Market may open slightly lower

Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could fall 6.50 points at the opening bell. The market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month October 2012 series to November 2012 series. The near-month October 2012 derivatives expire on Thursday, 25 October 2012. The stock market remains closed tomorrow, 24 October 2012, on account of Dussera. Cairn India said after trading hours on Monday, 22 October 2012, its consolidated profit after tax (PAT) jumped 204.4% to Rs 2322.20 crore on 67.5% growth in revenue to Rs 4443.10 crore in Q2 September 2012 over Q2 September 2011. PAT excluding foreign exchange transactions jumped 1239.65% to Rs 3108 crore in Q2 September 2012 over Q2 September 2011. Earnings before interest, taxation, deprecation and amortization (EBITDA) jumped 65.9% to Rs 3425.30 crore in Q2 September 2012 over Q2 September 2011. Gross cash available to the company as on 30 September 2012 was Rs 13067.70 crore. The net cash available as on 30 September 2012 was Rs 12442.70 crore. The non-convertible debentures (NCD) outstanding as on 30 September 2012 were Rs 625 crore. The outstanding NCD were redeemed in October 2012. CIL said that the search for appointing new CEO is ongoing and progressing well. In the meantime, the board of directors of the company has appointed Mr. P. Elango, Director - Strategy and Business Services and a member of Cairn India's Executive Committee, as the Interim CEO. Further, Mr. Sudhir Mathur has joined the company as the Chief Financial Officer and member of the Cairn India Executive Committee. Commenting on the company's Q2 results, Elango P, Interim Chief Executive Officer, Cairn India (CIL) said: "The quarter saw consistent production from our flagship Rajasthan asset. The block continues to produce about 175,000 bopd, which is more than 20% of India's domestic oil production. Work to enhance production from the block continues to remain our focus. Production from all assets resulted in reducing India's import bill by about $1.8 billion and contributing about $0.8 billion to the national exchequer during the quarter. Following support from the Government of India (GoI), we have received all approvals for our corporate re-organisation. Implementation of this will help simplify and consolidate the multi-layered structure of CIL, comprising foreign subsidiaries. We have made good progress with GoI in respect of further exploration in the Barmer Basin. With our internal preparation to implement exploration programmes at an advanced stage, I am confident that the Joint Venture can move quickly to harness the Block's full potential post approvals. Our farm-in agreement in the Orange Basin, South Africa and partnership with PetroSA is a step in the right direction towards our strategic goal of growing our resource base by building a balanced portfolio with a long term vision." Idea Cellular after trading hours on Monday, 22 October 2012, said consolidated profit after tax (PAT) rose 2.52% to Rs 240 crore on 3.44% fall in total revenue to Rs 5314 crore in Q2 September 2012 over Q1 June 2012. Earnings before interest, taxation, depreciation and amortization (EBITDA) declined 0.9% to Rs 1422.50 crore in Q2 September 2012 over Q1 June 2012. With the increasing proportion of rural subscribers, the seasonal slowdown in second quarter became more pronounced, resulting in a sharp contraction in the voice minutes of use by 4% to 125.60 billion minutes in Q2 September 2012 over Q1 June 2012, Ideal Cellular said in a statement. The overall wireless telecom business outlook for the quarter remains muted due to headwinds emerging from uncertain regulatory interventions, weak seasonal demand and continued grim battle for market supremacy, Ideal Cellular said. The company was quick to spot the external challenges and in-spite of fall in demand, is happy to report an improvement in EBITDA margin by 0.3%, to 23.6%, primarily through optimization of 'Subscriber Acquisition & Servicing' and 'Advertisement & Business Promotion' expenditure, Idea said. The company said the share of non-voice revenue rose to 15.6% in Q2 September 2012 from 14.5% in Q1 June 2012. Idea said its 3G investment plans are on track and high speed broadband services are now available in 3,500 towns in 20 service areas (including roaming arrangements). The company on its own way is assisting development of 3G ecosystem, with the launch of 4th Idea branded 3G handset AURUS, Idea said a statement. Over 18.9 million of Idea's strong 115 million subscriber base use mobile data services, contributing 5.4% of total service revenue, the company said. The company said that the management is confident of the company overcoming the current uncertain regulatory phase and emerge stronger as the overcapacity comes to an inevitable decline, consolidate its position in the telecom voice market and aggressively expand in the ever evolving wireless broadband business. India's second largest software services exporter by revenues Infosys announced after market hours Monday, 22 October 2012, it has completed the acquisition of Lodestone Holding AG, a leading management consultancy based in Switzerland. The acquisition is in accordance with the terms set out in the agreement announced on September 10, 2012. The deal strengthens the management consulting capabilities of Infosys around the world, adding more than 750 experienced consultants and 200 clients in wide-ranging areas such as manufacturing and the automotive and life sciences industries, Infosys said in a statement. Commenting on the conclusion of the acquisition, Infosys CEO & Managing Director, Mr. S.D. Shibulal said: "Our clients are looking for help driving the transformations that will allow them to be successful in a challenging and dynamic market. Combining our global scale with Lodestone's consulting heritage creates a world-class team that can bring clients a broad spectrum of capabilities across consulting, systems integration, and outsourcing." Hero MotoCorp, Sterlite Industries (India) and Lupin unveil Q2 results today, 23 October 2012. Key benchmark indices edged higher on Monday, 22 October 2012 as European stocks rose on relief over weekend regional elections in Spain and as trading in US index futures indicated recovery in US stocks at the opening bell on Monday, 22 October 2012, after Friday's sharp losses. The BSE Sensex jumped 111.13 points or 0.59% to settle at 18,793.44 on that day, its highest level since 11 October 2012. Foreign institutional investors (FIIs) bought shares worth a net Rs 241.68 crore on Monday, 22 October 2012, as per provisional data from the stock exchanges. Asian stocks were mixed in choppy trade on Tuesday. Key benchmark indices in Indonesia, Singapore and Japan rose by between 0.02% to 0.68%. Key benchmark indices in China, South Korea and Taiwan shed by between 0.17% to 0.47%. U.S. stocks fell on Monday after heavy-equipment maker Caterpillar Inc slashed its 2012 forecast and warned that the global economy was slowing more quickly than it had expected The Federal Open Market Committee will release its statement tomorrow, 24 October 2012, following a two-day policy meeting on interest rates in the United States. Markit releases its October preliminary purchasing-managers' index results for the United States, euro zone, China, Germany and France tomorrow, 24 October 2012. Election for a new president in the United States, the world's biggest economy, is scheduled on 6 November 2012. Investors are worried about US fiscal cliff. The "cliff" refers to the year-end deadline for the expiration of hundreds of billions of dollars worth of tax cuts and the triggering of $109 billion in across-the-board spending cuts. The non-partisan Congressional Budget Office has said the scenario could throw the country into recession. Congress created the hazardous deadline of 31 December 2012 in August 2011 when it agreed to a deficit deal as a way out of a deadlock over raising the US debt ceiling.