Analysts opine that industrial growth numbers for March are likely to come slightly better than the 3.6% growth seen in February
The domestic market is likely to open lower on negative cues from the global arena. Wall Street closed lower overnight on a let-down in commodity prices, once again. Following the US markets, the Asian pack was also in the red in early trade on Thursday. Concerns about rate-tightening measures in China also hurt investor sentiments. The SGX Nifty was down 38 points at 5,525 compared to its previous close of 5,563.
On the domestic front, the government will announce the industrial output data for March and the weekly food inflation numbers today. Industrial growth slowed to 3.6% in February 2011, compared to 15.1% expansion in the year-ago period, dragged down by poor performance of manufacturing and mining sectors. Political concerns will also have some bearing on the market today.
Yesterday the Sensex opened in the positive at 18,573, while the Nifty was at 5,547. However, the market moved sideways through the day with nothing major happening on the domestic from or internationally that would swing it either way. The indices slipped into the red for just about an hour in morning trade, during which period they touched their intra-day lows of 18,455 and 5,525. In the late afternoon session, the Sensex and the Nifty made highs at 18,622 and 5,575 respectively.
The Sensex closed 72 points up at 18,585 and the Nifty was 24 points up at 5,565. Looking ahead, it the Nifty closes above 5,560, there could be gains all the way to 5,680. On the lower side, the support will be at 5,430. The market is still in its sideways move, but the bearish picture has not faded.
A slide in commodity prices on Wednesday, after the plunge last week, led US markets close in the negative overnight. A bigger-than-expected rise in crude inventories saw crude prices falling below the $100 per dollar mark in intra-day trade. The development resulted in Chevron shedding 2% and Exxon Mobil declining 2.1%. Disney plunged 5.4% after it reported earnings and revenue below analysts’ expectations.
Oil prices tumbled over 4% on Wednesday after an unexpected rise in gasoline stocks amid slowing global demand. US light, sweet crude plunged $5.67 or 5.46% to settle at $98.21 while Brent crude sank $5.06 or 4.3% a barrel to settle at $112.57. Precious metals, gold and silver, also declined over 1% on Wednesday.
The Dow declined 130.33 points (1.02%) at 12,630.03. The S&P 500 tumbled 15.08 points (1.11%) at 1,342.08. However, the index the index is still up 27.9% since the start of September. The Nasdaq fell by 26.83 points (0.93%) to 2,845.06.
Tracking the decline in the US, markets in Asia were down between 0.50% and 1% in early trade on Thursday. The 5% fall in crude prices along with fears that authorities in China will continue its measures to stifle growth made investors cautious.
The Shanghai Composite fell 0.48%, the Hang Seng tanked 0.94%, the Jakarta Composite declined 0.64%, the KLSE Composite was down 0.18%, the Nikkei 225 shrank by 0.79%, the Straits Times retreated by 0.55%, the Seoul Composite tumbled 1.32% and the Taiwan Weighted was down 0.40%.
Back home, the government on Wednesday allowed foreign direct investment (FDI) in Limited Liability Partnership (LLP) firms in sectors like mining, power and airports. The move is expected to help in attracting more foreign investment. LLPs with FDI, however, will not be allowed to operate in agricultural and plantation activity, print media or real estate business.
The Cabinet Committee on Economic Affairs (CCEA), which cleared the proposal, added that a prior approval of the government (Foreign Investment Promotion Board) will be required for bringing in FDI in LLPs.
With the launch of the Volvo Financial Services offering, the Volvo Group will accelerate its business growth in India
Volvo India Pvt Ltd and Srei BNP Paribas have announced the formation of an alliance to launch a private label retail financing program branded as 'Volvo Financial Services' in India with immediate effect. This will strengthen the Volvo Group's ability to provide full service financial solutions to Volvo Group customers in India and customers of its JV with Eicher Group, viz. VE Commercial Vehicles Ltd. (VECV).
With the launch of the Volvo Financial Services offering, the Volvo Group will accelerate its business growth in India across all of its products by packaging its product offerings with financing through its alliance with Srei BNP Paribas. By engaging the two companies at the sales, marketing and operations levels, the alliance will allow both companies to address new growth opportunities by developing co-branded financing programs and services for customers of the Volvo Group and Srei BNP Paribas.
Srei BNP Paribas is India's largest construction equipment finance company and with this alliance, Volvo Financial Services will leverage Srei BNP Paribas's expertise of over 22 years coupled with a network of 87 offices across India, strong underwriting capabilities and an asset base of over Rs12,000 crore to increase its penetration and give complete financing solutions to customers buying Volvo products in India.
John Rakocy, President of Volvo Financial Services for Asia-Pacific region comments, "After a comprehensive review process, we are excited to alliance with Srei BNP Paribas for Volvo Financial Services in India. The Volvo Group and its distributors will benefit from leveraging Srei's expertise and financial capabilities in credit underwriting, funding, and sales and marketing effectiveness through a private label program under the Volvo Financial Services name. We look forward to continued growth within this key Asian market."
D K Vyas, CEO, Srei BNP Paribas, said, "We have a partnership approach in all our businesses and we are happy to join hands with Volvo Financial Services, in their endeavor to provide financing solutions to Volvo Group customers. We have been financing Volvo Group products since their entry into the country but through this formal association, we will complement each other's strength and further cement our relationship. Srei BNP Paribas's dominant leadership in this business, consistency, innovative financing products, and its distribution should help the Volvo Group increase its market share and participate in the India growth story."
IDBI Bank has commenced “Vikas Yatra” to promote developmental activities in the country
India's leading public sector bank, IDBI Bank has announced the roll out of its Mobile Banking facility.
This mobile banking bus commenced its "Vikas Yatra'' from IDBI Tower, Mumbai on 11 May 2011 flagged off by RM Malla, chairman and managing director, IDBI Bank.
Mobile banking facilitates the usage of modern banking facilities to millions of people across the country. A bus has been converted into a mobile ATM for this purpose. As part of this initiative, the Bank has commenced "Vikas Yatra" to promote developmental activities in the country.
Speaking on this occasion, Shri R. M. Malla said "We are proud to be part of this technological evolution and will continue to play a pioneering role in promoting development of this great nation and its people, in harmony with the nation's plans and priorities. IDBI Bank believes in offering novel services to its consumers, keeping in view a holistic societal development perspective. The ongoing "Vikas Yatra" reiterates this philosophy of the Bank."