Market likely to open lower on weak Asian stocks

The market is likely to open lower on negative Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could fall 11 points at the opening bell. A two-day debate begins in Lok Sabha today, 4 December 2012, on the government's decision in September 2012 allowing FDI in multi-brand retail. Asian markets lost ground Tuesday after some weak global manufacturing data contrasted with earlier numbers showing improvement at Chinese factories. India's largest engineering and construction conglomerate L&T said after market hours on Monday, 3 December 2012, that the wind energy project of L&T Infrastructure Development Projects (L&T IDPL) has secured the Clean Development Mechanism (CDM) status from United Nations Framework Convention on climate change (UNFCCC), Bonn, Germany. It has registered L&T IDPL for receiving Certified Emission Reduction (CER) certificates every year up to 2022, L&T said. Oil & Natural Gas Corporation (ONGC) said after market hours on Monday, 3 December 2012 that a meeting of the board of directors will be held on 21 December 2012 to consider payment of interim dividend for the financial year ending March 2013 State-run oil marketing companies will in focus after the Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas after trading hours on Monday, 3 December 2012, said the under-recovery on High Speed Diesel (HSD) applicable for first fortnight of December 2012 has increased to Rs 10.03 per litre from Rs 9.06 per litre for the second second fortnight of November 2012. In case of Domestic LPG the under-recovery for December 2012 has risen sharply to Rs 520.50 per cylinder against Rs 478.50 per cylinder for November 2012. The under-recovery on PDS Kerosene too has remained at high level of Rs 30.93 per litre for December 2012, though slightly lower than Rs 31.30 per litre for November 2012 PSU OMCs are currently (effective 1 December 2012) incurring daily under-recovery of about Rs 420 crore on the sale of Diesel, PDS Kerosene and Domestic LPG, which is higher than daily under-recovery of Rs 412 crore for the second second fortnight of November 2012. Jaiprakash Associates (JAL) said after market hours on Monday, 3 December 2012, said that the Ministry of Environment and Forest has accorded the Second Stage (Final) Forest Clearance for Amelia (North) Coal Block in Sidhi District of Madhya Pradesh by granting its approval under Section 2 of the Forest (Conservation) Act, 1980 for diversion of 728.750 hectares of forest land for Coal Mining. It may be recalled that JAL had entered into a joint venture agreement with Madhya Pradesh State Mining Corporation for coal mining at Amelia (North) Coal Block in Sidhi District of Madhya Pradesh. For this purpose, a Special Purpose Vehicle viz. Madhya Pradesh Jaypee Minerals was incorporated, with JAL being appointed as Mine Developer cum Operator for the mines. The coal produced from this mine is committed to be supplied to Jaypee Nigrie Super Thermal Power Project being implemented by Jaiprakash Power Ventures. Jaiprakash Associates (JAL) said after market hours on Monday, 3 December 2012, its that its wholly owned subsidiary Jaypee Cement Corporation (JCCL) is looking into various options to unlock the value for its shareholders. So far has JCCL not signed any Binding Agreement, JAL said. The company issued this clarification with respect to media reports that UltraTech Cement is in talks to acquire the Gujarat cement unit of Jaiprakash Associates. UltraTech Cement said after market hours on Monday, 3 December 2012, that the news item is purely based on market speculation and the company does not comment on market speculation. Axis Bank said after market hours on Monday, 3 December 2012, its board of directors has on Monday, 3 December 2012 passed a resolution approving the allotment of Senior Notes aggregating to $20,000,000 under the MTN Programme through its Hong Kong branch. BSE and NSE on Monday said they have restricted the price movement for six companies viz. Oil India, Engineers India, Shipping Corporation of India, Bharat Electronics, Container Corporation of India and National Aluminium Company to a maximum of 20% a day as part of surveillance mechanism in order avoid to excessive volatility in stock prices of these six companies. The changes would be effective from today, 4 December 2012. The decision will be reviewed periodically, the two stock exchanges said in separate circular. Key benchmark indices edged lower in choppy trade on the first trading session of the new week and month on Monday, 3 December 2012. The BSE Sensex shed 34.58 points or 0.18% to 19,305.32, its lowest closing level since 29 November 2012. Foreign institutional investors (FIIs) were net buyers of Indian stocks on Monday, 3 December 2012. FIIs bought shares worth a net Rs 302.67 crore on Monday, 3 December 2012, as per provisional data from the stock exchanges. India's manufacturing sector expanded at its fastest pace in five months in November 2012, boosted by strong export orders and a surge in output, a business survey showed on Monday, 3 December 2012. The HSBC manufacturing Purchasing Managers' Index (PMI), which gauges the business activity of India's factories but not its utilities, rose to 53.7 in November from 52.9 in October. Readings above 50 denote growth. Markit Economics will unveil HSBC India Services PMI and HSBC India Composite PMI for November 2012 tomorrow, 5 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. As per provisional data, the combined index of eight core industries was 151.2 in October 2012 with a growth rate of 6.5% compared to their 0.4% growth in October 2011, data released by the government on 30 November 2012 showed. There was double digit growth witnessed in the production of Petroleum Refinery Products and Coal in October 2012. A two-day debate begins in Lok Sabha today, 4 December 2012, on the government's decision in September 2012 allowing FDI in multi-brand retail. The debate will be followed by voting. 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 Thursday, 6 December 2012 and Friday, 7 December 2012. 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 government braved intense political opposition by allowing 51% foreign direct investment (FDI) in multi-brand retail in September 2012. 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. 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 on 30 October 2012, RBI kept its key policy rate viz. the repo rate unchanged at 8% citing high inflation. At that time, the central bank announced a reduction in cash reserve ratio (CRR) requirement of scheduled commercial banks by 25 basis points to 4.25%. The baseline scenario suggests a reasonable likelihood of further policy easing in Q4 March 2013, RBI said on 30 October 2012. RBI said that the policy guidance will, however, be conditioned by the evolving growth-inflation dynamic. The Congress led UPA government at the Centre has been reduced to a minority government after Trinamool Congress (TMC) withdrew support to the UPA in September 2012. Trinamool Congress withdrew support to the UPA in September this year over the big bang reforms introduced by the Centre which included a cap on subsidised LPG cylinders and 51% FDI in multi-brand retail, among others. The next general elections must be held in India before May 2014. 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. Asian markets lost ground Tuesday after some weak global manufacturing data contrasted with earlier numbers showing improvement at Chinese factories. Key benchmark indices in Hong Kong, Singapore, South Korea, Japan, China, Taiwan and Indonesia were down by 0.03% to 0.82%. Chinese manufacturing data -- competing versions of which were released Saturday and Monday -- presented a relatively upbeat view of China's economy. US stocks closed lower Monday as a measure of factory activity showed an unexpected contraction in November and and as uncertainty lingered over the fiscal cliff of automatic tax hikes and spending cuts. 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. Euro-zone manufacturing activity also contracted in November, falling for a 16th successive month, with the headline index at 46.2, well below the 50 level that separates expansion from contraction.