Sensex opens 41 points down

Similarly,the wide-based National Stock Exchange index Nifty declined by 7.10 points,or 0.14 per cent,to 4,917.15.

Trading sentiment remained bearish on sustained selling by funds and retail investors on weak GDP growth amid a weak trend in Asian region.

India8217;s economic growth rate slowed to a nine-year low,both in the March quarter at 5.3 per cent as well as in 2011-12 at 6.5 per cent.

In the Asian region,the Japan8217;s Nikkei fell by 0.74 per cent,while Hong Kong8217;s Hang Seng shed 0.74 per cent in early trade. The US Dow Jones Industrial Average ended 0.21 per cent lower in yesterday8217;s trade.

PRE-OPEN Sensex to watch

GLOBAL MARKETS

The near-month derivative contract for India8217;s NSE index at Singapore Exchange fell 0.6 percent,while MSCI Asia ex-Japan edged down 0.3 percent.

Asian shares and the euro extended losses on Friday as China8217;s factory activity data delivered its weakest reading this year,highlighting concerns the worsening euro zone debt crisis will further undermine global economic growth.

US stocks fell modestly on Thursday to close out the worst month since September as investor sentiment sank on Europe8217;s deepening credit problems.

FACTORS TO WATCH

Auto makers Tata Motors,Maruti Suzuki and Mahindra amp; Mahindra release their domestic and export sales figures for May.

The government will officially release monthly PMI data and trade data.

Weekly central bank statement on foreign reserves,bank lending. 1230 GMT

INDIAN STOCKS TO WATCH

FINANCIAL/REGULATORY

India announced a series of austerity steps on Thursday,including a 10 percent cut in non-plan expenditure for this fiscal year,which analysts said were not enough and would not have much impact on the country8217;s overall spending.

India8217;s central bank is in favour of relaxing the investment limit for foreign institutional investors FIIs in sovereign bonds,and also doing away with witholding tax,a key hindrance cited by dealers in expanding the debt market,according to a bank panel.

India8217;s consumer price index CPI for industrial workers rose 10.22 percent in April from a year earlier,faster than the annual rise of 8.65 percent in March,government data showed on Thursday.

Foreign institutional investors FIIs would soon have to follow a new data reporting format known as eXtensible Business Reporting Language XBRL,which is now followed by domestic mutual funds.

Indiareit Fund Advisors,the private equity arm of the Ajay Piramal-promoted Piramal Healthcare,has put its recently announced 500-million offshore fund on hold.

Credit to the industrial sector rose by 19.5 percent during the month,slower than 25.9 percent in the previous year-ago period,while loans to agriculture increased by 14.6 percent,compared with 12 percent growth,data from the Reserve Bank of India on Thursday showed.

ENERGY/COMMODITIES

Reliance Power and Kakinada Seaports along with Royal Dutch Shell will jointly set up a liquefied natural gas terminal on India8217;s east coast to meet local gas demand.

The Coal Ministry has identified 54 blocks to be allocated to various sectors,including power,steel and cement,through the auction route. Business Standard

State-owned oil companies on Thursday cut jet fuel price by two per cent,the fourth straight reduction in rates since April. Business Standard

India produced 25.5 million tonnes of sugar between Oct. 1 and May 31,up 8 percent from the year-ago period,the Indian Sugar Mills Association,a producers8217; body,said on Thursday.

TELECOMS

India8217;s cabinet on Thursday approved a new telecoms policy,replacing more than a decade-old rules,aiming to boost transparency and revive growth in one of the country8217;s showpiece sectors that has been rocked by a massive scandal.

Newer telecom operators and dual technology entities are opposing the telecoms department8217;s decision to ask sector regulator Trai for its view on whether the price of spectrum being offered in the coming 2G auction should be valid for 10 years instead of 20 years. Business Standard

PHARMA

The Foreign Investment Promotion Board FIPB has resumed clearing investment proposals in Indian drug companies,a move that will revive deal flow in the 620 billion rupees domestic pharmaceuticals sector. Economic Times

TELECOMS

Bharti Airtel has given a three-year contract to Alcatel Lucent India for setting up an internet protocol IP access network across the country,for an undisclosed amount,the companies said on Thursday. Economic Times

Norway8217;s Telenor is confident of roping in a new partner in India before a radio airwaves auction due by end-August, Sigve Brekke,head of the company8217;s Asian operations said.

PROPERTY

DLF has set a revised target for divesting its big-ticket non-core assets during the first half of 2012-13. Business Standard

OTHER FACTORS TO WATCH

Indian debt/FX factors to watch

Euro hits 2-year low on Spain worries,Aussie dips

Brent drops after China data disappoints

Foreign institutional investor flows

For closing rates of Indian ADRs