The market may extend recent gains on firm Asian stocks. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 13 points at the opening bell. Asian stocks climbed on Tuesday on evidence of a pickup in global manufacturing.
State Bank of India said after market hours on Monday, 2 September 2013 that it has acquired 23% shares of Bank State Bank of India, Indonesia (BSBII) in a recent deal with P. T. Ravindo Jaya. As per the present shareholding, State Bank of India holds 99% in BSBII and P. T. Ravindo Jaya holds 1%.
Mahindra & Mahindra's Farm Equipment Sector (FES), a part of the Mahindra Group, announced its domestic tractor sales rose 9% to 13543 units in August 2013 over August 2012. The company's overall sales have also grown by 7% standing at 14158 units during August 2013 over August 2012. Exports for the month of August 2013 stood at 615 units.
Speaking on the monthly performance, Rajesh Jejurikar, Chief Executive, Tractor and Farm Mechanization, Mahindra & Mahindra said, "Our domestic growth of 9% in August 2013 and consistent performance over the last five months is heartening. We believe the Kharif sowing having crossed the 1000 lac hectare mark, normal monsoons and prospects of the approaching festive season are clear indicators of stronger growth for the overall agricultural sector in the coming months".
PSU OMCs will be in focus as the Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas after reviewing international prices of crude oil and petroleum products during the second Fortnight of August 2013 said the under-recovery on High Speed Diesel (HSD) applicable for Ist fortnight of September effective 1 September 2013 increased to Rs 12.12 perlitre higher than Rs 10.22 per litre during 2nd fortnight of August 2013 from 16 August 2013. In the case of PDS Kerosene and Domestic LPG, under-recoveries for the month of September 2013 increased further to Rs 36.83 per litre and Rs 470.38 per cylinder respectively. The under-recoveries on during August 2013 on PDS Keorsene was Rs 33.54 per litre and Rs 412.00 per cylinder on Domestic LPG. OMCs, effective 1 September 2013, are incurring higher combined daily under-recovery of about Rs 470.38 crore on the sale of Diesel, PDS Kerosene and Domestic LPG. This was Rs 389.00 crore for the previous fortnight effective 16 August2013.
Aviation stocks may edge lower as jet fuel prices have been hiked by a steep 7% taking the rates to a high of over Rs 75,000 per kilolitre. This is the fourth consecutive monthly hike in the aviation turbine fuel prices, which have now gone up by over 20 per cent since June. Aviation Turbine Fuel, or ATF, price at Delhi was hiked by Rs 4,827.94 per kilo liter (kl), or 6.87 per cent, to Rs 75,031.09 per kl, according to Indian Oil Corp, the nation's largest fuel retailer. The increase has been effected from September 1. Aviation turbine fuel or jet fuel constitutes more than 50% of operating cost for airliners. Prices of jet fuel are directly linked to crude oil prices.
The combined Index of eight core industries rose 3.1% in July 2013 over July 2012. The eight core industries have a combined weight of 37.90% in the Index of Industrial Production (IIP).
The Rajya Sabha on Monday approved a $20 billion scheme to distribute subsidised wheat and rice to 80 crore people, backing an anti-malnutrition drive that investors fear will mean missing the fiscal deficit target. The Food Security Bill is seen as a vote winner by the ruling Congress party as it prepares for elections due by May next year. But investors reacted negatively to the plan when the lower house approved it last weak, on worries the government will struggle to contain the cost of subsidies. The scheme has now been passed by both houses. Before becoming law it must be signed by the president, a formality.
Key benchmark indices surged on the first trading session of September month on Monday, 2 September 2013 boosted by firm global stocks. The S&P BSE Sensex was up 266.41 points or 1.43% to 18,886.13 on that day, its highest closing level since 14 August 2013.
Foreign institutional investors (FIIs) bought shares worth a net Rs 475.92 crore on Monday, 2 September 2013, as per provisional data from the stock exchanges.
Asian stocks climbed on Tuesday on evidence of a pickup in global manufacturing. Key benchmark indices in China, Hong Kong, South Korea, Japan, Indonesia, and Taiwan rose by 0.53% to 2.7%. Singapore's Straits Times was flat.
China's official purchasing managers' index (PMI) for the non-manufacturing sector dipped slightly to 53.9 in August from July's 54.1, the National Bureau of Statistics (NBS) said on Tuesday. A reading above 50 indicates activity in the sector is accelerating, while one below 50 indicates it is slowing. The services sector index followed the bureau's manufacturing PMI on Sunday, which showed China's factory activity expanded at the fastest pace in more than a year in August with a jump in new orders.
US stock markets remained closed on Monday, 2 September 2013, for the Labor Day holiday.
President Barack Obama on Saturday said he has decided military action is appropriate, but he would still seek congressional authorization on the use of US military force against Syria. Congressional leaders have agreed to debate and vote on the possible action when lawmakers return from recess on September 9. And, while lawmakers aren't due back in Washington until next week, the Senate Foreign Relations Committee said it would hold hearings on Syria today and tomorrow.
Investors across the globe are eyeing the next policy meeting of the Federal Open Market Committee (FOMC) scheduled this month, with their focus squarely on the timing of tapering of Federal Reserve's bond purchases. The FOMC holds a two-day policy meeting on 17-18 September 2013 to decide on interest rates in the United States. The US central bank currently buys $85 billion a month in US debt and mortgage-backed securities in a bid to hold interest rates low and encourage economic growth. Federal Reserve Chairman Ben Bernanke has on several occasions stressed that the tapering process is dependent on an improvement in data. Fed's bond-buying program has kept global markets flush with liquidity in recent years.
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