Market may open flat to slightly lower
DATE: 20/09/2012
The market
may open flat to slightly lower on weak Asian stocks. Trading of S&P CNX
Nifty futures on the Singapore stock exchange indicates that the Nifty could
fall 2.50 points at the opening bell. Asian stock markets retreated Thursday,
failing to hold on to monetary-easing inspired gains from the previous session,
with energy firms declining along with U.S. crude futures.
Domestic
bourses remained closed yesterday, 19 September 2012, on account of Ganesh
Chaturthi.
Political
worries heightened after ruling Congress party on Wednesday said it won't
reverse a controversial decision to allow foreign supermarkets to invest in
India as part of other market-opening measures. But it may be willing to make
some compromises, including partially rolling back recent diesel-price
increases and limits on subsidized gas.
The
measures, part of a package unveiled last week in a gesture to regain investor
confidence, caused a government ally, the Trinamool Congress, to threaten
Tuesday to pull its support from the coalition by the end of this week.
Trinamool, on whom Congress depends for its majority in Parliament, says
allowing foreign retailers like Wal-Mart Stores Inc. and Carrefour SA to open
supermarkets here will hurt smaller Indian retailers.
Raising
diesel prices and reducing the supply of low-cost gas, the party argues, hurts
India's poor, who spend a higher percentage of their income on fuel.
Trinamool's head, Mamata Banerjee, who is also chief minister of West Bengal
state, vowed Wednesday to continue to oppose letting foreign supermarkets come
to India. Ms. Banerjee had set Friday as the deadline to pull her ministers
from the government to allow "a window for compromise." Congress can
survive for now without Ms. Banerjee's support as Parliament isn't in session.
But the government could face a no-confidence vote in December, when the legislature
reconvenes.
The
government last week announced liberalization of foreign investment rules in
retail, aviation and broadcasting sectors. While the government has allowed up
to 51% foreign direct investment (FDI) in multi-brand retail trading (MBRT), in
the aviation sector the government has allowed foreign airlines to acquire up
to 49% stake in Indian carriers.
Among
corporate news, State Bank Of India said that it has decided to revise
downwards its Base Rate by 25 basis points (bps) from 10.00% per annum to 9.75%
per annum effective from September 20, 2012.
HCL
Technologies today announced that it has entered into a landmark five year,
multi-million dollar deal with Freescale Semiconductor a global leader in
embedded processing solutions. HCL will serve as an exclusive technology
partner for Freescale, managing and strategically transforming their end-to-end
corporate IT Infrastructure landscape. This deal reinforces HCL's IT leadership
in the semiconductor industry.
As part of
the engagement, HCL will manage and transform infrastructure operations
covering desktop support, compute, storage, database, telecom (network &
security), process automation and compliance with the use of its pioneering
Management Tools as a Service (MTaaSTM) framework and gold standard processes.
As a result, Freescale will develop more resilient systems, optimize its
operational costs, increase visibility into IT operations, experience reduced
technology complexity and improved quality, sustain highest levels of customer
service and drive innovation to existing and new initiatives.
"The
semiconductor industry is dynamic, fast paced and highly competitive”, said Hal
Yarbrough, Director of IT Infrastructure at Freescale Semiconductor. “HCL will
be a key partner in sharing our vision of building a robust and agile IT
environment required to keep pace with the growing technological innovation
demands of the business and creating new ideas and technologies for the next
generation opportunities".
"HCL's
ability to quickly demonstrate an understanding of Freescale‟s environment and to identify key
transformational opportunities through their experience and extensive knowledge
was evident throughout the RFP process”, said Dani Guthrie, IT Infrastructure
Program Manager at Freescale Semiconductor. “HCL is committed to delivering
innovation to its customers”, said Vinod Chandran, Sr.VP and Head of North
America, HCL Technologies Infrastructure Services Division (HCL ISD). “With a
decade of industry experience, expansive service capabilities and mature
business models, HCL is well poised to help Freescale create the finest
experience for its customers as well as employees and accelerate the pace for
its mission-critical and novel inventions."
Mahindra
Satyam, a leading global consulting and IT services provider, today announced
the launch of its business insights solution REIMS-Retail Enterprise
Information Management System.' This would help retailers to swiftly identify
the optimal courses of action to achieve their business objectives.
'in the
last few years we have seen dramatic changes in the Retail landscape. There are
mountains of raw data stored in different pockets throughout the Retail
business - with diverse supply chains, volatile customer needs and extensive
product lines. smarter and wiser decisions. REIMS™ solution is armed with
proven accelerators and assets for each step of 81 analytical life cycle
leading to a faster, risk-free deployment " said Mahesh Vasudevanallur,
Head - Retail & CPG Practice, Mahindra Satyam.
Axis Bank
said that Schroder Singapore Holdings, a wholly owned subsidiary of Schroders
Plc has completed the acquisition of 25% stake in Axis Asset Management
Company, its wholly owned subsidiary.
Key
benchmark indices edged lower on Tuesday, 18 September 2012 as euro zone debt
worries resurfaced following further rise in Spanish government bond yields on
Monday, 17 September 2012. The BSE Sensex lost 46.30 points or 0.25% to
18,496.01 on that day, its lowest closing level since 14 September 2012.
Foreign
institutional investors (FIIs) continued to make heavy purchases of Indian
stocks for the third day in a row on Tuesday, 18 September 2012, as per the
provisional data. FIIs bought shares worth a net Rs 1049.18 crore on Tuesday,
18 September 2012, as per the provisional data from the stock exchanges. FIIs
bought shares worth a net Rs 2315.10 crore from the secondary equity markets on
Monday, 17 September 2012, as per data from Securities & Exchange Board of
India (Sebi). FIIs had bought shares worth a net Rs 2859.80 crore from the
secondary equity markets on Friday, 14 September 2012.
On the
macro front, consumer price inflation in India remains high. Provisional annual
inflation rate based on all India general Consumer Price Indices (CPI)
(Combined) for August 2012 on point to point basis (August 2012 over August
2011) stood at 10.03% as compared to 9.86% (final) for July 2012. The data was
released by the Ministry of Statistics & Programme Implementation during
trading hours Tuesday, 18 September 2012.
The
Reserve Bank of India Monday, 17 September 2012, announced a reduction of 25
basis points in the cash reserve ratio (CRR) of scheduled banks to 4.5% of
their net demand and time liabilities (NDTL) effective the fortnight beginning
22 September 2012 from current 4.75% after mid-quarter review of monetary
policy. The reduction in CRR will inject around Rs 17000 crore of primary
liquidity into the banking system, RBI said in a statement. The RBI kept its
policy rate viz. the repo rate unchanged at 8%, stating that inflationary
pressures, both at wholesale and retail levels, remain strong. As inflationary
tendencies have persisted, the primary focus of monetary policy remains the
containment of inflation and anchoring of inflation expectations, RBI said.
+POWERED BY: CAPITAL MARKET NEWS
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