Sensex opens 42 points up

The 30-share barometer,which had gained 85.60 points in the previous two sessions,gained 42.24 points,or 0.24 per cent,to 17,010 with power,metals and consumer durables sector stocks leading the rise.

The wide-based National Stock Exchange Nifty index moved up by 12.40 points,or 0.24 per cent,to 5,154.30.

In Asia,Hong Kong8217;s Hang Seng Index was up 0.10 per cent,while Japan8217;s Nikkei Index rose by 1.07 per cent in morning trade.

In the US,the Dow Jones Industrial Average closed 0.74 per cent higher yesterday.

Pre open Sensex Nifty to watch

GLOBAL MARKETS

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

US stocks rose on Wednesday as stronger-than-expected economic data helped lift energy stocks,overshadowing concerns a European Union summit will not yield tangible progress in easing the debt crisis.

Asian shares rose on Thursday on encouraging U.S. economic data,but prices were capped with investors tense ahead of a European Union summit deeply divided on how to tackle the protracted euro zone debt crisis and stop it spreading further.

FACTORS TO WATCH

RBI Deputy Governor K.C.Chakrabarty speaks at the CII Banking-Tech Summit in Mumbai.

Thursday marks the expiry of derivatives.

INDIAN STOCKS TO WATCH

FINANCIAL/REGULATORY

Prime Minister Manmohan Singh summoned officials on Wednesday to formulate an economic revival plan in part addressing problems in tax policy and said he also wanted to revive the animal spirit of Indian economic growth.

Among the sectors Singh has discussed are insurance and the asset management sector,according to officials in his office.

HSBC will sell its entire stakes in Indian lenders Axis Bank and Yes Bank,IFR reported on Wednesday,in a deal through its Mauritius subsidiary that will raise up to 24.5 billion rupees 429.50 million.

JSW Steel,Rolta India and Strides Arcolab,with foreign currency convertible bonds FCCBs worth 642. 65 million maturing this week,are relying on a mix of fresh debt and internal accruals to pay back their debt liabilities in full,according to executives.

India8217;s M3 money supply rose an annual 13.8 percent as on June 15,compared with a 13.7 percent rise two weeks ago and a 17.3 percent growth a year earlier,the Reserve Bank of India said on Wednesday.

India8217;s central bank said standalone primary dealers will not be allowed to raise capital through short-term bonds from July 1,and should instead issue long-tenure debt to strengthen their capital base and align with Basel III norms for banks.

India banks8217; growth in deposits and loans was sluggish in the month to June 15,the Reserve Bank of India said on Wednesday. Banks8217; deposits grew a meager 0.9 percent in the month to June 15 at 61.1 trillion rupees 1.1 trillion,while advances grew only 1.4 percent in the same period.

ENERGY/COMMODITIES

The government is working out a new package of reform-oriented measures to guide the oil sector out of the policy quagmire and whimsical fuel pricing that has raised subsidies and upset the fiscal calculations of the finance ministry.

Petrol price may be cut by as much as rupees 4 a litre from July 1 as international oil prices fell to their lowest level since December 2010,though no decision has been made according to a top official at one of the three state-owned oil retailers.

The oil ministry is pushing state-run fuel retailers to revise petrol prices every day in tune with international rates and the rupee8217;s value against the greenback.

The government has approved a draft policy aimed at attracting investments worth as much as 400 billion rupees to boost production of urea,the country8217;s most widely used fertilizer.

A panel set up by Prime Minister Manmohan Singh is learnt to have decided to recommend the abolition of subsidised sugar supplies by mills and cooperatives for state-run welfare programmes.

ICICI Prudential Mutual,the country8217;s third largest fund house,has secured the mandate to manage the Indian investments of Stockholm-based Nordea Bank8217;s asset management company,according to three sources close to the development. Tata Power is scouting for coal mines overseas,particularly in Indonesia and South Africa,a senior company official said today.

Rallis India today said it is expecting a 5 billion rupees turnover in five years from its multi-purpose manufacturing plant at Dahej in Gujarat,Chairman R Gopalkrishnan told shareholders at the agro-chemical company8217;s annual general meeting.

State-run NTPC said it would abide by the Prime Minister8217;s Office directive of signing the fuel supply agreement with Coal India at a minimum assured supply of 65 percent.

The Prime Minister8217;s Office PMO has asked the Coal Ministry to fast-track the process of taking back the coal blocks from private firms which have not developed them and giving the deallocated coal mines to Coal India.

Iffco,India8217;s largest fertiliser company,will invest 800 million to set up a urea plant in Canada.

TELECOMS/MEDIA

The finance ministry has warned the upcoming spectrum sale process could fail because of the telecom department8217;s proposal to make it compulsory for all operators to match the auction-determined price for their existing 2G airwaves for the remaining period of their licences.

The department of telecommunications DoT has decided to keep the validity of spectrum to be given in an upcoming auction for 20 years,instead of the 10 years it had proposed.

Private equity firms Blackstone Group and Kohlberg Kravis Roberts amp; Co KKR are discussing a large stake buy in the cement unit of the southern conglomerate Shiram Group,said sources briefed on the matter.

Local search provider Just Dial has put off a planned

AUTOS

Tata Motors,India8217;s largest commercial vehicle manufacturer,will shut down one of its factories for three days this week,in the latest closure of an India vehicle plant.

A hike in tyre prices is likely if the devaluation in rupee continues,said Vikram Malhotra,vice president of marketing and sales at JK Tyre.

INDUSTRIAL/INFRASTRUCTURE

Companies may be allowed to raise overseas loans for use by their infrastructure arms more easily under plans being considered by the government,as it presses ahead with its drive to boost capital flows into the country and shore up the rupee. Marg Ltd sold a minority stake in Karaikal port for 1.3 bln rupees to Standard Chartered Private Equity.

India8217;s Bosch Ltd says it is proposed to suspend manufacturing operations at its Jaipur plant on June 28-30 and in its Bangalore plant on June 29-30.

UK-based Modulex will set up the world8217;s largest steel modular building factory in Indapur in Maharashtra at a cost of 1 billion rupees.

OTHER FACTORS TO WATCH

Indian debt/FX factors to watch

Euro sluggish as EU summit looms large

Brent stays above 93 as investors eye EU summit

Foreign institutional investor flows

For closing rates of Indian ADRs