Key benchmark indices edged lower in choppy trade on the last trading session of the week after the latest data showed that India's merchandise exports fell for the second month in a row in March 2014. The barometer index, the S&P BSE Sensex, lost 86.37 points or 0.38%, off close to 50 points from the day's high and up about 100 points from the day's low. Weakness in Asian and European stocks and overnight steep slide in US stocks hit sentiment on the domestic bourses adversely.
The Sensex snapped a two-day winning streak today, 11 April 2014. The Sensex had risen 371.88 points, or 1.66% in two trading sessions to settle at 22,715.33 on 10 April 2014, from a recent low of 22,343.45 on 7 April 2014. The Sensex has risen 242.69 points or 1.08% in this month so far (till 11 April 2014). The Sensex has gained 1,458.28 points or 6.88% in calendar year 2014 so far (till 11 April 2014). From a record high of 22,792.49 on 10 April 2014, the Sensex has fallen 163.53 points or 0.71%. From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 5,180.25 points or 29.68%.
Coming back to today's trade, index heavyweight Reliance Industries (RIL) dropped. Auto and capital goods stocks edged lower. Maruti Suzuki India edged lower after the company said it will proactively replace 'fuel filler neck' of 1.03 lakh vehicles which includes 42,481 units of Dzire, 47,237 units of Swift and 13,593 units of Ertiga manufactured between 12 November 2013 and 4 February 2014.
The market breadth, indicating the overall health of the market was positive.
The Sensex edged lower in early trade as Asian stocks fell after overnight steep slide in US stocks. The Sensex languished in negative terrain in morning trade. Weakness continued on the bourses in mid-morning trade. The Sensex extended losses and hit fresh intraday low in early afternoon trade. Key benchmark indices trimmed losses in afternoon trade. Key benchmark indices hovered in negative terrain in mid-afternoon trade after the latest data showed that India's merchandise exports fell for the second month in a row in March 2014. Volatility ruled the roost as key benchmark indices weakened once again after trimming intraday losses in late trade.
The stock market remains closed on Monday, 14 April 2014, on account of Dr. Baba Saheb Ambedkar Jayanti.
The S&P BSE Sensex shed 86.37 points or 0.38% to settle at 22,628.96, its lowest closing level since 7 April 2014. The index declined 188.44 points at the day's low of 22,526.89 early afternoon trade. The index fell 36.15 points at the day's high of 22,679.18 in late trade.
The CNX Nifty lost 20.10 points or 0.3% to settle at 6,776.30, its lowest closing level since 7 April 2014. The index hit a low of 6,743.15 and a high of 6,789.35 in intraday trade.
The BSE Mid-Cap index rose 7.18 points or 0.1% to settle at 7,338.46. The BSE Small-Cap index garnered 49.30 points or 0.66% to settle at 7,523.18. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 2735 crore, lower than Rs 3602.26 crore on Thursday, 10 April 2014.
The market breadth, indicating the overall health of the market was positive. On BSE, 1,539 shares rose and 1,267 shares fell. A total of 125 shares were unchanged.
Among the 30 Sensex shares, 20 fell and the remaining shares rose.
Zee Entertainment Enterprises declined 1.15%. Zee Turner and Star Den Media Services have today, 11 April 2014, announced their intention to discontinue the distribution of their channels through the three year old distribution joint venture Media Pro Enterprises India, pursuant to the change in regulation regarding aggregators, Zee Entertainment Enterprises said after trading hours today, 11 April 2014. Going forward, Zee and Star would set up their independent affiliate sales team for their respective channels. The latest tariff order dated 31 March 2014, which permitted the inflation linked hike of 27.5% in Reference Interconnect Offer rates (in two stages), is likely to provide a positive fillip to the subscription revenues, Zee Entertainment Enterprises said.
IT stocks reversed intraday losses as the rupee edged lower against the dollar. A weak rupee boosts revenue of IT companies in rupee terms as the sector derives a lion's share of revenue from overseas sales. Tech Mahindra (up 1.89%), TCS (up 1.75%) and Wipro (up 1.34%) gained.
Infosys rose 0.91%. The company unveils its Q4 March 2014 results on Tuesday, 15 April 2014. Infosys today, 11 April 2014, said that the Nomination Committee of the company's board of directors has begun the search to select the successor to Mr. S. D. Shibulal, Chief Executive Officer (CEO) and Managing Director. Mr. Shibulal has expressed his desire to retire as the CEO and MD of the company and as a member of the board of directors either on the date of the last board meeting before his superannuation 9 January 2015 or when his successor is ready to assume office, whichever is earlier.
The Nominations Committee will short list and evaluate an internal slate of candidates with the assistance of Development Dimensions International (DDI), a company specializing in corporate executive evaluations. The board has also appointed Egon Zehnder, an executive search firm, to assist the Nominations Committee in identifying an external slate of candidates.
HCL Technologies rose 3.15%. HCL Infosystems declined 2.14%. Both these companies after trading hours on Thursday, 10 April 2014, denied rumours of merger of HCL Infosystems with HCL Technologies.
NMDC rose 1% to Rs 151.15. The stock hit a 52-week high of Rs 153.65 in intraday trade. The company today, 11 April 2014, said that total iron ore production rose 3% to 30.18 million tonnes in the year ended 31 March 2014 (FY 2014) over year ended 31 March 2013 (FY 2013). Despatches rose 4.39% to 30.87 million tonnes in FY 2014 over FY 2013.
NMDC said that it has rolled over the March 2014 prices of lump ore (lumps - Rs 4,500 a wet metric tonne) and fines (Rs 2,910 a wet metric tonne) to the month of April 2014.
Vedanta group firm Hindustan Zinc rose 0.57%. The company on Thursday, 10 April 2014, said its mined metal production dropped 23% to 200,000 tonnes in Q4 March 2014 over Q4 March 2013. Mined metal production rose 1% to 880,000 tonnes in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013). Production in the second half of FY 2014 was lower than what the company had planned initially due to slower than expected ramp up of underground mining projects and changes in mining sequence, wherein preference was given to primary mine development.
Integrated production of refined metal during the year was highest ever due to operational efficiencies and higher availability of smelters. Full year integrated production of zinc, lead and sliver were higher by 13%, 10% and 4% respectively, the company said.
Hindustan Zinc is a subsidiary of Sesa Sterlite.
Vedanta group firm Sesa Sterlite dropped 1.21%. The company unveiled production data for Q4 and year ended 31 March 2014 during trading hours on Thursday. 10 April 2014. In Karnataka, the company resumed iron ore mining on 28 December 2013 and optimized its approved annual capacity of 2.29mtpa, which resulted in a production of 1.5mt in FY 2014. However, only 27 kt was sold during the year. At Goa, the company participated in e-auctions of inventory and sold 0.3 million tonnes in Q4 March 2014 but these were not accounted for as sales since the dispatches did not take place during the quarter. These dispatches have commenced in April.
Regarding mining in Goa, the Expert committee appointed by the Supreme Court submitted its second interim report to the Court on 24 March 2014. The Expert committee, in its report, recommended that 27.5mtpa was a sustainable extraction level in the state, but suggested that the ideal permissible limit be 20mtpa until a scientific study is completed within 12 months. The decision of the Supreme Court is awaited on this matter, the company said.
The company said that production of pig iron rose 28% to 133,000 tonnes in Q4 March 2014 over Q4 March 2013. Production of met coke rose 27% to 119,000 tonnes in Q4 March 2014 over Q4 March 2013.
Prodcution of copper cathodes rose 14% to 98,000 tonnes in Q4 March 2014 over Q4 March 2013. The full year production was 17% lower due to the temporary closure in Q1 June 2013, the comapny said.
Total aluminum production rose 2% to 200,000 tonnes in Q4 March 2014 over Q4 March 2013. Total aluminum production rose 3% to 794,000 tonnes in FY 2014 over FY 2013.
Total power sales fell 21% to 2,093 million units in Q4 March 2014 over Q4 March 2013. Total power sales fell 7% to 9,374 million units in FY 2014 over FY 2013.
Bank stocks declined after a committee set up by the Reserve Bank of India (RBI) on credit pricing framework submitted a draft report on Thursday, 10 April 2014. ICICI Bank (down 0.85%), Axis Bank (down 0.44%), and HDFC Bank (down 0.14%) declined. Kotak Mahindra Bank rose 0.03%.
Among state-run banks, Indian Bank (down 2.5%), Oriental Bank of Commerce (down 2.06%), Bank of India (down 1.8%), Canara Bank (down 1.2%), Andhra Bank (down 1.2%), Indian Overseas Bank (down 1.1%), Punjab National Bank (down 0.76%) and Bank of Baroda (down 0.59%) edged lower.
A committee set up by the Reserve Bank of India (RBI) on credit pricing framework on Thursday, 10 April 2014, suggested that commercial banks, particularly those whose weighted average maturity of deposits is on the lower side, move towards computing the Base Rate on the basis of marginal cost of funds. This may result in more transparency in pricing, reduced customer complaints, better transmission of changes in the policy rate and improved asset liability management at banks, a draft report of the committee on 'Working Group on Pricing of Credit', said. If banks use weighted average cost of funds because of their deposits profile or any other methodology that may result in differentiation between old and new customers, the boards of banks should ensure that this differentiation does not lead to any discrimination amongst borrowers, the draft report said.
Apart from factors like specific operating cost, credit risk premium and tenor premium, broad factors, such as, competition, business strategy and customer relationship are also used to determine the spread. The RBI committee suggested that bank should have a board approved policy delineating these components. The board of a bank should ensure that any price differentiation is consistent with the bank's credit pricing policy factoring Risk Adjusted Return on Capital (RAROC). Banks should be able to demonstrate to the Reserve Bank of India the rationale of the pricing policy, the draft report of the committee stated. Banks' internal policy must spell out the rationale for, and range of, the spread in the case of a given borrower, as also, the delegation of powers in respect of loan pricing, the draft report said.
The spread charged to an existing customer cannot be increased except on account of deterioration in the credit risk profile of the customer, the committee said. The customer should be informed of this at the time of contract. Further, this information should be adequately displayed by banks through notices/website, the committee said in its draft report.
The floating rate loan covenant may have interest rate reset periodicity and the resets may be done on those dates only, irrespective of changes made to the Base Rate within the reset period, the committee said. There may be a sunset clause for Benchmark Prime Lending Rate (BPLR) contracts so that all the contracts thereafter are linked to the Base Rate. Banks may ensure that these customers who shift from BPLR linked loans to Base Rate loans are not charged any additional interest rate or any processing fee for such switch-over, the draft report stated.
The IBA may develop a new benchmark for floating interest rate products, namely, the Indian Banks Base Rate (IBBR), which may be collated and published by IBA on a periodic basis. Banks may consider offering floating rate products linked to the Base Rate, IBBR or any other floating rate benchmark ensuring that at the time of sanction, the lending rates should be equal to or above the Base Rate of bank. To begin with, IBBR may be used for home loans. By design, the IBBR should meet the standards for benchmarks set by the Committee on Financial Benchmarks. The Working Group has also made several recommendations to bring in greater transparency enabling comparability across banks and informed decision making by customers.
The benefit of interest reduction on the principal on account of pre-payments should be given on the day the money is received by the bank without waiting for the next EMI cycle date to effect the credit, the draft report said. For retail loans, the customers should have a choice of "with exit" and "sans exit" options at the time of entering the contract. The exit option can be priced differentially but reasonably. The exit option should be easily exercisable by the customer with minimum notice period and without impediments. This would address issues of borrowers being locked into contracts, serve as a consumer protection measure and also help enhance competition. Further, IBA should evolve a set of guidelines for easier and quicker transfer of loans, particularly mortgage/housing loans. There could also be penalties for banks which do not cooperate with borrowers in this regard.
Despite the policy efforts to usher in transparency and fairness to the credit pricing framework, there have been certain concerns from the customer service perspective, the RBI said. These mainly relate to the downward stickiness of the interest rates, discriminatory treatment of old borrowers vis-vis new borrowers, and arbitrary changes in spreads, etc. The mandate of the RBI's 'Working Group on Pricing of Credit' is to examine the issues related to discrimination in pricing of credit and recommend measures for transparent and appropriate pricing of credit under a floating rate regime.
State Bank of India (SBI) declined 1.61%. The state-run bank said after market hours today, 11 April 2014, that it has priced on 10 April 2014 and will issue $1.25 billion unsecured fixed rate notes in two tranches of $750 million having a maturity of 5 years at a coupon of 3.622% payable semi-annually and $500 million having a maturity of 10 years at a coupon of 4.875% payable semi-annually, pursuant to a standalone issue under Rule 144A / Regulation S of the US Securities Act of 1933. The notes will be issued through the London branch of SBI and shall be listed on Singapore Stock Exchange Securities Trading, SBI said.
Induslnd Bank dropped 4.26%. The Reserve Bank of India on Thursday, 10 April 2014, notified that the foreign share holding through foreign institutional investors (FIIs)/non-resident Indians (NRIs)/persons of Indian origin (PIOs)/foreign direct investment (FDI)/American depository receipts (ADRs)/global depository receipts (GDRs) in IndusInd Bank has reached the trigger limit. Hence, further purchases of equity shares of IndusInd Bank would be allowed only after obtaining prior approval of the Reserve Bank of India.
The ceiling on total foreign holding in IndusInd Bank is 49%.
Pharma stocks bucked weak market as rupee edged lower against the dollar. Weakness in rupee could boost sales of pharma companies in rupee terms as pharma firms derive substantial revenue from exports. Cipla (up 1.16%), Dr Reddy's Laboratories (up 0.83%), Ranbaxy Laboratories (up 1.35%), Strides Arcolab (up 1.23%), Wockhardt (up 1.59%) and Sun Pharmaceutical Industries (up 1.87%) gained. Lupin fell 0.61%.
Index heavyweight Reliance Industries (RIL) dropped 1.73% to Rs 952. The stock hit high of Rs 970.60 and low of Rs 950.30.
Auto stocks dropped. Mahindra & Mahindra (M&M) (down 2.08%), Hero MotoCorp (down 1.82%) TVS Motor Company (down 1.8%) Ashok Leyland (down 0.83%) and Bajaj Auto (down 0.76%), declined.
Maruti Suzuki India lost 0.98%. The company today, 11 April 2014, said it will proactively replace 'fuel filler neck' of 1.03 lakh vehicles which includes 42,481 units of Dzire, 47,237 units of Swift and 13,593 units of Ertiga manufactured between 12 November 2013 and 4 February 2014. This exercise is limited to vehicles within the above specified range and does not pertain to any other vehicle of the company, Maruti said. In the affected vehicles there is a possibility of fuel smell and in extreme condition there may be some fuel leakage, if fuel is filled upto the fuel cap, beyond 'Auto cutoff level', Maruti said.
Maruti Suzuki dealers will contact owners of all vehicles in the above mentioned range. The company will replace the 'fuel filler neck' free of cost. As part of its quality tests in the manufacturing process, the company noticed the problem. The new filler neck is being progressively despatched to the dealer workshops, Maruti said. Considering the number of vehicles impacted, the company is building up stock of the required component at its dealer workshops, before inviting customers, Maruti said.
Tata Motors fell 1.81% to Rs 423. The stock reversed direction after hitting record high of Rs 437.70 in intraday trade. The company's British luxury car unit Jaguar Land Rover (JLR) on Thursday, 10 April 2014, said its sales rose 3% to 55,183 units in March 2014 over March 2013. Jaguar sales jumped 19% to 11,731 units in March 2014 over March 2013. In March, Land Rover sold 43,452 vehicles, in line with prior year, with strong performances across the range, JLR said in a statement.
JLR's sales rose 8% to 124,776 vehicles in Q1 March 2014 over Q1 March 2013. Jaguar sales rose 19% to 24,031 vehicles in the Q1 March 2014 over Q1 March 2013. Land Rover sales rose 6% to 100,745 vehicles in Q1 March 2014 over Q1 March 2013.
Commenting on the quarterly performance, Andy Goss, Jaguar Land Rover Group Sales Operations Director said: "This has been a strong start to the year for both brands thanks to continued global demand for our latest model offerings. The F-TYPE Coupe has just been launched to the world's media to critical acclaim and Land Rover is set to reveal a Discovery Vision Concept car at the New York International Auto Show, to showcase Land Rover's design vision for a new family of Discovery vehicles".
Capital goods stocks edged lower. ABB India (down 1.04%), Bharat Heavy Electricals (Bhel) (down 1.15%), Crompton Greaves (down 0.06%), L&T (down 1.65%), Punj Lloyd (down 0.58%) and Siemens (down 0.67%) declined.
Electrosteel Castings gained 1.36% to Rs 22.30 after the company said its board of directors have decided to issue equity shares to the promoters of the company on preferential basis. The announcement was made during trading hours today, 11 April 2014. Electrosteel Castings said that the Board of Directors of the company at its meeting held today, 11 April 2014, has decided to issue upto 1.70 crore equity shares of the company at an approximate price of Rs 19.41 (including a premium of Rs 18.41) per equity share aggregating upto Rs 32.99 crore (approximately) to the promoters of the company on preferential basis. The issuance of the said securities shall however be subject to the approval of the shareholders of the company at the general meeting and the issuance of the equity shares shall also be in terms of the provisions of the SEBI (Issue of Capital and Disclosure Requirements), Regulations, 2009 and Companies Act, 2013 read together with the related rules thereunder, the company said.
Shares of Shasun Pharmaceuticals gained 5.06% and Sequent Scientific rose 6.23% as the joint venture company of these two firms has successfully completed the transactions which were agreed upon at the time of formation of the JV firm. Shasun Pharmaceuticals and Sequent Scientific during trading hours today, 11 April 2014 said that with reference to the earlier announcements dated 13 July 2013 and 7 March 2014, regarding entering into a joint venture (JV) agreement to develop, manufacture and sell veterinary products Inclusive of both API (Active Pharmaceuticals Ingredients) and formulations in the global market, the JV company named Alivira Animal Health (Alivira) has successfully completed the transactions viz. Alivira has allotted 74 lakh equity shares to Shasun Pharmaceuticals in consideration for the transfer of the Shasun's Vizag Unit. Further, Alivira has also allotted 21.14 lakh shares to Devicam Capital LLP, an enterprise jointly owned by the promoters of Shasun Pharmaceuticals and Sequent Scientific for cash.
In the foreign exchange market, the rupee edged lower against the dollar on global risk-off sentiment. The partially convertible rupee was hovering at 60.17, compared with its close of 60.07/08 on Thursday, 10 April 2014.
India's merchandise exports fell 3.15% to $29.57 billion in March 2014 over March 2013, data released by the Ministry of Commerce and Industry today, 11 April 2014, showed. Imports declined 2.11% to $40.08 billion in March 2014 over March 2013. Oil imports jumped 17.7% to $15.78 billion in March 2014 over March 2013. Non-oil imports fell 11.8% to $24.3 billion in March 2014 over March 2013. The trade deficit widened to $10.50 billion in March 2014, from $10.4 billion in March 2013.
The country's merchandise exports rose 3.98% to $312.35 billion in year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013). Imports declined 8.11% to $450.94 billion in FY 2014 over FY 2013. Oil imports rose 2.2% to $167.62 billion in FY 2014 over FY 2013. Non-oil imports fell 13.3% to $283.32 billion in FY 2014 over FY 2013. The trade deficit declined sharply to $138.59 billion in FY 2014, from $190.33 billion in FY 2013.
India's industrial production growth is seen inching up to 0.9% in February 2014, from 0.1% in January 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government unveils industrial production data for February 2014 at 17:30 IST today, 11 April 2014.
The rate of inflation based on the wholesale price index (WPI) is seen edging up to 5.3% in March 2014, from 4.7% in February 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government is scheduled to announce WPI inflation data for March 2014 at 12 noon on Tuesday, 15 April 2014.
The rate of inflation based on the consumer price index (CPI) is seen inching up to 8.2% in March 2014, from 8.1% in February 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government is scheduled to announce CPI inflation data for March 2014 at 17:00 IST on Tuesday, 15 April 2014.
Reserve Bank of India Governor Raghuram Rajan on Thursday, 10 April 2014, said in a media interview in Washington that India is prepared for potential financial fallout if the US Federal Reserve increases interest rates before April 2015. "Nobody is prepared for every eventuality, but for most eventualities, we are prepared. For us, the specific timing matters less than that it should happen when US growth is strong," Rajan said. The Fed is "mostly" right in how it is managing monetary policy, Rajan said during a panel discussion at George Washington University, adding the central bank needs to improve communications because measures it is taking now will affect what emerging markets do in the future. Still, he said he doesn't expect a US rate increase by April 2015.
Rajan, in Washington to attend the spring meetings of the International Monetary Fund and the World Bank, also said the IMF needs to play a larger role in promoting global stability and offering liquidity to emerging markets, which often face "substantial stigma" when they approach the lender. If emerging markets are again pushed to a sustained bout of exchange-rate intervention and reserve accumulation, that will be detrimental to global demand, said Rajan, a former chief economist of the IMF.
The Reserve Bank of India (RBI) next undertakes monetary policy review on 3 June 2014. The RBI left its main lending rate viz. the repo rate unchanged at 8% after a monetary policy review on 1 April 2014, as consumer-price inflation eased to a two-year low and as the rupee firmed up against the dollar.
The next major trigger for the stock market is Q4 March 2014 and year ended 31 March 2014 (FY 2014) corporate earnings. Investors and analysts will closely watch the management commentary that would accompany the results to see if there is any revision in their future earnings forecast of the company for the year ending 31 March 2015 (FY 2015) and/or for the year ending 31 March 2016 (FY 2016). Indian companies will start reporting their Q4 and full year results from mid-April 2014, with Infosys announcing its results on 15 April 2014. The results season will conclude in end-May 2014.
A major near term trigger for the stock market is the outcome of the upcoming Lok Sabha elections. Voting for the lone Lok Sabha constituency and an Assembly by-poll in Mizoram began today, 11 April 2014. The 36 days long voting process began on 7 April 2014 and will conclude on 12 May 2014. The results will be declared on 16 May 2014 after which India will get a new government. The term of the current Lok Sabha expires on 1 June and the new House has to be constituted by 31 May.
European indices edged lower on Friday, 11 April 2014, as investors fled global stocks on valuation concerns and slowdown worries about China. Key benchmark indices in UK, France and Germany were off 1.09% to 1.4%.
The Bank of England kept its key interest rate at a record low after a monetary policy review on Thursday, 10 April 2014, as policy makers try to gauge the amount of spare capacity in the economy. The Monetary Policy Committee (MPC) also kept its asset-purchase program on hold at 375 billion pounds ($629 billion), according to a statement released in London by the central bank.
Fitch Ratings today, 11 April 2014, raised its outlook for Portugal to 'positive' from 'negative,' citing the bailed-out euro-zone nation's strong economic recovery and falling budget deficit. Fitch affirmed the country's BB+ rating and said its fiscal financing conditions have improved substantially since October 2013, the date of its last Portugal ratings review. The ratings agency raised its economic forecasts and now sees gross domestic product growth of 1.3% this year and 1.5% in 2015, sharply up from 0.2% and 1% previously. It noted that the economy grew on an annual basis for the first time in three years in the last quarter of 2013, by 1.6%.
Fitch Ratings said if Portugal's deficit reduction remained on track, with "continued economic recovery and evidence that private debt peaks and starts to gradually decline," the nation could see an upgrade to investment grade.
Russian President Vladimir Putin warned leaders in Europe on Thursday, 10 April 2014, that Russia could cut supplies of natural gas to Ukraine if its unpaid bill isn't addressed, potentially disrupting deliveries to the rest of the continent. In a letter sent to leaders in countries reliant on Russian gas, Mr. Putin ramped up pressure on the fledgling government in Kiev, repeating his threat that Russia may have to take the extreme measure of making Ukraine pays in advance for the gas it uses. He called for emergency talks with Europe to resolve the matter. The bulk of Russian gas flows to Europe transit through Ukraine and disruptions there have caused continentwide problems in the past.
Asian stocks edged lower on Friday, 11 April 2014, as a selloff in US biotech, Internet and other high-growth stocks on Thursday, 10 April 2014, cut demand for riskier assets. Key benchmark indices in Hong Kong, Japan, China, Singapore, South Korea and Taiwan were off 0.17% to 2.38%. In Indonesia, the Jakarta Composite index was up 1.07%.
A report today, 11 April 2014, showed Chinese consumer prices rose 2.4% in March from a year earlier, after gaining 2% in February. The nation's producer price index retreated 2.3% following the previous month's 2% drop.
China will ease restrictions on overseas investments by local firms and deals below $1 billion will no longer need approval, the country's economic planner said in another step to cut red-tape and facilitate the growth of private investment. Starting from May 8, Chinese firms planning to invest less than $1 billion will only need to register with authorities rather than seek approvals from the National Development and Reform Commission (NDRC), the commission said in a statement late on Thursday. 10 April 2014.
The NDRC said the new rules do not apply to investment projects in "sensitive countries, regions or sectors."
Currently, overseas resource-related investments above $300 million are subject to approvals by the NDRC, while the threshold for deals in other sectors is capped at $100 million.
Deals of above $1 billion will still need the approval by the NDRC, while those valued at $2 billion and above will need the approval of the State Council, China's cabinet, according to the new regulations.
Trading in US index futures indicated that the Dow could drop 10 points at the opening bell on Friday, 11 April 2014. US stocks tumbled on Thursday, 10 April 2014, with the Nasdaq Composite Index falling the most since 2011, as a technology selloff resumed amid concern valuations may be too high at the start of earnings season.
A government report on Thursday showed the fewest number of Americans since before the last recession filed applications for unemployment benefits last week, pointing to more progress in the labor market.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 29-30 April 2014. The Federal Reserve on 19 March 2014 decided after the conclusion of a monetary policy review to trim its monthly bond purchases by $10 billion to $55 billion.
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