Market may open lower on weak Asian stocks

The market may open lower on weak Asian stocks. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could fall 28.50 points at the opening bell. Volatility may remain high on the bourses this week as traders roll over positions in the futures & options (F&O) segment from the near month March 2013 series to April 2013 series. The March 2013 F&O contracts expire on Thursday, 28 March 2013.

The current week is a truncated trading week. The stock market remains shut tomorrow, 27 March 2013, on account of Holi and again later in the week on Friday, 29 March 2013, on account of Good Friday.

Coal India (CIL) said after market hours on Monday, 25 March 2013, that the board of directors of the company at its meeting held on 25 March 2013, has approved to convert the Loan & Current Account balance granted to BCCL, a 100% subsidiary of the company, aggregating to Rs 2539 crores into 5% Non-Convertible, Redeemable Cumulative Preference Shares as recommended by the Audit Committee of CIL on date. The board also approved to amend the Memorandum of Association & Articles of Association of BCCL to facilitate this. This is however subject to the approval of shareholders of BCCL, Coal India said.

Mahindra Satyam said after market hours on Monday, 25 March 2013 that pursuant to Clause 28.1 of Scheme of Amalgamation and Arrangement of Venturbay Consultants and Satyam Computer Services and C&S Systems Technologies and Mahindra Logisoft Business Solutions and CanvasM Technologies with Tech Mahindra and their respective shareholders and creditors (the scheme), the board of directors extended the validity of the scheme by a further period of six months till 30 September 2013.

Mahanagar Telephone Nigam (MTNL) said after market hours on Monday, 25 March 2013, that the board of directors of the company at its meeting held on 25 March 2013 approved the proposal for raising non convertible debentures (in the form of bonds) worth Rs 3000 crore for a period of 10 years guaranteed by the Government of India.

Torrent Power after trading hours on Monday, 25 March 2013, said that the company has allotted 10.10% Secured Redeemable Non-Convertible Debentures (NCDs) of upto Rs 300 crores on private placement basis.

Key benchmark indices dropped for seventh straight session on Monday, 25 March 2013 on political worries following reports that the Samajwadi Party (SP) might withdraw support to the Congress led UPA government at the Centre. The S&P BSE Sensex lost 54.18 points or 0.29% to 18,681.42 on that day, its lowest closing level since 26 November 2012.

Foreign institutional investors (FIIs) bought shares worth a net Rs 717.89 crore on Monday, 25 March 2013, as per provisional data from the stock exchanges.

Reduction of promoter stake to meet the Securities & Exchange Board of India (Sebi) mandated minimum public shareholding of 25% for private companies and 10% for state-run firms will result in supply of equity in the market over the next few months. As per the Sebi mandated minimum public shareholding rule, private-sector companies must cut founders' stake to adhere to the rules by 30 June 2013, while the deadline for state-run firms is 31 August 2013. PSU divestment will also add to share sale glut in FY 2014. The government has set a target of Rs 40000 crore from divestment of government stake in state-run firms and Rs 14000 crore from divestment of stake in non-government companies for FY 2014.

The India Meteorological Department will issue its first forecast of 2013 southwest monsoon in April 2013.

The second half of the Budget session of the Parliament begins on 22 April 2013. The Budget Session of the Parliament ends on 10 May 2013. The government has lined up a number of key bills for consideration and passing during the Budget session of the parliament, which include The Forward Contracts (Regulation) Amendment Bill, 2010, The Pension Fund Regulator and Development Authority Bill, 2011, The Land Acquisition, Rehabilitation and Resettlement Bill, 2011, The National Food Security Bill, 2011 and The Insurance Laws (Amendment) Bill, 2008.

Asian stocks fell on Tuesday amid concern that Cyprus's bank-restructuring plan will be used as a template for other European nations, imperiling bondholders and depositors. Key benchmark indices in China, Hong Kong, Japan and Taiwan shed by 0.06% to 1.44%. Key benchmark indices in Singapore Indonesia, and South Korea rose by 0.08% to 0.75%.

South Korea's economy expanded less than previously estimated in the fourth quarter, underscoring the case for stimulus by the new government.

US stocks edged lower on Monday after reports suggested that deposit holders in other ailing European economies may be at risk in the future.

In Europe, Cyprus, the euro-area's third-smallest economy, on Monday agreed the terms for a 10 billion-euro ($13 billion) bailout. Cypriot President Nicos Anastasiades agreed to shut the country's second-largest bank, and will impose tax on deposits of more than 100,000 euros.

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