore on 15.34% growth in net sales to Rs 6652.21 crore in Q1 June 2012 over Q1 June 2011. Despite series of tax hikes, ITC's performance in cigarettes business remains robust and displays pricing power for the company. Auto stocks were mixed. Mahindra & Mahindra (M&M) declined 0.31%. M&M will finalise its Russia plan in 4-6 months and is in talks with Russian distributors, Pawan Goenka, president of its automotive and farm equipment sectors said on Thursday, 6 September 2012. Launching Mahindra vehicles in Russia will take over two years, he said. The utility vehicle manufacturer also plans to launch a small SUV in India on September 20, he added. Hero MotoCorp declined 1%. The company reported a dip of 11.88% in sales at 4,43,801 units in August 2012 over August 2011. Meanwhile, Hero's recent launches- 110 cc "Maestro" and the 125cc "Ignitor"– have been received well by customers and are also generating volumes across markets. Hero MotoCorp also recorded its highest-ever scooter sales for any month by selling more than 45,000 scooters in August (combined sales figure for both the scooter brands- "Maestro" and "Pleasure"), the company said. Bajaj Auto rose 0.39%. The company announced last week that its total sales fell 10% to 3.44 lakh units in August 2012 over August 2011. Bajaj Auto said that the company exported 22,300 three-wheelers in August 2012, indicating near normalcy in Sri Lankan and Egyptian markets. Tata Motors gained 0.3%. The company said Tuesday that it has set up a wholly owned Jakarta-based subsidiary, PT Tata Motors Indonesia, and will start selling passenger and commercial vehicles next year. "Our research is showing that there is a large opportunity for Tata vehicles in Indonesia, with operating conditions and customer needs being very similar to those in India," Tata Motor Indonesia President Director Biswadev Sengupta said. He said that by the time of the launch, the local unit will have about 10 to 15 dealers nationwide, offering sales, service and spare parts. Over a period of three years, the company will set up a country-wide network of about 60 full-service dealers, about 100 workshops and about 300 more spare parts retailers. The company early this month said its total sales (including exports) of Tata commercial and passenger vehicles rose 12% to 71,826 vehicles in August 2012 over August 2011. The company's domestic sales of Tata commercial and passenger vehicles rose 13% to 67,453 in August 2012 over August 2011. Cumulative sales (including exports) for the company for the fiscal are 334,125 units, higher by 4%, over 320,878 units, sold last year. Maruti Suzuki India rose 0.74%. The company said today, 11 September 2012 that, by an order made on the August 22, 2012, the High Court of Delhi has directed that a separate meeting of the Unsecured Creditors of the company will be held on September 29, 2012, for the purpose of considering, and if thought fit, approving with or without modification(s), the scheme of amalgamation between Suzuki Powertrain India and Maruti Suzuki India and their respective shareholders and creditors. Suzuki Motor Corp. Chairman Osamu Suzuki on 6 September 2012 said that daily production at the reopened Manesar factory of Maruti Suzuki India will reach up to 850 units by mid-September. Mr. Suzuki added that production had reached 670 units as of Tuesday, 4 September 2012. Maruti was making 1,700 cars a day on average at Manesar before the violence that left some 100 people injured and the plant damaged. Maruti resumed partial production at the factory in the Manesar unit on 21 August 2012 after it was closed following rioting by some workers. Housing Development Finance Corporation rose 2.49% to Rs 758.10 after hitting a 52-week high of Rs 759.90 in intraday trade today, 11 September 2012. The company said it has allotted 5.47 crore equity shares at Rs 600 per share, aggregating to an amount of Rs 3284.59 crore, upon conversion of warrants. The company realised an amount of Rs 3284.59 crore, representing 99.95% of the warrants issued. The company made this announcement after market hours on Monday, 10 September 2012. Cipla rose 0.63% to Rs 389.45. The stock had struck a record high of Rs 395.45 on Monday, 10 September 2012. The Delhi High Court has recently ruled in favour of Cipla in a patent infringement case filed by Switzerland's Roche Holding AG over Cipla's cancer drug Erlocip. IT major, Infosys rose 0.7% after the company said its BPO firm, McCamish Systems has increased its presence in the USA, and in the Voluntary Group Life Insurance Business. The company made this announcement before trading hours today, 11 September 2012. McCamish Systems LLC, an Infosys BPO company, specializing in end-to-end, enterprise-wide insurance and retirement business process solutions, has increased its presence in the Voluntary Group Life Insurance business space by commencing operations in Des Moines, Iowa, USA with 87 employees, serving 7 insurers and covering more than 6 lakh insured lives, Infosys said. This has further enhanced Infosys BPO's positioning as a premier provider of end-to-end, enterprise-wide solutions for the insurance and financial services sector, Infosys said in a statement. Commenting on the development, Mr. D Swaminathan, CEO and MD, Infosys BPO said, "With this addition to the footprint of Infosys BPO operations, our capabilities and domain expertise in Group Life Administration have been significantly enhanced, potentially yielding magnified gains for clients. Our in-depth knowledge of the insurance and financial services sector in McCamish Systems, with clients serviced on our Variable Product Administration Systems (VPAS) Life policy administration platform will now be further enhanced through the addition of domain experts, fulfilling the need of clients to have a service provider having end-to-end capabilities, offering policy administration services for their group life plans". Commenting on the development, Gordon Beckham, President and CEO, McCamish Systems said, "The addition of this capability complements Infosys BPO's strong existing functional domain knowledge and Global Delivery Model capabilities. We have proven solutions and capabilities, further advancing our comprehensive, platform based solutions for insurance carriers, and expanding our service offerings to Group Insurance providers as well. We look forward to servicing these clients and growing this important line of business". McCamish Systems, located in Atlanta, Georgia, is the Life Insurance and Retirement Services subsidiary of Infosys BPO, the Business Process Outsourcing subsidiary of Infosys, which was set up in April 2002. Infosys BPO focuses on integrated end-to-end outsourcing. Infosys BPO operates in India, the Czech Republic, Poland, Mexico, Brazil, USA, China, the Philippines and Australia. Shares in Sesa Goa and Sterlite Industries tumbled after Goa, a key iron ore producing state in India, temporarily suspended all mining activities. Goa is India's second-biggest iron ore producer -- with an output of more than 50 million tonnes -- and exports almost all of it, making it the top exporter. Shares of Sesa Goa tumbled 5.81%. Sesa Goa, an Indian unit of London-listed Vedanta Resources Plc, gets most of its iron ore from mines based in Goa. Shares of non-ferrous metals producer Sterlite Industries India which is set to merge with miner Sesa Goa to create Sesa Sterlite -- the eventual umbrella unit for other subsidiaries of the Vedanta Group plunged 4.43%. The move by Goa to temporarily suspend mining activities, effective Tuesday, came after an expert panel formed by the government found "serious illegalities and irregularities" in mining operations. Goa will, however, allow movement of iron ore already produced or that has been stored at ports. Indian Bank rose 1.08%. The bank announced after market hours today that lndfund Management has been merged with the bank. Earlier, the bank had announced om February 02, 2012 that the board of directors of the bank have accorded approval for a scheme of amalgamation of lndfund Management, a wholly owned subsidiary of the bank with Indian Bank, Non-banking finance companies providing loan-for-gold rose on firming gold prices. Muthoot Finance (up 10.57%) and Manappuram Finance (up 1.21%), edged higher. These companies provide loans against gold as collateral. Mahindra & Mahindra Financial Services fell 1.58%, with the stock sliding on profit booking after 4-day 9.92% rally. Sugar stocks gained after Indian sugar mills association (ISMA) reportedly revised its sugar production estimate for 2012-13 season downward from 25 million tonnes to 24 million tonnes. Balrampur Chini Mills, Shree Renuka Sugars and Bajaj Hindusthan rose by between 0.32% to 1.83%. Meanwhile, sugar prices rose sharply at the Vashi wholesale market today due to brisk buying by stockist and bulk traders in view of upcoming festivities amidst reduced selling pressure on mills. PSU OMCs gained as oil minister Mr. Jaipal Reddy said Tuesday that he has sent a note to a cabinet panel to seek approval for an increase in diesel and cooking fuel prices. BPCL (up 1.81%), HPCL (up 2.86%) and Indian Oil Corporation (up 0.96%) advanced. But Jaipal Reddy added that the proposal is unlikely to be discussed later in the day at a meeting of the Cabinet Committee on Political Affairs. The committee is headed by Prime Minister Manmohan Singh and includes several cabinet ministers. Mr. Reddy told reporters also that state-run oil marketing companies are set to lose Rs 1.88 trillion ($34 billion) in revenue in this financial year through March by selling diesel and cooking fuels at state-set, discounted rates. Earlier in the day, reports said that the government may announce a decision Tuesday to permit PSU OMCs to increase the prices of diesel, cooking gas and kerosene. The government deregulated gasoline prices in mid-2010, but diesel and cooking fuel are still controlled by the government. GAIL (India) gained 1.66% as company has reportedly confirmed earlier media reports that it is considering buying liquefied natural gas (LNG) assets put up for sale by Spain's Repsol SA in Canada, Peru, and Trinidad. July's industrial output data due to be released tomorrow, 12 September 2012 and August headline inflation figure to be declared on Friday, 14 September 2012 will be closely watched. Industrial production is seen rising 0.4% in July 2012 as per the median estimate of poll carried out by Capital Market. Inflation based on the wholesale price index (WPI) is projected rise by 7% in August 2012, as per the median estimate of the poll carried out by Capital Market. The Reserve Bank of India (RBI) last cut rates by 0.5 percentage point to 8% from 8.5% in April, its first move to reverse a 20-month rate-tightening cycle. It then held rates steady in June and at its last rate-setting meeting on July 31, saying that a cut would exacerbate inflationary pressures. The RBI is scheduled to undertake a mid-quarter review of the monetary policy on 17 September 2012. The RBI is expected to maintain status quo on short term lending rates in its policy review on 17 September 2012, as per the poll carried out by Capital Market. Advance tax data for the 2nd installment due on 15 September 2012 could provide cues on the likely corporate earnings for Q2 September 2012. Finance Minister P. Chidambaram early this month said that India is making consistent efforts to check the abuse of a double-taxation-avoidance pact it has with Mauritius. India has in the past said it is considering a review of the treaty in an effort to boost tax revenue. An India-Mauritius joint working panel was set up in 2006 to put in place adequate safeguards for preventing the misuse of the double-taxation-avoidance agreement between the two countries. India, in the past, has said that Mauritius was unwilling to cooperate on this issue. Mauritius says it has taken India's concerns seriously. Traditionally, Mauritius has accounted for nearly 40% of India's foreign investment. Under the avoidance of double taxation treaty, companies that invest through Mauritius do not have to pay tax in India but only have to pay tax in the island. But capital gains tax is close to zero in Mauritius, making it a popular investment hub. India wants to renegotiate the double taxation treaty with Mauritius to check round-tripping, in which money is moved out of one country to another and brought back under the garb of foreign capital, taking advantage of tax breaks. Meanwhile, a committee appointed by the government to review the controversial general anti-avoidance rules (GAAR) early this month suggested deferring the implementation of anti-avoidance rules by three years. "Where Circular No. 789 of 2000 with respect to Mauritius is applicable, GAAR provisions shall not apply to examine the genuineness of the residency of an entity set up in Mauritius," the committee said. The committee has also recommended that the government should abolish the tax on gains arising from transfer of listed securities, whether in the nature of capital gains or business income, to both residents as well as non-residents. The panel has said the government might consider increasing the rate of Securities Transaction Tax (STT) appropriately to make the proposal tax neutral. At present, short-term capital gains on equities are taxable at the rate of 15%. Holding period of less than one year is considered as short term. There is no long term capital gains tax on sale of shares. Business income is taxed at 30%. Distinguishing capital gains and business income depends on several factors, and disagreements have resulted in numerous litigation cases between the Revenue Department and taxpayers, the committee said in its report. India's annual exports fell 14.8% to $22.4 billion in July, while imports fell 7.6% to $37.9 billion, leaving a trade deficit of $15.5 billion, the trade ministry said in a statement early this month. India's gross domestic product (GDP) rose 5.5% in Q1 June 2012, data released by the government on 31 August 2012 showed. The services sector grew 6.9%, industry grew 3.6% and agriculture sector grew 2.9%. Manufacturing output rose 0.2% while mining sector grew 0.1% in Q1 June 2012. India's economy has slowed sharply over the past year due to weak industrial activity as high interest rates crimped demand and made it hard for corporates to finance expansion plans. Global rating agencies Standard & Poor's and Fitch Ratings cut their outlooks on India's ratings to negative from stable earlier this year and warned that unless the government takes concrete action to improve the macro-economic environment, the country may lose its investment-grade status. The month-long Monsoon session of Parliament that ended on Friday 7 September 2012, was one of the least productive sessions by far with protests over Assam violence, CAG report on coal blocks allocation and finally the Bill over SC/ST quota in job promotions stalling the proceedings. No business could be transacted for days due to the daily ritual of slogan shouting and rushing to the Well of the House finally resulting in the Lok Sabha and the Rajya Sabha being adjourned sine die on Friday, 7 September 2012. Only four bills including the Protection of Women Against Sexual Harassment at Workplace Bill and the AIIMS Amendment Bill were passed during the Monsoon session, that had 30 bills pending. Of 15 bills listed for introduction, just five were introduced. It now remains to be seen whether Parliament will be able to pass the pending bills in the Winter session. Slamming the Opposition as Parliament adjourned sine die on the last day of the monsoon session on Friday, 7 September 2012, without conducting any major business, Prime Minister Dr. Manmohan Singh said that the regular disruptions by the Opposition were a negation of democracy and a violation of norms of Parliament and the Constitution. "We have great respect for the CAG. However, if we respect it, we should be willing to discuss its reports in the House and at the PAC. This is negation of democracy, violation of norms of Parliament and the Constitution as we have understood it," Dr. Singh said on Friday, 7 September 2012. He said that the time wasted by Parliament could have been better utilised in discussing more crucial problems grappling the country like terrorism and Naxalism. "On the economic front too we face major challenges. The world is passing through an exceptionally difficult phase. Our economy is also experiencing problems. We must work hard to ensure that the Indian economy returns to high growth. I have no doubt we can do it. We can rebuild our growth momentum and encourage entrepreneurship by stimulating investment in infrastructure, in power, in roads, ports, railways, and telecommunications. This will send a clear signal to the world that India is on the road to recovery. This in turn will bring back the momentum of growth, generate productive employment and also enable us to direct more resources to help the poor and weaker sections," Dr. Singh said. The Prime Minister said that the government must act wherever it can without the benefit of Parliamentary guidance. "I am instructing all Ministries to accelerate their consideration of critical issues where decisions are needed to get the economy moving again," Dr. Singh said. The Central Bureau of Investigation (CBI) early this month registered five separate cases against certain private companies, their directors and unknown public servants in connection with the allegations related to getting coal blocks allocated on the basis of misrepresentations and false claims in the applications, presentations and connivance/lack of due diligence on part of public servants. Promoters of some of these companies have allegedly sold their stakes in an irregular manner after allocation of coal blocks, CBI said in a statement issued on 4 September 2012. A preliminary enquiry to examine the irregularities, if any, in the allocation of coal blocks during the period 2006-09 was registered on a reference from CVC, in June this year. The Comptroller and Auditor General of India last month issued a report that said the government had lost as much as Rs 1.86 lakh crore in potential revenue because it awarded 57 coal blocks to private companies between 2004 and 2011 without competitive bidding. The report has created a furore, with opposition political parties stalling proceedings of the Parliament and demanding the resignation of Prime Minister Dr. Manmohan Singh. Dr. Singh has denied allegations of impropriety in coal-block allocations and termed "clearly disputable" the Comptroller and Auditor General of India's (CAG) observations that the process followed to allot them deprived the government billions of dollars in revenue. In its report on the allocation of coal blocks, CAG said the government lost a maximum of Rs 1.86 lakh crore by allocating licenses for 57 coal-mining blocks between 2004 and 2011 to state-owned and private companies without a transparent auction. Dr. Singh on 27 August 2012 said the CAG's calculation of about Rs 1.86 lakh crore of financial gain to private parties can be questioned on a number of technical points. Dr. Singh also said since that the coal blocks were allocated to private companies only for captive purposes for specified end-uses, it will not be appropriate to link the allocated blocks to the price of coal set by CIL. The government has very limited time to take economic reform measures given that assembly elections in Gujarat and Himachal Pradesh (HP) are scheduled in December this year. It will difficult for the government to enact controversial measures close to the assembly polls. After elections in Gujarat and HP, assembly elections are planned in a total of 10 states during the period from March 2013 to January 2014. The next general election is due in May 2014. Reserve Bank of India (RBI) governor D Subbarao last month said India's inflation is still a challenge, but its growth story remains intact. "India has no space for a policy response to a crisis, we are more vulnerable," Subbarao said at an event in Cornell University in the United States. The country, he said, had room to react through monetary policy to the 2008-09 crisis, but this time around a litany of challenges--including moderating growth, persistent and high inflation, stress on balance of payments and twin deficits in the country's current account and fiscal budget--have left the central bank little room to negotiate the global slowdown. He noted that despite the depreciation of the Indian rupee by nearly 20% since last August, there has been no improvement in the country's current account deficit. He blamed the government's policy of fuel subsidies for protecting consumers from the effect of global commodity price rises. He noted despite higher prices, imports of oil into the country continue to increase due to rise in consumption, as consumers are protected from these price hikes. He added investors still should be confident of India's growth story and look at the positives including its attractive demographics, its growing middle-class and high savings rate. But he acknowledged there was a lot left to be done by various stakeholders to make the growth story happen. "India needs to grow at 10% for the next 15 years just to catch up," he said. A late pick-up in monsoon rains in August month will lead to a recovery in yields in summer-sown crops including rice and oilseeds, lessening the severity of a drought in several parts of the country following scanty rains for much of this year's June-September monsoon. Prolonged rains would also improve the prospects for winter-sown crops due to better soil moisture. An El Nino weather event, which usually disrupts rainfall, is expected to emerge at the tail-end of the monsoon in September. Farm Secretary Ashish Bahuguna late last month said the El Nino may not impact rainfall in September due to build-up of another weather phenomenon called the Indian Ocean Dipole. 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. The timing, distribution and quantity of rainfall are all important for crops. The four-month southwest monsoon season that starts from June accounts for almost 70% of total annual moisture that Indian soil receives in a year. Finance Minister P. Chidambaram last month said that the goods and services tax (GST) is a more effective and efficient substitute for a plethora of indirect taxes. The Finance Minister said that he is hopeful that the GST Bill would be passed before the end of the current financial year. The Finance Minister further said that though there are still some issues relating to GST and its Network (GSTN) to be resolved, yet they are not insurmountable. Union Minister of Commerce, Industry & Textiles Mr. Anand Sharma said 16 August 2012 that the government will come out with announcements pertaining to industrial environment that will address the subdued sentiment in the industry. Speaking after the fourth meeting of the Government-Industry Task Force Mr. Sharma said that there is a shared concern over the declining industrial production, particularly the manufacturing sector. European stocks fell for a second day Tuesday amid concern developments in Spain or Germany will derail the European Central Bank's bond-buying plan. Key benchmark indices in France, Germany and UK dropped by between 0.09% to 0.41%. ECB President Mario Draghi on Thursday, 6 September 2012, said policy makers agreed to an unlimited bond-purchase program as they try to regain control of interest rates in the euro area. The program will target sovereign bonds with maturities of one to three years in its most ambitious plan yet to save the euro. The central bank also forecast a deeper economic contraction for 2012 than it did three months ago. Euro-area gross domestic product will drop 0.4% this year compared with an earlier 0.1% projection, it said. The results of a detailed audit on the capitalisation needs of Spain's banks are expected in mid-September 2012. Germany's constitutional court will decide on Wednesday, 12 September 2012, whether the European Stability Mechanism (ESM) -- the proposed permanent successor to the euro-zone's current emergency lender viz. the European Financial Stability Facility (EFSF) -- violates German law and the Maastricht Treaty's 'no bailout' clause. The EFSF is a temporary bailout fund and the ESM is the euro zone's permanent-rescue fund. Asian shares were mostly lower on Tuesday ahead of a key German ruling on the euro zone's bailout funds and the US Federal Reserve's policy decision, repositioning from last week's rally spurred by heightened speculation for more stimulus globally. Key benchmark indices in Japan, China, South Korea and Indonesia were down by between 0.13% to 0.70%. Key benchmark indices in Hong Kong, Singapore and Taiwan rose by between 0.03% to 0.26%. China posted a wider-than-expected trade surplus in August as imports unexpectedly contracted during the month from the year-ago period, suggesting lackluster domestic demand, according to data released on Monday, 10 September 2012. Exports rose 2.7% in August 2012 from a year earlier, indicating relatively weak overseas demand. Imports surprised by dropping 2.6% from August 2011, against expectations for a small rise. China's top economic planners last week approved major infrastructure-investment projects, bolstering the more than two dozen subway and urban-rail initiatives announced a day earlier. The National Development and Reform Commission gave the go-ahead to 13 highway projects and other municipal and port projects, according to reports. The measures follow announcement on 5 September 2012 of 25 new rail projects worth an estimated 800 billion yuan ($127 billion) over the next three to eight years South Korea on Monday, 10 September 2011, announced a five-billion-dollar economic stimulus package to support Asia's fourth-largest economy, which has been badly hit by the global downturn. The 5.9-trillion-won ($5.23 billion) package -- 4.6 trillion won of stimulus support for the remainder of this year and 1.3 trillion won for next year -- doesn't require a new national budget, the Ministry of Strategy and Finance said. The stimulus will take the form of reducing taxes on individual incomes and on purchases of homes or cars, and expanding state-funded social welfare programs. The new plan follows a stimulus package of 8.5 trillion won announced in June to boost the economy for the second half of 2012. The combined stimulus of 13.1 trillion won for this year equates to 1% of the country's gross domestic product. South Korea's export-led economy has been severely hit by shrinking overseas demand amid the prolonged euro-zone sovereign-debt crisis and weakened global economy. Japan's central bank, Bank of Japan, holds two-day policy meeting on interest rate in Japan on 18 and 19 September 2012. Trading in US index futures indicated that the Dow could gain 33 points at the opening bell on Tuesday, 11 September 2012. Stocks slipped on Wall Street on Monday as troubling economic news from China and the U.S. outweighed optimism about more stimulus from the Federal Reserve. The Dow Jones industrial average fell 52.35 points to 13,254.29. The Standard & Poor's 500 slipped 0.61% to 1,429.08 and the Nasdaq Composite index fell 1.03% to 3,104.02. The Federal Open Market Committee (FOMC) holds a two-day meeting on US interest rates on September 12-13. Federal Reserve Chairman Ben S. Bernanke pledged in an Aug. 31 speech to promote growth with "additional policy accommodation as needed." Election for a new president in the United States, the world's biggest economy, is scheduled on 6 November 2012.