The market is likely to open lower on first trading day of the week today, 7 October 2013 on negative Asian stocks. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could fall 31.50 points at the opening bell. Asian markets edged lower on Monday amid concerns over continuing US government shutdown.
Cement and steel stocks may be in focus after the Railways on Friday, 4 October 2013 announced an increase in freight rates by 1.7% on all commodities effective from the midnight, 9 October 2013. Railway is the preferred mode of transport for bulk commodities. The revision came in the form of fuel adjustment component (FAC) which was announced in the Railway Budget 2013-14 to adjust the fluctuating prices of fuel.
Bank stocks and shares of two-wheeler makers and consumer durables makers will be in focus after the Reserve Bank of India (RBI) governor, Raghuram Rajan, on Friday, 4 October 2013, said that the government is in talks with the bank to decide the contours of a package for retail investors for the festive season, which would be announced soon. Rajan was speaking in Raipur after the RBI's board meeting. Indian banks will offer cheaper loans to stimulate demand for two-wheelers and other consumer durables as Finance Minister P. Chidambaram tries to pull the economy out of the worst slowdown in a decade ahead of national elections due by next May.
Jaguar Land Rover (JLR) UK announced on 4 October 2013 record sales in September month with retail figures rising 13% year-to-date over the same period last year. JLR is Tata Motors' British luxury car unit. Land Rover had its best ever September month of sales, registering a 11% rise in sales to 10,769 vehicles in September 2013 over September 2012 and 13% rise year-to-date. The bookends of the brand drove the impressive figures with a record September for the Land Rover Defender, with its sales rising 30% compared to the same period last year and continued strong sales of Land Rover's flagship vehicle, the all new Range Rover rising 24% compared to the same period last year.
The Range Rover Evoque continues to be successful with its sales rising 35% in September 2013 over September 2012 and the new Range Rover Sport has made a strong start with sales of 1,309 vehicles during what is only the second month of customer deliveries. Monthly retail figures for Land Rover's newest model are set to increase in line with production ramp-up and will see the UK fulfil its healthy order bank over the coming months.
The Land Rover Discovery's popularity remains with outstanding residual values and class-leading versatility keeping sales stable. The Land Rover Freelander continues to have an excellent 2013 with retails up 13% in September and 35% year-to-date.
Jaguar celebrated a 19% increase in car sales year-to-date, with a year on year increase across its model range of 7%. The successful launch of the stunning new F-TYPE convertible sports car, of which more than 1,000 are now with UK customers, is one highlight in a year which has seen a surge in sales of the popular Jaguar XF executive car and XJ luxury saloon. In 2013 sales of the XF are up 12% and XJ 6%; a result of the introduction of new, efficient and high performance derivatives of each model.
Jeremy Hicks, Jaguar Land Rover UK Managing Director, said "The September sales figures tangibly demonstrate that both Jaguar and Land Rover continue to focus on relevant and highly-desirable product line-ups. "With the recent introduction of the all-new Range Rover Sport and F-TYPE coupled with the continued success of our well established models, we have seen more new customers than ever purchasing Jaguar Land Rover award-winning products. Indeed, our new 2014 model year offerings across both brands will be hitting showrooms shortly and will see us build on the successes of the 2013 range."
At its board meeting on Saturday, 5 October 2013, market regulator Sebi considered and approved the draft Sebi (Foreign Portfolio Investors) Regulations, 2013. The Sebi (Foreign Portfolio Investors) Regulations, 2013 have been framed keeping in view the provisions of Sebi (Foreign Institutional Investors) Regulations, 1995, qualified foreign investors (QFIs) framework and the recommendations of the Committee on Rationalization of Investment Routes and Monitoring of Foreign Portfolio Investments.
Sebi said that existing FIIs, sub accounts and qualified foreign investors (QFIs) shall be merged into a new investor class termed as FPIs. Sebi approved designated depository participants (DDPs) shall register FPIs on behalf of Sebi subject to compliance with KYC requirements. The board also took note of the fact that instructions regarding risk-based KYC for FPIs have already been issued by Sebi on 12 September 2013.
Sebi said that FPIs shall be required to seek registration in any one of the following categories comprising of Category I Foreign Portfolio Investor - which shall include Government and Government related foreign investors etc; Category II Foreign Portfolio Investor - which shall include appropriately regulated broad based funds, appropriately regulated entities, broad based funds whose investment manager is appropriately regulated, university funds, university related endowments, pension funds etc; and Category III Foreign Portfolio Investor - which shall include all others not eligible under Category I and II foreign portfolio investors.
Sebi said that all existing FIIs and sub accounts may continue to buy, sell or otherwise deal in securities under the FPI regime. Further, all existing Qualified Foreign Investors (QFIs) may continue to buy, sell or otherwise deal in securities till the period of one year from the date of notification of this regulation. In the meantime, they may obtain FPI registration through DDPs. The registration granted to FPIs by the DDPs on behalf of SEBI shall be permanent unless suspended or cancelled by Sebi. Further, FPIs shall be allowed to invest in all those securities, wherein Foreign Institutional Investors (FIIs) are allowed to invest.
The market regulator said that DDP shall be an authorized dealer category-1 bank authorized by Reserve Bank of India, depository participant and custodian of securities registered with Sebi. Depository shall forward the application of DDP along with its recommendation to Sebi for grant of approval.
RBI governor Raghuram Rajan on Friday, 4 October 2013, said that there is no reason to dispute the government's estimate of 5-5.5 percent economic growth for the current fiscal year. A pick-up in exports and strong agriculture growth would help the government meet its growth estimate, said Rajan while speaking at Raipur after the Reserve Bank of India's board meeting. He also said the RBI had so far received $5.6 billion through the two swap windows the bank announced last month to attract foreign flows.
The Election Commission on Friday, 4 October 2013, announced the schedule for assembly elections in five states. While Chhattisgarh will have a two-phase polling on 11 November and 19 November 2013, the remaining states will have a single-phase poll. Delhi and Mizoram will go to polls on 4 December 2013, Madhya Pradesh on 25 November 2013 and Rajasthan on 01 December 2013. Counting for all the five states will take place on 08 December 2013.
A divergent trend was witnessed on the bourses on Friday, 4 October 2013. The barometer index, the S&P BSE Sensex, closed with mild gains while the 50-unit CNX Nifty closed a tad lower. The S&P BSE Sensex advanced 13.88 points or 0.07% to 19,915.95, its highest closing level since 24 September 2013.
Foreign institutional investors (FIIs) bought shares worth a net Rs 541.36 crore on Friday, 4 October 2013, as per provisional data from the stock exchanges.
Asian markets edged lower on Monday amid concerns over continuing US government shutdown. Key benchmark indices in Taiwan, Hong Kong, Indonesia, Japan and South Korea fell by 0.15% to 1.11%. Singapore's Straits Times index rose 0.03%. Markets in mainland China are closed till 7 October 2013 for National Day holidays.
US stocks ended higher Friday as investors became more positive that politicians will be able to resolve the budget impasse in the US.
Republican House Speaker John Boehner vowed on Sunday not to raise the US debt ceiling without a "serious conversation" about what is driving the debt, while Democrats said it was irresponsible and reckless to raise the possibility of a US default. Republicans and Democrats also traded blame for a shutdown that has brought much of the government to a standstill for nearly a week. Republicans are seeking concessions in exchange for raising the nation's $16.7 trillion debt limit. If the borrowing cap is not increased, the United States could go into default.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 29-30 October 2013. On 18 September 2013, the Fed surprised economists and investors with its decision to delay scaling back its stimulus amid concerns about the strength of the economic recovery.
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