Market hits 3-week low as inflation remains uncomfortably high

Key benchmark indices fell for the third straight day to settle at their lowest level in three weeks as the latest data showed that inflation remains uncomfortably high. Mahindra & Mahindra (M&M) tumbled nearly 6% after reporting weak Q2 results. The BSE Sensex was down 74.08 points or 0.43%, off close to 275 points from the day's high and up close to 25 points from the day's low. Index heavyweight Reliance Industries (RIL) declined. Two other index heavyweights, ICICI Bank and L&T, too dropped.

The market breadth was weak. IT stocks rose on a weak rupee. Sun Pharmaceutical Industries advanced after good Q2 results. Metal stocks declined after a slew of weak Q2 results reported by the metal companies recently. Realty stocks also dropped.



The Sensex has lost 450.79 points or 2.56% in three trading sessions from a recent high of 17,569.53 on 8 November 2011. The Sensex has lost 586.27 points or 3.31% this month so far. The Sensex has slumped 3,390.35 points or 16.53% in calendar 2011. From a 52-week high of 20,664.80 on 3 January 2011, the Sensex has lost 3,546.06 points or 17.15%. From a 52-week low of 15,745.43 on 4 October 2011, the Sensex has risen 1,373.31 points or 8.72%.

Coming back to today's trade, the market opened on a firm note as Asian stocks rose. A bout of volatility was witnessed in morning trade as key benchmark indices regained strength after hitting fresh intraday lows. The market once again pared gains to hit fresh intraday low in mid-morning trade. The market regained strength in early afternoon trade. Intraday volatility continued as key benchmark indices hit fresh intraday lows in afternoon trade. Volatility was at the forefront as key benchmark indices regained positive zone after slipping into the red for a short while in mid-afternoon trade. The market weakened to hit 3-week low in late trade.

The BSE Sensex lost 74.08 points or 0.43% to settle at 17,118.74, its lowest closing level since 24 October 2011. The index gained 199.17 points at the day's high of 17,391.99 in early trade, its highest levels since 9 November 2011. The index fell 98.39 points at the day's low of 17,094.43 in late trade.

The S&P CNX Nifty lost 20.50 points or 0.4% to settle at 5,148.35, its lowest closing level since 24 October 2011. The Nifty hit a high of 5,228.90 in intraday trade, its highest levels since 9 November 2011. The Nifty hit a low of 5,140.55 in intraday trade.

The BSE Mid-Cap index fell 1.6% and the BSE Small-Cap index declined 1.76%. Both these indices underperformed the Sensex.

BSE clocked turnover of Rs 2346 crore, lower than Rs 2622.35 crore on Friday, 11 November 2011.

The market breadth, indicating the overall health of the market, was weak. On BSE, 1,991 shares fell and 874 rose. A total of 84 shares were unchanged. The breadth was positive earlier in the day.

From the 30-share Sensex pack, 21 fell and the rest of them rose.

Index heavyweight Reliance Industries (RIL) fell 0.98% to Rs 875.15, off the day's high of Rs 895.95. RIL's unit Infotel Broadband Services recently acquired a 38.5% stake in privately held digital learning firm Extramarks Education. It did not disclose the financial details of the investment. The deal will help Extramarks develop its digital distribution services and expand market penetration, RIL said. Last year, Reliance acquired Infotel Broadband, the only company to win a nationwide licence for broadband wireless spectrum in a government auction, for $1 billion, marking its return to the telecom business.

Reliance Communications fell 1.98%, reversing initial gains. The Anil Ambani-led company on Monday, 14 November 2011, confirmed that it is in talks with elder brother Mukesh's Reliance Industries to lease out the mobile phone company's telecommunications infrastructure to aid the latter's new wireless broadband business venture. The deal, if it goes through, will be significant as this will be the first time the companies headed by the two brothers will be working with each other since a 2005 split of the conglomerate built by their father, Dhirubhai Ambani. The brothers were estranged after a bitter feud over their multi-billion dollar family business empire.

Reliance Communications' (RCom) consolidated net profit jumped 60.5% to Rs 252 crore on 2% growth in total turnover (post eliminations) to Rs 5040 crore in Q2 September 2011 over Q1 June 2011. The company announced Q2 results on Saturday, 12 November 2011.

Reliance Capital tumbled 7.48% after the company announced after market hours on Friday that consolidated net profit fell 70.1% to Rs 33.45 crore on 17.6% growth in total income to Rs 1546.12 crore in Q2 September 2011 over Q2 September 2010.

Metal stocks declined after a slew of weak Q2 results reported by the metal companies recently. India's largest steel maker by sales Tata Steel fell 4.03%, extending Friday's 4.19% losses triggered by weak Q2 numbers. The company announced on Thursday, 10 November 2011, that consolidated net profit fell 89.26% to Rs 212.43 crore on 11.73% rise in total income to Rs 32918.33 crore in Q2 September 2011 over Q2 September 2010. The company said its performance was adversely impacted by higher global raw materials costs and lower average selling prices at Tata Steel Europe. Tata Steel's net debt at the end of September 2011 stood at Rs 45056 crore, compared to Rs 46627 crore at the end of March 2011.

Hindalco Industries fell 2.21%, extending Friday's 4.31% slide triggered by a weak outlook issued by the copper and aluminium maker at the time of announcing Q2 results on Thursday, 10 November 2011. Hindalco Industries said that the second half of FY 2012 (year ending March 2012) will be difficult due to global uncertainties, falling LME prices, and persisting cost pressures. The intensity of resource challenge, which accentuated in the first half of FY 2012 due to monsoon related issues is expected to moderate, the company said.

JSW Steel tanked 2.34% after reporting a consolidated net loss of Rs 669.32 crore in Q2 September 2011, compared with net profit of Rs 373.26 crore in Q2 September 2010. The company's total income rose 33.33% to Rs 8180.60 crore in Q2 September 2011 over Q2 September 2010. The company announced results during market hours today.

National Aluminum Company declined 1.92% after net profit fell 37.8% to Rs 139.34 crore on 11.6% growth in total income to Rs 1746.01 crore in Q2 September 2011 over Q2 September 2010.

Bhushan Steel shed 0.25% after the company's net profit fell 20.12% to Rs 206.88 crore on 42.65% growth in total income to Rs 2468.70 crore in Q2 September 2011 over Q2 September 2010. The company announced results during market hours today.

Among other metal stocks, Hindustan Zinc, Sterlite Industries and Sail shed by between 0.93% to 2.8%.

Coal India (CIL) declined 0.98%. The company on Saturday reported consolidated net profit of Rs 2593.11 crore on total income of Rs 14942.27 crore for Q2 September 2011. The figures for the corresponding previous year period are not available as till the half-year ended 30 September 2010, CIL was not listed on the bourses.

IT stocks rose on a weak rupee. 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 50.25/26, weaker than Friday's close of 50.115/125.

India's third largest software services exporter Wipro gained 1.27%, with the stock gaining for the third straight on the back of a new order win. The company announced after market hours on Tuesday, 8 November 2011, that Premier Foods has selected Wipro Technologies, the global IT, consulting and outsourcing business of Wipro, as a strategic technology partner. As part of the five year strategic relationship, Wipro will be supporting both systems and processes to enhance efficiency of Premier Foods' supply chain. This relationship will enable Premier Foods to realise quantifiable benefits for a known budgetary expenditure with minimal exposure to variable costs.

India's second largest software services exporter Infosys rose 1.18%. A US federal judge, last week, refused to allow Infosys an out-of-court settlement in a case filed by one of the firm's employees, a setback to the company, which is facing allegations of visa rule violations. Jack Palmer, a principal consultant at Infosys, filed a lawsuit against Infosys in the Alabama state court earlier this year, alleging the company sought his help to circumvent US visa laws. The lawsuit was later moved to the federal court. Mr. Palmer accused Infosys of using short-term business visit visas to circumvent the fewer and expensive work visas meant for high-skilled labor. His suit led to a probe by US authorities, including an inquiry by a US Senate subcommittee. Infosys has previously denied any wrongdoing.

India's largest software services exporter TCS fell 0.38%, reversing initial gains. The company announced during market hours on Wednesday, 9 November 2011 that Diligenta, a subsidiary of the company, has won a $2.2 billion 15-year contract from UK-based pensions and insurance provider Friends Life.

India's largest engineering and construction firm by sales L&T fell 0.34%. The company announced during market hours today that it has executed the first order of dry shielded canisters from Transnuclear Inc, USA, an Areva company for storage of radioactive waste. Apart from these 12 canisters, L&T is ready to dispatch additional 2 canisters for the next order, L&T said in a statement. These canisters are for US based leading nuclear utilities and have been manufactured in accordance with the US Code of Federal Regulations (10 CFR) and Nuclear Safety Class 1 standards.

India's largest electric equipment maker by sales Bhel declined 2.07% ahead of its Q2 results today.

Sun Pharmaceutical Industries rose 1.3% after consolidated net profit rose 18.6% to Rs 597.74 crore on 42.1% growth in total income to Rs 1971.14 crore in Q2 September 2011 over Q2 September 2010. The results for the quarter and half year include the results of Israel based Taro Pharmaceutical Industries and its subsidiaries and therefore are not comparable with the corresponding figures of previous quarter/half year period. Taro became a subsidiary of the company on 20 September 2010.

Dilip Shanghvi, Chairman and Managing Director, Sun Pharma said, "Performance delivered this quarter and in the first half, though partly aided by the exchange rate movement, is a clear reflection of the steady effort made across all parts of our business towards long term sustainable growth and profitability. India business maintains the growth in prescription share with our key customers. In the US and other international markets, work continues on enriching the product pipeline and on strengthening the quality and regulatory processes".

Oil India fell 0.25%. The company announced during market hours today that net profit rose 24.28% to Rs 1138.52 crore on 50.1% rise in total income to Rs 3952.58 crore in Q2 September 2011 over Q2 September 2010.

India's largest state-run oil & gas exploration firm by sales, ONGC fell 1.73%, extending recent losses triggered by fears of higher subsidy burden due to higher global crude oil prices. The company's net profit rose 60.37% to Rs 8642.23 crore on 24.41% growth in total income to Rs 24058.33 crore in Q2 September 2011 over Q2 September 2010. The result was announced early this month.

Cairn India rose 1.31% along with crude oil prices. Higher crude oil prices will result in higher realizations from crude sales for oil exploration firms. US crude oil traded 67 cents lower at $98.32, after touching $99.69, the highest since July in Asian electronic trading today. On Friday, the US benchmark closed at a 15-week high and posted a sixth consecutive weekly gain, while Brent pushed higher for a third straight week.

Shares of state-run oil-marketing companies extended recent losses as crude oil prices surged. BPCL, HPCL and Indian Oil Corporation (IOCL) declined by between 1.37% to 1.69%. 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. Meanwhile, a weak rupee further impacts PSU OMCs as the crude oil that that refineries process is either imported or priced on import-parity.

Realty major DLF declined 2.3%, extending Friday's 2.31% losses triggered by weak Q2 results. The company announced on Thursday that consolidated net profit fell 10.98% to Rs 372.41 crore on 2.27% rise in total income to Rs 2577.16 crore in Q2 September 2011 over Q2 September 2010.

DLF said it expects second half of the year ending March 2012 (FY 2012) to witness a stronger operational performance, both in terms of a scale up in launches in the plotted and group housing segments and deliveries of its projects across the cities of Gurgaon, Chennai and Cochin. DLF also expects the momentum on the non-core divestment plan to continue with increasing traction in the proposed divestment of its hospitality assets which would further help in moderation of its debt levels. With strategic capital expenditures being undertaken on improving the quality of its land bank and the build out of select commercial and infrastructure assets, the company is well positioned to capitalize on the growth opportunities as and when the demand scenario revives, DLF said in a statement.

DLF said that the Competition Appellate Tribunal has on 9 November 2011 issued a stay order on the demand on penalty and kept in abeyance the directions relating to modifications of conditions. This pertains to the order passed by the Competition Commission of India dated 12 the August 2011. While this is an interim order, the company believes that it has a strong case based on merits, DLF said. It may be recalled that the Competition Commission of India had imposed a Rs 630-crore penalty on the country's biggest property developer by sales in August as it found the company abusing its marker leadership position to the disadvantage of residents at a housing complex.

HDIL fell 5.93%, extending Friday's 4.56% slump triggered by weak Q2 results. Consolidated net profit declined 24.41% to Rs 148.55 crore on 13.89% rise in total income to Rs 450.09 crore in Q2 September 2011 over Q2 September 2010.

India's largest tractor maker by sales Mahindra & Mahindra (M&M) tumbled 5.73% after the company's net profit fell 2.78% to Rs 737.38 crore on 34.75% increase in total income to Rs 7592.14 crore in Q2 September 2011 over Q2 September 2010. The stock was the top loser from the Sensex pack. The result was announced during trading hours today, 14 November 2011.

Mahindra & Mahindra said that board of directors of the company at its meeting held today, 14 November 2011, approved the consolidation of its shareholding in Swaraj Automotives (SAL) through a voluntary open offer. The company would be making an open offer to the shareholders of SAL for acquiring upto 6.47 lakh shares constituting 27% of the total voting equity share capital of SAL at an offer price of Rs 90 per share and for a total price consideration not exceeding Rs 5.82 crore. SAL is listed at the Delhi Stock Exchange.

India's largest motorcycle maker by sales Hero MotoCorp rose 1.87% to Rs 2209.90, extending Friday's 1.85% gains. The stock hit a record high of Rs 2248 today. Early this month, Hero MotoCorp reported 1.3% growth in its October sales at 5.12 lakh units. The company had sold 5.05 lakh units in the corresponding month last year.

India's largest car maker by sales Maruti Suzuki India fell 2.96%, extending a four-day losing streak. Maruti had clarified recently that the decision to purchase land in Gujarat is towards building additional capacity. It had also said that the board of directors approved the purchase of land in Gujarat for future capacity requirements of the company. The logistics for reaching the finished cars to the large domestic markets in West and South India and the close proximity of the Mundra port for future exports, played an important role in the decision, Maruti said.

The company also clarified that its investment plans for Haryana stay on course. These include installation of the 2.5 lakh units capacity assembly line in Manesar (Manesar C), a world class R&D center and test course in Rohtak. The company has lined up a direct investment of over Rs 3400 crores towards these facilities In addition to company's investment, its vendors and joint venture partners will continue to appropriately invest in Haryana for the future expansion, Maruti said.

Maruti's total sales slumped 53.2% to 55,595 units in October 2011 over October 2010. Domestic sales fell 52.2% to 51,458 units while exports tumbled 63.6% to 4,137 units in October 2011 over October 2010. Labour unrest at Maruti's Manesar unit during October 2011 adversely impacted the company's sales. The firm lost production of 40,000 units during the month. Maruti announced the monthly sales data on 1 November 2011.

Bajaj Auto fell 0.22%. The company's total sales rose 7% to 3.95 lakh unit in October 2011 over October 2010. The company announced the monthly sales data early this month. The company said that there was production loss of 25,000 motorcycles at Pantnagar plant in October 2011 as curfew imposed in the region in early October constrained sales.

India's largest commercial vehicle maker by sales Tata Motors fell 2.09%, with the stock falling for the third straight day. The company announced after market hours today that consolidated net profit fell 15.56% to Rs 1877 crore on 26.9% growth in revenues (net of excise) to Rs 36198 crore in Q2 September 2011 over Q2 September 2010.

FMCG giant Hindustan Unilever (HUL) rose 0.62% to 398.60, extending recent strong gains. The stock hit a record high of Rs 402.90 today. HUL's net profit rose 21.69% to Rs 688.92 crore on 17.75% rise in total income to Rs 5610.48 crore in Q2 September 2011 over Q2 September 2010. The result was announced on 31 October 2011.

Cipla rose 0.49%. The company announced after market hours today that net profit rose 17.47% to Rs 308.97 crore on 9.8% growth in income from operations to Rs 1804.28 crore in Q2 September 2011 over Q2 September 2010.

Bank stocks were mixed. India's largest bank by branch network State Bank of India (SBI) fell 2.48%, extending 10% fall in preceding two trading sessions triggered by an increase in bad loans. The ratio of bank's gross non-performing assets (NPAs) to gross advances increased to 4.19% as on 30 September 2011 from 3.35% as on 30 September 2010. The ratio of net non-performing assets to net advances increase to 2.04% as on 30 September 2011 from 1.7% as 30 September 2010.

SBI's net profit rose 12.35% to Rs 2810.43 crore on 23.43% rise in total income to Rs 29394.32 crore in Q2 September 2011 over Q2 September 2010. Provision for non-performing assets rose 35.08% to Rs 2921.22 crore in Q2 September 2011 over Q2 September 2010. The bank announced Q2 results during market hours on Wednesday, 9 November 2011.

The bank's consolidated net profit rose 46.8% to Rs 3470.43 crore on 8.76% rise in total income to Rs 41249.08 crore in Q2 September 2011 over Q2 September 2010.

SBI will not like to currently raise funds from overseas given the current market conditions, said Hemant Contractor, a managing director at the bank, on Monday, 14 November 2011. In September 2011, the state-owned bank had doubled its overseas borrowing aim to $10 billion.

India's largest private sector bank by net profit ICICI Bank fell 0.17%, with the stock falling for the fourth straight day. ICICI Bank's consolidated net profit rose 43% to Rs 1992 crore in Q2 September 2011 over Q2 September 2010. Standalone profit after tax increased 22% to Rs 1503 crore in Q2 September 2011 over Q2 September 2010. Net interest income increased 14% to Rs 2506 crore in Q2 September 2011 over Q2 September 2010. Fee income increased 7% to Rs 1700 crore in Q2 September 2011 over Q2 September 2010. Provisions decreased 50% to Rs 319 crore in Q2 September 2011 over Q2 September 2010. The result was announced during trading hours on Monday, 31 October 2011.

ICICI Bank's current and savings account (CASA) ratio stood at 42.1% as on 30 September 2011. Net non-performing asset ratio decreased to 0.8% as at 30 September 2011 from 1.37% as at 30 September 2010 and 0.91% as at 30 June 2011.

India's second largest private sector bank by net profit HDFC Bank rose 1.45%, after falling in the preceding two trading sessions. The bank's net profit rose 31.48% to Rs 1199.35 crore on 37.4% rise in total income to Rs 7929.38 crore in Q2 September 2011 over Q2 September 2010. The result was announced during market hours on 19 October 2011.

LIC Housing Finance fell 4.28% after net profit fell 57.98% to Rs 98.39 crore on 36.83% rise in total income to Rs 1515.36 crore in Q2 September 2011 over Q2 September 2010. The company announced the results on Sunday, 13 November 2011.

Tata Power Company declined 1.13% ahead of its Q2 results today. Jaiprakash Associates shed 1.91% ahead of its Q2 results today.

Shree Renuka Sugars clocked highest volume of 2.3 crore shares on BSE. Cals Refineries (1.23 crore shares), Rain Commodities (95.92 lakh shares), Nu Tek India (80.11 lakh shares) and Rockon Fintech (73.81 lakh shares)were the other volume toppers in that order.

SBI clocked highest turnover of Rs 138.39 crore on BSE. Dr Reddy's Laboratories (Rs 100.62 crore), Shree Renuka Sugars (Rs 88.55 crore), Tata Steel (Rs 64.33 crore) and Onelife Capital (Rs 53.46 crore) were the other turnover toppers in that order.

The latest data showed that inflation remains uncomfortably high in India. Inflation, as measured by the wholesale price index (WPI), stood at 9.73% in October 2011, as against 9.72% in September 2011, the latest data showed. The annual inflation rate was at 9.08% during the corresponding month of the previous year. The government left unchanged inflation rate for August at 9.7%.

Industrial production grew 1.9% in September 2011 from a year earlier, far below market expectations, reflecting weakening economic activity due to the central bank's aggressive tightening of monetary policy. The reading was also significantly lower than the revised 3.5% industrial output growth in August, government data showed on Friday, 11 November 2011.

Manufacturing output, which has a 75.5% weight in the index, rose 2.1% year on year in September, compared with a revised 4% increase in August. Mining output shrank 5.6%, compared with a revised 4.1% contraction in August. Capital goods output in September shrank 6.8% from a year earlier after rising 4.0% in August.

The food price index rose 11.81% and the fuel price index climbed 14.50% in the year to October 29, government data on Friday, 11 November 2011, showed. In the previous week, annual food and fuel inflation stood at 12.21% and 14.50%, respectively. The primary articles price index was up 11.43%, compared with an annual rise of 12.08% a week earlier.

India's October exports rose an annual 10.8% to $19.9 billion, while imports for the month rose 21.7 percent to $39.5 billion, the trade secretary said on Tuesday, citing provisional data. India's trade deficit in October is seen at $19.6 billion, the highest in four years, Rahul Khullar said. At this rate, the trade deficit for the year could breach the $150 billion mark, he added.

India's service sector contracted for a second straight month in October, as new business grew at its weakest pace since May 2009, dragged by sagging global demand and tight monetary policy, a survey showed on Thursday, 3 November 2011. The seasonally adjusted HSBC Markit Business Activity Index, based on a survey of around 400 firms, slumped to 49.1 in October, its lowest reading in two-and-a-half years and below the 50-mark which separates growth from contraction. It was at 49.8 in September.

India's manufacturing activity in October expanded--though modestly--indicating an improvement in business conditions from a month ago as growth in new orders accelerated, a survey showed Tuesday, 1 November 2011. The seasonally adjusted HSBC Purchasing Managers' Index, prepared by Markit, rose to 52 in October from 50.4 in September. A figure above 50 indicates expansion.

India needs to guard against imported inflationary pressure as the euro-zone continues to reel under the debt crisis, Prime Minister Manmohan Singh said on Wednesday, 2 November 2011. "In an increasingly interdependent world, we have to be wary of contagion effects," Mr. Singh said in a statement before his departure to attend a conference of the Group of 20 industrial and developing economies in Cannes, France.

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.

Mr. Sudipto Mundle, a member of the Reserve Bank of India's technical advisory committee on monetary policy, on 3 November 2011 said he expects inflation to ease in the January-March quarter as global commodity prices will begin to cool by then, helped by a favorable base. However, it will still overshoot the RBI's March-end projection of 7%, possibly ending the fiscal year at as high as 8%, he added. Mr. Mundle expects the economy to grow 7%-7.5% this fiscal year, below the RBI's 7.6% forecast.

Emerging markets such as India must take measures to boost long-term foreign direct investment to blunt volatility in exchange rates, and any capital control measures must be selective and temporary, a senior executive of the Asian Development Bank said on Monday, 14 November 2011. While capital flows and exchange rates are likely to be volatile in the short-term amid ongoing euro-zone debt concerns, India must focus on improving its investment climate by providing better infrastructure, putting in place a coherent manufacturing policy and developing financial markets, Managing Director General Rajat M. Nag said on the sidelines of the India Economic Summit.

Nag said achieving India's fiscal deficit target would be difficult, but achievable. "We are pleased with the planned approach to fiscal consolidation which is essentially improving the targeting of subsidies rather than curtailing critical investment in infrastructure," he said.

European stocks fell on Monday, 14 November 2011, unable to hold on to opening gains as initial enthusiasm over new technocratic leaders in Italy and Greece gave way to lingering worries about how both countries will push through reforms to tackle their debt piles. Key benchmark indices in France, UK and Germany fell by between 0.11% to 0.85%.

Italy has named Mario Monti the new premier while its parliament has passed tough austerity measures to control the debt crisis. Meanwhile, Lucas Papademos took office on Friday as the new Prime Minister of Greece to save the debt-strapped nation from bankruptcy.

Asian stocks rose on Monday on hopes that new leaders in Italy and Greece will take decisive action to save their indebted nations from bankruptcy and fend off a wider financial meltdown in the euro zone. Key benchmark indices in Hong Kong, China, Indonesia, South Korea, Singapore, Japan, and Taiwan rose by between 1.05% to 2.15%.

Trading in US index futures indicated that the Dow could gain 21 points at the opening bell on Monday, 14 November 2011. US stocks jumped on Friday, ending higher for the week, after the Italian Senate's approval of economic reforms gave investors some relief from worries about the euro zone's debt crisis.