By RTT News, September 12, 2013, 11:00:00 PM EDT
(RTTNews.com) - Indian shares are seen opening lower on Friday, tracking weak Asian cues. That said, official industrial output and FDI data released after market hours yesterday offer hope of a rebound in the economy, adding to the positive sentiment generated by a strong maiden speech by the new RBI governor Raghuram Rajan.
Industrial output rose 2.6 percent year-over-year in July in contrast to economists' expectations for a 0.9 percent fall, while FDI jumped 58 percent on a net basis to $8.7 billion during the April-July period, separate reports showed. Another report from the Central Statistical Organization showed that annual inflation based on the consumer price index, eased to 9.52 percent in August from 9.64 percent in July.
The benchmark indexes Sensex and the Nifty fell over a percent each on Thursday as investors took some profits off the table following a 10 percent rally in the past five sessions. The rupee reversed early gains to end down 12 paise at 63.50 per dollar, snapping a five-day winning streak.
In corporate news, petrol prices may come down by up to Rs.1.50 per liter next week but a one-time increase in diesel and possibly LPG rates is still on the cards, media reports suggest.
The board of Kerala-based Federal Bank has approved the sub-division of equity shares of Rs 10 each into five shares of Rs 2 each.
Infosys said its outsourcing subsidiary Infosys BPO had been selected by AkzoNobel, a global paint and coatings company and a major producer of specialty chemicals, to transform their finance and accounting processes.
IL&FS Engineering and Construction Company said it has received a letter of award from Emaar MGF Land for works worth Rs.244.46 crore.
<b>Asian Markets </b>
Asian stocks are declining across the board as U.S. and Russia began talks on Syria and investors look ahead for the outcome of next week's Fed meeting. Both U.S. President Barack Obama and Russian President Vladimir Putin have voiced hope that a diplomatic resolution to the Syrian conflict can be found.
Japan's Nikkei index is down 0.4 percent as the yen held onto its overnight gains against the dollar. Japan may cut corporate taxes in the fiscal year starting in April to offset the impact of the proposed sales tax hike, the Nikkei newspaper reported. The key benchmark indexes in Australia, China, Hong Kong, Singapore, South Korea and Taiwan are down between 0.2 percent and 0.7 percent.
Gold is extending losses after plunging more than 3 percent on Thursday, while Brent crude futures are firm just below $113 a barrel.
<b>U.S. And European Markets </b>
U.S. stocks eased overnight, with the S&P 500 snapping its seven-session winning streak, as investors pondered developments related to Syria and the outlook for interest rates heading into next week's FOMC meeting. The Labor Department's report on weekly jobless claims did not offer much clarity on the outlook for the Fed's monetary policy as the report showed that claims unexpectedly dropped to a seven-year low due to technical issues in claims processing. The Dow and the Nasdaq dropped about 0.2 percent each, while the S&P 500 slid 0.3 percent.
The European markets ended mostly lower on growth worries after official data showed euro zone industrial production declined at a faster-than-expected pace in July driven by widespread weakness across sub-sectors. The German DAX and the U.K.'s FTSE 100 ended largely unchanged, while France's CAC 40 declined 0.3 percent.
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