Market may extend recent gains on firm Asian stocks

The market may extend recent gains on firm Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 21.50 points at the opening bell. Asian stocks rose Friday, as Japan's cabinet approved a second economic stimulus package and its industrial production unexpectedly increased in October Back home, the government will unveil data on gross domestic product (GDP) for Q2 September 2012 today, 30 November 2012. As per the median estimate of poll of economists carried out by Capital Market, GDP is set to grow by 5.4% in the second quarter. India's GDP growth improved to 5.5% in Q1 June 2012 from nine-year low of 5.3% in Q4 March 2012. The sequential improvement in the GDP growth was mainly supported by increase in the growth of the GDP emanating from agriculture and industrial sectors. Reliance Industries (RIL) said that it has bought back 4.62 crore shares for about of Rs 3357.27 crore till 27 November 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. Key benchmark indices logged gains for third straight session of trade to settle at 19-month highs on Thursday, 29 November 2012 as market sentiment was boosted after the deadlock in Lok Sabha ended Thursday, 29 November 2012, after Speaker Meira Kumar allowed a debate in the Lower House on foreign direct investment (FDI) in multi-brand retail under Rule 184 that entails voting. The BSE Sensex was up 328.83 points or 1.75% to 19,170.91 on that day, its highest closing level since 28 April 2011. Foreign institutional investors (FIIs) made heavy purchases of Indian stocks on Thursday, 29 November 2012. FIIs bought shares worth a net Rs 1579.97 crore on Thursday, 29 November 2012, as per provisional data from the stock exchanges. The deadlock in Lok Sabha ended on Thursday, 29 November 2012 as Speaker Meira Kumar allowed a debate in the Lower House on FDI in multi-brand retail under Rule 184 that entails voting. Kumar announced her decision when the House convened at 11:00 IST. She said date and time of discussion on FDI in multi-brand retail will be decided later. The vote will be non-binding on the government, meaning the UPA faces no threat even if it loses the vote. However, it would be a political embarrassment if the government fails to prove numbers on the floor of the House during the voting. Lok Sabha had not been functioning for the previous four days till Wednesday, 27 November 2012, since Winter Session that began on November 22, as it had remained paralysed over the issue of FDI in retail. However, Rajya Sabha was adjourned for the fifth straight day on Thursday, 29 November 2012, after uproar by opposition NDA which demanded discussion on allowing FDI in retail sector, under a rule that allows voting. The winter session of the parliament which began on 22 November 2012, has heavy legislative agenda. The key financial sector reforms bills that the government intends to pass this session include insurance and pension bills and the Banking Laws (Amendment) Bill, 2011. The insurance bill will aim to raise the limit for foreign direct investment in the sector to 49% from 26%, while the pension bill will seek to allow foreign investments of up to 49% in local pension-fund managers. The Banking Laws (Amendment) Bill, 2011 includes increasing the voting rights of large shareholders in private banks to 26% from 10%, and giving the central bank more powers. The Reserve Bank of India has held back approvals of new bank licenses, urging the government to first get the bill passed in parliament. Asian stocks rose Friday, as Japan's cabinet approved a second economic stimulus package and its industrial production unexpectedly increased in October. Key benchmark indices in China, Hong Kong, Taiwan, Japan, Singapore and South Korea rose by between 0.01% to 1.05%. Indonesia's Jakarta Composite fell 0.12%. Japan's cabinet approved a second round of fiscal stimulus worth 880 billion yen ($10.7 billion) using budget reserves as Prime Minister Yoshihiko Noda attempts to boost the economy before next month's elections. Japan's output unexpectedly rose the most since December, signaling a contraction in the world's third-largest economy may be short lived. Industrial production in October increased 1.8% from the previous month, when it dropped 4.1%, the Trade Ministry said in Tokyo today. U.S. stocks edged higher on Thursday but remained pressured on uncertainty that U.S. politicians will succeed in hammering out a deal to prevent more than $600 billion in tax hikes and spending cuts from taking place automatically in January. Dampening sentiment, Republican U.S. House Speaker John Boehner said Thursday morning there has been “no substantive progress” in negotiations on the so-called fiscal cliff, briefly rattling the U.S. market. Investors are focused on US fiscal cliff. The US 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, if the US Congress fails to act. 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. The US government said on Thursday third-quarter gross domestic product expanded at a 2.7% annual rate for its fastest pace since late 2011 and much quicker than the 2% rate the government estimated last month, with export growth helping to offset the weakest consumer spending and first drop in business investment in more than a year. The European Commission's monthly business and consumer survey showed on Thursday euro zone economic morale improved for the first time in almost a year in November, with Germany and France gaining strongly, but industry's reluctance to invest next year bodes poorly for a quick recovery from recession.