The market is likely to edge higher in opening trade on positive Asian stocks. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 15 points at the opening bell. Asian markets got a hand up on Wednesday after strong trade data boosted expectations for US growth while a lessening of sovereign strains in Europe lifted stocks there to the highest since 2008.
Maruti Suzuki India said after market hours on Tuesday, 7 January 2014 that its production fell 6.8% to 80,698 units in December 2013 over December 2012. The company had said last week its total vehicles sales declined 4.4% to 90,924 units in December 2013 over December 2012.
Oil India (OIL) after market hours on Tuesday, 7 January 2013 announced that the company along with ONGC Videsh (OVL), has completed the acquisition of 100% shares in Videocon Mozambique Rovuma 1 from Videocon Mauritius Energy. Videocon Mozambique Rovuma 1 holds a 10% participating interest in the Rovuma Area 1 Offshore Block in Mozambique (Area 1). This is pursuant to our earlier announcement on 25 June 2013, of signing of definitive agreements to acquire this interest. The terms of the transaction remain broadly the same as per the earlier announcement, OIL said.
Area 1 covers approximately 2.6 million acres in the deepwater Rovuma Basin offshore Mozambique and represents the largest gas discovery offshore East Africa with estimated recoverable resources of between 35 and 65 TCF as per operator's estimates. Partners in Area 1 include Anadarko, operator of the project, ENH, Mitsui, BPRL and PTTEP. Area 1 has the potential to become one of the world's largest LNG producing hubs with first LNG expected in 2018.
The Area 1 LNG project is strategically located to competitively supply LNG to India, and OIL's and OVL's participation in the project will facilitate access to the growing Indian gas market which will supplement the country's energy security endeavour. OIL and OVL will also devote significant financial and technical resources to the development of the project. This investment is expected to further enhance the strong business and cultural links between Mozambique and India.
OIL said that this acquisition marks its entry into the global LNG industry.
Key benchmark indices edged lower in choppy trade on Tuesday, 7 January 2014 with market sentiment hit adversely by data showing that foreign funds were net sellers of Indian stocks on Monday, 6 January 2014. The S&P BSE Sensex lost 94.06 points or 0.45% to settle at 20,693.24, its lowest closing level since 17 December 2013.
Foreign institutional investors (FIIs) sold shares worth a net Rs 567.02 crore on Tuesday, 7 January 2014, as per provisional data from the stock exchanges.
The next major trigger for the stock market is Q3 December 2013 corporate earnings. Investors and analysts will closely watch the management commentary that would accompany the result to see if there is any revision in their future earnings forecast of the company for the current year and/or the next year. The Q3 earnings season begins later this week when IT major Infosys and private sector bank IndusInd Bank unveil their earnings on Friday, 10 January 2014.
The Reserve Bank of India's Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 28 January 2014.
Asian markets got a hand up on Wednesday after strong trade data boosted expectations for US growth while a lessening of sovereign strains in Europe lifted stocks there to the highest since 2008. Key benchmark indices in Taiwan, Hong Kong, China, Singapore, Japan, Indonesia and South Korea rose by 0.05% to 1.06%.
China is due to publish December trade data today, 8 January 2014, and December inflation figures tomorrow, 9 January 2014.
US stocks rallied on Tuesday, helped by data showing a smaller-than-expected trade gap and gains by health-care stocks following an upgrade for UnitedHealth Group Inc. Traders also absorbed largely encouraging comments from the Fed
The US trade deficit fell almost 13% to $34.3 billion in November from a revised $39.4 billion in the prior month, the Commerce Department said Tuesday.
The US Federal Reserve will release minutes of its December Federal Open Market Committee policy meeting today, 8 January 2014.
The Federal Open Market Committee (FOMC) holds a two-day monetary policy meeting on 28 and 29 January 2014. The Federal Reserve said after a two-day monetary policy review on 18 December 2013 that it will cut its monthly bond purchases to $75 billion from $85 billion starting in January 2014 amid an improved outlook for the job market in the world's largest economy. The US central bank is poised to continue winding down its stimulus measures gradually this year.
The US government will unveil the influential non-farm payroll report for December 2013 on Friday, 10 January 2014.
The European Central Bank holds a monetary policy meeting tomorrow, 9 January 2014. UK's central bank -- Bank of England -- also undertakes monthly monetary policy review on the same day.
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