The market may open lower on weak Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 31.50 points at the opening bell. High volatility is expected on the bourses this week 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 on Thursday, 23 February 2012.

Shares of oil exploration firms, PSU OMCs and airline stocks will be in focus as oil traded near the highest price in nine months in Asian electronic trading today, 21 February 2012, following Iran's threats to halt supply to France and the UK.

Key benchmark edged higher in choppy trade on Friday, 17 February 2012, as world stocks rose on renewed hopes for a Greek bailout and as fresh US economic data spurred investors into riskier assets. The BSE Sensex jumped 135.36 points or 0.75% to settle at 18,289.35, its highest closing level since 1 August 2011.

Foreign institutional investors (FIIs) bought shares worth a net Rs 536.49 crore on Friday, 17 February 2012, as per provisional data from the stock exchanges. FIIs have bought shares worth a net Rs 12149.25 crore in this month so far (17 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).

A further decline in inflation in January 2012 has reinforced expectations that the central bank will start cutting interest rates in the coming months to revive slowing economic growth. The wholesale price index (WPI) rose a slower-than-expected 6.55% in January 2012 from 7.47% rise in December 2011, government data showed early last week. The annual reading for November 2011 was revised upwards to 9.46% from 9.11% reported earlier.

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 stocks edged lower on Tuesday, 21 February 2012, on profit taking after recent gains. Key benchmark indices in Taiwan, South Korea, Hong Kong, Singapore and Japan were down by between 0.08% to 0.75%. Key benchmark indices in China and Indonesia rose by between 0.04% to 0.2%.

European finance ministers have agreed the terms of on a second bailout deal for Greece, according to reports out on Tuesday, 21 February 2012. The fresh debt deal totals 130 billion euros ($171.9 billion), according to the reports which cited European officials. Greece is expected to have a debt-to-GDP ratio of just over 120% by 2020. Greek bondholders will take a final haircut of more than 53%, the reports said.

Credit-ratings agency Standard & Poor's Corp. on Monday reaffirmed Japan's sovereign debt rating at AA-, but cautioned it would consider lowering its long and short term ratings if Japanese authorities fail to alter the debt trajectory from its current course.

China's central bank on Saturday, 18 February 2012, made a long-awaited move to support lending in the country's slowing economy with a cut to the amount of money banks must hold as reserves. The People's Bank of China announced that the amount that major banks must keep in reserve will be cut to 20.5% from 21% with effect from 24 February 2012.

US stock markets were closed on Monday, 20 February 2012, on account of President's Day holiday.

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