Sensex down 56 points in early trade

The 30-share barometer has lost nearly 219 points in the previous three sessions.

Written by Agencies | Mumbai | Published: August 29, 2012 9:47:11 am

The BSE benchmark Sensex shed over 56 points in early trade today,declining for the fourth day in a row,on sustained selling by funds and retailers due to concerns over delay in economic reforms.

The 30-share barometer,which has lost nearly 219 points in the previous three sessions,moved down further by 56.27 points,or 0.32 per cent,to 17,575.44,with auto,metal and IT sector stocks leading the fall.

Similarly,the wide-based National Stock Exchange index Nifty declined by 13.95 points,or 0.26 per cent,to 5,320.65.

Trading sentiment remained bearish on increased selling by funds and retail investors on concerns over the delay in economic reforms after Parliament failed to transact any business for the sixth straight day yesterday as BJP continued its demand for resignation of Prime Minister Manmohan Singh.

In Asian region,Hong Kong’s Hang Seng down by 0.06 per cent,while the Japan’s Nikkei was up by 0.28 per cent in early trade today.

The US Dow Jones Industrial Average ended 0.17 per cent lower in yesterday’s trade.

GLOBAL MARKETS

* The Nifty futures in Singapore Exchange rose 0.2 percent,while the MSCI-Asia Pacific index excluding Japan rose 0.1 percent.

* U.S. stocks ended little changed in another day of scarce activity on Tuesday after mixed economic data gave investors little reason to shift their focus from Federal Reserve Chairman Ben Bernanke’s speech on Friday.

* The euro remained firm while Asian shares steadied on Wednesday as investors awaited U.S. Fed chairman Ben Bernanke’s Friday speech and a European Central Bank policy meeting next week.

FACTORS TO WATCH

* Mphasis June quarter earnings.

INDIAN STOCKS TO WATCH

FINANCIAL/REGULATORY

* Ruling Congress Party leader Sonia Gandhi accused the main opposition party on Tuesday of holding India to ransom in a stand-off over coal deals that has paralysed parliament.

* Finance Minister P. Chidambaram will take a fresh look at the Direct Taxes Code (DTC),which could further delay the ambitious recast of the income tax law that was to roll out on April 1,2013.

* The government has moved a Cabinet note to substantially dilute the controversial local sourcing norms for foreign single-brand retailers.

* Indian companies are gearing up to face more stringent and specific anti-bribery laws with the government planning to amend the Indian Penal Code (IPC) to cover bribes given domestically by the private sector.

* Differences within the cabinet have nixed the plans of the Congress-led United Progressive Alliance (UPA) to fast-track a new legislation for land acquisition and compensation,widely seen as a key measure to spur investment in the economy.

* The Reserve Bank of India discussed the possibility of revision in priority sector lending norms with bank chiefs,who pressed for some modifications in the final guidelines on the issue released in July,according to bankers at the meeting.

* India’s central bank on Tuesday sought to make it easier for investors to trade shares of foreign companies listed on the domestic stock market. It said it was allowing limited convertibility of Indian depository receipts (IDRs) into underlying equity shares,and vice versa.

ENERGY/COMMODITIES

* India’s state auditor has hit out at the country’s biggest explorer ONGC for its tardy exploration and lax efforts in development in a report published on the heels of a damning view on coal which triggered a massive political row.

* NMDC has sought shareholders’ approval for amendment in its Articles of Association to enable it to launch share a buy-back offer.

INDUSTRIAL

* Ravi Uppal,once tipped to succeed Larsen and Toubro Ltd’s retiring chairman A.M. Naik,is quitting the company,months after Krishnamurthi Venkataramanan was unexpectedly elevated to the post of chief executive officer and managing director at India’s largest engineering conglomerate.

AUTOS

* The founders of Indian auto components maker Bharat Forge are in talks with private equity firms to sell a $300 million stake in their wind energy firm,Kenersys,two sources familiar with the matter said.

* Maruti Suzuki said it is examining having more diesel engine capacity than it has currently planned in order to have an overall 40 per cent market share in the domestic passenger vehicle market.

* Mahindra & Mahindra has christened its compact sports utility vehicle (SUV) as ‘Quanto’,which will hit the market in the second half of September 2012.

* Tractor maker Escorts Ltd announced a 2-3 percent hike in tractor prices with effect from September 1.

* TVS Automotive Solutions Ltd (ASL),a TVS group company,is planning to enter the overseas multi- brand car servicing market,a senior official of the company said. * Piaggio is preparing to rollout new products in the Indian market soon to boost its share and revenues.

TELECOMS

* A local court in Gurgaon has restrained Norway’s Telenor from participating in auction of spectrum in association with any firm other than Uninor,its joint venture with Unitech.

* Indian telecoms regulator on Monday amended rules to penalise companies if they failed to meet quality of service standards for mobile and wired telephones.

PROPERTY

* Growth in India’s property market is expected to fall to less than 5 percent over the next 12 months compared with an annual rate of 17 percent since 2007,according to Jones Lang LaSalle Inc,the world’s second-largest property consultant.

* DLF has decided to end its five-year long association with cricket tournament Indian Premier League as the title sponsor and did not renew its contract that was due by last month.

HEALTH CARE

* Apollo Hospitals Enterprise said it expand its multi-specialty clinics to 150 by October 2014 from its current 87 clinics.

RETAIL

* Morgan Stanley is selling its 26 percent stake in IH

HR Hospitality,which owns the world’s top-rated spa,Ananda in the Himalayas,A person familiar with the development said.

AIRLINES

* Mumbai-based pilots of Kingfisher Airlines have decided to strike work indefinitely from Wednesday over non-payment of salaries.

* The civil aviation ministry has approved a strategic alliance between Jet Airways and Deutsche Lufthansa AG that will enable them to sell seats across each other’s networks.

OTHER FACTORS TO WATCH

* Indian debt/FX factors to watch

* Short squeeze lifts euro,Aussie dlr still fragile

* Oil rises as Hurricane Isaac threatens U.S. Gulf Coast

* Foreign institutional investor flows

* For closing rates of Indian ADRs

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