Market likely to open higher

The market is poised for a higher start on mostly positive Asian stocks. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 22 points at the opening bell. Asian stocks were mostly higher on Wednesday after goods and housing data bolstered the US economic outlook. Bajaj Auto after market hours on Tuesday, 25 June 2013 said it received a notice from the workmen's union of its Chakan plant viz., Vishwa Kalyan Kamgar Sanghatana stating that they propose to call for a stoppage of work by all the workmen employed in Chakan plant from the morning shift of 28 June 2013 for the reason that management had refused to concede their demand that all the workmen working in Bajaj Auto should each be given an option to subscribe to 500 equity shares of the company at a discounted price of Re 1 per share. The workmen have however stopped coming to the Chakan plant from 25 June 2013, itself, without assigning any reason for this stoppage. The board of Aditya Birla Nuvo has approved the proposal of making an application to the Reserve Bank of India (RBI) for obtaining licence for setting up a bank. Shares of Emami turn ex-dividend today, 26 June 2013 for a dividend of Rs 8 per share for the year ended 31 March 2013. The market may remain volatile as traders roll over positions in the futures & options (F&O) segment from the near month June 2013 series to July 2013 series. The June 2013 F&O contracts expire tomorrow, 27 June 2013. Key benchmark indices edged higher in volatile trade on Tuesday, 25 June 2013 as European stocks and US index futures rose after soothing words from China's central bank over the liquidity crunch in China. The S&P BSE Sensex advanced 88.26 points or 0.48% to settle at 18,629.15, its highest closing level since 21 June 2013. Foreign institutional investors (FIIs) sold shares worth a net Rs 1285.86 crore on Tuesday, 25 June 2013, as per provisional data from the stock exchanges. Meanwhile, market regulator Securities & Exchange Board of India (Sebi) on Tuesday approved changes to buyback of shares or other specified securities from the open market through stock exchange mechanism as part of its constant endeavour to align regulatory requirements with the changing market realities as well as to enhance efficiency of the buy-back process. Sebi said after a board meeting that the mandatory minimum buy-back has been increased to 50% of the amount earmarked for the buy-back, as against existing 25%, failing which amount in the escrow account would be forfeited subject to a maximum of 2.5% of the total amount earmarked. The maximum buy-back period has been reduced to 6 months from 12 months, it added. Sebi's new rules will require companies to not raise further capital for a period of one year from the closure of the buy-back except in discharge of subsisting obligations as against the existing 6 months. The company shall not make another buy-back offer within a period of one year from the date of closure of the preceding offer. The companies can buy-back 15% or more of capital (paid-up capital and free reserves) only by way of tender offer, it added. Asian stocks were mostly higher on Wednesday after goods and housing data bolstered the US economic outlook. Key benchmark indices in Hong Kong, Indonesia, Taiwan and Singapore were up 0.5% to 1.82%. Key benchmark indices in China, Japan and South Korea were off 0.12% to 1.77%. US stocks rose sharply on Tuesday cheered by upbeat economic data showing increases in durable-goods orders, new-home sales and consumer confidence. The Commerce Department said orders for goods built to last at least three years rose 3.6% in May. Another report from the Commerce Department indicated new-home sales rising 2.1% last month. Separately, the S&P/Case-Shiller index of home values rose 12.1% in April from a year earlier, the biggest jump in more than seven years. The Conference Board's consumer-confidence index rose to 81.4 in June from 74.3 in May.