Market may open flat to slightly higher

Key indices may open flat to slightly higher amid mixed cues from Asian stocks. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could gain 9 points at the opening bell.

In overseas markets, Asian stocks were mixed. Meanwhile, data showed that Japan's economy grew faster than initially estimated in the first quarter as capital spending fell less than was first reported, but worries remain over slow consumer spending and weak exports. Japan's economy expanded at an annualized 1.9% rate in the first quarter of this year, revised up from a preliminary reading of 1.7% growth, the Cabinet Office data showed today, 8 June 2016. US stocks eked out modest gains yesterday, 7 June 2016 propelled by a sharp rally in the energy sector. Investors shrugged off US government data yesterday, 7 June 2016 that showed productivity of businesses and workers fell in the first quarter, but by less than initially reported.

Closer home, foreign portfolio investors (FPIs) bought shares worth a net Rs 499.73 crore yesterday, 7 June 2016, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 46.33 crore yesterday, 7 June 2016, as per provisional data.

Among corporate news, L&T announced that its construction arm along with its JV partner in Qatar, Al Balagh Trading & Contracting, has signed a contract to build a 40,000 seater stadium, as part of the sports infrastructure being readied by the Emirate in preparation of the 2022 Fifa World Cup. The contract for the project is for a combined value of $360 million for both JV partners and is slated to be completed by 2019. The scope for the stadium includes main works and construction of the site, following completion of the enabling works, L&T said in a statement. The announcement was made after market hours yesterday, 7 June 2016.

Pharma major Lupin announced the appointment of Yugesh Goutam as President-Global Human Resources (HR). Yugesh will lead the HR function for Lupin globally and will be based at the company's corporate headquarters in Mumbai, India. Yugesh takes over from Divakar Kaza who has opted to retire after a transition period to pursue other interests, Lupin said in a statement. The announcement was made after market hours yesterday, 7 June 2016.

NMDC announced before market hours today, 8 June 2016 that the board of directors of the company approved the company's buyback proposal of company's fully paid-up equity shares not exceeding 80.08 crore equity shares, representing 20.2% of the total number of equity shares in the paid-up share capital of the company and is not exceeding 25% of the total number of equity shares in the paid-up share capital of the company at a price of Rs 94 per share for an aggregate consideration not exceeding Rs 7527.75 crore. The board of directors noted the intention of the promoter of the company to participate in the proposed buyback.

Meanwhile, the Reserve Bank of India's (RBI) indication after a policy review that interest rate cut may be announced if macroeconomic and financial developments favour rate cut and firmness in European stocks aided the upmove on the domestic bourses yesterday, 7 June 2016. The Sensex rose 232.22 points or 0.87% to settle at 27,009.67, its highest closing level since 28 October 2015.

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