Trading of CNX Nifty futures on the Singapore stock exchange indicated a flat opening of the domestic bourses.
Shares of public sector oil refining-cum-marketing companies (PSU OMCs) will be in focus after the Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas on Wednesday, 1 January 2014, said that the under-recovery on High Speed Diesel (HSD) applicable for first fortnight of January 2014 fell to Rs 9.74 per/litre, from Rs 10.48 per litre during the second fortnight of December 2013. The under-recovery on PDS Kerosene rose to Rs 37.33 per litre for the month of January 2014, from 36.20/litre for December 2013. The under-recovery on Domestic LPG rose to Rs 762.70 per cylinder for January 2014, from Rs 542.71/cylinder for December 2013. PSU OMCs are now incurring combined daily under-recovery of about Rs 481 crore on the sale of Diesel, PDS Kerosene and Domestic LPG at government controlled prices. This is a more than the Rs 434-crore daily under-recoveries during the second fortnight of December 2013.
PSU OMCs reported a total of Rs 60907 crore as under-recoveries during first half of 2013-14 on Diesel, PDS Kerosene and Domestic LPG, the Ministry of Petroleum and Natural Gas said.
Shares of buses makers -- Tata Motors and Ashok Leyland -- will be in focus after the Ministry of Urban Development on Wednesday, 1 January 2014, said it has sanctioned buses to a total of 13 cities/cluster of cities after the Central Sanctioning & Monitoring Committee Meeting held on 31 December 2013. The State Govt. has to procure these buses as per the urban bus specifications-II which has been prepared by the Ministry of Urban Development recently, the ministry said in a statement. The first instalment of Government of India share will be released to the State after submission of information/documents within three months as per the conditions given in bus funding guidelines, it said.
The objective behind sanctioning of these buses is to improve the city transport system, to give Metro experience to public in these modern ITS enabled buses and to attract the public to use Public Transport, the urban transport ministry said. The JNNURM buses will change the face of the Urban Transport of these 13 cities and will help in the overall growth of the State/UT, it said.
These cities have also been sanctioned projects relating to ancillary infrastructure viz. Depot, Workshops, ITS etc. for Urban Transport. In addition, ancillary infrastructure project for Bathinda has also been approved. The total estimated project cost for these 13 cities/cluster of cities is about Rs 464 crore.
Telecom stocks will be in focus as the Telecom Regulatory Authority of India (TRAI) has released the Consultation Paper on 'Reserve Price for Auction of Spectrum in the 800 MHz Band'. On 12 December 2013, the Department of Telecommunications (DoT) had requested the Authority to furnish their recommendations on reserve price for 800 MHz band in all the service areas in terms of clause 11(1)(a) of the TRAI Act 1997 as amended. In this context, TRAI has issued this consultation paper raising specific issues for consideration of stakeholders. The key issues raised in the consultation paper are quantum of spectrum to be auctioned, spectrum block-size and methods to be used for valuation and estimation of reserve price of spectrum.
Written comments on the issues raised in the consultation paper are invited from the stakeholders by 15 January 2014 and counter-comments by 22 January 2014. Stakeholders are requested to send their comments by due date as there will be no extension of timelines, TRAI said. An Open House Discussion on the consultation paper will be held on 27 January 2014 in New Delhi.
Markit Economics will unveil HSBC India Manufacturing PMI, which gauges the business activity of India's factories, for December 2013 today, 2 January 2014. The HSBC Manufacturing PMI, compiled by Markit, rose to 51.3 in November from October's 49.6. The PMI reading was the highest since March and marked its first time above the watershed level of 50 that divides growth from contraction in four months.
The next major trigger for the market is Q3 December 2013 corporate earnings. The Q3 earnings season will begin around mid-January 2014 and continue till mid-February 2014. 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 Reserve Bank of India's Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 28 January 2014.
Key benchmark indices edged lower on the first trading session of 2014 on Wednesday, 1 January 2014 after the latest data on government's finances raised concerns that India may overshoot its ambitious target of containing fiscal deficit at 4.8% of GDP this year and after another data showed a muted growth in the core sector in November 2013. A breach of the target could prompt rating agencies to downgrade India's debt to junk, which India must avoid if it hopes to emerge from a prolonged and painful economic slowdown. The S&P BSE Sensex shed 30.20 points or 0.14% to settle at 21,140.48 on that day, its lowest closing level since 26 December 2013.
Foreign institutional investors (FIIs) bought shares worth a net Rs 10.16 crore on Wednesday, 1 January 2014, as per provisional data from the stock exchanges.
Most Asian stocks fell on Thursday. Key benchmark indices in China, Hong Kong, Taiwan and South Korea were down 0.06% to 1.15%. Key benchmark indices in Singapore and Indonesia rose 0.23% to 0.98%. Japan's stock markets were closed for a holiday.
China's manufacturing purchasing managers' index came in at 51 for December, the National Bureau of Statistics and the nation's logistics federation said yesterday. A separate manufacturing PMI report from HSBC Holdings Plc and Markit Economics today showed the gauge coming in at 50.5, from 50.8 in November.
Singapore's economy contracted more than expected in the fourth quarter as manufacturing activity weakened, data showed on Thursday, casting some doubt on market expectations for a slight pick-up in growth over 2014. According to advance estimates from Singapore's Ministry of Trade and Industry, GDP contracted an annualised and seasonally adjusted 2.7% in the final quarter of 2013 from the July-September period. That reversed a 2.2% expansion in the third quarter.
The US stock market was closed on Wednesday, 1 January 2014, for New Year's Day holiday.
The US 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 over the next year.
The Federal Open Market Committee (FOMC) holds a two-day monetary policy meeting on 28 and 29 January 2014.
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