Market may extend recent losses on weak Asian stocks

The market may extend recent sharp losses on weak Asian stocks. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could slide 66.50 points at the opening bell. Most Asian stocks retreated Tuesday triggered by a fourth straight day of losses on the Wall Street on Monday.

IT stocks will be in focus as rupee closed at a record low against the dollar on Monday, 19 August 2013. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.

FDC turns ex-dividend today, 20 August 2013, for final dividend of Rs 2.25 per share for the year ended 31 March 2013 (FY 2013).

Gujarat Apollo Industries turns ex-dividend today, 20 August 2013, for dividend of Rs 10 per share for the year ended 31 March 2013 (FY 2013).

Indraprastha Gas turns ex-dividend today, 20 August 2013, for dividend of Rs 5.50 per share for the year ended 31 March 2013 (FY 2013).

Key benchmark indices extended Friday's steep losses on Monday, 19 August 2013 as a sharp setback in rupee which hit record low against the dollar and a surge in bond yields spooked investors. The S&P BSE Sensex lost 290.66 points or 1.56% to 18,307.52 on that day, its lowest closing level since 12 April 2013.

Foreign institutional investors (FIIs) sold shares worth a net Rs 680.08 crore on Monday, 19 August 2013, as per provisional data from the stock exchanges.

Most Asian stocks retreated Tuesday triggered by a fourth straight day of losses on the Wall Street on Monday. Key benchmark indices in Indonesia, Singapore, Hong Kong, Japan, and Taiwan were down by 0.2% to 2.66%. Key benchmark indices in China and South Korea rose by 0.05% to 0.18%.

US stocks edged lower on Monday after the yield on the 10-year Treasury bond hit fresh two-year highs, raising worries about what impact higher rates will have on the US economic recovery.

The Federal Open Market Committee (FOMC) tomorrow, 21 August 2013, will issue minutes of its recent policy meeting held on 30 and 31 July 2013. The minutes of FOMC meet may help provide clues about the future of Fed's bond-buying program.

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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