Market settles at highest level in more than a week

Key benchmark indices attained their highest closing level in more than a week, supported by firm global stocks and higher US index futures. Reports came just as trading ended in India that Germany's parliament has approved a package of measures enhancing the lending power and flexibility of the euro-zone bailout fund, the European Financial Stability Facility, by a thumping majority. The 50-unit S&P CNX Nifty regained the psychological 5,000 mark. The barometer index BSE Sensex jumped 252.05 points or 1.53%, up close to 380 points from the day's low and off about 60 points from the day's high. The market breadth was negative. The BSE Small-Cap and Mid-Cap indices edged lower.



Stocks were volatile as traders rolled over positions in the futures & options (F&O) segment from the near-month September 2011 series to October 2011 series. The September 2011 derivatives contracts expired today, 29 September 2011.

Index heavyweights Reliance Industries (RIL) surged in late trade. Oil exploration giant ONGC advanced, extending Wednesday's gains triggered by the company's board giving its nod to Cairn Energy PLC's proposal to sell a majority stake in its Indian unit to miner Vedanta Resources PLC. Engineering and construction major L&T cut losses after sliding to a 52-week low. IT pivotals edged higher for the second running day after Accenture PLC, the world's second-largest technology consulting company, early this week reported fourth-quarter profit that exceeded analysts' estimates on increasing spending by businesses. Auto and banking shares logged gains in volatile trade.

The market was volatile ahead of F&O expiry. The market edged lower in early trade. Key benchmark indices trimmed losses after hitting fresh intraday lows in morning trade. The market in a narrow range in mid-morning trade. The market reversed direction and moved into positive zone in early afternoon trade, tracking gains in Asian shares. The market regained strength after trimming gains from intraday high in afternoon trade. The market pared gains after hitting fresh intraday high in mid-afternoon trade. The market surged in late trade.

The BSE Sensex jumped 252.05 points or 1.53% to settle at 16,698.07, its highest closing level since 21 September 2011. The index jumped 310.06 points at the day's high of 16,756.08 in late trade. The index lost 129.36 points at the day's low of 16,316.66 in morning trade, its lowest level since 27 September 2011.

The S&P CNX Nifty jumped 69.55 points or 1.41% to settle at 5,015.45, its highest level since 21 September 2011. The Nifty hit a high of 5,034.25 in intraday trade. The Nifty hit a low of 4,906 in intraday trade, its lowest level since 27 September 2011.

The BSE Mid-Cap index fell 0.16% and the BSE Small-Cap index declined 0.11%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1,515 shares declined and 1,270 shares gained. A total of 101 shares remained unchanged.

Among the 30-share Sensex pack, 23 gained while the rest declined.

The total turnover on BSE amounted to Rs 2261 crore, lower than Wednesday's Rs 2516.08 crore.

Index heavyweight Reliance Industries (RIL) gained 1.39% to Rs 808.10, recovering sharply from intraday low of Rs 784.50. BP PLC on Wednesday, 28 September 2011, said it expects its partnership with RIL to boost natural gas output at the D6 block in the Krishna Godavari basin, off India's east coast. BP Chief Executive Robert Dudley and RIL Chairman Mukesh Ambani met trade minister Anand Sharma in New Delhi on Wednesday, 28 September 2011.

RIL is fighting a decline in gas output at the D6 block. BP and RIL on Wednesday, 28 September 2011, pitched for permission from the government to develop satellite fields adjacent to the D6 block. RIL, last month, closed a deal with UK-based BP to sell a 30% stake in its 21 oil and gas exploration blocks in India. RIL recently denied inflating costs on its D6 gas field in the Krishna-Godavari (KG) basin. RIL made the clarification after CAG said in its final report submitted to the parliament on Thursday, 8 September 2011, that RIL initially estimated capital expenditure of D-1 and D-3 gas discovery at $2.4 billion, which it later revised to $8.8 billion.

RIL, owner of the world's biggest refining complex, last week, said it is planning to take Maintenance and Inspection (M&I) shutdown of Light Cycle Oil hydrocracker (LCOHC) and Vacuum Gas Oil hydtrotreating unit (VGOHT) of SEZ refinery at Jamnagar refinery complex from 19 to 23 September 2011 respectively. These maintenance shutdowns will be for a period of approximately 4 weeks, RIL said. The routine shutdown of these units is being planned for the first time since commissioning. Both the refineries at Jamnagar complex are planned to operate at maximum crude processing capacity i.e. 1.3 million barrels per day during this period. All other major processing units at the complex are also planned to operate at normal capacity, RIL said.

RIL's advance tax payment rose 37.6% to Rs 1800 crore in Q2 September 2011 over Q2 September 2010, hinting at good Q2 results from the diversified firm.

India's largest oil exploration firm by market capitalisation ONGC advanced 2.73%, extending Wednesday's gains triggered by the company's board giving its nod to Cairn Energy PLC's proposal to sell a majority stake in its Indian unit to miner Vedanta Resources PLC. The ONGC board approved the transaction on condition that both Cairn and Vedanta agree to share royalties on crude oil output from a joint venture block in Rajasthan, and withdraw a tax arbitration case. Shares of Cairn India lost 0.61%.

ONGC owns a 30% stake in India's largest onshore oil find in Rajasthan state, where Cairn India is the operator with a 70% holding. Despite owning a 30% stake in the Rajasthan field, ONGC has been paying the entire royalty on production.

Auto stocks recovered. India's largest small car maker by sales Maruti Suzuki India rose 2.82%. Maruti on Wednesday resumed production of its A-star small car at its Manesar, Haryana factory, where output has been affected by labor issues. Maruti was until early this week focusing on making the Swift hatchback at Manesar to cut the long waiting period on the car, for which it has received 1,08,000 bookings since launching a new version in August 2011. It resumed making the SX4 sedan at Manesar on Tuesday after production of the Swift reached normal levels.

Maruti produced a total of 700 units of the Swift hatchback at its two factories on Wednesday, 28 September 2011. The company has produced 10,000 units of Swift at its two factories since 31 August 2011

India's largest commercial vehicle maker by sales Tata Motors surged 3.21%, reversing intraday losses. A single judge Bench of Calcutta High Court on Wednesday, 28 September 2011, ruled that the Singur Land Rehabilitation and Development Bill 'is constitutionally legal'. Justice Indra Prasanna Mukherjee held that the act was framed under the provision of the constitution. Tata Motors had moved the high court challenging the constitutional legality of the Bill which was passed by the West Bengal state government to take back the land from Singur, leased out to Tata Motors to set up a small car factory.

Tata Motors said in a statement on Wednesday that it will study the judgment and decide its next course of action.

India's largest tractor maker by sales Mahindra & Mahindra rose 2.93%. During trading hours on Thursday, 29 September 2011, the company said it has launched its new global sport utility vehicle XUV 500 at a starting price of Rs 10.80 lakh ex-showroom Delhi.

Among two wheeler makers, Hero MotoCorp rose 2.24% and Bajaj Auto rose 1.81%.

Interest rate sensitive banking stocks were off day's low on bargain hunting. India's largest private sector bank by net profit ICICI Bank rose 2.38% to Rs 889.65 after sliding to an intraday low of Rs 858.50. India's second largest private sector bank by net profit HDFC Bank vaulted 2.94% to Rs 470.65, rebounding sharply from day's low of Rs 452.60.

India's largest bank by branch network and net profit State Bank of India (SBI) lost 0.94% to Rs 1950.10 after falling to day's low of Rs 1913.55.

Software pivotals edged higher for the second running day after Accenture PLC, the world's second-largest technology consulting company, early this week, reported fourth-quarter profit that exceeded analysts' estimates on increasing spending by businesses. Accenture also gave 2012 forecasts exceeding projections.

India's second largest software services exporter Infosys advanced 3.04%. India's largest software services exporter TCS advanced 1.16%. India's third largest software services exporter Wipro rose 0.3% in volatile trade.

CRISIL expects Indian IT services providers to report buoyant revenue growth of around 17% on the back of strong pipeline. However, EBITDA margins are likely to decline by around 200 bps due to rising salary costs.

A weak rupee also supported IT stocks. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports. The partially convertible rupee was at 48.95/96 per dollar, weaker than its close of 48.75/76 on Wednesday.

India's largest engineering and construction firm by order book L&T dropped 2.47% to Rs 1369.55, after sliding to a 52-week low of Rs 1350 today, 29 September 2011. The stock extended recent losses and was the top loser from the Sensex pack.

India's largest power equipment maker by sales Bhel rose 1.96%, reversing initial losses ahead of 4 October 2011 record date for a 5-for-1 stock split.

India's largest dam builder by sales Jaiprakash Associates jumped 6.29% to Rs 74.40, reversing Wednesday's 4.37% slide. It was the top gainer from the Sensex pack.

Shares of state-run oil-marketing companies rose as crude oil prices declined. BPCL (up 2.02%), HPCL (up 1.67%) and Indian Oil Corporation (IOC) (up 0.13%), edged higher. Lower crude oil prices will reduce under-recoveries of state-run oil marketing companies (PSU OMCs) on domestic sale of diesel, LPG and kerosene at controlled prices. The government freed pricing of petrol last year.

Crude for November delivery declined 3.8% or $3.24 a barrel to settle at $81.21 a barrel on the New York Mercantile Exchange on Wednesday, 28 September 2011, as weekly inventory data showed a surprise rise in US crude stockpiles.

Cairn India fell 1.04% as crude oil prices fell. Lower crude oil prices will result in lower realizations from crude sales for oil exploration firms such as Cairn India.

FMCG stocks edged higher on expectations of pick up in demand from the rural sector on good rains this year. Rural sector whose livelihood depends on good crop contributes substantially to the topline of FMCG firms. ITC, Hindustan Unilever, and Britannia Industries gained by between 1.11% to 2.77%.

Hindalco Industries and Sterlite Industries (India) were mixed as copper futures declined in Asian electronic trading session. India's largest private sector aluminium maker by sales Hindalco Industries rose 1.52% to Rs 133.70, off the day's low of Rs 128.10. The stock had dived to a 52-week low of Rs 125 in intraday trade on Monday, 26 September 2011. India's largest non-ferrous metals maker Sterlite Industries (India) lost 1.17% to Rs 118.65. The stock had hit 52-week low of Rs 115.05 in intraday trade on Monday, 26 September 2011.

Among other metal stocks, Jindal Steel & Power, Tata Steel, Sail and JSW Steel rose by between 0.96% to 2.94%.

India's largest real estate developer DLF lost 0.2%. The stock declined on profit booking after advancing 13.24% in prior four trading sessions. Reportedly Kingdom Holding Company, promoted by Saudi Arabian billionaire prince Al Waleed Bin Talal and a Chinese investor are vying with French luxury group LVMH to own luxury hotel chain Aman Resorts, which has been put on the block by realty major DLF.

Cals Refineries clocked highest volume of 1.26 crore shares on BSE. SpiceJet (45.97 lakh shares), Jaiprakash Associates (45.71 lakh shares), K S Oils (43.70 lakh shares) and Resurgence Mines (37.66 lakh shares) were the other volume toppers in that order.

L&T clocked highest turnover of Rs 143.17 crore on BSE. PG Electroplast (Rs 115.96 crore), SBI (Rs 104.22 crore), Reliance Capital (Rs 73.81 crore) and RIL (Rs 64.92 crore) were the other turnover toppers in that order.

The Sensex has risen 21.32 points or 0.12% in this month so far. The index has slumped 3,811.02 points or 18.58% in calendar 2011. From a 52-week high of 21,108.64 on 5 November 2010, the Sensex has lost 4,410.57 points or 20.89%. From a 52-week low of 15,765.53 on 26 August 2011, the Sensex has risen 932.54 points or 5.91%.

The near-term major trigger for the market is Q2 September 2011 results. The advance tax payment by top 100 companies rose a modest 9.9% in Q2 September 2011 from a year ago against 19% growth in Q1 June 2011, suggesting corporate profit growth is likely to be muted in the second quarter. Among the big companies that have paid lower advance tax, indicating a drop in profits, include State Bank of India (SBI), Maruti Suzuki and state-run Neyveli Lignite Corporation. SBI's advance tax payment declined 14.2% to Rs 1650 crore in Q2 September 2011. Maruti's tax payment fell 55.8% to Rs 120 crore. Neyveli Lignite tax payment plunged 50.1% to Rs 66 crore. But, Reliance Industries' (RIL) advance tax payment jumped 37.6% to Rs 1800 crore, hinting at good Q2 results from the diversified firm.

CRISIL Research expects corporate India to report a significant moderation in revenue growth and lower EBITDA (earnings before interest, taxation, deprecation and amortization) margins in Q2 September 2011, primarily due to decline in consumer confidence, on account of stubbornly high inflation, rising interest rates, and slowdown in investment growth. Based on an analysis of the aggregate financial performance of select companies across 21 industries, excluding banks and oil companies, CRISIL Research expects around 15% revenue growth in Q2 September 2011, as compared to 19% growth Q1 June 2011 and 22% growth in Q2 September 2010.

Although companies have hiked prices, slower volume growth, along with high input costs and rising wages, will put pressure on margins, CRISIL says. CRISIL expects a 100 basis points (bps) reduction in EBITDA margins in Q2 September 2011 from 19.5% in Q1 June 2011. Further, with increase in interest rates, net margins are expected to fall even more sharply.

According to CRISIL, sales volumes in consumption-linked and interest rate sensitive sectors such as automobiles, real estate, textiles, and retail have been significantly impacted. In infrastructure-linked sectors such as cement, capital goods, and construction, order book/volume growth has declined.

CRISIL expects real estate players to report a 5% year-on-year (yoy) decline in revenue and a sharp reduction in EBITDA margins. Automakers, textiles and steel manufacturers are also expected to see a sharp decline in margins on the back of slower offtake and high raw material costs. For cement and construction players too, EBITDA margins are likely to remain under pressure owing to slowdown in pace of project execution as well as rising input costs. But, IT services providers are expected to report buoyant revenue growth of around 17% on the back of strong pipeline. However, EBITDA margins are likely to decline by around 200 bps due to rising salary costs, CRISIL says.

Investors will closely watch the management commentary at the time of announcement of Q2 September 2011 results, which will provide cues on futures earnings outlook. IT bellwether Infosys kickstarts the Q2 September 2011 earnings season on 12 October 2011. Housing finance major HDFC unveils Q2 results on 17 October 2011. HDFC Bank unveils Q2 results on 19 October 2011. Bajaj Auto reveals Q2 results on 20 October 2011. Colgate Palmolive (India) and BPCL unveil Q2 results on 31 October 2011.

The market regulator Securities and Exchange Board of India on Wednesday set a minimum net worth of Rs 100 crore for companies that wish to issue structured products or market-linked debentures to raise funds. Sebi also set the minimum size for such issues at Rs 10 lakh. Market-linked debentures are hybrid products which have the features of usual debt securities, but offer market-linked returns like an exchange-traded derivative. The issuer company will have to appoint a third party, a credit-rating company registered with the regulator, which will provide the value of the security at least once a week, Sebi said in a circular.

The finance ministry is reportedly considering some tax cuts on equities and foreign exchange trading to lower transaction costs and broaden participation in a market hurt by weak global sentiment. The ministry may cut stamp duty on forwards and options trading in equities to 0.003% and that on foreign exchange derivatives trading to 0.0001%, news reports on Monday, 26 September 2011, said quoting an unnamed finance ministry official.

The ministry may cut stamp duty on forwards and options trading in equities to 0.003% and that on foreign exchange derivatives trading to 0.0001%. The departments of revenue and economic affairs are debating the size of stamp duty cuts in the cash segment, the official said. While the stamp duty is levied by provincial governments and varies from state to state, the finance ministry is proposing it be made uniform, the official said. The final decision on stamp duty cuts will be taken by the federal cabinet, which will then need to be accepted and executed by the state governments, the official added.

The government is reportedly a considering a proposal to allow foreign individuals to invest directly in local stock markets. Currently, only individuals with a net worth of at least $50 million are allowed to buy local shares through registered foreign institutional investors. The proposed move is part of the government's efforts to boost foreign participation in local stock markets. Last month, the government had allowed foreign individuals to buy domestic mutual funds.

A news agency on Monday, 26 September 2011, quoted principal economic adviser to the ministry of finance Dipak Dasgupta as saying that the government has no plans to tax or impose restrictions on capital outflows. He said the government will instead focus on liberalising fund inflows into the economy, particularly via overseas borrowing.

Finance Minister Pranab Mukherjee recently said central banks in emerging economies have been forced to raise interest rates repeatedly as they battle high inflation, exposing them to volatile capital flows. "An issue of immediate concern for emerging economies is managing large capital flows," he said. "Large and volatile capital flows to emerging markets can be destabilizing as they lead to high exchange rate volatility and in some cases make it incumbent to maintain high levels of foreign exchange reserves as an insurance against sudden and large-scale flight of international capital."

The government recently raised the limit of overseas borrowing for companies to $750 million from $500 million. Indian companies can also now raise loans up to $1 billion in Chinese yuan. The relaxation of overseas borrowing rules will help Indian companies tap cheaper cash abroad amid rising credit costs in the local market. US and European countries have near-zero interest rates in a bid to support weak economic growth.

The government recently cleared the ambitious $90-billion Delhi-Mumbai industrial corridor. The Delhi-Mumbai industrial corridor project will set up nine mega industrial zones of about 200-250 square kilometre (km) along with a 1,500 km high speed freight line connecting the two cities. It will include three ports and six airports, as well as a six-lane intersection-free expressway connecting the two cities and a 4,000 megawatts (MW) power plant and also set up seven new cities.

The public private partnership (PPP) approval committee recently approved projects worth Rs 18000 crore that include a housing project for para-military forces and a road project among others.

A memorandum of understanding (MoU) was signed recently between India Infrastructure Finance Company (IIFCL), LIC and IDFC with respect to the Takeout Finance Scheme (TFS). Under the MoU, the project lender(s) will offer eligible infrastructure projects to IIFCL for availing takeout financing. Finance Minister Pranab Mukherjee said he expects this mechanism will help financing to the tune of Rs 30000 crore, adding this will facilitate banks to take more exposure in new projects, which in turn will help in bridging the gap in infrastructure financing.

Given the lackluster initial FII response to the government's sharply raising the ceiling of FII investment in long-term corporate bonds issued by the companies in the infrastructure sector in March 2011, the government on 12 September 2011, further relaxed the norms on FII investment in such bonds. The Finance Ministry said in a statement that FIIs can now invest in long-term infra bonds, subject a ceiling of $5 billion limit, which have an initial maturity of five years or more at the time of issue and residual maturity of one year at the time of first purchase by FIIs. These investments are subject to a lock-in period of one year. FIIs can trade amongst themselves in these bonds but cannot sell to domestic investors during the lock-in period of one year.

FIIs can also now invest, subject to a ceiling of $17 billion, in long-term infra bonds which have an initial maturity of five years or more at the time of issue and residual maturity of three years at the time of first purchase by FIIs. These investments are subject to a lock-in period of three years. During the three-year lock-in period, FIIs can trade amongst themselves but cannot sell to domestic investors. The Securities & Exchange Board of India (Sebi) is expected to issue notifications incorporating these changes in the scheme by 15 October 2011.

Sebi had in early August 2011 allowed Qualified Foreign Investors (QFIs) to subscribe to Mutual Fund Debt Schemes which invest in the infrastructure sector subject to a total overall ceiling of $3 billion within the total ceiling of $25 billion.

Planning Commission deputy chairman Montek Singh Ahluwalia on 12 September 2011, said at a conference that private funding has to make up half of the infrastructure investment of $1 trillion planned for in the five years during 2012-2017. Prime Minister Manmohan Singh also said at that conference that to overcome the fund crunch for infrastructure projects, the government has proposed to set up a $11 billion fund to help finance infrastructure projects. "We have also constituted a high-level committee to suggest measures necessary for financing our ambitious program in infrastructure development," Mr. Singh said.

Food inflation rate edged higher in the week ended 17 September 2011 as meat and vegetables turned costlier, once again reflecting stubborn pricing pressures that reinforce expectations of more monetary tightening. Food price index rose 9.13% and the fuel price index climbed 14.69% in the year to 17 September 2011, government data on Thursday, 29 September 2011, showed. In the previous week, annual food and fuel inflation stood at 8.84% and 13.96%, respectively. C. Rangarajan, Chairman of the Prime Minister's Economic Advisory Council, today, 29 September 2011, said there has to be definite signs of inflation falling before the Reserve Bank of India can reverse its current policy.

Reserve Bank of India (RBI) deputy governor Subir Gokarn on Wednesday, 28 September 2011, said poor supply responses to rising demand for protein-rich food aren't helping to lower the inflation rate. His comment underscores the central bank's growing dismay over the federal government's loose fiscal stance that is diluting monetary policy moves and weakening its battle against inflation. "Energy prices have remained very steady. I think (it) is a huge problem to deal with because it certainly reduces the space that monetary policy has," Mr. Gokarn said at a conference.

RBI said at a monetary policy review on 16 September 2011 that it is imperative to persist with the current anti-inflationary stance because a premature change in the policy stance could harden inflationary expectations, thereby diluting the impact of past policy actions. The RBI raised repo rate by 25 basis points on 16 September 2011.

For India, a weak rupee will offset the benefit of the recent steep fall in global commodity prices triggered by global growth worries. Most commodities imported by India, particularly oil, are denominated in dollars making these expensive for India. The rupee shed 4.4% of its value during the week ended 23 September 2011, its biggest fall since the week ended 12 July 1996.

Going forward, the stance of the monetary will be influenced by signs of downward movement in the inflation trajectory, to which the moderation in demand is expected to contribute, and the implications of global developments, RBI said in its 16 September 2011 policy statement. The overall tone of the RBI's latest policy was softer than the previous policy announcement which was extremely hawkish.

Inflation in India remains high and will probably remain in a range of 9% to 10% until November 2011, Gokarn had said recently. RBI said on 16 September 2011 that corporate margins moderated across several sectors in Q1 June 2011 compared to levels in Q4 March 2011. However, barring a few sectors, significant pass-through of rising input costs is still visible, RBI said.

RBI governor D Subbarao on Monday, 26 September 2011, said inflation rate remains above the level the central bank deems acceptable. Inflation has been fairly stubborn, Subbarao said in New York. "Above a threshold, you can't accept high inflation to have higher growth," he said, adding that the price-rise limit is as much as 6% for the nation. A rate of 4% to 6% is the short-term comfort range for inflation, Subbarao said. He said the central expects inflation to slow by March 2012, but more slowly than initially expected. Intervention in forex markets brings unexpected consequences, Subbarao said.

Monsoon rains were 2% above average till 28 September 2011, as per the latest data released by state-run India Meteorological Department (IMD). India is aiming for record foodgrain output of more than 245 million metric tonnes this crop year that began on July 1, as well as bumper cotton, sugarcane and other crops. A good monsoon season can typically boost rural farm incomes and have an impact on the wider economy through increased spending on consumer goods as well as reduced prices of food items.

Prime Minister Manmohan Singh, seeking to defend his government amid a growing political crisis, on Tuesday, 27 September 2011, denied there was infighting in his cabinet over a corruption scandal and accused the leading opposition party of being "prematurely restless" for early elections. The disclosure last week of a Finance Ministry memo about a controversial 2008 sale of mobile-phone spectrum was widely interpreted by the media as an attempt by Finance Minister Pranab Mukherjee to blame Home Minister P. Chidambaram, his predecessor as finance minister, for failing to prevent what turned into a massive alleged telecom corruption scam. Reports of a battle between the two top ministers have dominated the news for the past several days, especially after both of them met Congress President Sonia Gandhi on Monday, 26 September 2011.

Singh on Tuesday said there is no room for dissension in his cabinet. Mukherjee had told reporters on Monday that Chidambaram is a "valued colleague" and a "pillar of strength for the party and government."

The government is still hopeful of meeting the divestment target of Rs 40000 crore budgeted for the current fiscal year that ends in March, economic affairs secretary, R. Gopalan, said on Wednesday, 28 September 2011. Earlier this month, the government deferred the about Rs 11000-crore follow-on public offer plan in state-run energy major ONGC.

A plan to allow foreign direct investment in multi-brand retail is yet to take shape due to differences between ministries, Food and Consumer Affairs Minister K.V. Thomas said on Wednesday, 28 September 2011, hinting the policy could be delayed. A Committee of Secretaries recommended in July that foreign investors have to invest at least $100 million to set up multi-brand retail operations and only in cities with a population of at least 1 million.

European stocks were mixed in volatile trade on Thursday, 29 September 2011, after Germany's parliament approved a package of measures enhancing the lending power and flexibility of the euro-zone bailout fund, the European Financial Stability Facility. News reports said the final tally was overwhelming, with 523 members of the Bundestag, the lower house of parliament, voting in favor, and 85 against. Key benchmark indices in UK and Germany were down 0.75% and 0.24%. France's CAC 40 was up 0.02%.

Finland's parliament approved changes to the rescue fund on Wednesday. Slovenia's parliament on Tuesday, 27 September 2011, voted in favor of boosting the powers of Europe's rescue fund, part of an effort by euro-zone nations to fight the debt crisis that threatens their currency union.

An inspection team representing Greece's so-called troika of international lenders resumes its mission in Athens today, 29 September 2011, amid widespread public confusion surrounding the latest tax-collecting measures recently announced by the Greek government. The payment of Greece's next tranche of its bailout loan, the sixth, depends on the outcome of an assessment which will be undertaken by officials from the International Monetary Fund, the European Union and the European Central Bank.

The troika will inspect Athens's budget cut and revenue-raising proposals, which suffered a setback yesterday, 28 September 2011, when finance minister Evangelos Venizelos was forced, less than 24 hours after he announced them, to postpone increases in the amount of VAT receipts taxpayers would have to collect in order to qualify for a tax-free allowance. Frustrated Greek taxpayers complained that the measure, coming so late in the year, would be impossible to achieve and would penalise savers.

Asian stocks were mostly in green on Thursday, 29 September 2011, ahead of a key vote by Germany's parliament on enlarging the European Financial Stability Facility. Key benchmark indices in South Korea, Japan, Indonesia, Singapore and Taiwan were up by between 0.26% to 2.68%. China's Shanghai Composite was down 1.12%. Trading on the Hong Kong Stock Exchange was cancelled after a typhoon warning remained in place through the day.

China's economic growth is likely to be over 9% in 2011, Lu Zhongyuan, vice director of a key state think tank, said Wednesday, 28 September 2011, the state television reported. The gross domestic product growth of the world's second-largest economy in 2011 is expected to be the fastest in the world, Lu of the Development Research Center of the State Council said, according to the report. This would help boost the global economic recovery and prevent a double dip in the world economy, he added.

Lu said that China's GDP growth will gradually slow in the coming years, the report said. GDP will likely grow at above 8% in the next five years, he said.

Trading in US index futures indicated that the Dow could gain 52 points at the opening bell on Thursday, 29 September 2011. US stocks broke a three-session run of gains on Wednesday, 28 September 2011, after European leaders appeared to hold differing opinions on the best way to resolve euro-zone debt crisis.

The Federal Reserve said at the end of a two-day policy meeting on 21 September 2011 that there are significant downside risks to the US economic outlook and also noted strain in global financial markets.