Market may edge lower in early trade

Market is seen opening slightly lower. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 11 points at the opening bell.

In overseas stock markets, Asian stocks were mixed. US stocks snapped a two-day losing streak yesterday, 6 April 2016, led by gains in health-care shares.

Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 493.56 crore yesterday, 6 April 2016, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 258.68 crore yesterday, 6 April 2016, as per provisional data.

Among corporate news, shares of Indian Oil Corporation (IOCL), BPCL and HPCL may edge higher after the Union Cabinet decided to give oil PSUs the freedom to evolve their own policies on import of crude oil. This measure will increase the operational and commercial flexibility of oil PSUs and enable them to adopt the most effective procurement practices for import of crude oil, according to a government statement. The announcement hit the market after trading hours yesterday, 6 April 2016.

Telecom stocks will be watched. The Union Cabinet yesterday, 6 April 2016, approved the modifications in the policy for liberalisation of administratively allotted spectrum where market determined prices are not available. This will facilitate optimal utilisation of spectrum by introducing new technologies and sharing and trading of spectrum. The most recent recommended reserve price will be taken as the provisional price for liberalisation of administratively allocated spectrum where auction determined price is not available. Subsequent to the completion of the ensuing auction and with the availability of auction-determined price, the provisional price already charged will be adjusted with the auction-determined price with effect from the date of liberalisation on pro-rata basis. The announcement of the modifications in the policy for liberalisation of administratively allotted spectrum hit the market after trading hours yesterday, 6 April 2016.

Sun Pharmaceutical Industries (Sun Pharma) will be in spotlight after the ratings agency CARE has withdrawn the ratings assigned to the non-convertible debenture (NCD) issue and bank facilities of the company with immediate effect at the request of the company. Sun Pharma has fully repaid the amount under the NCD issue and there is no amount outstanding under the issue as on date, CARE said. The ratings agency said it has also received no objection certificates from the banks for withdrawal of ratings based on which the ratings assigned to the bank facilities have been withdrawn. Sun Pharma made the announcement after market hours yesterday, 6 April 2016.

Maruti Suzuki India (MSIL) after market hours yesterday, 6 April 2016, announced that it has introduced the automatic transmission option for the Zeta petrol variant of its premium hatchback Baleno. The Baleno Zeta (automatic CVT) petrol variant is priced at Rs 7.47 lakh ex-showroom Delhi. With this automatic transmission options are available on Delta and Zeta trim of Baleno. Maruti said it has sold over 44,000 Baleno cars through its premium retail channel NEXA across India. The model has pending orders for 55,000 units. Baleno is also the first model by Maruti Suzuki to be exported to Japan. Going forward Maruti Suzuki plans to export the model to more than 100 countries from India.

Gains for metal, auto and telecom stocks offset losses for stocks of public sector banks and index heavyweight Infosys, with the two key benchmark indices registering small gains yesterday, 6 April 2016. The barometer index, the S&P BSE Sensex, rose 17.04 points or 0.07% to settle at 24,900.63.

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