Market likely to open higher

Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 26 points at the opening bell. Asian stocks were trading mixed today, 8 September 2014.

Shares of public sector oil marketing companies (PSU OMCs) and state-run upstream oil companies will be watched after crude oil futures dropped on Friday, 5 September 2014, after downbeat US jobs data fuelled demand concerns and a ceasefire in Ukraine cooled geopolitical tensions. Brent October contract finished $1.01, or 1%, lower at $100.82 a barrel on Friday, 5 September 2014. US October contract finished $1.16, or 1.2%, lower at $93.29 a barrel on Friday, 5 September 2014.

Lower crude oil prices will decrease under recoveries of PSU OMCs on domestic sale of diesel, LPG and kerosene at government controlled prices. The government has adopted the policy of gradually increasing diesel prices to eliminate under recovery and deregulate the diesel prices. The government has already freed pricing of petrol.

State run upstream companies share a part of the under recoveries of PSU OMCs by allowing discount in the prices of crude oil, PDS kerosene, and domestic LPG based on the rates of discount communicated by the Ministry of Petroleum and Natural Gas and the Petroleum Planning and Analysis Cell.

Shares of companies operating in the power sector will be in focus after India and Australia signed a civil nuclear deal on Friday, 5 September 2014, providing a boost to India's energy sector.

Cipla said that the company's wholly owned subsidiary Medispray Laboratories at its board meeting held on 5 September 2014 approved the acquisition of two manufacturing undertakings. The consideration for the above two transactions are Rs 29 crore and Rs 71.93 crore respectively. The first manufacturing facility located at Goa is owned by Okasa and the second manufacturing facility located at Satara (Maharashtra) is owned by Okasa Pharma. Entities controlled by relatives of the promoters hold majority interest in the companies which own the aforesaid undertakings, Cipla said.

A significant portion of the capacities of the two undertakings are dedicated for the manufacture of Cipla's products. Acquisition of the aforesaid undertakings is expected to yield operational synergies, Cipla said.

Sesa Sterlite's board of directors approved an enabling resolution for raising the company's borrowing limit from Rs 60000 crore to Rs 80000 crore. The announcement was made after market hours on Friday, 5 September 2014.

The company's board of directors also approved a proposal to issue convertible securities of up to Rs 6000 crore and private placement of non-convertible debentures and/or other debt securities with warrants upto Rs 4000 crore. The Board has also approved creation of charge/mortgage over properties of the company for the purpose of the borrowing, Sesa Sterlite said. The company Board has also approved re-appointment of Dindayal Jalan as Whole-Time Director, designated as Chief Financial Officer, for two years till 30 September 2016.

La Opala RG said that 25 September 2014 has been fixed as a record date for its 5-for-1 stock split. The announcement was made after market hours on Friday, 5 September 2014.

Tree House Education & Accessories (Tree House), a leading educational service provider operating the largest number of branded self-operated pre-schools in India, announced that its board approved and executed the Memorandum of Understanding (MOU) for sale of its land and building located at Vadodara, Gujarat.

The board of Vinati Organics will meet on 11 September 2014, to approve the allotment of 22.18 lakh equity shares of face value of Rs 2 each at the conversion price of Rs 100 on the request from IFC (International Finance Corporation) on conversion of Foreign Currency Convertible Bonds (FCCBs) for an aggregate amount $5,000,000 being 100% of the initial amount of the FCCBs (as per subscription agreement dated 4 March 2011).

Key benchmark indices edged lower in what was a volatile trading session on Friday, 5 September 2014. The S&P BSE Sensex lost 59.23 points or 0.22% to settle at 27,026.70, its lowest closing level since 2 September 2014.

Foreign portfolio investors (FPIs) bought shares worth a net Rs 310.51 crore on Friday, 5 September 2014, as per provisional data from the stock exchanges.

India and Australia signed a civil nuclear deal on Friday, 5 September 2014, providing a boost to India's energy sector. Prime Minister Narendra Modi and visiting Australian Prime Minister Tony Abbott signed the agreement in New Delhi on cooperation in the peaceful uses of nuclear energy. The two leaders also agreed to work towards the long-term, sustainable and reliable supply of Australian resources based on India's energy needs, including increasing sales of conventional fuels such as coal and natural gas to India.

Asian stocks were trading mixed today, 8 September 2014. Key benchmark indices in Hong Kong and Singapore were off 0.06% to 0.47%. Key benchmark indices in Japan and Indonesia rose 0.17% to 0.71%. Markets in China, South Korea and Taiwan are closed for a holiday.

Chinese exports rose 9.4% in August from a year earlier, while imports slid 2.4%, according to a government report today, 8 September 2014.

Japan's economy shrank an annualised 7.1% in April-June from the previous quarter, revised down from a preliminary 6.8% contraction due to weaker-than-expected capital spending, the Cabinet Office said today, 8 September 2014 in Tokyo.

US stocks rose modestly on Friday, 5 September 2014, with the S&P 500 attaining fresh record closing high as a softer-than-expected US jobs report for August 2014 triggered speculation that the Federal Reserve will maintain a cautious approach toward any interest-rate increases. The S&P 500 rose 10.06, or 0.5%, to settle at 2,007.71, its 33rd record close of the year. The Dow Jones Industrial Average gained 67.78, or 0.4%, to settle at 17,137.36, just shy of its July 16 record. The Nasdaq Composite Index added 20.61, or 0.5%, to 4,582.90.

Data released by the US Labor Department on Friday, 5 September 2014, showed that the US economy added 142,000 new jobs in August 2014, the smallest gain since December 2013 and well below expectations of increase of more than 200,000. The jobless rate declined to 6.1% in August, from 6.2% in July.

Investors expect the Fed to wind down its bond-buying program before the end of this year and raise interest rates in mid 2015 as the economy continues to improve at a steady pace. The Fed has kept its benchmark interest rate near zero since December 2008.

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