Continuing its slide for the third day in a row,the BSE benchmark Sensex fell by 41 points in opening trade today on sustained selling by foreign funds,triggered by lower GDP numbers a weak trend in Asian regions.
The 30-share barometer,which has lost over 220 points in the previous two sessions,fell further by 41.01 points,or 0.25 per cent,to 16,177.52.
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.
India’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 Japan’s Nikkei fell by 0.74 per cent,while Hong Kong’s Hang Seng shed 0.74 per cent in early trade. The US Dow Jones Industrial Average ended 0.21 per cent lower in yesterday’s trade.
PRE-OPEN Sensex to watch
* The near-month derivative contract for India’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 China’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 Europe’s deepening credit problems.
FACTORS TO WATCH
* Auto makers Tata Motors,Maruti Suzuki and Mahindra & 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
* 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 country’s overall spending.
* India’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.
* India’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.
* Reliance Power and Kakinada Seaports along with Royal Dutch Shell will jointly set up a liquefied natural gas terminal on India’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 producers’ body,said on Thursday.
* India’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 country’s showpiece sectors that has been rocked by a massive scandal.
* Newer telecom operators and dual technology entities are opposing the telecoms department’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)
* 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)
* 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)
* Norway’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 company’s Asian operations said.
* 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