Market loses ground on US fiscal cliff worries

Key benchmark indices edged lower as European stocks dropped and as trading in US index futures indicated lower opening of US stocks later in the global day today, 16 November 2012. Worries about the US "fiscal cliff" and Europe's long-running debt problems weighed on sentiment. The barometer index, BSE Sensex, reached its lowest closing level in more than 9 weeks. The 50-unit S&P CNX Nifty reached its lowest closing level in more than 8 weeks. The Sensex was down 162 points or 0.88%, up about 40 points from the day's low and off close to 265 points from the day's high. The market breadth turned negative from positive in late trade. Indian stocks dropped for the sixth day in a row today, 16 November 2012. From a recent high of 18,902.41 on 7 November 2012, the Sensex has declined 593.04 points or 3.13% in the past six trading sessions. The Sensex has surged 2,854.45 points or 18.46% in calendar 2012 so far (till 16 November 2012). The Sensex has declined 196.01 points or 1.05% in this month so far (till 16 November 2012). From a 52-week high of 19,137.29 on 5 October 2012, the Sensex has declined 827.92 points or 4.32%. From a 52-week low of 15,135.86 on 20 December 2011, the Sensex has risen 3,173.51 points or 20.96%. Coming back to today's trade, index heavyweight Reliance Industries (RIL) edged lower in choppy trade. Index heavyweight and cigarette maker ITC reversed gains in late trade. Realty stocks edged lower. Bank stocks fell across the board. The market edged higher in early trade. The market extended initial gains to hit fresh intraday high in morning trade. Key benchmark indices regained positive terrain after slipping into the red for a brief period in mid-morning trade. Key benchmark indices extended gains to strike fresh intraday high in afternoon trade. The market extended intraday gains to hit fresh intraday high in mid-afternoon trade. The market slumped in late trade. The BSE Sensex was down 162 points or 0.88% to 18,309.37, its lowest closing level since 13 September 2012. The index tumbled 204.61 points at the day's low of 18,266.76 in late trade. The index rose 91.95 points at the day's high of 18,563.32 in mid-afternoon trade. The S&P CNX Nifty was down 56.95 points or 1.01% to 5,574.05, , its lowest closing level since 20 September 2012. The index hit a low of 5,650.15 and a low of 5,559.80 in intraday trade. The BSE Mid-Cap index fell 0.89% and the BSE Small-Cap index declined 1.13%. Both these indices underperformed the Sensex. The turnover on BSE amounted to Rs 2380 crore on Friday, 16 November 2012, lower than Rs 2516 crore on Thursday, 15 November 2012. The market breadth, indicating the overall health of the market, was weak. On BSE, 1,738 shares declined and 1,112 shares rose. A total of 113 shares were unchanged. From the 30-share Sensex pack, 25 stocks fell while the rest of them rose. Index heavyweight Reliance Industries (RIL) fell 1.18% to Rs 775.45. The stock hit a high of Rs 792.75 and low of Rs 771.20. Index heavyweight and cigarette maker ITC declined 0.72% to Rs 274.55. The stock hit high of Rs 281.10 and low of Rs 273.45. The Ministry of Health and Family Welfare last month notified new pictorial health warnings to be depicted on tobacco product packs which will come into effect from 1 April 2013. The Ministry of Health and Family Welfare said in a statement on 22 October 2012 that three sets of warnings each have been notified for smoking as well as smokeless forms of tobacco product packages. The well-designed health warnings and messages are part of a range of measures to communicate health risks due to tobacco use. Pictorial health warnings communicate health risks in a visible way, provoke a greater emotional response and increase the motivation of tobacco users to quit and to decrease their tobacco consumption, the ministry's statement said. Graphic warning labels have a greater impact than text-only labels and can be recognized by low-literacy audiences and children, the statement added. Shares of ITC had hit record high on 19 October 2012 after the company announced strong Q2 results during trading hours on that day. The stock had hit record high of Rs 299.20 in intraday trade on 19 October 2012. ITC's net profit jumped 21.27% to Rs 1836.42 crore on 18.65% growth in income from operations to Rs 7226.58 crore in Q2 September 2012 over Q2 September 2011. L&T declined 1.74%. The company announced after market hours today, 16 November 2012, it has agreed to sell its medical equipment business based at Mysore to Skanray Helathcare. L&T did not unveil the amount of sale consideration. Among other capital goods stocks, Bhel, BEML, Thermax, ABB and Punj Lloyd fell by between 0.75% to 2.2%. Most IT pivotals reversed initial gains on concerns about upcoming fiscal challenges for the United States, the biggest outsourcing market for Indian IT firms. India's largest software services exporter by revenues TCS shed 0.74%, with the stock reversing initial gains. The company announced after market hours Thursday, 15 November 2012, it is collaborating with SAP AG on development of the SAP Retail Execution mobile app version 3.0. The collaboration is based primarily on TCS' extensive experience in consumer packaged goods (CPG) industry implementation projects and mobile application product development, TCS said. India's third largest software services exporter by revenues Wipro fell 0.51%, with the stock reversing initial gains. On a consolidated basis under International Financial Reporting Standards (IFRS), Wipro's net profit rose 24% to Rs 1611 on 17% increase in total revenue to Rs 10657 crore in Q2 September 2012 over Q2 September 2011. The company announced the result on 2 November 2012. Wipro expects 1.23% to 3.17% growth revenues from IT services business at $1.56 billion to $1.59 billion in Q3 December 2012 over Q2 September 2012. Wipro's board of directors on 1 November 2012 approved demerger of the Wipro Consumer Care & Lighting (including Furniture business), Wipro Infrastructure Engineering (Hydraulics & Water businesses), and Medical Diagnostic Product & Services business (through its strategic joint venture), into a separate company to be named Wipro Enterprises. Wipro will remain a publicly listed company that will focus exclusively on information technology. Wipro Enterprises will be an unlisted company. But, India's second largest software services exporter by revenues Infosys advanced 2.08%. Infosys, Microsoft and Gen-i have announced a managed service platform designed to simplify the deployment, management and control of Cloud services for Australian and trans-Tasman enterprises and government agencies. Services available in the platform will include Microsoft's latest messaging, collaboration and virtualisation tools, including Microsoft System Center, Microsoft Exchange Server, Microsoft SharePoint, Microsoft Lync and Virtual Desktops. Solutions over this platform will be brought to market by Infosys and Gen-i. The platform can be hosted in Australia and/or New Zealand according to client requirements, using Gen-i's proven secure, in-country architecture to assure local data sovereignty. Metal stocks were mixed. Jindal Steel & Power, Sail, and Hindustan Zinc rose by between 0.06% to 0.79%. Sterlite Industries, JSW Steel, Tata Steel, Hindalco Industries and Bhushan Steel shed by between 0.88% to 2.11%. PSU OMCs fell after cutting petrol prices by about 1.4% from Friday. HPCL, Indian Oil Corporation and BPCL dropped by between 0.42% to 0.65%. The government decontrolled pricing of petrol in 2010. "The trends in the international oil market and rupee-dollar exchange rate are being closely monitored and the same shall be reflected in future price changes," Indian Oil Corporation said in a statement on Thursday, 15 November 2012, while announcing cut in petrol price. Auto stocks edged lower. India's largest commercial vehicle maker by sales Tata Motors fell 2.64%. The Tata Motors Group global wholesales, including Jaguar Land Rover, rose 6% to 100,660 units in October 2012 over October 2011. Cumulative wholesales for the fiscal were 679,051 units, higher by 7%, compared to the corresponding period in 2011-12. Global wholesales of all commercial vehicles -- Tata, Tata Daewoo and the Tata Hispano Carrocera range -- rose 19% to 51,396 units in October 2012 over October 2011. Cumulative wholesales for the fiscal were at 334,941 units, higher by 4%, over October 2011. Global wholesales of all passenger vehicles were at fell 5% to 49,264 units in October 2012 over October 2011. Cumulative wholesales for the fiscal were 344,110 units, higher by 10%. Global wholesales of Tata passenger vehicles were fell 17% to 21,367 units in October 2012 over October 2011. Cumulative wholesales for the fiscal were flat at 155,319 nos. Global wholesales for Jaguar Land Rover in the month of October 2012 were 27,897 vehicles, higher by 7% over October 2011. Jaguar wholesales for the month were 3,339 and cumulative wholesales were 24,945 vehicles, while Land Rover wholesales for the month were 24,558 units and cumulative wholesales were 163,846 vehicles. Cumulative wholesales for Jaguar Land Rover for the fiscal were 188,791 vehicles, higher by 21%. India's largest utility vehicle maker by sales Mahindra and Mahindra fell 0.79% to Rs 894.45. The stock had hit record high of Rs 926 in intraday trade on 7 November 2012. The company last week said its consolidated net profit rose 17.1% to Rs 798.70 crore on 17.7% increase in the gross revenue plus other income to Rs 17973.40 crore in Q2 September 2012 over Q2 September 2011. In view of the disposal of shares by a joint venture partner, Tech Mahindra became an associate of the company with effect from 1 September 2012 and its Gross Revenue and Other Income have been included in this consolidation only up to 31 August 2012. Hence, the Consolidated Revenue for the current quarter and half year are not strictly comparable with that of the corresponding periods in the previous year. In Q2 September 2012, some of the major group companies like Mahindra Finance, Mahindra Satyam and Mahindra Holidays significantly improved their performance over Q2 September 2011. Mahindra Finance grew its consolidated revenue by 46% and its profit by 42%. Mahindra Satyam's consolidated revenue grew by 23% with a 17% increase in its profits and Mahindra Holidays operating revenue grew by 11% with a profit growth of 12%. As on 30 September 2012, the group comprised of 118 subsidiaries, 5 joint ventures and 12 associates. Car major Maruti Suzuki India fell 1.89% to Rs 1,438.90. Shares of Maruti had had scaled 52-week high of Rs 1,488 in intraday trade on 5 November 2012. The company early this month said its total sales jumped 85.5% to 1.03 lakh units in October 2012 over October 2011. Maruti Suzuki India said total passenger car sales surged 93.8% to 79,811 units in October 2012 over October 2011. Total domestic sales jumped 86.6% to 96,002 units and total exports rose 71.8% to 7,106 units in October 2012 over October 2011. The sharp surge in sales in October 2012 was due to base effect. Maruti's sales in October of 2011 were hit adversely due to labour unrest at the company's Manesar and Gurgaon factories in Haryana. Motorcycle major Bajaj Auto dropped 1.2% to Rs 1,813.60. The stock had hit a record high of Rs 1,905 in intraday trade on 2 November 2012. The company on 2 November 2012 said its total sales rose 4% to 4.11 units in October 2012 over October 2011. Three-wheeler sales jumped 14% to a record 50,316 units in October 2012 over October 2011. Exports declined 4% to 1.26 lakh units in October 2012 over October 2011. Bajaj Auto's motorcycle sales rose 3% to 3.61 lakh units in October 2012 over October 2011. Bajaj Auto said its domestic motorcycle clocked record monthly sales of 2.62 lakh units in October 2012. The company also said that sales of its Discover brand of motorcycles clocked record sales of 1.55 lakh units in October 2012. Hero MotoCorp declined 1.02%. The company's total motorcycle sales rose 3.31% to Rs 5.29 lakh units in October 2012 over October 2011. Hero registered its highest ever sales for scooters in a single month in October 2012. Scooter sales crossed the 50,000 mark for the first time in the company's history. Encouraged by the strong sales of its scooters Maestro and Pleasure, the two-wheeler giant has increased its scooter production to over 60,000 units a month. Telecom stocks were mixed after Telecom Minister Kapil Sibal said that the government intends to conduct another auction of telecom bandwidth before the current fiscal year that ends in March 2013. MTNL, Tata Teleservices (Maharashtra), Reliance Communications shed by between 0.22% to 3.23%. Idea Cellular and Bharti Airtel rose by between 0.11% to 3.47%. Sibal's comment came after an auction of bandwidth this week generated just Rs 9407 crore, a little more than a third of the government's target of Rs 28000 crore. The government had put up 144 blocks of spectrum for sale, but got bids for just 101 of them as the auction's high starting price meant there were no bidders for bandwidth in some service areas. India's first sale of 2G mobile phone airwaves by auction came after the Supreme Court ordered the cancellation of permits granted to eight carriers in a scandal-tainted process in 2008. The order comes into effect in January. Videocon Telecommunications, part of Videocon Industries, whose 2G permits are to be revoked, won airwaves in six zones. Mobile phone market leaders Bharti Airtel and the local unit of British company Vodafone, which were not required to bid in auction, won additional airwaves in one and 14 zones, respectively. Norwegian group Telenor won airwave space in six zones in the auction, retaining part of the operations it would otherwise have lost in January. Idea Cellular won airwaves in all seven zones in which it was set to lose its permits. Dr. Reddy's Laboratories (DRL) rose 1.83%. DRL and OctoPlus N.V. said in a joint statement today, 16 November 2012, that preparations for DRL's public offer for OctoPlus, including preparations in respect of the offer memorandum for the offer (Offer Memorandum) and obtaining approval from the Netherlands Authority for the Financial Markets for the Offer Memorandum, are proceeding as planned. It may be recalled that DRL and OctoPlus had jointly announced on 22 October 2012 that they had reached conditional agreement in connection with an intended public offer by DRL or a wholly owned subsidiary of DRL, for all issued and outstanding shares in the capital of OctoPlus at an offer price of euro 0.52 (cum dividend) in cash for each OctoPlus share. Realty stocks edged lower. HDIL, D B Realty, Unitech and Sobha Developers fell by between 2.47% to 7.05%. Realty major, DLF dropped 3.06%. The company's consolidated net profit declined 62.63% to Rs 139 crore on 16% decline in revenue to Rs 2157 crore in Q2 September 2012 over Q2 September 2011. Earnings before interest, taxation, depreciation and amortization (EBITDA) declined 29% to Rs 864 crore in Q2 September 2012 over Q2 September 2011. The result was announced early this week. DLF's net profit declined 52.55% to Rs 139 crore on 7% decline in revenue to Rs 2157 crore in Q2 September 2012 over Q1 June 2012. EBITDA declined 28% to Rs 864 crore in Q2 September 2012 over Q1 June 2012. In a statement announcing the results, DLF said that the worst is over for the company. The company said it has made significant strides in achieving its business objectives built around net debt reduction, delivery of all past committed volumes and enhancing product mix through launches of higher margin products. In order to achieve this, the company has completely re-tooled its business model and putting in place the 'best in class' project management and construction agencies, DLF said. The large rental portfolio of the company continues to perform well with better rental realizations, DLF said. However, the leasing volumes remains muted due to overall economic conditions, the statement added. The closing of the Jawala transaction involving the sale of NTC Mills land in Mumbai represents a major milestone in the company's debt reduction objective and will be fully reflected in Q3 December 2012, DLF said. The company said it continues to make steady progress on the balance divestments which include Aman Resorts and Wind businesses and is very confident of their closure within the current financial year and achieve net debt reduction to Rs 18500 crore. Zee Entertainment Enterprises (ZEE) declined 2.8%. The company today, 16 November 2012, said an Arbitral Tribunal consisting eminent Jurists has found BCCI guilty of "exploiting its dominant position" in respect of game of cricket in India and has also held the BCCI guilty of unfair conduct against ZEE. The tribunal has held that ZEE was treated unfairly in its commercial contracts, due to the launch of the Indian Cricket League and was illegally blacklisted, ZEE said in a statement. The dispute pertains to an agreement executed in April 2006 between BCCI and ZEE whereby ZEE was granted the exclusive media rights to telecast all ODIs to be held between India and any other country in any neutral territory outside India for a period of 5 years. This agreement was terminated illegally and invalidly by BCCI in May 2007 around the time of launch of the Indian Cricket League (ICL) by the Essel Group resulting in ZEE invoking arbitration for wrongful termination of the contract, ZEE said in a statement. The tribunal has passed an award of approximately Rs 140 crore to be paid by BCCI to ZEE by 1 December 2012, failing which the amount would carry interest at 11% per annum till payment, ZEE said today, 16 November 2012. Commenting on the development, Punit Goenka, Managing Director & CEO, ZEE, said: "ZEE welcomes the Award handed over to it by an eminent panel of jurists. This award is towards recovery of the losses that we have incurred in the sports business in the past. We continue to remain committed to our sports business in the long term." Bank stocks fell across the board. Private sector banking giant ICICI Bank fell 2.93%. ICICI Bank's net profit jumped 30% to Rs 1956 crore in Q2 September 2012 over Q2 September 2011. Net interest income jumped 35% to Rs 3371 crore and non-interest income jumped 17% to Rs 2043 crore in Q2 September 2012 over Q2 September 2011. Net interest margin improved to 3% in Q2 September 2012 from 2.61% in Q2 September 2011. Cost-to-income ratio reduced to 40.9% in Q2 September 2012 from 44.4% in Q2 September 2011. The result was announced on 26 October 2012. India's second largest private sector bank by net profit HDFC Bank shed 0.47% to Rs 642.75. The stock had hit record high of Rs 655 in intraday trade on Tuesday, 13 November 2012. HDFC Bank's net profit jumped 30.06% to Rs 1559.98 crore on 24.47% growth in total income to Rs 9869.8 crore in Q2 September 2012 over Q2 September 2011. HDFC Bank announced the second quarter results on 12 October 2012. State Bank of India (SBI) declined 2.26%. SBI's net profit rose 30.16% to Rs 3658.14 crore on 12.21% increase in total income to Rs 32983.47 crore in Q2 September 2012 over Q2 September 2011. The result was announced during trading hours Friday, 9 November 2012. The bank's ratio of net non-performing assets to net advances stood at 2.44% as on 30 September 2012, higher than 2.22% as on 30 June 2012 and 2.04% as on 30 September 2011. The bank's ratio of gross non-performing assets (NPA) to gross advances stood at 5.15% as on 30 September 2012, higher than 4.99% as on 30 June 2012 and 4.19% as on 30 September 2011. During the quarter ended 30 September 2012, the bank made additional provisions of Rs 115 crore (net) against an account pending restructuring and against certain non performing domestic advances. The bank's provision coverage ratio as on 30 September 2012 works out to 62.78%. The bank's Capital Adequacy Ratio (CAR) as per Basel II norms stood at 12.63% as on 30 September 2012, lower than 13.14% as on 30 June 2012 and 11.40% as on 30 September 2011. Among other PSU bank stocks, Canara Bank, Union Bank of India, Bank of India, Bank of Baroda and Punjab National Bank shed by between 1.29% to 3.71%. Oriental Bank of Commerce fell 3.15%. The state-run bank after trading hours on Thursday, 15 November 2012, said it intends to raise capital by issue of unsecured Lower Tier II Bonds in the nature of Debentures (Debt Capital Instruments for inclusion as Tier II Capital) upto Rs 1200 crore. On the macro front, Reserve Bank of India (RBI) governor D. Subbarao today, 16 November 2012, said inflation rate of 7.5% is still high, adding that the RBI is on alert to manage both growth and inflation. Subbarao was speaking on the sidelines of a banking summit in Pune. Inflation based on the wholesale price index (WPI) eased to 7.45% in October 2012 from 7.81% in September 2012, data released by the government on Wednesday, 14 November 2012, showed. Build up inflation in the current financial year so far was 4.78% compared to a build up of 5.02% in the corresponding period of the previous year, the Ministry of Commerce & Industry said in a statement. Meanwhile, the government has revised upward WPI inflation for August 2012 to 8.01% from 7.55% reported on 14 September 2012. Data released by the government Tuesday, 12 November 2012, showed that consumer price inflation inched up to 9.75% in October 2012, from 9.73% in September 2012. Data released by the government Tuesday, 12 November 2012, showed that India's exports declined 1.63% to $23.24 billion in October 2012. Imports rose 7.37% to 44.20 billion in October 2012. Oil imports jumped 31.61% to $14.78 billion in October 2012. Non-oil imports declined 1.73% to $29.42 billion in October 2012. The trade deficit surged to $20.96 billion in October 2012 from $17.54 billion in October 2011. The trade deficit for April-October 2012 was estimated at $110.21 billion, which was higher than the deficit of $106.80 billion April-October 2011. The Reserve Bank of India next undertakes monetary policy review on 18 December 2012 which is a mid-quarter policy review. After Second Quarter Review of Monetary Policy 2012-13 late last month, RBI kept its key policy rate viz. the repo rate unchanged at 8% citing high inflation. The central bank cut the cash reserve ratio (CRR) requirement of scheduled banks by 25 basis points to 4.25%. The reduction in the CRR is intended to pre-empt a prospective tightening of liquidity conditions, thereby keeping liquidity comfortable to support growth, RBI said on 30 October 2012. It anticipates the projected inflation trajectory which indicates a rise in inflation before easing in Q4 March 2013, RBI said. While risks to this trajectory remain, the baseline scenario suggests a reasonable likelihood of further policy easing in Q4 March 2013, RBI said. RBI said its latest policy guidance will, however, be conditioned by the evolving growth-inflation dynamic, RBI said. Although inflation has remained persistently high over the past two years, it is important to note that during the 2000s, it averaged around 5.5%, both in terms of WPI and CPI, down from its earlier trend rate of about 7.5%, RBI said last month. Given this record, the conduct of monetary policy will continue to condition and contain perception of inflation in the range of 4% to 4.5%, RBI said. This is in line with the medium-term objective of 3% inflation consistent with India's broader integration into the global economy, RBI said. Finance Minister P. Chidambaram, today, 16 November 2012, said the government is confident of achieving its budget-deficit target. Chidambaram said early this month that the best efforts would be made to contain fiscal deficit at 5.3% during the current financial year. Chidambaram said the strategy to achieve the 5.3% fiscal deficit target would be to maximize revenue collections and control expenditure. The Finance Minister has laid out a roadmap to put the government's fiscal house in order, stressing the need to control expenses and generate more revenue as it targets fiscal deficit of 5.3% of gross domestic product this fiscal year and 4.8% next year. The fiscal deficit stood at 5.8% in the year ended 31 March 2012. Chidambaram's plan envisages bringing down the fiscal deficit to 4.2% of GDP in the fiscal year ending March 31, 2015; 3.6% in fiscal 2016 and 3% in fiscal 2017. The fiscal consolidation plan comes at a time when there are concerns that the government may increase its expenditure on social-sector programs in its budget for the next fiscal year through March 2014 as it prepares for next general elections, due before May 2014. Chidambaram also said early this month that serious efforts would be made to bridge the gap in the Current Account Deficit (CAD) which presently stood at $70.3 billion. The winter session of the parliament begins on 22 November 2012. On the occasion of taking additional charge as Minister of Parliamentary Affairs, Union Urban Development Minister Mr. Kamal Nath on 29 October 2012 said that he will attempt to bring consensus among all political parties on national policies that are formed in the national interest that is dear to all parties. The minister highlighted the prominence of the parliament in the democratic system of the country and expressed desire that all political parties will discuss and debate the issues of national interest without resorting to politics of disruption rising above narrow political interests. Bahujan Samaj Party's (BSP) chief Mayawati on 10 October 2012 said she has not taken a decision yet on whether or not to continue support to the UPA. Mayawati said that her party has left the final decision on her and she will soon take a decision. The BSP chief said the BSP is ready for early Lok Sabha elections. Attacking the UPA over corruption, Mayawati said that the government has not taken any strong steps to control corruption. BSP provides outside support to the Congress led UPA government at the Centre which has been reduced to a minority government after Trinamool Congress (TMC) withdrew support to the UPA in September 2012. The TMC withdrew support from the UPA to register its protest against the reformist decisions viz. allowing 51% FDI in multi-brand retail, increasing the diesel price by Rs 5 per litre, and imposing a cap on the number of subsidized LPG cylinders per family at six. Prime Minister Dr. Manmohan Singh on 21 September 2012 said that the time has come for hard decisions. Explaining the rationale for the hike in diesel price, capping of subsidised LPG cylinders per household per year and allowing foreign direct investment in multi-brand retail trade, Dr. Singh said that rapid growth in the economy is necessary to raise the government's revenue for financing its programmes in education, health care, housing and rural employment. Dr. Singh said that India must avoid high fiscal deficit which could cause a loss of confidence in the economy. The government braved intense political opposition and initiated economic reform measures in September 2012, by allowing 51% foreign direct investment (FDI) in multi-brand retail. The government also notified the relaxed conditions for single brand retail as well as the norms for allowing 49% investment by foreign airlines in Indian carries and permitted greater foreign investment in some sections of the broadcasting sector. The Cabinet Committee on Political Affairs (CCPA) raised price of heavily subsidised diesel by Rs 5 per liter on 13 September 2012 to balance government's fiscal deficit situation. The CCPA also restricted the supply of subsidized LPG cylinders to each consumer to six cylinders (of 14.2 kg) per annum. The Union Cabinet on 4 October 2012 approved a long-pending proposal to raise the foreign investment limit in insurance companies to 49% from 26%. It also approved a plan to open up the pension sector to overseas investors, allowing them to own stakes of up to 49% in local companies. Both the proposals viz. the increase in foreign investment ceiling in insurance sector and opening of pension sector to overseas investors will require Parliament's approval. Assembly polls will be held in Gujarat in two phases on 13 and 17 December 2012. Counting of votes of assembly elections in Gujarat and Himachal Pradesh (HP) Pradesh will take place on the same day on 20 December 2012. Assembly polls were held in HP on 4 November 2012. European stocks fell for a third day Friday as US President Barack Obama prepared to hold talks with Republican lawmakers on the country's so-called fiscal cliff. Key benchmark indices in France, UK and Germany shed by between 0.53% to 0.76%. Euro-area exports fell in September as the region's economy slipped into a recession for the second time in four years. Exports from the 17-nation currency bloc declined a seasonally adjusted 1.1% from August, when they gained 3.3%, the European Union's statistics office in Luxembourg said today. Imports dropped 2.7% and the trade surplus widened to 11.3 billion euros ($14.4 billion) from a revised 8.9 billion euros in the previous month. Most Asian stocks edged lower on Friday, 16 November 2012. Key benchmark indices in China, Singapore, South Korea and Taiwan fell by between 0.01% to 0.77%. Key benchmark indices in Hong Kong and Japan rose by between 0.24% and 2.20%. Stock markets in Indonesia were closed for a holiday. Japan's government downgraded its view of the economy for a fourth month, the longest streak since the global financial crisis as slumping exports and weak demand threaten to tip the country into a recession. "The Japanese economy is showing weakness recently due to the deceleration of the world economy," the Cabinet Office said in a report released in Tokyo today, as it cut its assessment of consumption, investment, corporate profits and the job market. "Attention should be paid to employment and income situations in the future, and the adverse effects of deflation on the economy." Japan's lower house of parliament was dissolved on Friday, 16 November 2012, marking the final session for the more powerful of its two legislative chambers ahead of national elections set for 16 December 2012. The dissolution sets up the first general election since Yoshihiko Noda assumed the premiership after the Democratic Party of Japan swept to power in 2009. In that vote, the DPJ broke the Liberal Democratic Party's more than five-decade grip on power. Meanwhile, the opposition-controlled upper house passed bills enabling the Japanese government to proceed with deficit-financing bonds that will finance about 40% of the current budget. The passage ended an eight-month delay and was part of a deal between Noda and the opposition groups that resulted in the snap election. Singapore said growth this year will be at the lower end of its previous forecast and the expansion in 2013 may hold near a three-year low, as faltering demand for its goods weighs on the Southeast Asian nation's economy. The economy will grow 1% to 3% in 2013 after expanding about 1.5 percent this year, the Trade Ministry said in a statement today. It had previously forecast growth of as much as 2.5 percent in 2012. Gross domestic product contracted 5.9% last quarter from the previous three months, worse than the 1.5% decline estimated earlier. Trading in US index futures indicated that the Dow could fall 41 points at the opening bell on Friday, 16 November 2012. US stocks were little changed on Thursday as the prospect of a drawn-out battle over impending tax and spending changes made investors wary of getting into the water, while retailer Wal-Mart tumbled after disappointing sales. Data on Thursday showed new claims for unemployment benefits surged last week, while factory activity in the mid-Atlantic region unexpectedly shrank in November as the economy felt the effects of superstorm Sandy. President Barack Obama and Congressional leaders begin budget talks on Friday, amid fears the United States will stumble back into recession if no deal is reached to avoid some of the $600 billion in spending cuts and tax hikes due to start taking effect in January. Investors are worried about the possibility of the so-called "fiscal cliff" in US, if the Congress fails to act. The fiscal 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 US 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.