Market may open flat to slightly lower

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 3 points at the opening bell.

In overseas stock markets, Asian stocks were mixed. In China, the Shanghai Composite index was currently off 0.02%. Hong Kong's Hang Seng index was currently up 0.54%. In Japan, the Nikkei Stock Average was currently down 1.49%. US stocks closed slightly higher yesterday, 4 February 2016 in a choppy trading session.

Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 195.92 crore yesterday, 4 February 2016, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 476.44 crore yesterday, 4 February 2016, as per provisional data released by the stock exchanges.

Among corporate news, Tata Steel reported consolidated net loss of Rs 2127 crore in Q3 December 2015 compared with net profit of Rs 157 crore in Q3 December 2014. Turnover fell 16.63% to Rs 28039 crore in Q3 December 2015 over Q3 December 2014. Earnings before interest, taxation, depreciation and amortization (EBITDA) excluding one-offs and profit on sale of investments declined 69.96% to Rs 838 crore in Q3 December 2015 over Q3 December 2014. The result was announced after market hours yesterday, 4 February 2016.

T V Narendran, Managing Director of Tata Steel India and South East Asia said that steel markets in India have been affected by depressed international steel prices and predatory imports. The quarter saw a sharp decline in steel prices which has impacted the margins, Narendran said.

Koushik Chatterjee, Group Executive Director (Finance and Corporate) said that the current business conditions for the global steel industry are extremely challenging with confluence of elevated imports across regions, currency headwinds and depressed market sentiments affecting Tata Steel Group's profitability. The Tata Steel Group has embarked on significant cost rationalisation program including fixed cost reduction, right sizing of manpower, productivity management and enriching the product mix across all geographies, Chatterjee said. These programs are expected to enhance the sustainable profitability profile of the company, he added. The company has also undertaken significant portfolio restructuring and will continue to pursue the same in the future, Chatterjee said.

Mahindra & Mahindra yesterday, 4 February 2016, announced the launch of its new heavy commercial truck series under the BLAZO brand at the Auto Expo at Greater NOIDA. The BLAZO series of heavy commercial vehicles include multi-axle trucks, tippers and tractor trailers in the range of 25 to 49 ton GVW for the domestic market.

Stocks of metal and mining firms, oil exploration and production companies and index heavyweight Infosys led gains for key benchmark indices in what was a choppy trading session yesterday, 4 February 2016. The Sensex rose 115.11 points or 0.48% to settle at 24,338.43, its highest closing level since 2 February 2016.

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