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Saturday, December 31, 2011
Tata Motors to replace starter motor in 1.4 lakh Nanos
Tata Motors is upgrading old Tata Nanos, produced up to mid-September 2011, with a new starter motor to enhance their performance. This is in line with the company’s practice of upgrading its vehicles; on the Nano itself, the company had upgraded the exhaust and the electrical system in November 2010, as was announced then. The installation of the new starter motor, which is a vendor supplied part, began in October this year. Owners of all old Nanos were informed about the exercise, and about 50,000 cars have already been done. There are about 65,000 owners who are yet to visit their dealerships and the company is in continuous contact with them. This new starter motor is already installed in the Nano 2012, which was introduced in November this year with a host of new features, of new colours, new interiors, best-in-class AC, a more powerful gasoline engine and even greater fuel efficiency of 25.4 kmpl, further improving on its record as India’s most fuel efficient petrol car – all at the same price as before.
Food inflation plunges below 1%...Fuel inflation too dips
Food inflation in India plunged in the third week of December, falling under the 1% mark, data released by the Government showed on Thursday. Fuel inflation too dropped. The sharp drop in food inflation over the past few weeks is likely to provide some much-needed breather to consumers and the policymakers alike. However, it will be a while before the RBI starts considering a cut in its policy rates. For that to happen, the headline WPI print should also fall sharply. Food inflation declined to 0.42% in the week ended December 17 from 1.81% in the preceding week, the Commerce & Industry Ministry said today. Food inflation stood at 15.48% in the corresponding week last year. Inflation in the Primary Articles group fell to 2.70% in the week under review, from 3.78% in the week ended December 10, according to the Commerce Ministry statement. It was at 18.85% in the year-ago period. Inflation in the Fuel & Power group stood at 14.37% in the week ended December 11, from 15.24% in the previous week, the Government data showed. It was at 11.85% in the comparable week of the previous year. Inflation in the Non-Food Articles space slid to 0.28% in the week under review from 1.37% in the previous week, the Government data showed. It was at 26.05% in the same period a year earlier.
Bond yields inch up on unscheduled Rs. 150bn auction
Yields on the benchmark 10-year Government bonds climbed to a three-week high on Tuesday after the Government announced a surprise Rs 150bn auction late on Monday. The Government said it will sell Rs. 150bn of bonds on December 30 in an unscheduled auction to partially offset a Rs. 40bn auction cancelled last month and to fund an emerging cash requirement. The move unsettled markets amid growing concerns about the bloated fiscal deficit. The Government is widely expected to miss its target of paring budget shortfall to 4.6% of GDP in FY12 due to deceleration in tax collection and higher spending. In late September, the Government increased its market borrowing estimate for the October-March period to Rs. 2.2 trillion, from Rs. 1.67 trillion. Liquidity in the banking system remained tight on Monday with banks borrowing ~Rs. 1.43 trillion from the RBI's repo window, significantly more than the central bank's comfort level of around Rs. 600bn. Traders in the money market expect more open market operations from the RBI to ease the tight cash conditions. Separately, the RBI and the Government on Friday released an updated calendar for the fourth quarter. The Centre would borrow an additional Rs 400bn in the remaining part of FY12 to meet the budget shortfall.
India and Japan sign US$15bn currency swap deal
India and Japan have agreed on a US$15bn (~ Rs. 800bn) currency swap deal to tide over the ongoing shortage of the US dollar amid mounting concern about the eurozone sovereign debt crisis. The new currency swap arrangement with Japan will also help India support its tumbling currency. The rupee has lost ~15% this year as investors continued to be risk averse on worries about slowing domestic growth and widening deficits. Japanese Prime Minister Yoshihiko Noda renewed a bilateral swap agreement with Indian Prime Minister Dr. Manmohan Singh in New Delhi today. The two nations had signed a US$3bn accord in June 2008 that has since expired. Japan already has currency-swap accords with other Asian peers like China, South Korea Indonesia and the Philippines. Just recently, Japan clinched a deal with China to expand use of the yuan and yen in bilateral trade and purchase Chinese bonds. Reserves in Japan surged to US$1.22 trillion in November from US$1.04 trillion at the end of last year, helped in part by a resumption of currency intervention. Japanese premier Noda urged India and Japan to work towards closer ties between the two nations for better economic, political and regional cooperation.
Infrastructure sector growth rebounds in November
The latest reading on the eight core sector industries could cheer up the markets as well the policymakers alike while also boosting the chance of a reversal in the RBI's policy sooner than later. India's infrastructure sector growth stood at 6.8% in November 2011 versus 3.7% in the same month a year earlier, the Government said on Monday. It may be recalled that India's infrastructure sector output plunged in October to touch its lowest in six years, raising concern about the prospects for industrial production. The growth in the core sector space tumbled to almost zero in October, up by an upwardly revised 0.3%, as compared to 2.3% registered in September. The Index of Eight core industries, having a combined weight of 37.90% in the Index of Industrial Production (IIP) with base 2004-05, stood at 141.1 in November. It was at 140.7 in October and stood at 132.2 in November 2010. Core sector growth during April-November 2011-12 stood at 4.6% versus 5.6% in the corresponding period last year.
Sensex, Nifty crumble 25% in 2011...Rupee down 16%
During the year 2011, the BSE Sensex tumbled by over 5,000 points, or ~25%, from 20561 on January 3 to 15,454 on 30th December. While the NSE Nifty dropped more than 1500 points, or ~25%, from 6157 to 4624, during the year. Investors lost a whopping Rs 20,00,000 crores in market value with the total market cap down ~28%. India was among the top losers in the Asia-Pacific region and the worst performer in the BRIC space.
Q2 FY12 GDP fell below 7% while IIP for October shrank for the first time in more than three years. India has been running a large current account gap and a yawning fiscal deficit as well. As a result, the rupee slid to all-time lows of over Rs 54 against the dollar on December 19 before recovering slightly. The rupee lost 16% in 2011 - its first annual loss since 2008.
Lok Sabha approves new Lokpal Bill by voice vote
The Lok Sabha on Tuesday passed the Lokpal Bill to create an anti-corruption ombudsman, according to reports. However, the government failed to get the two-thirds majority it needed to make the bill a Constitutional Body, like the Election Commission. A visibly angry Pranab Mukherjee, termed it as a ‘sad day for democracy’. The FM blamed the BJP for the incident and threatened them that "people will teach you a lesson," reports said. Just before the vote began, the SP and BSP parties staged a walkout and did not vote on the Lokpal Bill, reports said. The Bill will now be sent to the Rajya Sabha. Prime Minister Manmohan Singh's government has been the target of middle-class frustration with everyday graft and multi-billion dollar scandals in Asia's third largest economy. Anna Hazare, who began a three-day fast to coincide with the parliamentary debate, wants the ombudsman to have greater powers to investigate high ranking scammers, reports said. His health reportedly deteriorated on Tuesday evening as his blood pressure fell and his temperature rose above 102 degrees. The activist was already suffering from a viral infection before he commenced his fast.
Weekly Newsletter - Dec 31 2011
To say that 2011 was challenging would be an understatement. There was no dearth of bad news be it the never-ending list of scams, or spiraling inflation, or hardening interest rates, or general economic slowdown, or a sliding rupee, or policy paralysis or the eurozone debt crisis. So, naturally investors shied away from Indian markets. In fact, India was among the top losers.
But after having experienced so much turmoil across the board, things can only look up sooner or later. The outcome of UP elections could have a significant bearing on the policy decisions of UPA II, including the Budget. It might also change political equations at the Centre. Once inflation moderates to acceptable levels and the state elections are over in March, we could see reversal in interest rates and few policy initiatives as well.
The December F&O expiry has seen traders rolling over short positions, leaving chance for a short squeeze. Corporate results, IIP, inflation, RBI policy action and global events will underpin the markets' direction next month.
Lokpal Bill in limbo as Rajya Sabha runs out of time
The extension of the Winter Session of Parliament turned out to be futile as despite the passage of the Lokpal Bill in the Lok Sabha, it failed to even be put to vote in the Rajya Sabha. According to reports, after a twelve hour marathon session, the Bill could not be put to vote as chaos broke out in the House half an hour before the Session would automatically end at the stroke of midnight. The House was adjourned sine die by Chairman Hamid Ansari in the face of stiff opposition and a verbal spat that broke out between several members, including the government’s ally Trinamool Congress. The bone of contention was that the BJP wanted the Bill to be put to vote immediately while the Government insisted it required time to resolve contradictory 187 amendments moved by the members. Parliamentary Affairs Minister Pawan Kumar Bansal said that the government was willing to put the Bill to vote provided the House passed the Bill voted by the Lok Sabha on Tuesday. This, in turn, meant that the amendments which the Opposition wished to move would have to be kept on the backburner.
Market slips as investors brace for weak Q3 earnings season
Bears tightened their grip on the market in the last week of the calendar year 2011 as investors were concerned about upcoming Q3 December 2011 corporate earnings season. Recent media reports that Indian and Mauritian tax officials have begun talks on revising the double taxation avoidance pact between the two countries also weighed on sentiment as it could adversely impact foreign fund flow into Indian equity market.
About 40% of foreign institutional investors (FIIs) inflows and around 42% of the foreign direct investment (FDI) in India are routed through Mauritius. While short-term capital gains are taxed at 15% in India, they are exempted in Mauritius. Several companies take advantage of the double taxation avoidance pact between the two countries and escape paying taxes in both the countries.
Goodwill Hospital and Research Centre IPO Analysis
Goodwill Hospital and Research Centre (GHRC) is the wholly owned subsidiary of Ojjus Medicare Private Ltd (controlled by Harvansh Chawla). GHRC has a multi specialty hospital at Noida under the name Ojjus Medicare with focus on Neurology and Neuro surgery, Cardiology and Cardiac surgery and Orthopedics with emphasis on Joint Replacements and Sports Injuries. The 220-bed hospital is the few amongst private hospitals in South and South East Asia equipped with Perfexion Gamma Knife (Sophisticated radio surgery) for minimally invasive surgeries. The hospital also offers services in areas of Mother & Child Care, Pediatrics, Diagnostic, Critical Care Medicine, Oncology, Gynecology & Obstetrics, Nephrology, Dermatology, Gastroenterology, Dental & Eye care etc.
Friday, December 30, 2011
Last session of 2011 ends with losses; Sensex down 89 points
It was a weak closing on the last trading session of the year 2011, with the Sensex falling 89 points and the Nifty down 22 points
Headlines for the day
RIL falls below 700 mark for the 1st time since April 2007
CRISIL downgrades DLF debt rating
PSU shares in demand
GTL, GTL Infra rise as board approves debt recast
Steel Strips soars on commencing exports to Audi
Daily News Roundup - Dec 30 2011
SAIL and Japan’s Kobe Steel will invest Rs15bn in an equal JV plant in West Bengal to make 5 lakh tonnes of iron ore nuggets annually. (ET)
SBI, which had received a commitment from the government for capital infusion of Rs60bn in the current financial year, may opt for another round of fund-raising through a QIP in the next financial year. (BS)
NTPC has signed a power purchase agreement with MP Tradeco in Bhopal for supply of power from 50 MW solar PV power plant to be set up at Rajgarh in Madhya Pradesh. (BL)
2011 - Thank God it’s over!
Year’s end is neither an end nor a beginning, but a going on, with all the wisdom that experience can instill in us. - Hal Borland.
A turbulent 2011 is drawing to a close, leaving us with a whole host of troubles that need to be conquered. The hope is that 2012 will be better, especially in the latter half. For now though, one can only indulge in conjecture. Thankfully, the start of the last trading day of 2011 is likely to be positive on the back of healthy global cues.
US stocks closed higher following encouraging data on weekly jobless claims and pending home sales. European indices finished up. Asian markets are trading mostly higher this morning.
Markets may rise on the last trading day of 2011
Markets are expected to open the last trading session of the year 2011 on a positive note led by gains across the globe.
Headlines for the day
JSPL replaces SIL in SPV to develop Gopalpur port
FinMin likely to ease NPA norms for textile sector: Sources
Tata Group identifies 3 new sectors to drive growth
SBI may opt for QIP in FY13
AI to issue Rs 7,500 cr worth of shares to its bankers
REC cuts size of FCCB issue
PFC's Rs1K-cr tax-free bond issue opens today
Power Finance Corporation (PFC) will start selling tax-free bonds today (December 30, 2011) to raise up to Rs1,000 crore.
'We will launch the offer to sell tax-free bonds worth up to Rs1,000 crore today. The offer will end on January 16,' PFC Director (Finance) R Nagarajan said.
The leading power sector lender has the approval to mop up Rs5,000 crore through issue of tax-free bonds. It has raised Rs967 crore already through private placement of these bonds in October and November.
Crude prices end little higher
Host of factors impact prices
Crude prices ended higher on Thursday, 29 December 2011 at Nymex. Prices were affected due to a host of factors. Better than expected economic data helped lift prices. On one hand, traders kept an eye on Iran where state news agency were saying that oil flow will stop from Strait of Hormuz if its sanction issues by European Union over nuclear programme continued. Partially offsetting that effect was the weekly inventory report on crude stockpiles that showed that the same unexpectedly rose last week. Prices also rose after the dollar weakened marginally.
Bullions witness a mixed finish
Gold drops but silver ekes out small gains
Yellow metal prices ended lower for sixth straight session on Thursday, 29 December 2011 at Comex. Better than expected economic data at Wall Street lifted US stocks on Thursday thereby reducing the appeal of yellow metals against an alternate investment. Silver managed to eke out a small gain after staying weak earlier during the day.
Market may open higher on firm Asian stocks
The market may open higher on firm Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a gain of 44 points at the opening bell. Asian stocks edged higher on the last trading day of 2011, as rising US home sales signaled the world's largest economy is weathering Europe's debt crisis.
Closer home, key benchmark indices fell for the third straight trading session on Thursday, 29 December 2011, as index heavyweight Reliance Industries (RIL) dropped more than 3%. The BSE Sensex lost 183.92 points or 1.17% to settle at 15,543.93, its lowest closing level since 20 December 2011.
Thursday, December 29, 2011
Stocks of 2011
Year 2011 was not so good for the Indian Markets with lot of negative news creating pressure and dragging stocks lower. Investors completely lost interest and as a result of the same, major stocks witnessed selling pressure.
Here take a look at major stocks that remained in the limelight throughout the year due to news-specific actions.
Bullions continue to shed glitter
Prices drop for fifth straight day
Precious metals ended lower for fifth straight session on Wednesday, 28 December 2011 at Comex. Prices dropped amid a strong dollar and thin level of trading. Prices also responded to bearish news from Europe, China and India, which produced fears of weakening demand for the precious metal
Gold for February delivery ended lower by $31.4 or 2%, to end at $1,564.1 an ounce on the Comex division of the New York Mercantile Exchange on Wednesday. Prices have shed 3.3% in past five sessions. Last week, the yellow metal rose 0.5%.
Daily News Roundup - Dec 29 2011
RIL is in advanced talks with American defence giant Raytheon to create a joint venture that will pursue opportunities in homeland security in India and abroad (ET)
The coal ministry has turned down Coal India’s request to cut its production target for the year (ET)
Government to ask Sterlite for formal plan for buying 49% residual stake in Balco (BL)
M&M South Korean subsidiary Ssangyong is likely to fall short of its sales target for 2011 as debt woes continue to plague one of its largest markets Europe (ET)
Sensex slips in sluggish session…Nifty @ 4750
The topsy-turvy ride of the Indian market continued even as MPs traded barbs in Parliament on the New Lokpal Bill and Anna Hazare kicked off his three-day stir. Traded volumes remained light, notwithstanding the fact that the F&O expiry is just two days away. Essentially, the main indices never got going like they did on Monday amid lack of broad-based participation. The BSE Sensex and the NSE Nifty lacked sense of direction. The broader market too was more or less subdued.
The undercurrent was cautious as a strong report on the infrastructure output was countered by concerns about the Government’s fiscal profligacy and tight liquidity. The fact that most global markets are in festival mood hasn’t helped matters either. Most market participants are on ‘wait-and-watch’ mode right now amid lingering worries about the worsening domestic economic situation and problems plaguing the world economy.
F&O expiry…weak opening, choppy ending!
Everything is connected... no one thing can change by itself. - Paul Hawken.
Domestic politics and world markets seem to be connected in playing spoilsport. There is nothing much to change the mood for the last two trading sessions of 2011. F&O expiry will only add to the volatility. The weekly food inflation numbers will be tracked closely after having come off sharply in the past few weeks. Contrary to the usual norm at the end of a year, FIIs have been modest buyers of Indian equities lately. However, the overseas capital flows are not strong enough to make any impression on the market's direction. Volumes may pick up due to the derivative settlement.
Market may extend recent losses on weak Asian stocks; food inflation data eyed
The market may extend two-day losses on weak Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 23 points at the opening bell. Stocks may remain volatile today, 29 December 2011, as traders rolled over positions in futures & options (F&O) segment from the near-month December 2011 series to January 2012 series. The near-month December 2011 F&O contracts expire today, 29 December 2011.
On macro front, the government will today, 29 December 2011, unveil data on some wholesale price indices viz. the food price index, the primary articles index and the fuel price index for the year through 17 December 2011.
Markets expect a negative start; F&O expiry eyed
Renewed concerns about the euro zone's financial health may weigh on the Indian markets in the opening trade.
Headlines for the day:
GMR completes 30% stake sale in Singapore arm to Petronas
Mahindra raises XUV500 prices by up to Rs55K
RIL slips below Infy in market-weight game, again
DLF, partner sell Pune IT SEZ to Blackstone for Rs810 cr
TVS to launch automatic transmission 2-wheelers in 2013
ICICI, IDBI Bank up NRE deposit rates
Wednesday, December 28, 2011
Metal, banking pull Sensex 146 points lower
Selling in metal, banking & oil & gas stocks led to a major decline in today’s trade. Sensex slipped 146 points and the Nifty fell 45 points
Major headlines
Tata Power plans to buy BP's 51% stake
GTL Infra board to meet tomorrow for debt revamp
RIL KG-D6 block gas output dips to new low
Rel Power commissions another 300-MW unit at Rosa
Market hits one-week low on Indo-Mauritius tax treaty revision concerns
Key benchmark indices fell for the second straight day to reach their lowest closing level in one week on reports Indian and Mauritian tax officials have begun talks on revising the double taxation avoidance pact between the two countries. Index heavyweight Reliance Industries (RIL) fell nearly 2%. The barometer index, the BSE Sensex, lost 146.10 points or 0.92%, off about 160 points from the day's high and up close to 60 points from the day's low. The market breadth was weak. BSE Small-Cap and Mid-Cap indices fell more than 1% each.
Interest rate sensitive banking stocks declined on fears of increase in bad loans in a slowing economy. Realty stocks were mixed. Metal stocks fell as hedge funds reduced bets on higher global commodity prices to the lowest level since 2009 in the week ended 20 December 2011. Some power stocks bucked weak market. Interest rate sensitive auto stocks fell on concerns higher interest rates could crimp sales of automobiles.
Daily News Roundup - Dec 28 2011
SBI’s proposed JV with Bharti Airtel has fallen through after RBI expressed apprehensions over letting a telecom player into banking space through equity participation. (BS)
L&T, Mitsubishi to sign a licensing and technological collaboration agreement. (BS)
Infosys BPO to expand in China. (BS)
Tata Power to buy BP’s 51% stake in Tata BP Solar India. (ET)
Petroleum Ministry to refund $120mn to Cairn and Ravva Oil. (ET)
Sensex slips in sluggish session…Nifty @ 4750
The topsy-turvy ride of the Indian market continued even as MPs traded barbs in Parliament on the New Lokpal Bill and Anna Hazare kicked off his three-day stir. Traded volumes remained light, notwithstanding the fact that the F&O expiry is just two days away. Essentially, the main indices never got going like they did on Monday amid lack of broad-based participation. The BSE Sensex and the NSE Nifty lacked sense of direction. The broader market too was more or less subdued.
The undercurrent was cautious as a strong report on the infrastructure output was countered by concerns about the Government’s fiscal profligacy and tight liquidity. The fact that most global markets are in festival mood hasn’t helped matters either. Most market participants are on ‘wait-and-watch’ mode right now amid lingering worries about the worsening domestic economic situation and problems plaguing the world economy.
Testing times continue
Enduring setbacks while maintaining the ability to show others the way to go forward is a true test of leadership. - Nitin Nohria.
Leadership deficit has been one of the major issues plaguing the world in what has been a tumultuous year. India has been one of the victims of this disturbing trend. UPA II has failed to capitalise on its resounding electoral success. If anything, things have got worse and there are no signs of improvement as yet. Hopefully, Dr. Manmohan Singh & Co. will deliver better returns in 2012.
Market may start lower on weak Asian stocks
The market may start lower tracking weak Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 36 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 December 2011 series to January 2012 series. The near-month December 2011 F&O contracts expire on Thursday, 29 December 2011.
Key benchmark reversed direction after hitting 1-1/2-week highs in mid-morning trade on Tuesday, 27 December 2011 on concerns about upcoming Q3 December 2011 corporate earnings. The BSE Sensex shed 96.80 points or 0.61% to settle at 15,873.95, its lowest closing level since 23 December 2011.
Markets may open on a subdued note
The start looks quiet on the back of mixed global cues. Many market players may stay away for year-end holidays.
Headlines for the day
Tata Power to acquire BP's 51% stake in solar joint venture
Jet Airways chief Goyal denies tax evasion
SBI-Airtel JV for financial services falls through
Hero MotoCorp to launch its own bikes ahead of schedule
Adani Power puts 6,500 MW expansion plan on hold
Infosys BPO to expand in China
India Inc to go slow on hiring in 2012
Big jump in crude price at Nymex
Crude prices rise for sixth straight day
Crude prices ended higher for sixth straight day on Tuesday, 27 December 2011 at Nymex. Prices rose substantially as news hit the wires from Iran state news agency were saying that oil flow will stop from Strait of Hormuz if its sanction issues by European Union over nuclear programme continued. Partially offsetting that threat, however, were reports that Saudi Arabia said it stood ready to replace Iranian oil if supplies to Europe were halted. Nymex oil price also gained ground following a better than expected consumer confidence data at Wall Street.
Bullions turn pale
Prices drop as consumer confidence data reduces their appeal
Precious metals ended lower on Tuesday, 27 December 2011 at Comex. Prices dropped despite a weak dollar. A better than expected consumer confidence data dulled the appeal of bullions as a safe haven for alternate investment. Comex trading was closed on Monday in observance of the Christmas holiday.
Gold for February delivery ended lower by $10.5 or 0.7%, to end at $1,595.5 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday. Last week, the yellow metal rose 0.5%.
Tuesday, December 27, 2011
BSE Bulk Deals to Watch - Dec 27 2011
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
27/12/2011 531519 Ankush Finstock INDERNEIL NAVJIT GREWAL B 50000 7.03
27/12/2011 531519 Ankush Finstock NIROOLA ABHIMANYU R B 50050 7.04
27/12/2011 531519 Ankush Finstock RAJENDRA RATILAL SHAH HUF S 50000 7.04
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27/12/2011 531519 Ankush Finstock KALPANA RAJENDRA SHAH S 50000 7.03
27/12/2011 531568 Ashutosh Paper ONKAR SINGH PASRICHA B 35000 172.00
27/12/2011 531568 Ashutosh Paper ANITA KUMAR B 125000 172.14
27/12/2011 531568 Ashutosh Paper SALASAR TECHNO ENGINEERING PRIVATE LIMITED S 85500 172.50
27/12/2011 502219 Borosil Glass BOROSIL GLASS WORKS LIMITED BUY BACK B 26595 849.98
27/12/2011 511720 Capman Fin GOODWEALTH FINANCE CO.PVT.LTD B 29600 9.57
27/12/2011 511720 Capman Fin VINOD KUMAR KOTHARI(HUF) S 29500 9.57
27/12/2011 511672 Clarus Finance DHANSAGAR VINTRADE PRIVATE LIMITED S 100000 64.55
27/12/2011 511672 Clarus Finance APPEAR COMMODEAL PRIVATE LIMITED S 97931 64.85
27/12/2011 511710 Cubical Fin ASHA AGARWAL B 75000 35.83
27/12/2011 533333 Fineotex Chem NEELANCHAL MERCANTILE PRIVATE LIMITED B 83000 56.00
27/12/2011 509148 Govind Rubber-$ RAHUL VINOD PODDAR B 1050000 8.95
27/12/2011 509148 Govind Rubber-$ VISHAL FURNISHINGS LTD. S 1050000 8.95
27/12/2011 532770 Hanung Toys CROSSEAS CAPITAL SERVICES PRIVATE LIMITED B 166914 106.20
27/12/2011 532770 Hanung Toys CROSSEAS CAPITAL SERVICES PRIVATE LIMITED S 167036 106.21
27/12/2011 530165 Kanchan Intl ARVIND BABULALJI GOYAL B 21073 68.27
27/12/2011 530165 Kanchan Intl ARVIND BABULALJI GOYAL S 19905 68.67
27/12/2011 530547 KEN Fin Serv NEHA NANDKISHORE BHANDARI B 20000 100.70
27/12/2011 530547 KEN Fin Serv ESHA NANDKISHORE BHANDARI B 24000 100.60
27/12/2011 530547 KEN Fin Serv ASHISH CHAUDHARY S 46800 100.76
27/12/2011 531401 Khodiyar Inds ASHOK RAMJI MAJETHIA B 40000 5.34
27/12/2011 531401 Khodiyar Inds JITENDRA RAMJI MAJETHIA S 40000 5.34
27/12/2011 507912 LKP FIN INDIA MAX INVESTMENT FUND LIMITED B 500000 80.00
27/12/2011 507912 LKP FIN EVANS FRASER AND COMPANY (INDIA) LIMITED S 500000 80.00
27/12/2011 507621 Milkfood SUDHA COMMERCIAL COMPANY LIMITED B 51980 68.25
27/12/2011 507621 Milkfood PINNACLE TRADES AND INVESTMENTS S 52000 68.25
27/12/2011 532127 Mobile Telecom MANSUKHLAL L SHAH HUF B 1200000 3.47
27/12/2011 532127 Mobile Telecom ANIL BABULAL VEDMEHTA S 1241000 3.47
27/12/2011 505525 Parichay Invest SUNILBHAI VINUBHAI DANTANI B 20000 36.40
27/12/2011 505525 Parichay Invest CHIMANLAL MANEKLAL SECURITIES PRIVATE LIMITED B 8551 36.39
27/12/2011 511734 Pasupati Fin ASHI ARUNKUMAR TULSIAN B 49216 22.10
27/12/2011 511734 Pasupati Fin PASUPATI OLEFIN LIMITED S 50000 22.10
27/12/2011 532517 Patni Computer SUFFOLK MAURITIUS LTD B 1350747 444.00
27/12/2011 532517 Patni Computer MANSFIELD (MAURITIUS) LIMITED B 727325 444.00
27/12/2011 532517 Patni Computer MORGAN STANLEY& CO INTERNATIONAL PLC A/C GDR S 2078072 444.00
27/12/2011 531769 PFL Infotech PREM CHAND CHORDIA B 50000 128.15
27/12/2011 531769 PFL Infotech GATEWAY LEASING PVT LTD B 39000 128.43
27/12/2011 531769 PFL Infotech REKHA MEHTA B 40000 127.99
27/12/2011 531769 PFL Infotech B.K.KHULLAR & CO B 41000 127.99
27/12/2011 531769 PFL Infotech TRIPURARI PROPERTIES PRIVATE LIMITED S 72000 128.38
27/12/2011 526823 Rajeswari Found PRADEEP NARENDRA BHATT B 25000 29.82
27/12/2011 504378 Ravinay Trad HOTEL POLO TOWERS PRIVATE LIMITED B 102500 293.46
27/12/2011 504378 Ravinay Trad SHIV SHARMA S 29000 293.47
27/12/2011 531646 RFL Intl MAGANLAL MOOLCHAND MEHTA B 50958 6.87
27/12/2011 513583 SB&T Intl JAYESH MANNARLAL AJMERA B 90000 10.31
27/12/2011 524642 SIKOZY REAL MANISH JETHALAL KAKKA S 24055 35.40
27/12/2011 521178 Sri Ramakrishna-$ SWATHY LAKSHMINARAYANASWAMY B 113750 15.00
27/12/2011 521178 Sri Ramakrishna-$ SUHASINI LAKSHMINARAYANASWAMY B 165250 15.00
27/12/2011 521178 Sri Ramakrishna-$ SRIKANTH C B 647800 15.07
27/12/2011 521178 Sri Ramakrishna-$ LAKSHMINARAYANASWAMY NAGASWARNA B 41000 15.00
27/12/2011 521178 Sri Ramakrishna-$ CLEARWATER CAPITAL PARTNERS (CYPRUS) LIMITED S 1000000 15.04
27/12/2011 532298 Zenith Info ACACIA BANYAN PARTNERS B 77000 39.00
27/12/2011 532298 Zenith Info ACACIA INSTITUTIONAL PARTNERS B 385757 39.00
27/12/2011 532298 Zenith Info ACACIA CONSERVATION FUND LP B 237000 39.00
27/12/2011 532298 Zenith Info ACACIA PARTNERS L.P S 745957 39.00
* B - Buy, S - Sell
NSE Bulk Deals to Watch - Dec 27 2011
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
27-DEC-2011,CTE,Cambridge Technology Ente,ANURADHA KALRA,BUY,126000,7.80,-
27-DEC-2011,CTE,Cambridge Technology Ente,D P KALRA MR.,BUY,200,7.75,-
27-DEC-2011,HANUNG,Hanung Toys and Textiles,CROSSEAS CAPITAL SERVICES PVT. LTD.,BUY,166810,106.01,-
27-DEC-2011,INFOMEDIA,Infomedia 18 Limited,ACACIA INSTITUTIONAL PARTNERS L.P,BUY,1397407,9.85,-
27-DEC-2011,INFOMEDIA,Infomedia 18 Limited,RUANE CUNNIFF&GOLDFARB INC SUBA/C ACACIA CONSERVATION F LP,BUY,1700000,9.85,-
27-DEC-2011,PRAKASH,Prakash Industries Ltd.,RUANE CUNNIFF&GOLDFARB INC SUB A/C.ACACIA PARTNERS LP,BUY,823000,35.20,-
27-DEC-2011,RANKLIN,Ranklin Solutions Limited,LOKKUR KRISHNA MURTHY S,BUY,26135,12.75,-
27-DEC-2011,CTE,Cambridge Technology Ente,D P KALRA MR.,SELL,126200,7.80,-
27-DEC-2011,HANUNG,Hanung Toys and Textiles,CROSSEAS CAPITAL SERVICES PVT. LTD.,SELL,165294,106.13,-
27-DEC-2011,INFOMEDIA,Infomedia 18 Limited,ACACIA II PARTNERS L.P.,SELL,283375,9.85,-
27-DEC-2011,INFOMEDIA,Infomedia 18 Limited,RUANE CUNNIFF&GOLDFARB INC SUBA/C ACACIA PARTNERS LP,SELL,2755282,9.85,-
27-DEC-2011,NEHAINT,Neha International Ltd,DILIP INDRAVADAN SHAH,SELL,100000,22.50,-
27-DEC-2011,RANKLIN,Ranklin Solutions Limited,KANAI BANERJEE,SELL,26115,12.75,-
Market retracts from 1-1/2-week high
Volatility continued as key benchmark trimmed losses after hitting fresh intraday lows in mid-afternoon trade. The BSE Sensex was provisionally down 88.74 points or 0.56%, off about 170 points from the day's high and up closet to 80 points from the day's low. The market reversed direction after hitting 1-1/2 week high in mid-morning trade. The market breadth was negative.
Index heavyweight Reliance Industries (RIL) edged lower. Metal stocks reversed intraday gains. Interest rate sensitive banking stocks edged lower on fears of increase in bad loans in a slowing economy. Realty shares fell on profit booking after recent gains. Multiplex shares spurted on reports Shah Rukh Khan's action thriller "Don 2" garner box office collection of Rs 48.39 crore in its opening weekend.
Market may open lower on weak Asian stocks
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 21.50 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 December 2011 series to January 2012 series. The near-month December 2011 F&O contracts expire on Thursday, 29 December 2011.
Key benchmark indices reached their highest closing level in nearly two weeks on Monday, 26 December 2011 as strong economic data in the US boosted sentiment. US is the world's biggest economy. The BSE Sensex jumped 232.05 points or 1.47% to settle at 15,970.75, its highest closing level since 13 December 2011.
Daily News Roundup - Dec 27 2011
The government has decided to regulate natural gas marketing charges levied by companies such as RIL and Gail India to protect domestic consumers. (ET)
TCS is not pursuing the acquisition of Lufthansas IT arm actively anymore on concerns of profitability and hassles of reaching an agreement with the airlines labour union. (ET)
NTPC commissioned the Super Critical Unit 2 of 660MW of NTPC-Sipat Super Thermal Power Project situated in Chhattisgarh, taking its total installed capacity to 36,014MW. (BL)
Bharati Shipyard said its board has approved a Rs28.5bn corporate debt restructuring program. (ET)
Sensex cracks double ton…Ends near 16k
After a breather on Friday, the Indian market resumed its up-trend on Monday, kicking off the last trading week of the year on a positive note. But, trading volumes were light due to year-end Christmas holidays. Both the main stock indices closed near session highs. Another encouraging aspect of today’s trade was that the breadth held up pretty well. The Sensex came within a hair’s breadth of 16,000 while the Nifty was within striking distance from 4800. Also, there was hardly any intraday choppiness that one associates with trading in the F&O expiry week. Markets opened higher and moved further up in the morning trade. The trajectory remained the same throughout the afternoon trade as well before the final flourish that lifted the indices to new day’s high.
India was among the few Asian markets opened for trading today while the rest were closed for the extended Christmas holiday. Most European markets and US markets are shut today as well. Japanese shares managed to close higher, as they resumed trading after Friday’s close. Their Chinese counterparts ended in the red. Stock indices in Taiwan and South Korea also finished lower. Markets in Asia had hardly any news to respond to, except an agreement between Japan and China to strengthen relations in the financial sector. The trading was underpinned by continued hopes of stability in the US economy amid ongoing worries about the European debt crisis.
Weather cool, Politics hot!
It doesn't matter if the water is cold or warm if you're going to have to wade through it anyway - Teilhard de Chardin.
Mercury has dipped across the country, especially in North India, but the political heat is all set to escalate. The showdown between Team Anna and the Government is likely to continue as Anna Hazare begins his three-day agitation in Mumbai. The Parliament will also resume the winter session to debate the New Lokpal Bill.
The Centre could find it tough to pass the Bill given the opposition to several clauses. Also, it doesn’t seem to have the requisite numbers in the Rajya Sabha. A host of Opposition amendments await the Government as it seeks to get the Lokpal Bill passed in Parliament over the next three days.
Flat start on the cards
It is likely to be a flat opening tracking quiet Asian indices. With not much news to trade on, the markets are expected to remain rangebound and volatile.
Headlines for the day:
Bharati Shipyard approves Rs2,854-cr CDR plan
SAIL, Kobe to sign pact for Bengal plant on Dec 28
Suzlon promoters pledge 1.68% stake
Areva board okays name change to 'Alstom T&D India'
RBI to issue Rs500 note with Re symbol
PNB raises NRE deposit rates to 9.25%
Events for the day
Ex-date for dividend of Tricom India
Monday, December 26, 2011
Sensex makes smart gains, closes 232 points higher
The Indian markets stayed higher all throughout the day, with the Sensex closing 232 points higher and the Nifty up by 65 points.
Headlines for the day
Telecom stocks up after TDSAT stayed DoT 3G roaming ban order
Tea stocks surge on higher tea prices
Cairn India jumps on rise in crude oil
Tata Motors to replace starter motor in Nano
Nifty January 2012 futures above 4800
Turnover declines
Nifty January 2012 futures were at 4802, at a premium of 23 points compared to spot closing of 4779. Nifty December 2011 futures were at 4783, near spot closing of 4779. Turnover on NSE's futures & options (F&O) segment declined to Rs 115801.15 crore from Rs 130308.16 crore on Friday, 23 December 2011.
State Bank of India (SBI) December 2011 futures were at 1669.90, at a premium over spot closing of 1664.50.
Sensex, Nifty near 2-week highs
Key benchmark indices reached their highest closing level in nearly two weeks as strong economic data in the US boosted sentiment. US is the world's biggest economy. The barometer index, BSE Sensex, came within striking distance of the psychological 16,000 level in late trade. The Sensex provisionally jumped 232.05 points or 1.47%, up about 210 points from the day's low and off close to 30 points from the day's high. Volumes were thin as major Asian markets viz. Hong Kong and Singapore, and European markets were closed for holidays. Except BSE Healthcare index, all the other 12 sectoral indices on BSE were in the green. The market breadth was strong.
Saturday, December 24, 2011
Markets rise after 2-weeks steep slide
The Indian markets surged this week after falling heavily for the two straight weeks. The Sensex rose by 1.6% and the Nifty up by 1.34%.
Headlines for the week
Food inflation eases to 1.81% vs 4.35%
Kingfisher Airlines drops to No.5 position in market share
Inflation seen easing to 6-7% by March: Pranab
RBI may lower GDP projection this fiscal: Subbarao
Govt introduces the Food Security Bill on cheaper food grains
Cabinet approves anti-corruption bill
Market may remain volatile ahead of F&O expiry
High volatility is expected next week as traders roll over positions in futures & options (F&O) segment from the near-month December 2011 series to January 2012 series. The near-month December 2011 F&O contracts expire on Thursday, 29 December 2011.
Foreign institutional investors (FIIs) have been sellers in domestic equities recently. The slowing domestic economic growth, high fiscal deficit, current account deficit and government's policy inaction remain a cause for concern.
BSE Small-Cap, Mid-Cap indices slide over 1% each
Key benchmark indices managed gains as investors resorted to bargain hunting after recent steep slide in share prices. The latest data showing food inflation easing sharply to a near four-year low also aided sentiment. Easing of inflation may prompt the central bank to cut interest rates to revive sagging economic growth. The market fell in three out of five trading sessions in the week gone by.
The food inflation eased sharply to 1.81% in the year to 10 December 2011, from an annual 4.35% rise in the previous week, government data showed on Thursday, 22 December 2011. The fuel inflation remained unchanged at 15.24% in the latest week compared with the prior week, data showed, while the primary articles price index rose 3.78%, compared with an annual rise of 5.48% in the previous week.
Market snaps two-day winning streak
Key benchmark indices edged lower after hitting one-week highs as data showing selling by foreign funds continuously over the past few days hurt sentiment adversely. The BSE Sensex was down 74.66 points or 0.47%, off 172.53 points from the day's high and up 67.42 points from the day's low. Index heavyweight Reliance Industries (RIL) lost over 1% in choppy trade. IT stocks were mixed after strong economic data in the US, the biggest outsourcing market for IT services exporters.
The market today, 23 December 2011, snapped a two-day advance. The Sensex had jumped 638.28 points or 4.2% in the preceding two trading sessions to one-week closing high of 15,813.36 on Thursday, 22 December 2011, from a 28-month closing low of 15,175.08 on 20 December 2011. The Sensex has fallen 384.76 points or 2.38% so far this month. The Sensex has slumped 4,770.39 points or 23.25% in calendar 2011. From a 52-week high of 20,664.80 on 3 January 2011, the Sensex has lost 4,926.10 points or 23.83%. From a 52-week low of 15,135.86 on Tuesday, 20 December 2011, the Sensex has risen 602.84 points or 3.98%.
Tuesday, December 20, 2011
Heavyweights drag markets to 28-month low
The Indian markets closed lower for the fifth consecutive day, touching the lowest level in 28 months as heavyweights tumble. The Sensex down 204 points and the Nifty down 69 points.
Headlines for the day
Kingfisher Airlines drops on violation of tax rules
Wockhardt tanks after Mylan gets nod to sell Toprol
Orchid Chemicals secures $1.5 mn payment from Merck & Co.
RIL denies Network 18 stake report
Sensex, Nifty hit 28-month lows; RIL hits 52-week low
A late sell-off pushed the key benchmark indices to their lowest level in almost 28 months. The BSE Sensex was provisionally down 197.29 points or 1.28%, off 266.08 points from the day's high and up 46.19 points from the day's low. The market breadth was weak. Barring the BSE FMCG index, all the other 12 sectoral indices on BSE were in the red. Index heavyweight Reliance Industries (RIL) slumped to 52-week low in volatile trade. Capital goods stocks dropped on worries that new order flows will be hit adversely in a slowing economy, with L&T, Bhel, and Jaiprakash Associates hitting 52-week lows. Tata Power also hit 52-week low
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Interest rate sensitive banking and auto stocks declined in volatile trade, extending their recent losses after the Reserve Bank of India (RBI) kept its short-term lending rate unchanged at its mid-quarter monetary policy review meet on Friday, 16 December 2011. State Bank of India (SBI) hit 52-week low. Metal stocks edged lower, with steel maker Tata Steel hitting a 52-week low. IT pivotals edged lower on ongoing sovereign debt crisis in Europe. ITC gained on defensive buying.
Data showing sustained selling by foreign funds over the past few days weighed on sentiment. Foreign institutional investors (FIIs) sold shares worth Rs 450.37 crore on Monday, 19 December 2011, as per the provisional data from the stock exchanges. FII outflow totaled Rs 2371.70 crore in seven trading sessions from 9 to 19 December 2011, as per provisional data from the stock exchanges. The outflow followed sustained inflow early this month.
The market pared gains soon after a positive start. The market regained strength later. The Sensex once again trimmed gains in early trade. The market slipped into the red in morning trade. The market cut losses after hitting fresh intraday low in mid-morning trade. Key benchmark indices weakened again after trimming intraday losses in early afternoon trade. The market hit fresh intraday low in afternoon trade. The market cut losses in mid-afternoon trade as pivotals recovered from the day's lows. Volatility ruled the roost as the market tumbled in late trade after moving into positive zone for a short while in mid-afternoon trade.
As per provisional closing, the BSE Sensex was down 197.29 points or 1.28% to 15,182.05. The index gained 68.79 points at the day's high of 15,448.13 in early trade, its highest level since 16 December 2011. The index fell 243.48 points at the day's low of 15,135.86 in late trade, its lowest level since 21 August 2009.
The S&P CNX Nifty was down 64.40 points or 1.40% to 4,548.70. The Nifty hit a high of 4,637.25 in intraday trade, its highest level since 16 December 2011. The Nifty hit a low of 4,531.15 in intraday trade, its lowest level since 21 August 2009.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,886 shares declined and 906 shares advanced. A total of 118 shares were unchanged.
The total turnover on BSE amounted to Rs 1900 crore, higher than Monday's turnover of Rs 1844 crore.
From the 30-member Sensex pack, 25 declined while only five of them managed gains.
Index heavyweight Reliance Industries (RIL) lost 3.25% to Rs 711.95 after diving to a 52-week low of Rs 709.15 in intraday trade today, 20 December 2011. The company's advance tax payment reportedly fell 15.79% to Rs 1002 crore in Q3 December 2011 over Q3 December 2010. Oil minister Jaipal Reddy said in a written reply in the lower house of parliament on Thursday, 15 December 2011, that the decline in gas output from RIL's east coast block is due to the company drilling fewer number of wells than promised and stoppage of production at six wells.
RIL late last month said that it has initiated arbitration proceedings against the government to seek an independent view of a tribunal on the issue of the company's entitlement of recovery of entire costs on KG-D6 gas blocks from the revenue generated from the blocks. RIL said it has initiated arbitration proceedings against the Government of India (GoI) in a bid to finally resolve the cost recovery issue so as not to hinder future investments in this block.
RIL said its investment in KG-D6 production facilities has been only partly recovered and the return on the investment so far is less than the cost of the capital. The production sharing contract (PSC) with the Government of India (GoI) contains no provision which entitles the GoI to restrict the costs recovered by the company by reference to factors such as the level of production or the extent to which field facilities are utilised, RIL said.
India's largest oil exploration firm by market capitalization ONGC gained 2.91%.to Rs 254.50 and was the top gainer from the Sensex pack. Crude oil futures rose for the second day in a row on forecasts that US crude stockpiles declined for a second week and on speculation that further sanctions against Iran will curb supply. Higher crude oil prices will result in higher realizations from crude sales for oil exploration firms.
Capital goods stocks dropped on worries that new order flows will be hit adversely in a slowing economy. India's largest dam builder by sales Jaiprakash Associates slumped 8.04% to Rs 53.20 and was the top loser from the Sensex pack. The stock hit a 52-week low of Rs 53.10 in intraday trade today, 20 December 2011.
Engineering and construction major L&T declined 5.70% to Rs 973.25 after sliding to a 52-week low of Rs 972.05 in intraday trade today, 20 December 2011. During market hours today, 20 December 2011, the company said it has bagged new orders valued at Rs 1000 crore across various business segments in Q3 December 2011.
India's largest power equipment maker by sales Bhel rose 1.04% to Rs 233.95. The stock recovered after hitting a 52-week low of Rs 225 in intraday trade today, 20 December 2011.
Private sector power generation major Tata Power Company slumped 5.11% to Rs 81.70, extending two-day fall. The stock hit a 52-week low of Rs 80.65 today, 20 December 2011.
Interest rate sensitive banking stocks declined in highly volatile trade, extending recent losses after the Reserve Bank of India (RBI) kept its short-term lending rate viz. the repo rate and cash reserve ratio (CRR) unchanged after mid-quarter monetary policy review announced on Friday, 16 December 2011. A section of investors expected a cut in interest rates or CRR after recent data showed a moderation in inflation and slower economic growth. They were left disappointed.
India's largest private sector bank by branch network, ICICI Bank, lost 0.40% to Rs 654.50 after the bank's American depository receipt, or ADR fell 3.55% to settle at $24.43 on the New York Stock Exchange on Monday, 19 December 2011. The stock had declined to a 52-week low of Rs 641 on Monday, 19 December 2011. The bank's advance tax reportedly remained flat at Rs 450 crore in Q3 December 2011.
India's second largest private sector bank by branch network, HDFC Bank, advanced 2.20%. The bank's advance tax reportedly rose 20% to Rs 900 crore in Q3 December 2011 over Q3 December 2010.
India's largest bank by net profit and branch network State Bank of India (SBI) shed 2.68% to Rs 1,587.85 after sliding to a 52-week low of Rs 1,576 today. The bank's advance tax reportedly fell 6.48% to Rs 1730 crore in Q3 December 2011 over Q3 December 2010.
Metal stocks edged lower after LMEX, a gauge of six metals traded on the London Metal Exchange, fell 1.38% to $3,189.80 on Monday, 19 December 2011. Sterlite Industries (India) (down 1.72%), JSW Steel (down 4.16%), Sesa Goa (down 5.17%), Hindalco Industries (down 4.37%), declined.
India's largest private sector steel maker Tata Steel lost 5.46% to Rs 343.50 after falling to a 52-week low of Rs 342.20 today.
Interest rate sensitive auto stocks reversed intraday gains as the Reserve Bank of India (RBI) kept short term lending rate steady. Purchases of automobiles, including that of cars, utility vehicles and commercial vehicles are substantially driven by financing. India's largest tractor maker by sales Mahindra & Mahindra (M&M) shed 0.42%. The company's advance tax reportedly fell 4.34% to Rs 220 crore in Q3 December 2011 over Q3 December 2010. The company on Thursday, 15 December 2011, said it will raise prices of its vehicles by up to 3% in January 2012 to offset the effects of rising raw-material costs. The company's total auto sales jumped 52.7% to 40,722 units in November 2011 over November 2010.
India's largest small car maker by sales Maruti Suzuki India slipped 0.17%. The company's total sales fell 18.5% to 91,772 units in November 2011 over November 2010.
India's largest motorcycle maker by sales Hero MotoCorp dropped 5.74%. The company's advance tax reportedly rose 50% to Rs 180 crore in Q3 December 2011 over Q3 December 2010. The company's sales rose 27.4% to 536,772 units in November 2011 over November 2010.
India's second largest motorcycle maker by sales Bajaj Auto fell 2.69%. The company's advance tax reportedly rose 21.62% to Rs 450 crore in Q3 December 2011 over Q3 December 2010. Bajaj Auto's total vehicle sales jumped 25% at 374,477 units in November 2011 over November 2010.
India's largest passenger vehicle maker by sales Tata Motors fell 2.61% to Rs 175.20. The stock declined on profit booking after surging 4.44% on Monday, 19 December 2011. The company's global vehicle sales rose an annual 35% to 1,08,028 units in November 2011 over November 2010, the company said in a statement on Thursday, with its luxury Jaguar Land Rover unit reporting a 27% rise in sales to 29,183 units. Sales of Jaguar cars fell 5% to 5,315 units while those of Land Rover sport-utility vehicles gained 38% to 23,868 units. The company said it sold 49,724 trucks and buses globally in November, up 24% from a year earlier.
Software pivotals edged lower amid ongoing sovereign debt crisis in Europe, which is the second biggest outsourcing market for IT services exporters after the US. India's largest software services exporter by revenues Tata Consultancy Services (TCS) fell 0.65%. Before market hours on Monday, 19 December 2011, TCS announced that it will expand its operations in the state of Maharashtra by building a new software development campus in Nagpur with an investment of Rs 600 crore in the first phase.
India's second largest software services exporter by revenues Infosys slipped 0.34%. During market hours today, 20 December 2011, the company said its business process outsourcing subsidiary -- Infosys BPO has signed a definitive agreement to acquire all of the outstanding share capital in Australia-based Portland Group Pty, a leading provider of strategic sourcing and category management services. The purchase consideration for the deal is Australian dollar (AUD) 37 million. Portland Group reported revenue of about AUD 31.3 million for the year ended 30 June 2011.
India's third largest software services exporter by revenues Wipro fell 1.76%.
India's largest cigarette maker by sales, ITC gained 1.34% on defensive buying.
At its mid-quarterly monetary policy review meet on Friday, 16 December 2011, the Reserve Bank of India (RBI) left its main lending rate unchanged in order to support faltering economic growth as inflation shows signs of cooling. While inflation remains on its projected trajectory, downside risks to growth have clearly increased, RBI said in a statement. From this point on, monetary policy actions are likely to reverse the cycle, responding to the risks to growth, RBI said.
However, it must be emphasized that inflation risks remain high and inflation could quickly recur as a result of both supply and demand forces, the central bank said in statement. Also, the rupee remains under stress, RBI said. The timing and magnitude of further actions will depend on a continuing assessment of how these factors shape up in the months ahead, RBI said. The RBI has raised rates 13 times since March 2010.
As per reports, advance taxes for the third quarter from corporates headquartered in Mumbai have risen 10%. Cements and pharma companies have reported surge in advance tax payment for the third quarter. Advance taxes are collected in four installments -- 15% by 15 June; 40% by 15 September; 75% by 15 December and 100% by 15 March.
Credit rating agency Moody's Investors Service on 14 December 2011 said that the sharp decline in the value of the Indian rupee against the dollar is generally exerting only a moderate impact on rated Indian companies. Risks for companies holding large amounts of dollar denominated debt are also manageable in the near term, given that debt maturities are limited for this time frame, Moody's said in a new report. This means Indian companies rated by Moody's do not have a significant dollar outflow at a time when the Indian rupee is losing ground.
Continuing further in its fight to lift the rupee, the Reserve Bank of India (RBI) late on Friday deregulated non-resident external (NRE) rupee deposits and ordinary non-resident (NRO) accounts, opening the gates to a flood of dollars. While NRE deposits can be repatriated in dollars, NRO monies can't, and are held in rupees in India. The RBI said banks are free to determine the interest rates they offer on both savings deposits and term deposits.
The Reserve Bank of India (RBI) took steps on 15 December 2011 to arrest the free-fall of the rupee after the local currency hit a new record low against the dollar for the fourth consecutive day. The new currency rules include reducing the net amount of US dollar-versus-rupee trade that authorized foreign-exchange dealers can hold on their books. Another measure of the bank's new rules would limit the amount of currency hedging by importers, who typically buy dollars.
The Union Cabinet on Sunday approved the draft of the path-breaking National Food Security Bill which seeks to provide subsidised foodgrains to over half of India's 1.2 billion population. The bill was a part of the Congress manifesto for the 2009 general elections and seeks to combat widespread hunger in the country. The bill is likely to cost Rs 2 lakh crore annually for the government.
A government statement in parliament last month dashed hopes of a relief in securities transaction tax (STT). Junior finance minister S.S. Palanimanickam has said that the government has no proposal to lower the securities transaction tax (STT). There has been a speculation that the government will reduce STT in Union Budget 2012-2013 in a bid to revive sagging volumes on the bourses. Palanimanickam said in a written reply to Rajya Sabha that the securities transaction tax receipts had declined by around 18% to Rs 2960 crore during the first six months in the current fiscal year from a year ago period.
The government has reportedly decided to extend the winter session of Parliament to discuss and pass the Lokpal Bill. The Prime Minister has cleared the Lokpal Bill draft which will now be taken at a Union Cabinet meet this evening, reports suggest.
European stocks moved off initial lows on Tuesday after Sweden's central bank, the Riksbank, on Tuesday announced it will cut the repo rate by 0.25 percentage points to 1.75% and said the rate will remain low next year. Key benchmark indices in Germany and France were up 0.62% and 0.44%. In UK, the FTSE 100 was down 0.11%
Asia markets were mixed on Tuesday. Key benchmark indices in China, Indonesia and Singapore were down by between 0.10% to 0.65%. Key benchmark indices in Hong Kong, Japan, Taiwan and South Korea were up by between 0.06% to 0.91%.
Asian shares had declined sharply in the previous session, after the death of North Korean leader Kim Jong-Il and fears about debt-stricken Europe kept investors cautious.
Trading in US index futures indicated that the Dow could advance 76 points at the opening bell on Tuesday, 20 December 2011. A speech by European Central Bank President Mario Draghi on Monday, which dampened hopes of additional bond purchases and more aggressive aid to struggling European nations, contributed to a weaker finish for US stocks on that day. The Dow Jones Industrial Average dropped 100.13 points, or 0.84%, to 11,766.26. The S&P 500 slipped 14.31 points, or 1.1%, to 1,205.35 and the Nasdaq Composite index declined 32.19 points, or 1.2%, to 2,523.14.
Crude prices rise for first time in four sessions
Traders remain focused on potential developments at Korea
Crude prices ended higher for first time in four sessions on Monday, 19 December 2011 at Nymex. Prices remained volatile but recovered from their intra day lows and ended little higher. Traders remained a bit cautious. The dollar traded in the higher range against the competing currencies for most part of the day. Trading has moved into a holiday mode, whereby volumes are lighter and price movements generally smaller. The market place did get a bit of a jolt overnight when news reports said North Korean leader Kim Jong II had died. However, the market uncertainty was not extreme.
Bullions shed glaze
Gold ends little lower while silver closes at session lows
Precious metals ended lower on Monday, 19 December 2011 at Comex. While gold ended marginally lower, silver closed at session lows. The dollar traded in the higher range against the competing currencies for most part of the day. Trading has moved into a holiday mode, whereby volumes are lighter and price movements generally smaller. The market place did get a bit of a jolt overnight when news reports said North Korean leader Kim Jong II had died. However, the market uncertainty was not extreme.
Market seen halting four-day declining trend
The market is likely to end its four-day falling trend tracking positive Asian stocks. However, sentiment remains negative amid the ongoing euro zone debt crisis, sustained selling by foreign funds and slowdown in domestic growth. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a gain of 9.50 points at the opening bell.
Key benchmark indices edged lower for the fourth day in a row on Monday, 19 December 2011 as data showing sustained selling by foreign funds over the past few days, ongoing worries about euro-zone sovereign debt crisis and geopolitical worries arising from death of North Korean leader Kim Jong-il hurt sentiment adversely. The BSE Sensex lost 112.01 points or 0.72% to settle at 15,379.34, its lowest closing level since 21 August 2009.
Daily News Roundup - Dec 20 2011
Mahindra & Mahindra will showcase its Korean subsidiary Ssangyong's vehicles Rexton and Korando for the first time in India during the upcoming Auto Expo next month.
(ET)
Deregulation of interest rates on non resident term deposits has triggered an interest rate war among banks, with small banks like South Indian Bank and Federal Bank increasing deposit rates.(ET)
India Infrastructure Finance Company ( IIFCL) plans to launch a US$1bn infrastructure debt fund by the end of February.(ET)
Mukesh Ambani, the chairman of Reliance Industries is in talks to buy Network 18, the television and internet company, the Wall Street Journal said quoting people familiar with the situation.(ET)
Sensex escapes deep cuts...Ends modestly lower
The Indian stock markets kicked off the new trading week on a negative note, extending the losses from Friday. Concerns about the worsening macro-economic backdrop - both domestic and global - kept the market participants on tenterhooks throughout the day.
The frontline Indian indices and the rupee both recovered from their session lows after a couple of key markets in Asia pulled back from their day's lows. European indices too rallied after a weak start. The Nifty recovered from the session low after hitting an intra-day low of 4556.
But overall, the undercurrent remains very fragile, as investors continue to shun risk amid no sign of improvement in the domestic economic fundamentals and persistent worries about the eurozone debt crisis.
No signs of maturity yet!
Sign of maturity is not when we start saying big things but actually it is when we start understanding small things. – Anonymous.
The main indices are now hovering around 28-month lows. They did manage a pullback from lows on Monday while the volatile rupee closed above the 53-per-dollar mark. The start today is likely to be a better one. Asian markets are in the positive zone though US indices slid, with banks taking a hit. European benchmarks were mixed.
Swelling fiscal deficit, widening current account gap, high interest rates, slowing economy and policy inaction are forcing foreign investors to commit less to India. Lingering worries over the euro area debt crisis continue to play spoilsport as well.
Monday, December 19, 2011
BSE Bulk Deals to Watch - Dec 19 2011
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
19/12/2011 533292 A2Z Maint & Engg CREDIT SUISSE (SINGAPORE) LIMITED A/C CREDIT SUISSE (SINGAPO B 689722 95.50
19/12/2011 533292 A2Z Maint & Engg VCM LTD MAURITIUS S 689722 95.50
19/12/2011 511501 Bharat Bhushan Share DHAR MILAN S 20700 9.05
19/12/2011 533469 Birla Pacific Medspa ISE STOCK BROKING SERVICES P LTD B 681500 6.92
NSE Bulk Deals to Watch - Dec 19 2011
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
19-DEC-2011,CENTENKA,Century Enka Ltd,ASHOK C SAMANI,BUY,240412,88.70,-
19-DEC-2011,KBIL,Kirloskar Bros Invest Ltd,SUDARSHAN SECURITIES PVT. LTD.,BUY,193000,699.91,-
19-DEC-2011,NUTEK,Nu Tek India Limited,SUNIL CAPITAL CAPITAL & SECURITIES PVT LTD,BUY,793006,1.40,-
19-DEC-2011,ORCHIDCHEM,Orchid Chemicals Ltd.,CROSSEAS CAPITAL SERVICES PVT. LTD.,BUY,529694,120.65,-
Sensex down for 4th day, closes 112 points lower
The Indian markets extended fall for the fourth day, with the Sensex closing 112 points lower and the Nifty declining by 39 points
Headlines for the day
Monnet Ispat surges on buyback plan
Orchid Chemicals receives sanction for $100 mn via ECB
Kingfisher grounds 15 planes; banks working with airline
DQE sells broadcasting rights for Chaplin & Co
Nifty December 2011 futures near spot price
Turnover declines
Nifty December 2011 futures were at 4613.75, near spot closing of 4613.10. Turnover on NSE's futures & options (F&O) segment declined to Rs 136646.71 crore from Rs 182602.40 crore on Friday, 16 December 2011.
State Bank of India (SBI) December 2011 futures were at 1626.85, near spot closing of 1626.
Axis Bank December 2011 futures were at 835.55, at a discount compared to spot closing of 850.65.
Sensex provisionally down 0.92%; breadth weak
Key benchmark indices edged lower for the fourth day in a row as data showing sustained selling by foreign funds over the past few days, ongoing worries about euro-zone sovereign debt crisis and geopolitical worries arising from death of North Korean leader Kim Jong-il hurt sentiment adversely. Intraday volatility was high. The barometer index, BSE Sensex, was provisionally down 142.70 points or 0.92%, up 157.91 points from the day's low and off 91.45 points from the day's high. The market breadth was weak.
L&T, Bhel, Sterlite Industries (India), Tata Steel, ICICI Bank, State Bank of India (SBI) and Maruti Suzuki India hit 52-week lows today. Index heavyweight Reliance Industries (RIL) edged higher in volatile trade. FMCG stocks rose on defensive buying in a weak market. Interest rate sensitive auto and banking stocks extended Friday's (16 December 2011) decline as the Reserve Bank of India's decision to keep repo rate unchanged after a policy review on that day disappointed some. Bharti Airtel recouped almost entire losses after a steep initial sell-off.
Markets may fall start on Europe debt rating warning
The start looks weak as worries over the euro zone debt crisis heightened after Fitch Ratings warned of possible downgrades for seven European nations
Headlines for the day
Food Security Bill gets Cabinet nod
2G: Raja acted on Chidambaram's instructions, says Swamy
Kingfisher to get $47m loan from Sahara: Report
FinMin okays FDI proposal in broadcast carriage services
US stocks witness mixed finish on Friday as Dow pares earlier gains
Indices suffer substantial weekly losses as Eurozone's troubles hang over investors' heads
US stocks ended with substantial losses for the week that ended on Friday, 16 December 2011. The first three sessions of the week saw stocks decline. A lack of progress by Europe's leaders in restoring economic and financial conditions in both the core and periphery of the continent often hung over the minds of many traders. Those themes also implicated the euro; it dropped to an 11-month low during the middle of the week before making a modest recovery in the later half of the week.
Red metal strengthens on Friday
Prices falter on a weekly basis
Red metal prices ended higher on Friday, 16 December 2011 at Comex. Copper rose on Friday, due to a retreating dollar and firm U.S. economic data, but gains look vulnerable going into next week with Europe's debt crisis and its impact on metals demand still causing concern. A steadier tone in wider markets, and a halt in the slide of the euro against the dollar was lending metals some support on Friday. A softer dollar makes commodities less expensive for holders of other currencies.
Modest gains for bullions on Friday
Bullions suffer substantial weekly losses though
Precious metals ended higher on Friday, 16 December 2011 at Comex. Prices rose as traders mulled over the fact that recent drop in price for bullions was overdone. Prices also rose as the dollar stayed steady. Despite Friday's gains, bullion registered substantial weekly losses.
Gold for February delivery ended higher by $20.7 or 1.3%, to end at $1,597.9 an ounce on the Comex division of the New York Mercantile Exchange on Friday. For the week, the yellow metal lost 6.8%.
Crude prices end modestly lower
Prices shed close to 6% on a weekly basis
Crude prices ended modestly lower on Friday, 16 December 2011 at Nymex. Prices fell as US stocks pared almost all their gains and ended in a mixed mode at the end with the Dow ending in the red while going into close.
Light and sweet crude for January delivery fell $0.34 (0.4%) to $93.43 a barrel on the New York Mercantile Exchange on Friday. Oil traded as low as $92.52 and as high as $94.79 a barrel during the day. For the week, crude lost 5.9%. For the month of November, oil futures gained 7.7%.
Market likely to open lower tracking negative Asian equities
The market is poised for a subdued start mirroring weakness in Asian equities. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 38.50 points at the opening bell.
Key benchmark indices extended losses for the third consecutive trading session on Friday, 16 December 2011 to hit their lowest level in more than two years led by a decline in capital goods stocks. The BSE Sensex lost 345.12 points or 2.18% to 15,491.35, its lowest closing level since 3 November 2009.
The Sensex has fallen 632.11 points or 3.92% so far this month. The Sensex has slumped 5,017.14 points or 24.46% in calendar 2011. From a 52-week high of 20,664.80 on 3 January 2011, the Sensex has lost 5,173.45 points or 25.03%.
Sunday, December 18, 2011
Market to remain subdued
Indian bourses are expected to remain highly volatile with a downward bias in the week ahead, but may see a positive opening on Monday after witnessing a steep fall last week, according to analysts.
"Markets will be highly volatile with a downward bias this week. A combination of global news on the euro zone crisis, currency fluctuation and foreign funds investment will determine the market trend through the week," IIFL President - Retail Broking Prashanth Prabhakaran said.
Rakesh Jhunjhunwala's stocks fall
Billionaire investor Rakesh Jhunjhunwala, whose long-term bets have earned him popular titles such as 'the big bull', now faces a lot of red in his portfolio.
Since December 1, as the market benchmark declined 6%, stocks that Jhunjhunwala owns have lost up to 30%. VIP Industries, a big chunk of the billionaire's portfolio, led the list with the maximum notional loss of 30.5%.
Other losers include Provogue India, Subex and Reliance Broadcast Network, Aptech and Delta Corp, all of which are down 16-25%. Broadly, Jhunjhunwala's entire portfolio is in the red, with 25 out of 28 stocks analysed by ET recording a decline in December.
Muthoot Finance NCD - Series II
Name of the Issue : Muthoot Finance NCD - Series II
Issue Date : 22nd December,2011
Issue Size : Rs.300 Cr + Rs.300 Cr. Green Shoe Option
Period : 2, 3 and 5 years
NSE Bulk Deals to Watch - Dec 16 2011
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
16-DEC-2011,BEDMUTHA,Bedmutha Indust Ltd,ARISTRO CAPITAL MARKETS PRIVATE LIMITED,BUY,120000,41.69,-
16-DEC-2011,KWALITY,Kwality Dairy (India),EPOCH SYNTHETICS PVT LTD,BUY,1030000,32.60,-
16-DEC-2011,PARAPRINT,Paramount Printpack Ltd,BP FINTRADE PRIVATE LIMITED,BUY,354125,4.84,-
16-DEC-2011,PARAPRINT,Paramount Printpack Ltd,MULTIPLIER S AND S ADV PVT LTD,BUY,200037,4.80,-
16-DEC-2011,PARAPRINT,Paramount Printpack Ltd,SHAILESH LAVAJIBHAI GOHEL,BUY,250000,4.86,-
16-DEC-2011,BARTRONICS,Bartronics India Limited,RELIGARE FINVEST LTD,SELL,300000,22.82,-
16-DEC-2011,BIRLACOT,Birla Cotsyn (India) Limi,JITENDRA B SALECHA HUF,SELL,16000000,0.25,-
16-DEC-2011,EMAMIINFRA,Emami Infrastructure Ltd,SHOPARNA BROTHERS PRIVATE LIMITED,SELL,175000,19.69,-
16-DEC-2011,KWALITY,Kwality Dairy (India),EPOCH SYNTHETICS PVT LTD,SELL,12000,33.10,-
16-DEC-2011,PARAPRINT,Paramount Printpack Ltd,BP FINTRADE PRIVATE LIMITED,SELL,478195,4.84,-
16-DEC-2011,PARAPRINT,Paramount Printpack Ltd,MULTIPLIER S AND S ADV PVT LTD,SELL,300044,4.96,-
Saturday, December 17, 2011
Markets hit 2-year low, end week down over 4%
It was a stressful week with the markets reacting to a constant flow of news. The Sensex dropped 4.45% and the Nifty fell 4.42% in this week
Headlines for the week
October IIP at -5.1% versus 1.9% in September
November inflation at 9.11% vs 9.73% in October
RBI leaves key interest rates unchanged
Rupee hits new record low past 54 per dollar
Stocks may get support on expectations of RBI rate cut
The Reserve Bank of India (RBI)'s announcement after a mid-quarter monetary policy review on Friday, 16 December 2011, that its future policy action will be to reverse the monetary-tightening cycle due to the risks to growth, could provide support to share prices which have been battered over the past few months. The RBI has raised rates 13 times since March 2010.
Traders will start building positions based on Q3 December 2011 results which will start trickling from the second week of January 2012. As per reports, advance taxes for the third quarter from corporates headquartered in Mumbai have risen 10%. Cements and pharma companies have reported surge in advance tax payment for the third quarter. Advance taxes are collected in four installments -- 15% by 15 June; 40% by 15 September; 75% by 15 December and 100% by 15 March.
Market slips to 2-year lows
Key benchmark indices tumbled to hit their lowest level in more than two years after the Reserve Bank of India (RBI) spoiled sentiments by keeping cash reserve ratio (CRR) unchanged, despite tight liquidity in the system, in its much awaited mid-quarter monetary policy review on Friday (16 December 2011). Data showing higher-than-expected inflation reading for November 2011 and a decline in industrial production in October 2011 also dampened sentiment.
Data showing selling by foreign funds recently also spooked investors. Foreign institutional investors (FIIs) sold shares worth Rs 323.28 crore on Thursday, 15 December 2011, as per the provisional data from the stock exchanges. FII outflow totaled Rs 1701.09 crore in five trading sessions from 9 to 15 December 2011, as per provisional data from the stock exchanges. The recent outflow followed sustained inflow early this month.
Market closes at 25 month low
Key benchmark indices tumbled to hit their lowest level in more than two years led by a decline in capital goods stocks. The market fell for the third consecutive trading session. Index heavyweight Reliance Industries (RIL) dropped more than 3%. The barometer index, BSE Sensex, fell below the psychological 16,000 level, having alternately moved above and below that mark in intraday trade. Interest rate sensitive banking, auto and realty stocks declined after Reserve Bank of India (RBI) kept cash reserve ratio (CRR) and short-term lending rate steady after mid-quarter monetary policy review today.
Friday, December 16, 2011
Flat start likely; RBI policy eyed
Today’s opening is likely to be on a flat note as cautious trade is expected ahead of the RBI policy.
Headlines for the day
R-Cap in talks to buy majority stake in Bloomberg UTV
IOC cuts domestic jet fuel prices by Rs920/kl
JSW Energy ups stake in S African coal firm
RBI reduces net open position limits for dealers in FX mkt
Oil companies reduce ATF price by 1.3%
Kingfisher to cut flights to Himachal
Daily News Roundup - Dec 16 2011
Arvind Ltd has announced the formation of a JV with the PD Fiber Glass Group for the manufacture of glass fabrics in India with an investment of Rs800mn over the next 5 years. (BL)
Adani Power Ltd is set to bring on stream the entire 4,620-MW proposed thermal power capacity at Mundra by February. (BL)
Mahindra & Mahindra has announced a price rise of up to 3% across its passenger vehicle, commercial vehicle and tractor range, effective from next month. (BL)
Tata Motors’ global wholesales, including the Jaguar Land Rover (JLR) brand, rose 35% to 1.08 lakh units in November 2011. (BL)
Late recovery saves Sensex…Nifty below 4750
It could well have been worse for Indian markets but for the late afternoon recovery. The start was pretty bad and it looked like another disappointing session before the ‘U’ turn in afternoon. The main indices didn’t exactly set the screens afire but the pull back was commendable nevertheless. The Indian rupee, which breached the 54 mark versus the dollar and hit a new low also recovered on suspected RBI intervention.
The main trigger for the recovery was positive opening in the European markets and the euro rising back above $1.30. Third-quarter advance tax numbers from some of the top corporates also lent good support as did a sharp drop in food inflation. Advance tax paid by the top 100 Indian companies is said to have increased by 10% in the third quarter. That is in line with the growth registered in the second quarter.
Mission Impossible- RBI Protocol!
When you discover your mission, you will feel its demand. It will fill you with enthusiasm and a burning desire to get to work on it.- W. Clement Stone.
Earlier RBI’s mission may have been mostly fighting inflation. For now, the RBI governor has to fight many battles simultaneously as he meets his colleagues to review the monetary policy. The backdrop is quite bleak given the intensity of local and global headwinds; rising government borrowings, falling rupee, slowdown in growth and overseas uncertainty to mention a few.
Bullions witness another day of mixed finish
Gold drops for third straight day but silver edges up
Precious metals ended mixed on Thursday, 15 December 2011 at Comex. Comex February gold futures prices turned lower for third straight day while silver rose. Comex February gold futures prices ended the U.S. day session lower on follow-through selling pressure from Wednesday's sharp losses that did rattle traders and investors. March silver futures prices closed nearer the session high on Thursday but did hit a fresh 2.5-month low early on. Silver prices have been trending lower in a choppy fashion for six weeks.
Gold for February delivery ended lower by $9.7 or 0.6%, to end at $1,577.2 an ounce on the Comex division of the New York Mercantile Exchange on Thursday.
Crude prices continues to slip
Prices fell despite a flat dollar and better than expected economic reports
Crude prices ended modestly lower on Thursday, 15 December 2011 at Nymex. Prices fell despite a flat dollar and better than expected economic reports. Prices continued with their prior session's decline when crude prices had slumped more than $5 at one single session.
Light and sweet crude for January delivery fell $1.08 (1.1%) to $93.87 a barrel on the New York Mercantile Exchange on Thursday. Last week, crude lost 1.5%. For the month of November, oil futures gained 7.7%.
Market may open flat to slightly higher; RBI policy eyed
The market may open flat to slightly higher on firm Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a gain of 5 points at the opening bell.
The Reserve Bank of India (RBI) is widely expected to hold its key policy rate steady after a mid-quarter review of the monetary policy today, 16 December 2011. The RBI had announced a 25 basis points hike in its key policy rate viz. the repo rate to 8.5% after half-yearly review of the monetary policy on 25 October 2011. The central bank cut its GDP growth forecast for the current fiscal year through March 2012 to 7.6% from 8% earlier. But it retained its March-end inflation projection of 7%. Interest rate sensitive banking, realty and auto stocks will be in focus ahead of RBI's monetary policy.
Better trades for the day - Dec 16 2011
Global Cues:
The European shares rose in thin volume on Thursday (December 15, 2011) as technical factors pointed to oversold levels, while a Spanish bond auction produced good demand and U.S. data helped improve sentiment on the global economy.
The US stocks gained on Thursday, snapping a three-day losing streak, after investors took heart from stronger US economic data, but finished off session highs after another warning about Europe's sovereign-debt crisis.
The Asian indices edged up on Friday (December 16, 2011), as signs of strength in the US economy temporarily broke through gloom over the European debt crisis that had driven a sell-off in riskier assets over the past three days. SGX Nifty was trading 4 points lower.
Thursday, December 15, 2011
Rupee at 54
Rupee dropped to another record low versus the dollar on Thursday as concerns heightened slowing domestic growth will spur further capital outflows.
The partially convertible rupee hit an all-time low of 54.30 per dollar in early trading, taking losses to about 4 percent this week
Market may extend losses on weak Asian stocks; Q3 advance tax numbers eyed
The market may extend losses tracking weak Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 59.50 points at the opening bell. On the macro front, the government will today, 15 December 2011, unveil data on some wholesale price indices viz. the food price index, the primary articles index and the fuel price index for the year through 3 December 2011.
The third advance tax installment is due today, 15 December 2011, which may provide cues on Q3 December 2011 corporate earnings. Advance taxes are collected in four installments -- 15% by 15 June; 40% by 15 September; 75% by 15 December and 100% by 15 March.
Daily News Roundup - Dec 15 2011
Larsen & Toubro has commissioned a 384-MW gas-based unit at GMR's 1,200 MW gas-based power plant at Vemagiri, Andhra Pradesh. (BL)
The CBEC has lifted the freeze on the bank accounts of Kingfisher and Air India. (BL)
MindTree has been selected by UK-based Millennium & Copthorne Hotel's to manage its e-business initiative. (BL)
Punjab National Bank has launched its ‘customer contact week'. (BL)
Reliance Industries Ltd has alleged that the petroleum ministry is violating coal bed methane contract by restricting price discovery which could lead to revenue loss for the central and state exchequers. (BS)
Sensex slips despite softer inflation…Rupee weighs
Tuesday’s relief rally was perhaps more of a flash in the pan. Indian markets resumed their southbound journey as fall in November inflation was not as sharp as anticipated. In addition, the rupee extended its recent slide, hitting a new all-time low versus the US dollar. The yield on the 10-year benchmark Government bonds spiked to 8.5%. Weakness in the euro also partly weighed on the sentiment amid lingering concern about the eurozone debt crisis. Most world markets were also down after the Federal Reserve refrained from announcing any new stimulus measures at its last meeting of 2011.
Dollar on a dream run
"A dollar saved is a quarter earned." - John Ciardi.
It’s a nightmare out there for most asset classes. Barring the dollar, almost all asset classes are down and cash seems to be the safest bet at the moment. The euro slumped below $1.30, an 11-month low, after Italy's borrowing costs surged. The dollar index is ruling well above 80. Brent crude has cooled off a bit after OPEC raised its output ceiling. Gold has slid below $1600. The yellow metal is below its 200-DMA for the first time in almost three years.
US stocks fell for a third straight day on worries about the euro area debt crisis and disappointment over Fed inaction. US treasury prices gained, pushing 10-year yields further below 2%, after strong demand at an auction of 30-year bonds. European stock indices were deep in red as well. Most Asian markets are also down this morning with Hang Seng pacing the decline.
Markets may see lower start as global risks rise
The start looks weak today on fears that Europe's debt crisis is still worsening. The outlook for the world economy is growing bleaker.
Headlines for the day:
SBI expects Rs 3,000-4,000 cr capital infusion this fiscal
Oil firms may hike petrol prices by 65 paise from Friday
Kingfisher, Air India make part-payment, accounts defreezed
RIL writes to FM against oil ministry
DLF set to ink Rs 900-cr Pune SEZ deal with Blackstone
Retail gets realty check: SMEs back multi-brand FDI
Sensex ends below 16K on record low rupee, inflation concerns
The Indian markets erased previous session’s gains as higher monthly inflation and falling rupee weighed. The Sensex fell 121 points and the Nifty declined 37 points
Headlines for the day
November inflation at 9.11% vs 9.73% in October
Reliance Capital hits 52-week low on insurance FDI rejection
Areva T&D hits 52-week low on demerger of distribution business
Cable service providers rise as Lok sabha passes bill
Nifty settles at over 2-1/2-week low as hopes of early RBI rate-cut diminish
Key benchmark indices dropped in choppy trade as higher-than-expected inflation reading for November 2011 dashed hopes that the Reserve Bank of India (RBI) will advance a rate cut to early next year to stimulate the economy. Data showing selling by foreign funds recently and weak European shares also dampened sentiment. The barometer index, BSE Sensex, fell below the psychological 16,000 mark, having alternately moved above and below that mark in intraday trade. The 50-unit S&P Nifty settled at its lowest level in more than 2-1/2 weeks. The BSE Sensex was down 121.37 points or 0.76%, off close to 150 points from the day's high and up about 25 points from the day's low. Index heavyweight Reliance Industries edged lower in choppy trade. The market breadth was weak.
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The Sensex has fallen 242.32 points or 1.5% so far this month. The Sensex has slumped 4,627.95 points or 22.56% in calendar 2011. From a 52-week high of 20,664.80 on 3 January 2011, the Sensex has lost 4,783.66 points or 23.14%. From a 52-week low of 15,478.69 on 23 November 2011, the Sensex has risen 402.45 points or 2.6%.
Coming back to today's trade, most metal shares declined as global commodity prices fell. Interest rate sensitive realty, auto and banking stocks fell as higher-than-expected inflation reading for November 2011 dashed hopes that the Reserve Bank of India (RBI) will advance a rate cut to early next year to stimulate the economy. Tata Power Company hit 52-week low. Shares of broadcasting companies and cable service providers were mixed after a Bill aimed at digitization of cable TV was passed by the Lok Sabha on Tuesday, 13 December 2011.
Intraday volatility was high. The market recovered after an initial slide triggered by weak Asian stocks. The intraday recovery gathered steam as the Sensex soon moved into positive zone. A bout of volatility was witnessed as key benchmark indices extended gains to hit fresh intraday highs in mid-morning trade. Intraday volatility continued as key benchmark indices which had jumped to hit fresh intraday highs ahead of inflation data slumped into the red to hit fresh intraday low after the data showed inflation in November rose more than the market expectations. Key benchmark indices bounced back after hitting fresh intraday lows in early afternoon trade.
Intraday volatility continued as the Sensex once again slipped into the red later. The Sensex alternately swung between gains and losses in mid-afternoon trade. The Sensex slumped to hit fresh intraday low in late trade.
Foreign institutional investors (FIIs) sold shares worth Rs 560.80 crore on Tuesday, 13 December 2011, as per the provisional data from the stock exchanges. FII outflow totaled Rs 1237.67 crore in three trading sessions from 9 to 13 December 2011, as per provisional data from the stock exchanges. The recent outflow followed sustained inflow early this month.
A news agency today, 14 December 2011, quoted an unnamed senior finance ministry official as saying that the government does not intend to curb capital outflow to help arrest the rupee's slide. The comments come even as Finance Minister Pranab Mukherjee today, 14 December 2011, admitted that capital outflows are a matter of concern. Reserve Bank of India Deputy Governor Subir Gokarn recently said the central bank will use all possible measures, including strategic capital controls, if the risk of the rupee depreciating escalates. The RBI has said it will issue a "definitive statement" on the rupee at its mid-quarter monetary policy review on Friday, 16 December 2011.
Credit rating agency Moody's Investors Service today, 14 December 2011, said that the sharp decline in the value of the Indian rupee against the dollar is generally exerting only a moderate impact on rated Indian companies. Risks for companies holding large amounts of dollar denominated debt are also manageable in the near term, given that debt maturities are limited for this time frame, Moody's said in a new report. This means Indian companies rated by Moody's do not have a significant dollar outflow at a time when the Indian rupee is losing ground. Moody's latest assessment comes as the local currency continued its recent steep slide, recording a new all-time low against the dollar for a third straight day today, 14 December 2011.
The BSE Sensex lost 121.37 points or 0.76% to settle at 15,881.14, its lowest closing level since 12 December 2011. The index declined 147.39 points at the day's low of 15,855.12 in late trade. The index rose 130.90 points at the day's high of 16,133.41 in early afternoon trade, its highest level since 12 December 2011.
The S&P CNX Nifty shed 37.35 points or 0.78% to settle at 4,763.25, its lowest closing level since 25 November 2011. The Nifty hit a high of 4,839.55 in intraday trade, its highest level since 12 December 2011. The Nifty hit a low of 4,750.40 in intraday trade.
The BSE Mid-Cap index fell 0.95% and the BSE Small-Cp index declined 0.81%. Both these indices underperformed the Sensex.
BSE clocked turnover of Rs 1923 crore, lower than Rs 2066.59 crore on Tuesday, 13 December 2011.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,669 shares fell and 1,066 shares rose. A total of 138 shares were unchanged.
From the 30-member Sensex pack, 23 stocks fell and the rest of them rose.
Index heavyweight Reliance Industries (RIL) fell 0.12% to Rs 741.70. The stock was volatile. The stock hit a high of Rs 753.90 and a low of Rs 734. RIL late last month said that it has initiated arbitration proceedings against the government to seek an independent view of a tribunal on the issue of the company's entitlement of recovery of entire costs on KG-D6 gas blocks from the revenue generated from the blocks. RIL said it has initiated arbitration proceedings against the Government of India (GoI) in a bid to finally resolve the cost recovery issue so as not to hinder future investments in this block.
RIL said its investment in KG-D6 production facilities has been only partly recovered and the return on the investment so far is less than the cost of the capital. The production sharing contract (PSC) with the Government of India (GoI) contains no provision which entitles the GoI to restrict the costs recovered by the company by reference to factors such as the level of production or the extent to which field facilities are utilised, RIL said.
Tata Power Company declined 3.98% to Rs 86.90. The stock hit a 52-week low of Rs 86.20 today.
Interest rate sensitive bank stocks fell as higher-than-expected inflation reading for November 2011 dashed hopes that the Reserve Bank of India (RBI) will advance a rate cut to early next year to stimulate the economy. India's second largest private sector bank by net profit, HDFC Bank, fell 0.58%. India's largest bank by net profit and branch network State Bank of India (SBI) declined 0.14%. India's largest private sector bank by net profit, ICICI Bank fell 0.35% to Rs 702.85 in volatile trade. The stock had hit a 52-week low of Rs 690.25 on Tuesday, 13 December 2011.
Interest rate sensitive auto stocks declined as higher-than-expected inflation reading for November 2011 dashed hopes that the Reserve Bank of India (RBI) will advance a rate cut to early next year to stimulate the economy. Purchases of automobiles, including that of cars, utility vehicles and commercial vehicles are substantially driven by financing.
India's largest truck maker by sales Tata Motors shed 1.15%. The company's total sales rose 41% to 76,823 units in November 2011 over November 2010.
India's largest tractor maker by sales Mahindra & Mahindra (M&M) fell 3.53%. The company's total auto sales jumped 52.7% to 40,722 units in November 2011 over November 2010.
India's second largest motorcycle maker by sales Bajaj Auto declined 0.75%. Bajaj Auto's total vehicle sales jumped 25% at 374,477 units in November 2011 over November 2010.
India's largest car maker by sales Maruti Suzuki India shed 0.88%. The company's total sales fell 18.5% to 91,772 units in November 2011 over November 2010.
India's largest motorcycle maker by sales Hero MotoCorp fell 1.84%. The company's sales rose 27.4% to 536,772 units in November 2011 over November 2010.
Ashok Leyland rose 0.2%. The company reported 53.36% jump in commercial vehicle sales at 7,878 units in November 2011 over November 2010.
Car sales in India rose in November, the first monthly rise in five, an industry body said on Thursday, 8 December 2011, as the industry rebounded strongly from the biggest fall in over a decade the month before. Domestic passenger car sales increased by 7% to 1,71,131 units in November 2011, from 1,59,939 units in the same month last year. According to figures released by the Society of Indian Automobile Manufacturers (SIAM) on Thursday, motorcycle sales in the country grew by 22.67% to 8,69,070 units during the month from 7,08,476 units in the corresponding month last year. Total two-wheeler sales grew by 25.27% to 11,63,294 units last month from 9,28,660 units in November 2010, as per the data. Sales of commercial vehicles grew by 34.99% to 66,264 units in the month under review from 49,087 units in the year-ago period, SIAM said.
Engineering and construction major L&T declined 1.04% to Rs 1159.50. The company announced during trading hours today, 14 December 2011, that it has successfully commissioned a 384 megawatts (MW) unit of GMR's gas based power plant at Vemagiri, near Rajahmundry in Andhra Pradesh. Demonstrating its integrated execution capabilities, L&T completed the project in a record time of 24 months. The steam turbine for this unit was synchronized on 4 December 2011 and the gas turbine on 27 August 2011.
In September 2006, L&T had successfully commissioned the first unit of a similar capacity at the same location. Work is also in its advanced stage for the third unit of similar capacity in which a gas turbine is expected to be synchronised soon. The complete unit is scheduled to be commissioned in the next few months. On completion of all three units, the national grid will benefit from a total capacity of 1,200 MW gas based power plant at a single location.
This project has been executed by the Gas Based Power Projects -- Strategic Business Unit of L&T Power, based in Baroda. L&T's scope included design, detailed engineering, supply, installation and commissioning of the complete power plant on a turnkey basis. The plant incorporates state-of-art advance class gas turbines from General Electric and high efficiency steam turbines from Alstom.
Airline stocks extended losses as a weak rupee heightened concerns about its impact on operating costs. SpiceJet, Jet Airways and Kingfisher Airlines fell by between 1.88% to 4.37%. A weak rupee impacts aviation sector adversely as almost a third of operational expenses of aviation firms are denominated in dollars. Among the payments made in dollars, include rentals of leased aircraft, maintenance, spare parts and salary paid out to foreign crew.
Interest rate sensitive realty stocks fell as higher-than-expected inflation reading for November 2011 dashed hopes that the Reserve Bank of India (RBI) will advance a rate cut to early next year to stimulate the economy. Purchases of both residential and commercial property are largely driven by finance. HDIL, Unitech, DLF and Indiabulls Real Estate fell by between 1.59% to 3.58%.
Most metal shares declined as global commodity prices fell. JSW Steel, Jindal Saw, Tata Steel, Sail, Sesa Goa, Sterlite Industries, Hindustan Zinc, Jindal Steel & Power, and Hindalco Industries fell by between 0.78% to 3.94%.
Shares of broadcasting companies and cable service providers were mixed after a Bill aimed at digitisation of cable TV was passed by the Lok Sabha on Tuesday, 13 December 2011. Hathway Cable and Dish TV rose by between 0.26% to 3.05%. Wire & Wireless India and Den Networks fell by between 1.71% to 4.86%.
The Lok Sabha on Tuesday, December 13, 2011 passed the second Bill to amend the Cable TV Networks (Regulation) Act 1995, which aims to replace the Ordinance promulgated in October 2011. The Bill is aimed at digitising the cable TV sector by 31 December 2014. The Cable Television Networks (Regulation) Amendment Bill 2011 will usher in a host of changes, which include systematic registration of cable operators, inspection of cable network services, use of standard equipment in the cable TV network, mandatory transmission of channels such as Doordarshan, prescription of interference standards by the Central Government and empowering the Telecom Regulatory Authority of India (TRAI) to specify basic service tier and its tariff.
Digitisation of cable TV is expected to boost the subscription revenues for broadcasters as it will end the hefty carriage fee paid to cable TV operators. At the same time, the Government has assured the cable operators that digitisation would not hurt them.
Siemens fell 1.8%. The company announced during market hours today its entry into sustainable and innovative engineering, procurement and construction solutions for solar photovoltaic plants in India.
National Thermal Power Corporation (NTPC) fell 2.16%. The company announced during market hours today that it has signed a contract agreement with Electricity Generation Company of Bangladesh (EGCB) for providing operation and maintenance services for the 2x120 megawatt (MW) gas based Siddhirganj Peaking Power Plant located near Dhaka in Bangladesh. This contract is awarded against international competitive bidding and is valued at about 8.8 million dollars (Rs 43 crore). EGCB will be receiving loan from International Development Association (The World Bank) for this O&M Services. This is the largest single international order received by the company. The company has thus forayed in to becoming an "International O&M Operator", NTPC said in a statement.
Cairn India and Oil India rose 0.49% and 0.17%, respectively after crude oil futures gained 2.4% to settle at $100.14 a barrel on the New York Mercantile Exchange on Tuesday, 13 December 2011. Higher crude oil prices will result in higher realizations from crude sales for oil exploration firms such as Cairn India and Oil India. Crude oil for January 2012 delivery gained $2.37 a barrel, or 2.42% to settle at $100.14 a barrel on the New York Mercantile Exchange on Tuesday, 13 December 2011
Shares state-run oil marketing companies fell after crude oil price gained. HPCL (down 4.36%), BPCL (down 4.89%) and Indian Oil Corporation (down 2.32%) edged lower. Higher crude oil prices will increase under-recoveries of public sector oil marketing companies (PSU OMCs) on domestic sale of diesel, LPG and kerosene at controlled prices. A a weak rupee further impacts PSU OMCs as the crude oil that refineries process is either imported or priced on import-parity.
IT stocks rose after the rupee fell to a new record low versus the US dollar on Wednesday, 14 December 2011. India's third largest software services exporter by revenue Wipro gained 0.63%. India's largest software services exporter TCS was flat. But, India's second largest software services exporter by revenue Infosys fell 0.5%.
The rupee hit another record low on Wednesday as worse-than-expected inflation data and the US Fed's decision to refrain from new economy-boosting measures heightened concerns that capital outflows from riskier economies could accelerate. The rupee was at 53.67/68 to the dollar, after hitting an all-time low of 53.75, taking the drop since its July high to 18.4%. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.
Sun Pharmaceutical Industries rose 1.68% on defensive buying.
Mahan Industries clocked highest volume of 2.36 crore shares on BSE. Cals Refineries (75.46 lakh shares), Triveni Engineering and Industries (48.37 lakh shares), Pennar Industries (45.44 lakh shares) and Jaiprakash Associates (34.63 lakh shares) were the other volume toppers in that order.
SBI clocked highest turnover of Rs 257.72 crore on BSE. RIL (Rs 82.82 crore), ICICI Bank (Rs 65.18 crore), Tata Steel (Rs 60.42 crore) and L&T (Rs 54.96 crore) were the other turnover toppers in that order.
The third advance tax installment is due tomorrow, 15 December 2011, which may provide cues on Q3 December 2011 corporate earnings. Advance taxes are collected in four installments -- 15% by 15 June; 40% by 15 September; 75% by 15 December and 100% by 15 March.
A government statement in parliament last month dashed hopes of a relief in securities transaction tax (STT). Junior finance minister S.S. Palanimanickam has said that the government has no proposal to lower the securities transaction tax (STT). There has been a speculation that the government will reduce STT in Union Budget 2012-2013 in a bid to revive sagging volumes on the bourses. Palanimanickam said in a written reply to Rajya Sabha that the securities transaction tax receipts had declined by around 18% to Rs 2960 crore during the first six months in the current fiscal year from a year ago period.
The annual inflation declined in November 2011 from the previous month but remained above the 9% mark, data released by the government showed on Wednesday. Inflation, as measured by the wholesale price index (WPI), was at 9.11% in November as against 9.73% in October, the Union Commerce & Industry Minister said today. Inflation figure for September 2011 was revised upwards to 10% from initial estimate of 9.72%.
Chief economic adviser Kaushik Basu today, 14 December 2011, said that he expects food inflation to drop to 3% within a month. His comments came before the announcement of the monthly inflation data for November 2011.
Industrial production shrank 5.1% in October versus 11.3% growth in the same period a year earlier, data released by the Commerce Ministry showed on Monday, 12 December 2011. It was the first decline in industrial production in more than two years. Industrial output last fell in June 2009, when it shrank 1.8%. Manufacturing output, which has a 75.5% weight in the index of industrial production, fell 6% from a year earlier in October, compared with a 2.4% rise the previous month. Mining output shrank 7.2%, after falling 5.6% in September. September's industrial production growth was revised upwards marginally to 2%, from 1.9% earlier.
The government last week cut its economic growth forecast to 7.25%-7.75% from the previous 8% for the current year through March 2012 (FY 2012), and it also warned of possible fiscal slippage caused by global uncertainties. In a mid-year economic review presented in parliament on Friday, 9 December 2011, the finance ministry said that commitments on account of additional requirement on various subsidies will make it difficult to adhere to the total expenditure target for the current year. However the government promised to keep the slippage to a minimum as it broadly adheres to its long-term fiscal rigor, the report added. The government had pegged fiscal deficit at 4.6% of gross domestic product when it presented the Union Budget 2011-2012 in February 2011.
The reduction in GDP growth forecast for FY 2012 comes after the economy grew an annual 6.9% in the quarter ending September 2011, its slowest pace in more than two years. The government said headline inflation would decline from December 2011, expecting it to ease to 7% by March 2012.
The government also said that the Rs 40000-crore stakes sale target in state-run companies would be hard to achieve this fiscal year, while tax receipts would suffer from the impact of the global slowdown. The government is considering options other than share sales to meet its divestment target in state-run companies for the fiscal year ending March, the junior finance minister said on Friday.
India's manufacturing sector expansion slowed in November as factory output grew at its slowest pace in nearly three years although export demand should provide some cheer for factories, a survey showed on 1 December 2011. The HSBC Markit India Manufacturing PMI fell to 51 in November from 52 in October, but has stayed above the 50 mark that divides growth from contraction for 32 months. The PMI was 50.4 in September.
On the flip side, India's services sector expanded in November for the first time in two months as new business accelerated despite persistent inflationary pressures, a survey showed on Monday. The seasonally adjusted HSBC Markit Business Activity Index -- based on a survey of around 400 firms -- stood at 53.2 in November, above the 50-mark that separates growth from contraction. It had fallen to 49.1 in October after contracting for the first time in more than two years in September to 49.8. Despite tight monetary conditions, the sub-index for new business accelerated to 52.3 in November from 51 in October, driving the turnaround in the service sector.
India's November exports are seen at $22.3 billion while imports for the month are seen at $35.9 billion, leaving a trade deficit f $13.6 billion, Trade Secretary Rahul Khullar told media reporters on Friday. Exports between April and November are seen up 33.2 percent from a year earlier to $192.7 billion, Khullar said, citing provisional data.
The Reserve Bank of India (RBI) announced a 25 basis points hike in its key policy rate viz. the repo rate to 8.5% after half-yearly review of the monetary policy on 25 October 2011. The central bank cut its GDP growth forecast for the current fiscal year through March 2012 to 7.6% from 8% earlier. But it retained its March-end inflation projection of 7%. RBI said the projected inflation trajectory indicates that the inflation rate will begin falling in December 2011 (January 2012 release) and then continue down a steady path to 7% by March 2012. It is expected to moderate further in the first half of 2012-13. This reflects a combination of commodity price movements and the cumulative impact of monetary tightening. Further, moderating inflation rates are likely to impact expectations favourably.
Three key Bills relating to judicial accountability, protection of whistle blowers and Citizens Charter, which Anna Hazare wanted to be brought under the Lokpal, were passed by the Union Cabinet on Tuesday. The Judicial Standards and Accountability Bill, 2010, Public Interest Disclosure and Protection to Persons Making the Disclosures Bill, 2010, widely known as the Whistleblowers' Protection Bill and Citizens' Charter and Grievance Redressal Bill 2011, were passed by the cabinet. However, the Union Cabinet has deferred a decision on an ambitious Food Security Bill. The food security program promises to give cheap food grains to 63.5% of the country's 1.2 billion population. It would guarantee seven kilograms of wheat, rice and coarse grains to each member of a poor family every month, and at least three kgs to those who are slightly better off. The grains would be supplied to the poor at a subsidized price of three rupees/kg for rice, two rupees/kg for wheat and one rupee/kg for coarse grains.
European stocks declined for the second day in three after the Federal Reserve refrained from taking new action to bolster the world's largest economy. Key benchmark indices in France, and Germany were down 0.48% to 1.39%. UK's FTSE 100 rose 0.54%.
Asian shares drifted lower on Wednesday, 14 December 2011, after the Federal Reserve failed to take any new steps to stimulate growth and offset the chilling effects of Europe's still-unresolved debt crisis. Key benchmark indices in China, Hong Kong, Indonesia, Japan, Singapore, and South Korea fell by between 0.26% to 0.89%. Key benchmark index in Taiwan rose by 0.38%.
Trading in US index futures indicated that the Dow could gain 24 points at the opening bell on Wednesday, 14 December 2011. US stocks dropped Tuesday as Federal Reserve officials didn't take immediate action to bolster the economy and as domestic retail-sales data offered a disappointing view on the holiday-shopping season. US retail sales grew less than expected in November after solid gains during the two previous months. Another data showed that small-business optimism improved in December for a third straight month, as the outlook for the labor market improved and as expectations for real sales gains turned positive.
The Federal Reserve maintained a status quo on its monetary policy, keeping borrowing costs at record low and holding the stimulus measures. The Federal Open Market Committee (FOMC) voted 9-to-1 for keeping interest rates at record lows at least through mid-2013, while also holding the line on ongoing stimulus policies. "The Committee will continue to assess the economic outlook in light of incoming information and is prepared to employ its tools to promote a stronger economic recovery in a context of price stability," the FOMC said in a statement.
US House voted 234 to 193 on Tuesday to approve a payroll tax-cut package that also includes an oil-pipeline provision opposed by the White House. The extension of the tax cut may remain in a limbo with about two weeks remaining until it expires. The bill is unlikely to pass the Senate due to strong opposition from Democratic leaders, setting the stage for another political showdown ahead of the holiday recess. The White House says that President Barack Obama will veto the bill
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