Auto, cement stocks in focus on monthly sales data

Results of monthly surveys on manufacturing and services sectors and automobile and cement sales data for November 2012 will be focus next week. Auto and cement stocks will be focus as companies from these two sectors will start unveiling monthly sales data for November 2012 from Saturday, 1 December 2012. Markit Economics will unveil HSBC India Manufacturing PMI, which gauges the business activity of India's factories, for November 2012 on Monday, 3 December 2012. The HSBC manufacturing purchasing managers' index (PMI) had nudged up to 52.9 in October 2012 from 52.8 in September 2012. The index has remained above 50, which divides growth and contraction, for over three and a half years. Markit Economics will unveil HSBC India Services PMI and HSBC India Composite PMI for November 2012 on Wednesday, 3 December 2012. The HSBC Purchasing Managers' Index for the services sector, based on a survey of around 400 companies, fell to 53.8 in October 2012 from September's seven-month high of 55.8. Services make up nearly 60% of India's economic output. The government's decision allowing FDI in multi-brand retail will be debated in Lok Sabha on 4 and 5 December 2012. 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. The debate on FDI in multi-brand retail under rule 168 that entails voting will take place in the Rajya Sabha on 6 and 7 December. The government was forced to relent after the Opposition stalled proceedings of both Lok Sabha and Rajya Sabha and demanded that the government face a trial of strength on its nod for 51% FDI in multi-brand retail. The Lok Sabha remained paralyzed for four days in a row and Rajya Sabha for five days amid opposition's demand for discussion and voting on the issue of FDI in retail after the Winter Session of Parliament that began on 22 November 2012. The government braved intense political opposition by allowing 51% foreign direct investment (FDI) in multi-brand retail in September 2012. Shares of private sector bank will be in focus as the government tables the Banking Laws (Amendment) Bill, 2011 in the ongoing winter session of parliament. 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. Two other key financial sector reforms bills that the government will table during the winter session include insurance and pension bills. 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. On the global market front, investors are focused on US fiscal cliff. The fiscal cliff refers to the possibility of more than $600 billion of automatic tax hikes and spending cuts kicking in from January 2013, if the US Congress fails to act.