Retail drama climbs to upper house

If I had to single out one element in my life that has made a difference for me, it would be a passion to compete. - Sam Walton The government’s decision to bring in foreign direct investment into the retail sector has technically got a clearance in the Lok Sabha. The action now shifts to the upper House, where the debate starts today; voting is expected on Friday. The going will not be really easy for the government in the Rajya Sabha as it lacks the requisite numbers here. The market is expected to be positive at start. Retail stocks will continue to hog the limelight. On the other hand Tech stocks have been a bit shaken after a routine regulatory filing by Cognizant indicated that company’s growth expectations are lowered. Asian markets are higher this morning and the Asian indices may well see a close which could be at eight months high. Data on US services and factory orders beat estimates. The Chinese Communist Party chief Xi Jinping said the country would maintain its fine-tuning of economic policies in 2013 to ensure stable economic growth. US markets ended flat. With the Nifty holding above the 5900 levels, a move past 5950 could see the Nifty testing the 6100 mark shortly. Tara Jewels is set to list today. The issue price is fixed at higher end of price band of Rs225-230 a share. The issue was oversubscribed almost 2 times. Trends in FII flows: The FIIs were net buyers of Rs8.78bn in the cash segment on Wednesday, while the domestic institutional investors (DIIs) were net sellers of Rs6.39bn, as per the provisional figures released by the NSE. The foreign funds were net buyers of Rs3.07bn in the cash segment on Tuesday, according to the SEBI figures. Global Data Watch: Spanish Constitution Day EUR, Employment Change s.a. (Nov) AUD, Unemployment Rate s.a. (Nov) AUD, ILO Unemployment (Q3) EUR, Unemployment Rate n.s.a (MoM) (Nov) CHF, Halifax House Prices (MoM) (Nov) GBP, Halifax House Prices (3m/YoY) (Nov) GBP, Consumer Price Index (MoM) (Nov) CHF, Consumer Price Index (YoY) (Nov) CHF, Total Trade Balance (Oct) GBP, Goods Trade Balance (Oct) GBP, Trade Balance; non-EU (Oct) GBP, Gross Domestic Product s.a. (QoQ) (Q3) EUR, Gross Domestic Product s.a. (YoY) (Q3) EUR, 10-y Bond Auction EUR, Factory Orders n.s.a. (YoY) (Oct) EUR, Factory Orders s.a. (MoM) (Oct) EUR, BoE Interest Rate Decision (Dec 6) GBP, BoE Asset Purchase Facility GBP, Challenger Job Cuts (YoY) (Nov) USD, ECB Interest Rate Decision EUR, Building Permits (MoM) (Oct) CAD, ECB Monetary policy statement and press conference EUR, Initial Jobless Claims USD, Continuing Jobless Claims (Nov 24) USD, Ivey Purchasing Managers Index (Nov) CAD, Ivey Purchasing Managers Index s.a (Nov) CAD, BoC Review CAD, EIA Natural Gas Storage change (Nov 30) USD, RBA Assist Gov Debelle Speech AUD, AiG Performance of Construction Index (Nov) AUD, JP Foreign Reserves (Nov) JPY In other news in the media: Securities transaction tax collections dipped 12.9% during the April to November 2012 period. Reliance Industries has sold its entire stake in an exploration block in Yemen to PT Medco Energi Internasional of Indonesia for US$90mn and has concluded the transaction. (ET) HDFC said a correction is unlikely in the runaway property prices in the metropolis, where the demand continues to be robust. (ET) The US’ Export-Import Bank has extended US$2.1bn credit to Reliance Industries to finance goods and services the Indian company will source from America for its new projects at Jamnagar. (ET) The new management of 3i Infotech an ICICI-controlled software firm that went in for CDR earlier this year — is implementing a plan that is expected to return the company to profitability in the next six to twelve months. (ET) Strides Arcolab Ltd and Eli Lilly have announced a collaboration to expand delivery of cancer medicines in the emerging markets. (BL) Shriram EPC Ltd has bagged a US$230mn contract for setting up a storm water and sewer system in Basra, Iraq. The order will be carried out through a joint venture with the Mokul Group, a service provider with a global presence across diverse industries. (BL) The HSBC services Purchasing Managers' Index dropped to 52.1 in November from 53.8 in October, at 13-month low.