Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 5 points at the opening bell. Interest rate sensitive banking, auto and realty stocks will be in focus as the Reserve Bank of India (RBI) announces its Monetary Policy Statement 2013-14 today, 3 May 2013.
ACC and Ambuja Cements will announce their Q1 March 2013 results today, 3 May 2013.
Reliance Infrastructure announced after market hours on Thursday, 2 May 2013, that the company through its special purpose vehicle (SPV) -- Mumbai Metro One (MMOPL) -- has successfully conducted Mumbai Metro's first trial run. The project is at the advance stage of completion and metro is expected to commence commercial operation by the end of this year.
MMOPL is a SPV created to develop, implement and operate Mumbai's first Metro Line on a public-private-partnership (PPP) model. It is a consortium formed by Reliance Infrastructure, MMRDA and Veolia Transport SA of France. The project was awarded to MMOPL for the concession period of 35 years. Mumbal Metro One corridor is 11.40 km long, providing connectivity from Versova (Western Mumbai) to Ghatkopar (Eastern Mumbai).
Grasim Industries announced after market hours on Thursday, 2 May 2013 that with the commissioning of 20 megawatts (MW) power plant at the company's Viscose Staple Fibre (VSF) plant at Harihar (Karnataka), the brownfield expansion of 36,500 tonnes per annum (TPA) of VSF capacity at Harihar unit has since been completed by the company. The Phase I of 18,250 TPA capacity of VSF had become operational in September 2012.
PSU stocks will be in focus after the Cabinet Committee on Economic Affairs on Thursday, 2 May 2013, approved the setting up of a Central Public Sector Enterprises (CPSE) Exchange Traded Fund (ETF), which would comprise CPSE stocks from amongst the listed CPSE stocks. Each stock would have a fixed weightage in the basket. The composition of the basket, the launch of the New Fund Offer (NFO), the discount to be provided and other issues relating to contribution and pricing of the ETF would be decided by the Empowered Group of Ministers (EGoM).
The government said that the ETF will help in minimizing market disruptions seen in public offerings of listed CPSEs, increase ability of the government to monetize partial stakes in listed CPSEs, some of which have low liquidity and free float, broad base retail participation of shares of CPSEs, and moreover help to deepen the market for equity-based products beneficial to the government from a pricing perspective as part of the discounts could be back-ended. In the perspective of success of ETFs globally, a CPSE ETF will boost the ETF product in the country and will help fulfill the domestic investors' appetite for an equity ETF product as the domestic Indian investor is vastly under-served vis-a-vis the foreign investor community, the government statement said.
Key benchmark indices edged higher on Thursday, 2 May 2013, as index heavyweights ITC and Reliance Industries (RIL) rose. The S&P BSE Sensex jumped 231.59 points or 1.19% to settle at 19,735.77 on that day, its highest closing level since 4 February 2013.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1429.94 crore on Thursday, 2 May 2013, as per provisional data from the stock exchanges.
The focus of the market is on Q4 results. Grasim and Jaiprakash Associates will unveil their Q4 results tomorrow, 4 May 2013. HDFC and Lupin unveil Q4 results on 8 May 2013. Ranbaxy announces Q1 March 2013 results on the same day. Asian Paints and Punjab National Bank unveil Q4 results on 9 May 2013. NTPC announces Q4 results on 10 May 2013. Bank of Baroda unveils Q4 results on 13 May 2013. Dr Reddy's Laboratories announces Q4 results on 14 May 2013. Bajaj Auto announces Q4 results on 16 May 2013. BPCL announces Q4 results on 29 May 2013. M&M announces Q4 results on 30 May 2013.
The Reserve Bank of India on Thursday, 2 May 2013, said in a report which serves as a backdrop to the Monetary Policy Statement 2013-14 to be announced on Friday, 3 May 2013, that the macro-financial risks require cautious monetary policy stance from the central bank ahead. In view of macro-financial risks that stay significant, headline inflation remaining above the threshold and consumer price inflation remaining high, the space for action for 2013-14 remains very limited, the RBI said. If some of the risks come to fore, policy re-calibration may become necessary in either direction, it said. A slow-paced recovery in the economy is likely during the latter part of 2013-14, contingent on improved governance and concerted action to resolve structural bottlenecks, especially in infrastructure sector, the central bank said. Output gap is likely to reduce, but remain negative, it said.
The headline inflation is likely to remain range-bound in 2013-14, with some further moderation in the first half of the year 2013-14 due to subdued producers' pricing power and falling global commodity prices, before it increases somewhat in the second half of the year largely due to base effects. The RBI's survey of outside professional forecasters shows anticipation of a modest recovery with growth in 2013-14 at 6% from 5% and average WPI inflation to moderate to 6.5% from 7.3%. Surveys show that inflation expectations have moderated slightly, while business expectations remain subdued.
The RBI cut its key policy rate viz. the repo rate by 25 basis points to 7.5% after a mid-quarter monetary policy review on 19 March 2013.
Inflation based on the monthly wholesale price index (WPI) eased to the lowest level in 40 months at 5.96% in March 2013, and sharply lower than 6.84% in February 2013, data released by the government on 15 April 2013 showed. Non-food manufacturing inflation or core inflation slowed further to 3.41% in March 2013, the data showed.
Asian stocks rose for the first time in three days on Friday as Macquarie Group reported higher earnings and investors awaited the release of US job data. Key benchmark indices in China, Hong Kong, Taiwan and South Korea rose by 0.01% to 1.97%. Key benchmark indices in Japan, Indonesia and Singapore fell by 0.11% to 0.76%.
US stocks rose on Thursday, sending the Standard & Poor's 500 index to a record high, as the European Central Bank cut its key interest rate and American jobless claims unexpectedly fell. Applications for US unemployment insurance payments fell 18,000 to 324,000 in the week ended April 27, the fewest since January 2008, Labor Department figures showed yesterday.
In Europe, the European Central Bank lowered its benchmark rate to a record low yesterday and President Mario Draghi signaled another reduction is possible. European policy makers cut the main refinancing rate to a record-low 0.5% yesterday from 0.75%, and reduced the marginal lending rate to 1% from 1.5%.
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