Market may edge lower on mixed Asian cues

Market is seen opening lower in the early trade tracking mixed cues from Asian markets. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 8.50 points at the opening bell.

Trading could be volatile today, 31 March 2016, as traders roll over positions in the futures & options (F&O) segment from the near month March 2016 series to April 2016 series. The March 2016 derivatives contracts are set to expire on today, 31 March 2016.

In overseas markets, Asian shares traded on a mixed note today, 31 March 2016. US stocks extended gains for the third day yesterday, 30 March 2016, although shares ended well off their day's highs amid a dip in crude oil prices. Sentiment was underpinned by data from payroll firm ADP showing slightly stronger than expected private sector job growth in March.

Closer home, foreign portfolio investors (FPIs) bought shares worth a net Rs 1442.47 crore yesterday, 30 March 2016, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 396.90 crore yesterday, 30 March 2016, as per provisional data.

Among corporate news, Mahindra & Mahindra (M&M) announced that rating agency CRISIL has reaffirmed its ratings on the company's long-term bank facilities and non-convertible debenture (NCD) programme at 'CRISIL AAA/Stable' and for short-term facilities and commercial paper programme at 'CRISIL A1+'. The announcement was made after market hours yesterday, 30 March 2016.

Punjab National Bank (PNB) said that rating agency CARE has downgraded its ratings on the bank's Tier I and upper Tier II bonds to CARE AA+ from earlier rating of CARE AAA, mainly on account of the impairments in the credit portfolio. PNB said it has not accepted the down revision by CARE. The announcement was made after market hours yesterday, 30 March 2016.

Shares of infrastructure companies will be in focus after the Reserve Bank of India (RBI) in a notification issued yesterday, 30 March 2016, allowed all companies engaged in the infrastructure sector to raise external commercial borrowings (ECB) under Track I of the framework with minimum average maturity period of five years, subject to 100% hedging. Companies in infrastructure sector shall utilize the ECB proceeds raised under Track I for the end uses permitted for this Track, the RBI said.

Shares of public sector oil marketing companies (PSU OMCs) will be in focus as a regular fuel price review is due today, 31 March 2016. PSU OMCs review fuel prices twice a month based on the trend in international oil market and currency movement. The first review takes place during the middle of the month and the last review at the month-end. Shares of aviation firms will be in focus as a regular jet fuel price review is due today, 31 March 2016. PSU OMCs revise jet fuel prices on the last day of the month based on the average imported oil price during the month. Prices of ATF constitutes approximately 50% of operating expenses of Indian airlines.

Hindustan Zinc said that the board of directors of the company at its meeting held yesterday, 30 March 2016, has declared special golden jubilee dividend of Rs 24 per share for the financial year ending 31 March 2016. The announcement was made after market hours yesterday, 30 March 2016. The stock offered a dividend yield of 13.7% based on the stock's closing price of Rs 175.15 on the BSE yesterday, 30 March 2016.

Metal, banking and capital goods stocks led a rally on the domestic bourses triggered by expectations that US interest rates will not be raised quickly, with the barometer index, the S&P BSE Sensex, surpassing the psychologically important 25,000 mark yesterday, 30 March 2016. The Sensex jumped 438.12 points or 1.76% to settle at 25,338.58. The 50-unit Nifty 50 index rose 138.20 points or 1.82% to settle at 7,735.20. The two benchmark indices hovered in positive zone throughout the trading session after opening with upward gap. The Sensex and the Nifty, both, hit 12-week closing high. The two benchmark indices snapped a two-day losing streak. Barring the S&P BSE Telecom index, all other sectoral indices on BSE registered gains.

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