Market set to open higher on firm Asian stocks

Key indices may open higher tracking firmness in Asian stocks. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could jump 58 points at the opening bell.

In overseas markets, Asian stocks gained after the Federal Reserve's cautious stance on further rate increases prompted investors to rebuild their bets on riskier assets. Fed slashed its projections for rate increases to two in 2016 from an earlier projection of four after keeping rates unchanged at the conclusion of a two-day monetary policy review on 16 March 2016. Fewer US interest rates hikes could support demand for emerging-market assets because investors have less incentive to draw out money from risky assets in their search for higher yields in the US. US stocks rose yesterday, 17 March 2016 as energy, materials and industrials sectors rose sharply, helped by soaring commodity prices.

Closer home, foreign portfolio investors (FPIs) bought shares worth a net Rs 744.49 crore yesterday, 17 March 2016, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 168.38 crore yesterday, 17 March 2016, as per provisional data.

Among corporate news, Hindustan Unilever (HUL) announced that it has signed an agreement for the sale of its rice exports business carried out primarily under the brands Gold Seal Indus Valley and Rozana to LT Foods Middle East DMCC, a group company of LT Foods. HUL's decision to divest is in line with its strategy to exit non-core businesses, while continuing to drive its growth agenda in the core packaged foods business. The deal envisages transfer of the brands and inventory for a consideration of Rs 25 crore, subject to adjustments on closing. The transaction is subject to fulfillment of certain conditions and the parties will work together to complete this over the next few months, HUL said. HUL will continue to manage the business until the completion of the transaction, it added. The announcement was made after trading hours yesterday, 17 March 2016.

Oil India said that Moody's Investor Service has confirmed credit rating of 'Baa2' to the company's senior unsecured regular bond/debenture. The outlook is stable. The announcement was made after trading hours yesterday, 17 March 2016.

Crompton Greaves (CG) said it won an order of $35 million (Rs 236 crore approximately) from PT PLN (Persero), the state-owned electricity company of Indonesia, to manufacture and install 28 power transformers ranging from 83.3 mega-volt ampere (MVA) to 167 MVA and rated voltage 500 kilovolt (kV)/150 kV. CG's power transformers will be installed across PT PLN's transmission network, spread over multiple substations and power plants in the Java, Sumatra and Kalimantan provinces of Indonesia. The delivery period is scheduled between May 2016 and March 2017. The power transformers will be manufactured in CG's manufacturing facility in Indonesia. The announcement was made after trading hours yesterday, 17 March 2016.

A divergent trend was witnessed between the two key benchmark indices, with the barometer index, the S&P BSE Sensex, registering minuscule losses and the 50-unit Nifty 50 index registering small gains yesterday, 17 March 2016. The Sensex fell 5.11 points or 0.02% to settle at 24677.37. The Nifty rose 13.80 points or 0.18% to settle at 7,512.55.

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