Market may open flat to slightly higher

The market may open slightly higher amid lower Asian stocks and domestic data showed that consumer price inflation eased in February. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 7.50 points at the opening bell.

In overseas markets, Asian stocks edged lower as investors braced for a run of policy announcements from the world's major central banks this week, with all eyes on the Bank of Japan's meeting later in the day after it stunned markets in January by adopting negative rates. The Bank of Japan's (BOJ) two-day policy meeting ends today, 15 March 2016. The BOJ is seen holding policy rate steady after adopting negative interest rates at its meeting in late January. US stocks closed on a mixed note yesterday, 14 March 2016. The US Federal Reserve's crucial two-day monetary policy meeting begins today, 15 March 2016. Federal Reserve officials are likely to hold short-term interest rates steady at its policy meeting amid uncertainties about global financial markets and global growth. The Fed in December 2015 raised its benchmark federal-funds rate from near zero to a range between 0.25% and 0.5%.

Closer home, foreign portfolio investors (FPIs) bought shares worth a net Rs 1035.63 crore on Monday, 14 March 2016, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 805.34 crore on Monday, 14 March 2016, as per provisional data.

Among corporate news, ICICI Bank before market hours today, 15 March 2016 said that the bank through its DIFC (Dubai) branch, priced an issuance of 10 year fixed rate notes of an aggregate principal amount of $700 million. The notes were sold under the rule 144A/RegS format. The notes carry a coupon of 4% and were offered at an issue price of 99.592.

Zee Entertainment Enterprises (Zee) after market hours yesterday, 14 March 2016 announced that its board of directors at a meeting held on 14 March 2016, approved in-principle an acquisition of 100% equity stake in Fly By Wire International (FBW), Bangalore. FBW provides aircraft charter services under a NSOP license obtained from Director General of Civil Aviation (DGCA) and currently owns/operates one Bombardier Challenger 605 aircraft. FBW clocked turnover of Rs 1.33 crore in the financial year ended 31 March 2015.

The acquisition shall be an all-cash deal. In addition to the consideration of Rs 2.75 crore payable for the entire stake in FBW, FBW which has the aircraft as the main asset in its books, also has an outstanding bank loan of Rs 58.50 crore availed earlier by FBW for financing the aircraft, Zee said. Zee initially proposes to acquire 49% equity stake in FBW and the balance 51% equity stake shall be acquired within 5 days of receipt of approval from Ministry of Civil Aviation. The process is expected to be completed by mid-July 2016, Zee said.

During FY 2015-16, subsequent to sale of the smaller aircraft owned by the company, Zee has been chartering the aircraft from FBW on an exclusive basis. However, due to frequent use of the aircraft owned by FBW, besides dependency on the aircraft, the cost of hiring has also increased, Zee said. Hence in order to save costs and for ensuring better operational and administrative efficiency, it is considered expedient to own the aircraft by acquiring 100% equity stake in FBW, Zee said.

Coal India (CIL) will be watched. As on 13 March 2016, CIL and its subsidiaries surpassed half a billion tonne of coal production. Till 13 March 2016, CIL and its subsidiaries produced 501.34 million tonne of coal with a positive growth of 9.1% compared to the same period last year. CIL and subsidiaries also achieved an off-take of 504.09 million tonne with a positive growth of 9.4% compared to same period last year as on 13 March 2016. The announcement was made after trading hours yesterday, 14 March 2016.

On macroeconomic front, the inflation based on consumer price index (CPI) dipped to four months low of 5.18% in February 2016 compared with 5.69% in January 2016. The corresponding provisional inflation rate for rural area was 5.97% and urban area 4.30% in February 2016 as against 6.48% and 4.81% in January 2016. However, the core CPI inflation rose to 4.77% in February 2016 from 4.5% in January 2016.

Positive cues from global markets aided small upmove for Indian stocks at the onset of the week on Monday, 14 March 2016. The barometer index, the S&P BSE Sensex, rose 86.29 points or 0.35% to settle at 24,804.28.

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