Market may spurt on BJP's solid show in assembly elections

Indian stocks are likely to surge in opening trade after strong performance of Bharatiya Janata Party (BJP) in assembly elections in Rajasthan, Delhi, Madhya Pradesh and Chattisgarh. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 188 points at the opening bell. BJP has secured emphatic victories in Madhya Pradesh and Rajasthan, a narrower one in Chhattisgarh and emerged as the single largest party in a hung Delhi assembly, its 4-0 rout of Congress giving the party and its leader Narendra Modi confidence and momentum going into next year's general elections. Aam Aadmi Party, which confounded skeptics to win 28 seats in the 70-member Delhi assembly, denied BJP, which won 31 seats, an outright victory. Congress's debacle has also fortified the perception of Narendra Modi-led BJP being the frontrunner for 2014 Lok Sabha elections.

Counting of votes for assembly elections in Rajasthan, Delhi, Madhya Pradesh and Chattisgarh took place on Sunday, 8 December 2013. Counting of votes for assembly elections in Mizoram takes place today, 9 December 2013.

Investor community is betting that BJP's win in Lok Sabha elections next year under the leadership of pro development leader, Narendra Modi would help solve India's intrinsic problems, boost investments and propel economic growth which has seen a consistent slide under the UPA government in last one decade.

Metal stocks may gain after the lastest data showed China's trade surplus widened last month to the largest in more than four years as exports exceeded estimates. China is the world's largest consumer of copper and aluminum.

IT stocks may gain on positive US jobs data. US is the biggest outsourcing market for the Indian IT firms.

Tata Power Company after market hours on Friday, 6 December 2013, said that the coal handling plant at Coastal Gujarat Power (CGPL), Mundra had an occurrence of fire in the coal conveyor gallery on 14 November 2013. Coal feeding to the plant was impacted due to fire and the repair works that followed. Restoration of the impact of fire on conveyor was achieved on 20 November 2013, Tata Power said. The company has processed the insurance claim as per coverage, Tata Power said.

The board of directors of Oil & Natural Gas Corporation (ONGC) at its meeting held on 6 December 2013 declared interim dividend of Rs 5 per share for the year ending 31 March 2014 (FY 2014).

Colgate-Palmolive (India) turns ex-dividend today, 9 December 2013, for second interim dividend of Rs 9 per share for the year ending 31 March 2014 (FY 2014).

On macro front, the Reserve Bank of India (RBI) announces next Mid-Quarter Review of Monetary Policy for 2013-14 on 18 December 2013. The Third Quarter Review of Monetary Policy for 2013-14 is scheduled 28 January 2014.

The winter session of parliament began on 5 December 2013. The session will end on 20 December 2013.

Key benchmark indices edged higher in volatile trade on Friday, 6 December 2013, as European stocks rose. The S&P BSE Sensex advanced 38.72 points or 0.18% to settle at 20,996.53 on that day, its highest closing level since 3 November 2013.

Foreign institutional investors (FIIs) bought shares worth a net Rs 863.77 crore on Friday, 6 December 2013, as per provisional data from the stock exchanges.

Asian stocks climbed on Monday, 9 December 2013, after better-than-estimated data on US jobs and Chinese exports. Key benchmark indices in Taiwan, Indonesia, South Korea, Singapore, Japan and Hong Kong rose 0.19% to 1.85%. China's Shanghai Composite fell 0.09%.

China today reported inflation slowed more than estimated last month, after data yesterday showed export growth helped swell the nation's trade surplus to $33.8 billion, the widest since January 2009. The consumer-price index rose 3 percent from a year earlier, the National Bureau of Statistics said today in Beijing.

China's trade surplus widened last month to the largest in more than four years as exports exceeded estimates. The surplus of $33.8 billion was the biggest since January 2009, data from the General Administration of Customs showed yesterday in Beijing. Outbound shipments rose 12.7% from a year earlier, while import gained 5.3%.

Japan's growth slowed more than an initial estimate in the third quarter while the country posted an unexpected deficit in its broadest trade gauge in October, underscoring headwinds to Prime Minister Shinzo Abe's efforts to cement a recovery. Gross domestic product expanded an annualized 1.1% from the previous quarter when it rose 3.6%, the Cabinet Office said today in Tokyo, lower than a preliminary reading of 1.9%. Japan's current account registered a 128 billion yen ($1.2 billion) shortfall, the first deficit since January, according to the finance ministry.

US stocks surged on Friday, 6 December 2013, after the latest data showed American employers added more jobs than forecast and the jobless rate dropped to the lowest since 2008. The 203,000 increase in payrolls in November followed a revised 200,000 advance in October, Labor Department figures showed. The US jobless rate fell to 7%, showing progress in the labor market that will help provide a spark for the US economy. Another report showed consumer confidence rose more than forecast in December to the highest level in five months, easing concern about household spending heading into the holiday-shopping season. The Thomson Reuters/University of Michigan preliminary December consumer sentiment index rose to 82.5, the strongest since July, from 75.1 in November.

Investors are keeping a close watch on economic data in the United States as the Federal Reserve monitors the pace of recovery to gauge when it will begin to reduce monetary stimulus for the US economy, which has been aimed at encouraging growth. The Federal Open Market Committee (FOMC) holds a two-day policy meeting on interest rates in the United States on 17-18 December 2013. The US central bank currently buys bonds worth $85 billion a month in a bid to hold interest rates low and encourage economic growth in the world's biggest economy. Minutes of the Fed's October meeting released on 20 November 2013 showed officials may reduce their $85 billion a month of bond buying if the economy improves as anticipated.

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