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Market may open flat; airline stocks in focus

From : Thinakar Perinbaraj at 08:43 AM - Feb 23, 2012 ( )

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Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a flat opening. The market may remain volatile today, 23 February 2012, as traders roll over positions in futures & options (F&O) segment from the near-month February 2012 series to March 2012 series. The near-month February 2012 F&O contracts expire today, 23 February 2012.

Ranbaxy Laboratories and ABB unveil Q4 December 2011 results today, 23 February 2012.

Airline stocks will be in focus as government has formally allowed local airlines to import jet fuel directly, it said in a statement on Wednesday, in a major policy move expected to bring down costs for debt-laden carriers. Jet fuel is more than 50% costlier in India, compared to the global average, mostly due to local taxes. Jet fuel or aviation turbine fuel (ATF) typically makes up almost half of an airline's operating cost.

Hero MotoCorp, the world's largest two-wheeler maker, has signed a technology-sharing deal with US motorcycle firm Erik Buell Racing (EBR), a year after ending a 27-year-old pact with Japan's Honda Motors. Munjals-owned Hero MotoCorp will buy technology from EBR without sharing profits or ownership.

Key benchmark indices edged lower to reach their lowest closing level in more than a week on Wednesday, 22 February 2012 as weakness in European stocks triggered profit booking on the domestic bourses after recent strong rally in share prices. The BSE Sensex lost 283.36 points or 1.54% to settle at 18,145.25, its lowest closing level since 14 February 2012.

Foreign institutional investors (FIIs) bought shares worth a net Rs 829.63 crore on Wednesday, 22 February 2012, as per provisional data from the stock exchanges. FIIs have bought shares worth a net Rs 14379.05 crore in this month so far (22 February 2012), as per provisional data from the stock exchanges. The inflow this month comes on the top of heavy purchases last month. FIIs bought shares worth a net Rs 10357.70 crore in January 2012, as per data from Securities & Exchange Board of India (Sebi).

The government is working with state governments for early implementation of a goods and services tax (GST), Finance Minister Pranab Mukherjee said on Wednesday, 22 February 2012.

India's economy is expected to grow an annual 7.1% in the current financial year that ends in March, and 7.5 to 8% in the next financial year, C. Rangarajan, chairman of Prime Minister Manmohan Singh's economic advisory council said. The economy has lost momentum as euro zone debt woes coupled with high interest rates and policy paralysis at home have hit capital investment. Rangarajan released the document 'Review of the Economy 2011-12' at a Press Conference in New Delhi on Wednesday. He said a likely overshoot in fiscal deficit over the budgeted 4.6% of gross domestic product is a matter of concern and the government must lay out a roadmap for fiscal consolidation.

Meanwhile, the Multi Commodity Exchange (MCX) on Tuesday, 21 February 2012, raised Rs 95.62 crore from 12 anchor investors. MCX's initial public offer (IPO) opened for bidding on Wednesday and will close on Friday, 24 February 2012. IPO was subscribed 91% on the first day of bidding on Wednesday.

The government said on Tuesday that inflation based on the consumer price index (CPI) rose 7.65% in January 2012. The annual CPI data released for the first time on Tuesday measures retail prices in major food groups, fuel, clothing, housing and education across rural and urban India. The new CPI price series is gradually expected to displace wholesale price data as the primary indicator of inflationary trends.

Finance Minister Pranab Mukherjee will present the annual budget for 2012/13 on 16 March 2012, while the railways budget will be presented on 14 March 2012. The budget session of parliament will start on 12 March 2012. The government will present on March 15 the Economic Survey for 2011/12, a document on the state of economy prepared by the economic division in the ministry of finance. The annual budget is usually presented on the last working day of February. However, the budget has been delayed this time due to the ongoing assembly polls. Polling for assembly elections in five states concludes in early March 2012.

Reports indicate that the finance ministry is considering a proposal to increase excise duty from 10% to 12%, although still lower than the level before the 2008 financial crisis. The move is aimed at helping the government improve its fiscal situation but it is expected to push up the cost of almost all manufactured goods from food products to consumer durables and automobiles.

Asian shares fell on Thursday on concerns about global growth driven by higher oil prices and data showing the euro zone may slip into recession, fanning fresh worries about Greece's debt restructuring challenges. Key benchmark indices in Hong Kong, Indonesia, Singapore, South Korea, and Taiwan fell by between 0.5% to 1.26%. Key benchmark indices in China and Japan rose by between 0.16% to 0.29%.

Fitch Ratings cut Greece's sovereign credit rating to C from CCC. The eurozone's composite PMI fell in February, raising the specter of recession. German IFO business climate for February due later today, seen improving slightly, will offer more clues on Europe's economy.

U.S. stocks ended broadly flat on Wednesday, bringing a three-session run of gains to an end, after a weak survey of euro-zone manufacturing reminded investors that Europe's troubles haven't ended with this week's aid deal for Greece

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Sir,

Thank you for sharing.

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