Strong start likely on firm Asian stocks

The market is geared for a firm opening on positive Asian stocks. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could jump 104 points at the opening bell. Asian stocks edged higher tracking an overnight rise in global equities on easing fears of an early end to US monetary stimulus. Reliance Industries (RIL), ONGC and Oil India may be in focus after the government on Thursday almost doubled the price at which natural gas will be sold to producers of power, fertilizer, minerals and steel. The price of gas could go up to $8.4 per million metric British thermal units (mmBtu), effective 1 April next year, from the current domestic prices that range between $3.5 and $5.73 per mmBtu. Bajaj Auto may be in spotlight. The company had after market hours on Tuesday, 25 June 2013, said workmen at its Chakan plant in Pune have stopped coming to work. Bajaj Auto said the workers had earlier given a notice for a stoppage of work at the plant from the morning shift today, 28 June 2013. The reason for the strike was 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, Bajaj Auto added. The workmen have, however, stopped coming to the Chakan plant from 25 June 2013, itself, without assigning any reason for this stoppage, the company said in a filing. HDFC Bank reportedly said that income tax sleuths had conducted an enquiry on its following the Cobrapost expose. Bajaj Finserv said it has submitted its application to Reserve Bank of India on 26 June 2013 for a licence to commence banking business in terms of section 22 of the Banking Companies Act, 1949. It is proposed to do this by converting its subsidiary Bajaj Finance into a bank in terms of RBI guidelines for licensing of new banks in the private sector dated 22 February 2013. Key benchmark indices surged on Thursday, 27 June 2013, as the battered Indian rupee recovered against the dollar after the latest data showed that India's current account deficit (CAD) moderated sharply to 3.6% of GDP in Q4 of March 2013 from a historically high level of 6.7% of GDP in Q3 December 2012. The S&P BSE Sensex jumped 323.83 points or 1.75% to settle at 18,875.95, its highest closing level since 19 June 2013. Foreign institutional investors (FIIs) sold shares worth a net Rs 1,043.27 crore on Thursday, 27 June 2013, as per provisional data from the stock exchanges. Asian stocks edged higher tracking an overnight rise in global equities on easing fears of an early end to US monetary stimulus. Key benchmark indices in Hong Kong, Indonesia, Taiwan, Singapore, China and South Korea were up 0.57% to 1.99%. Japanese Nikkei 225 index shot higher by 3.14% as a weakened yen combined with upbeat industrial-production data to lifted sentiment. Japan's industrial production showed a surprise jump in May, while retail sales for the same month also gained, though the largest retailers saw a decline. Industrial output rose 2% during the last month, the Ministry of Economy, Trade and Industry said Friday, accelerating from a 0.9% gain in April. US stocks surged for a third session on Thursday on upbeat economic data and reiterations from Federal Reserve officials that monetary policy depends on the economic outlook. The US Department of Labor reported the number of Americans filing for state unemployment benefits fell by 9,000 to 346,000 last week. Also the National Association of Realtors reported that pending home sales jumped to a six-year high in May. Federal Reserve Chairman Ben Bernanke on 19 June 2013 said that the central bank may taper the pace of its bond purchases, currently set at $85 billion a month, as early as this year if the economy continues to improve in line with its forecasts.