Market may open lower on weak Asian stocks

The market may open lower on weak Asian stocks. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could fall 39 points at the opening bell. Asian stocks declined on Thursday as a private survey showed a faster-than-estimated drop in China's manufacturing in February.

Metal stocks may edge lower as a private survey showed a faster-than-estimated drop in China's manufacturing in February. China is the world's largest consumer of copper and aluminum.

Mahindra & Mahindra (M&M) after market hours on Wednesday, 19 February 2014 announced a reduction in prices of its passenger vehicle portfolio ranging from Rs 13000 to Rs 49000. The company will also reduce prices of its premium SUV, the Rexton by up to Rs 92,000. The reduction is due to the lower excise duties announced in the Interim Budget and would be effective immediately, M&M said in a statement.

Commenting on the price reduction, Pravin Shah, Chief Executive, Automotive Division, M&M said, "We are delighted at the Interim Budget announcements which have been taken to boost the automotive industry. We are confident that the reduction in prices by Mahindra as well as other auto companies would provide the much needed fillip to the auto industry. The prices of our range of commercial vehicles are also being reduced".

Financial Technologies (India) (FTIL) after market hours on Wednesday, 19 February 2014 in a clarification to the stock exchanges with reference to the news item titled "Tech M and FT Come Closer on Deal Talks" said, "As a policy of the company, we do not wish to comment on any speculative news article; hence we would not like to offer any comments on the said news reporting and also on the price rise of the company's share".

FTIL further clarified, "We have no comments. It is not our policy to comment on market rumours or speculation. Any definitive development of any substantive nature will be first notified to the stock exchanges in full compliance with Listing Agreement, so as to ensure uniform and simultaneous disclosure to all the investors".

"As a responsible corporate and as a matter of good corporate governance practice, any price sensitive information pertaining to operations or performance of the company, or such other information as required under Clause 36 of the Listing Agreement, will be first notified to the Stock Exchanges to comply with the Listing Agreement", FTIL said.

Meanwhile, Tech Mahindra in a clarification to the exchanges on the aforesaid news item clarified, "the report is speculative in nature and therefore the answers to both your questions is in negative".

Financial Technologies (India) stock turns ex-dividend today, 20 February 2014, for third interim dividend of Rs 2 per share for the year ending 31 March 2014.

Bajaj Corp turns ex-dividend today, 20 February 2014, for interim dividend of Rs 6.50 per share for the year ending 31 March 2014.

Hexaware Technologies turns ex-dividend today, 20 February 2014, for interim dividend of Rs 7.50 per share for the year ended 31 December 2013.

Rural Electrification Corporation (REC) turns ex-dividend today, 20 February 2014, for interim dividend of Rs 7.75 per share for the year ending 31 March 2014.

The Reserve Bank of India next undertakes monetary policy review on 1 April 2014. Citing price pressures, the Reserve Bank of India raised its key lending rates by 25 basis points after Third Quarter Review of Monetary Policy for 2013-14 on 28 January 2014.

Key benchmark indices edged higher on Wednesday, 19 February 2014 after the Reserve Bank of India after trading hours on Tuesday, 18 February 2014, said it will conduct term repo auctions in March 2014 to address liquidity tightness in the banking system. The S&P BSE Sensex garnered 88.76 points or 0.43% to settle at 20,722.97 on that day, its highest closing level since 24 January 2014.

Foreign institutional investors (FIIs) bought shares worth a net Rs 468.47 crore on Wednesday, 19 February 2014, as per provisional data from the stock exchanges.

Asian stocks declined on Thursday as a private survey showed a faster-than-estimated drop in China's manufacturing. Key benchmark indices in Indonesia, Taiwan, Japan, Hong Kong and South Korea were off 0.31% to 1.68%. Key benchmark indices in China and Singapore were up 0.12% to 0.32%.

A Chinese manufacturing index fell to the lowest level in seven months, adding to challenges for Communist Party officials grappling with risks to the financial system from trust defaults and soured loans. The preliminary February reading of 48.3 for a Purchasing Managers' Index released today by HSBC Holdings Plc and Markit Economics compares with January's final figure of 49.5. A number below 50 indicates contraction.

Japan's trade deficit widened to a record in January as surging import costs weigh on Prime Minister Shinzo Abe's campaign to drive a sustained recovery. The 2.79 trillion yen ($27.3 billion) shortfall reported by the Ministry of Finance in Tokyo today. Imports rose 25% from a year earlier and outbound shipments gained 9.5%.

Singapore's economy expanded last quarter after a pick-up in manufacturing at the year end, with the government predicting an improvement in overseas demand in 2014 amid a global recovery. Gross domestic product rose an annualized 6.1% in the three months through December from the previous quarter, when it climbed a revised 0.3%, the trade ministry said in a statement today.

US stocks closed lower on Wednesday after the minutes from the Federal Reserve's policy setting meeting revealed little consensus about when short-term rates would begin to rise. A larger-than-expected drop in home construction in January also weighed on sentiment.

Federal Reserve policy makers backed away from their year-old commitment to consider raising interest rates when unemployment falls below 6.5%. With joblessness falling faster than expected even as other labor-market indicators show weakness, policy makers agreed it would “soon be appropriate” to revise their guidance about how long the era of record-low interest rates will remain, minutes of their January meeting showed.

Several policy makers also said that in “the absence of an appreciable change in the economic outlook, there should be a clear presumption in favor” of continuing to trim the Fed's bond purchases by $10 billion at each meeting.

Atlanta Federal Reserve President Dennis Lockhart said he expects a mid-2015 interest-rate hike.

The International Monetary Fund warned of risks to world growth before data today that may show US jobless claims fell and a gauge of leading indicators rose.

Construction on new US homes tumbled 16% in January to a seasonally adjusted annual rate of 880,000, with drops for single-family homes and apartments, according to Commerce Department. Economists polled by MarketWatch said particularly poor weather hit construction last month. Building permits, a sign of future demand, fell to the lowest rate since August.

US producer prices rose in January under the government's new formula for measuring wholesale inflation, the Labor Department said Wednesday.

Federal Reserve Chairwoman Janet Yellen said last week that US growth has strengthened and that only a "notable change in the outlook" for the economy would prompt policy makers to slow the pace of cuts to the monthly bond-buying program.

The Federal Open Market Committee (FOMC) next undertakes monetary policy review on 18-19 March 2014. After a monetary policy review, the FOMC on 29 January 2014 announced it will reduce monthly bond purchases by another $10 billion to $65 billion. The Fed also signaled that it is likely to keep reducing bond purchases in the coming months, citing a pickup in US economic activity and improvement in the US labor market.