Indian Stock Daily Reports (Tirumala Sec

Market seen opening on a muted note; IIP data eyed

Key benchmark indices are likely to extend yesterday's, 11 November 2008 sharp losses after latest data showed fall in government's indirect tax collection during October 2008. Global cues were mixed. The crucial index of industrial production (IIP) data which is scheduled to be announced around noon today, 12 November 2008 will be watched closely. Industrial growth dipped to a 13-year low of 1.3% in August 2008.
Reflecting an industrial slowdown in the face of a global financial crisis, the government's indirect tax collection took a hit, resulting in a 5% fall to Rs 18,664 crore in excise and customs collection during October 2008, the data released by the Finance Ministry on Tuesday, 11 November 2008 showed.
The government in the Budget 2008-09 proposed to reduce the fiscal deficit to 2.5% of GDP from 3.1% in the previous year, while the revenue deficit was slated to be brought down to 1% from 1.4%. However declining revenue from major heads like customs and excise, coupled with an additional expenditure of over Rs 1 lakh crore, approved by Parliament recently, will derail the targets for the fiscal and revenue deficits envisaged in the Budget, Prime Minister Manmohan Singh said on Tuesday, 11 November 2008.
The Government on Tuesday, 11 November 2008 asked Central public sector enterprises (CPSEs) to park at least 60% of their surplus funds amounting to over Rs 1,00,000 crore with public sector banks (PSBs) and desist from calling for competitive bids for making such deposits. In January 2009, the Finance Ministry had directed all public sector undertakings (PSUs) to park at least 60% of their surplus funds with the PSBs.
Meanwhile, Prime Minister Manmohan Singh has ruled out a cut in petrol and diesel prices until oil companies are able to sustain their operations. He added that despite fall in crude oil prices from record high of $147 a barrel to around $60 a barrel, state-run oil marketing oil companies still have to bear a very heavy burden.
US crude oil dipped 8 cents a barrel to $59.25 today, 12 November 2008 after falling as far as $58.32 the previous day, the lowest since March 2007.
Asian shares were trading mixed today, 12 November 2008. China's Shanghai Composite lost 0.15% or 2.70 points at 1,840.90, Japan's Nikkei slipped 0.47% or 41.02 points at 8,768.28, Taiwan's Taiwan Weighted declined 0.29% or 13.61 points at 4,624.96. However, Hong Kong's Hang Seng rose 1.16% or 162.96 points at 14,203.86, Singapore's Straits Times was up 0.60% or 10.90 points at 1,817.86 and South Korea's Seoul Composite advanced 0.32% or 3.59 points at 1,132.32.
US markets dropped for a second day on Tuesday, 11 November 2008 as a deteriorating outlook for American industry signaled that the economic slump may deepen. The Dow Jones industrial average lost 176.58 points, or 1.99%, to 8,693.96. The S&P 500 index slipped 20.26 points, or 2.20%, to 898.95, and the Nasdaq composite index plunged 35.84 points, or 2.22%, to 1,580.90.
Foreign institutional investors (FIIs) were net sellers worth Rs 370.95 crore while mutual funds bought shares worth Rs 229.12 crore on Tuesday, 11 November 2008, according to provisional data on NSE.

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