Market may open higher on firm Asian stocks

The market may edge higher in early trade on firm Asian stocks. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 12.50 points at the opening bell. Volatility may remain high on the bourses in the near future as traders roll over positions in the futures & options (F&O) segment from the near month February 2013 series to March 2013 series. The February 2013 F&O contracts expire tomorrow, 28 February 2013. Finance Minister P. Chidambaram will table the Economic Survey for the year 2012-2013 in the Parliament today, 27 February 2013, a day ahead of the presentation of the Union Budget for 2013-14 tomorrow, 28 February 2013. NTPC will be in focus after the Ministry of Power after trading hours on Tuesday, 26 February 2013, said that NTPC has signed a Memorandum of Understanding (MoU) with Chhattisgarh Renewable Energy Development Agency (CREDA) to explore the potential of geothermal resources and subsequently implement geothermal project at Tatapani in Chhattisgarh. Tattapani Geothermal field is located approximately 100 kms northeast of Ambikapur in Surguja district of Chhattisgarh and is considered to be one of the most promising sites in India for developing geothermal based power project the Ministry of Power said. Geothermal generation is the harnessing of the geothermal energy or the vast reservoir of heat energy stored in the earth's interior for generating power. NTPC after trading hours on Tuesday, 26 February 2013, said that the board of directors of the company has accorded the investment approval for the Chatti-Bariatu coal mining project having rated production capacity of 7 MTPA in the state of Jharkhand at an appraised current estimated cost of Rs 1314.57 crore. The board has also cleared the Gadarwara Super Thermal Power Project Stage-I (2x800 MW) to be implemented in the state of Madhya Pradesh at an appraised current estimated cost of Rs 11638.55 crore subject to environmental clearance of Ministry of Environment and Forests. Telecom stocks will be in focus after the Ministry of Communications & Information Technology after trading hours on Tuesday, 26 February 2013, said that no applicants registered for the auction of 1800 and 900 MHz spectrum by the time of close on the last date for receipt of applications i.e. on 25 February 2013. Only one applicant viz. SSTL registered for the auction of 800 MHz spectrum. The next steps in respect of the 1800 and 900 MHz spectrum will be decided shortly after placing the developments and issues arising there from before the EGOM on auction of spectrum, the Ministry of Communications & Information Technology said in a statement. A third auction (after the 1st auction in November 2012 and the second auction due to commence on 11 March 2013) was already announced by the Department of Telecom (DoT) on 20 February 2013 consequent to the Supreme Court's directions dated 15 February 2013. The auction of 800 MHz spectrum will commence on 11 March 2013, the telecom ministry said. The DoT will review the need to include the remaining 2 circles for 1800 MHz bands, namely Delhi and Mumbai in the next round of auctions as also the need for a re-auction in the 3 metro circles of the 900 MHz band, the telecom ministry said. The quantum of spectrum, the reserve price and the timelines for this auction will be decided after necessary directions are obtained from the EGOM and where required, the cabinet, in this regard, the telecom ministry said. Hindalco Industries said after market hours on Tuesday, 26 February 2013, that due to continuation of illegal strike by workmen at company's Silvassa plant, the company is forced to declare a lock-out there. The company does not expect any adverse impact on the company's financials due to the lock-out at the unit, Hindalco said in a statement. Key benchmark slumped on Tuesday, 26 February 2013, after the Minister of Railways Mr. Pawan Kumar Bansal announced fuel adjustment component (FAC) linked revision for freight tariff to be implemented with effect from 1 April 2013, in Railway Budget for 2013-14. The S&P BSE Sensex lost 316.55 points or 1.64% to 19,015.14 on that day, its lowest closing level since 27 November 2012. Foreign institutional investors (FIIs) bought shares worth a net Rs 74.68 crore on Tuesday, 26 February 2013, as per provisional data from the stock exchanges. PSU disinvestment and reduction of promoter stake to meet the Securities & Exchange Board of India (Sebi) mandated minimum public shareholding of 25% for private companies and 10% for state-run firms will result in supply of equity in the market over the next few months. The government has set target of Rs 30000 crore from PSU divestment for the fiscal year ending 31 March 2013. Meanwhile, as per the Sebi mandated minimum public shareholding rule, private-sector companies must cut founders' stake to adhere to the rules by 13 June 2013, while the deadline for state-run firms is 13 August 2013. All eyes are now on Union Budget 2013-14 to be presented to the Parliament tomorrow, 28 February 2013. Investors will focus on changes, if any, in excise duty and service tax in the Budget. It remains to be seen if the government announces measures to revive weak investment growth. It also remains to be seen if the government announces more economic reforms. A key figure to watch out is the divestment target for 2013-14. It remains to be seen if the Budget contains a clear roadmap for the implementation of Goods and Services Tax (GST). There has been some debate over taxing the super-rich. It remains to be seen if the Budget provides a clear roadmap to cap the government's subsidy bill. It also remains to be seen if there are measures to increase agriculture production to rein in food inflation. It remains to be seen if the Finance Minister announces measures to channelise savings into financial assets given the sharp fall in financial savings of the household sector and a corresponding rise in household savings in physical assets such as gold and property over the past two years or so. The Budget Session of the Parliament which began on 21 February 2013 will conclude on 10 May 2013. In order to enable the Standing Committees to consider the Demands for Grants of Ministries/Departments and prepare their Reports, the two Houses will adjourn for recess on 22 March 2013 to meet again on 22 April 2013. The government has lined up a number of key bills for consideration and passing during the Budget session of the parliament, which include The Forward Contracts (Regulation) Amendment Bill, 2010, The Pension Fund Regulator and Development Authority Bill, 2011, The Land Acquisition, Rehabilitation and Resettlement Bill, 2011, The National Food Security Bill, 2011 and The Insurance Laws (Amendment) Bill, 2008. Asian stocks edged higher on Wednesday, 27 February 2013, after US housing data and comments from Federal Reserve chief Ben Bernanke lifted the mood in global markets. Key benchmark indices in China, Hong Kong, Indonesia, Singapore, Taiwan and South Korea rose by 0.16% to 0.47%. Japan's Nikkei Average fell 0.79%. US stocks rose on Tuesday, 26 February 2013, after housing data was well received. Additionally, Federal Reserve chairman Ben Bernanke defended the US central bank's monetary policy, sending a strong signal on ongoing asset purchases. Bernanke on Tuesday, 26 February 2013, defended the central bank's unprecedented asset purchases, saying they are supporting the expansion with little risk of inflation or asset-price bubbles. World stocks fell heavily at the start of the week after Italy's general election ended in stalemate, triggering concerns about another flare-up of euro-zone debt woes. This week's Italian elections produced a hung parliament, with comedian Beppe Grillo's anti-austerity movement winning more than 25 percent of the popular vote, creating the risk of another election later this year.