Market may open slightly lower

The market may edge lower in early trade as most Asian stocks declined. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could fall 13 points at the opening bell.

PSU OMCs will be in focus as the under-recovery on High Speed Diesel (HSD) applicable for the second fortnight of February 2014, effective from 16 February 2014, rose to Rs 8.31 per litre. This was Rs 7.39 per litre during first fortnight of February 2014. PSU OMCs are currently incurring combined daily under-recovery of about Rs 456 crore on the sale of Diesel, PDS Kerosene and Domestic LPG at government controlled prices. This is higher than Rs 446 crore daily under-recoveries for the first fortnight of February 2014. The Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas reviewed international prices of crude oil and petroleum products during the first fortnight of February 2014.

PSU OMCs reported a total of Rs 100632 crore as under-recoveries during first nine months of 2013-14 (April-December 2013) on Diesel, PDS Kerosene, Domestic LPG.

Steel Authority of India (Sail) turns ex-dividend today, 18 February 2014, for interim dividend of Rs 2.02 per share for the year ending 31 March 2014.

Ashoka Buildcon turns ex-dividend today, 18 February 2014, for interim dividend of 70 paise per share for the year ending 31 March 2014.

Hikal turns ex-dividend today, 18 February 2014, for interim dividend of Rs 2 per share for the year ending 31 March 2014.

Manappuram Finance turns ex-dividend today, 18 February 2014, for interim dividend of 45 paise per share for the year ending 31 March 2014.

The Reserve Bank of India next undertakes monetary policy review on 1 April 2014. Sighting elevated consumer price inflation, 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 the first trading session of the week on Monday, 17 February 2014 after the Finance Minister P Chidambaram said that the fiscal deficit will be contained at 4.6% of GDP for the year ending 31 March 2014 (2013-14) and will be pruned further to 4.1% of GDP in 2014-15 and that the current account deficit (CAD) will be contained at $45 billion in 2013-14. The S&P BSE Sensex garnered 97.24 points or 0.48% to settle at 20,464.06, its highest closing level since 31 January 2014.

Foreign institutional investors (FIIs) bought shares worth a net Rs 522.82 crore on Monday, 17 February 2014, as per provisional data from the stock exchanges.

Most Asian stocks declined on Tuesday. Key benchmark indices in Hong Kong, South Korea and Taiwan fell by 0.02% to 0.4%. Key benchmark indices in Indonesia, Singapore and Japan rose 0.01% to 0.92%.

The Bank of Japan is widely expected to keep its policy unchanged in its monetary policy today.

China's Shanghai Composite fell 0.75%. China's central bank sold repurchase contracts for the first time since June, draining funds from the banking system and driving money-market rates higher.

US stock markets remained closed on Monday for a holiday.

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.