Indian shares may open little changed with a negative bias on Thursday amid concerns the political uncertainty in the aftermath of Mamata Banerjee's decision to pull out of the Congress-led United Progressive Alliance Government in Delhi may hinder the government's reform agenda. Investors are now pinning hopes on the Samajwadi Party and the Bahujan Samaj Party to come to the UPA's rescue.
Indian shares eased slightly on Tuesday, as caution crept in amid extremely weak global cues. The benchmark BSE Sensex ended the session down 46 points or 0.25 percent at 18,496, while the broader Nifty index fell by 10 points or 0.18 percent to 5,600.
Provisional data released by BSE shows that foreign institutional investors bought shares worth Rs.1,049.17 crore on a net basis on Tuesday, while domestic financial institutions offloaded shares worth Rs. 670.72 crore. The markets were shut on Wednesday on account of Ganesh Chaturthi.
Wind turbine maker Suzlon Energy said it plans to meet with bondholders on October 10 to seek approval to extend the maturity of its convertible bonds due next month.
Italian automaker Fiat has decided to lay off many of the dealers of erstwhile sales and distribution partner Tata Motors, while setting up a refurbished distribution network on its own.
The finance ministry has invited bids from global merchant bankers, investment bankers, consulting firms and asset management companies for setting up an exchanges traded fund (ETF) for selling stakes in state run companies.
The finance ministry has ordered a scrutiny of the books of oil marketing companies to see if the under-recoveries stated by them are in order or not, the Times of India reported.
Asian markets are subdued amid caution ahead of Chinese manufacturing data. Foreign direct investment into China fell for the third consecutive month in August due to weak inflows from the debt-ridden European Union, the Chinese Commerce Ministry said on Wednesday. The FDI the country drew last month fell by 1.4 percent from a year ago to $8.3 billion.
Also, the outlook for the Chinese property development sector remains negative despite some improvement in the last six months from strengthening liquidity and higher sales volumes, Standard & Poor's said.
Energy shares are bearing the brunt of the selling after Brent crude futures fell more than $4 a barrel on Wednesday, falling for a third straight day, on talk of increased Saudi Arabian supplies and data showing a massive surge in U.S. inventories last week.
The yen stabilized at Y78.37 to the dollar following the Bank of Japan's surprise decision yesterday to expand monetary easing.
U.S. And European Markets
U.S. stocks ended largely unchanged with a positive bias overnight, as news of additional stimulus from the Bank of Japan offset mixed economic data on housing starts, building permits and existing home sales. The Dow and the S&P 500 edged up just about 0.1 percent each, while the tech-heavy Nasdaq rose 0.2 percent.
European stocks rose modestly on Wednesday after two days of declines, helped by U.S. housing data and fresh monetary stimulus from Japan following similar moves from the U.S. Federal Reserve and the European Central Bank earlier this month. The U.K.'s FTSE 100, France's CAC 40 and the German DAX rose between 0.4 percent and 0.6 percent.
by RTT Staff Writer
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