Market likely to open higher; macro-economic data eyed

Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 29.50 points at the opening bell. Macro economic data to be unveiled after trading hours today, 12 September 2013 will be closely watched. Asian shares eked out small gains on growing expectations that the US Federal Reserve's impending stimulus reduction might be smaller than some had believed.

Jaiprakash Associates and UltraTech Cement will be in action after Jaypee Cement Corporation (JCCL), a wholly-owned subsidiary of Jaiprakash Associates, executed an agreement to sell its cement plant in Gujarat to UltraTech Cement at an enterprise value of Rs 3800 crore. JCCL's cement project in Gujarat consists of an integrated 2.4 million tons per annum (MTPA) cement plant at Kutch and a 2.4 MTPA cement grinding unit at Wanakbori.

The proposed transaction is subject to the approval of shareholders and creditors, sanction of the Scheme of Arrangement by the High Courts, approval of the Competition Commission of India and all other statutory approvals. Jaiprakash Associates said it anticipates the transaction to close in 7 to 9 months.

Oil India turns ex-dividend today, 12 September 2013, for final dividend of Rs 7 per share for the year ended 31 March 2013.

Sun TV Network turns ex-dividend today, 12 September 2013, for final dividend of Rs 2 per share for the year ended 31 March 2013.

Industrial production is seen contracting 0.8% in July 2013, as per the median estimate of a poll of economists carried out by Capital Market. Industrial production registered a contraction of 2.2% in June 2013. The government will unveil data on industrial production for July 2013 after trading hours today, 12 September 2013.

Consumer price inflation is expected to remain high at 9.6% in August 2013, as per the median estimate of a poll of economists carried out by Capital Market. Inflation based on the combined consumer price index (CPI) for urban and rural India had decelerated to 9.64% in July 2013 from 9.87% in June 2013. The government will unveil data on combined consumer price index (CPI) for urban and rural India for August 2013 after trading hours today, 12 September 2013.

Further gains in rupee against the dollar aided intraday recovery on the domestic bourses on Wednesday, 11 September 2013. The S&P BSE Sensex advanced 0.36 points to settle at 19,997.45, its highest closing level since 24 July 2013.

Foreign institutional investors (FIIs) bought shares worth a net Rs 586.50 crore on Wednesday, 11 September 2013, as per provisional data from the stock exchanges.

Asian shares eked out small gains on growing expectations that the US Federal Reserve's impending stimulus reduction might be smaller than some had believed. Key benchmark indices in Taiwan, Hong Kong, South Korea and Singapore fell by 0.03% to 0.57%. Key benchmark indices in China, Indonesia and Japan fell by 0.32% to 0.58%.

US stocks ended mostly higher on Wednesday, with the Dow industrials tallying a third day of triple-digit gains, as reduced worry about Syria countered Apple Inc.'s sharp drop.

In an address from Washington Tuesday night, President Barack Obama said he was putting off a request that Congress authorize U.S. strikes targeting the Syrian regime after a deadly chemical-weapons attack last month. Obama said his administration will pursue a Russian proposal for Syria to turn over its chemical weapons to the international community.

Investors across the globe are eyeing the next policy meeting of the Federal Open Market Committee (FOMC) scheduled this month, with their focus squarely on the timing of tapering of Federal Reserve's bond purchases. The FOMC holds a two-day policy meeting on 17-18 September 2013 to decide on interest rates in the United States. The US central bank currently buys $85 billion a month in US debt and mortgage-backed securities in a bid to hold interest rates low and encourage economic growth. Federal Reserve Chairman Ben Bernanke has on several occasions stressed that the tapering process is dependent on an improvement in data. Fed's bond-buying program has kept global markets flush with liquidity in recent years.

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