Sarika Kapoor lives in a spacious home in one of the wealthiest cities in India. But something as simple as having a shower is fraught with problems. Most days there is just a trickle of water from the taps and sometimes even that dries up before noon. The 56-year-old has often had to scurry to a neighbour across a potholed road to borrow a bucket of water and haul it back to her rented $300,000 home, sweat rolling down her face
Friday, July 06, 2012
After showing some strength in the previous trading session, the Indian stock benchmarks closed nearly unchanged at the end of another lackluster trading day. Overnight losses in the US market and weakness in the Asian markets dragged the key indices lower at open. However, the frontline indices recovered gradually after hitting intra-day lows in early trades. Markets could not sustain the momentum and surrendered intraday gains towards the close of trade, as investors continued to be cautious ahead of important events such as corporate earnings, IIP data, inflation report, monsoon's progress and the month-end RBI policy meeting.
After a three-day gaining trend, the key benchmark indices closed today's trading session in the negative zone backed by domestic and global cues. The Sensex closed 17.55 points lower while the Nifty fell 10.35 points.
First quarter June 2012 corporate earnings and macroeconomic data may dictate near term trend on the bourses. The government will announce data on index of industrial production (IIP) for May 2012 on Thursday, 12 June 2012. The next major trigger for the stock market is Q1 June 2012 corporate earnings. Investors and analysts will closely watch the management commentary that would accompany the result, which could cause revision in their future earnings forecast of the company for the current year or the next year. A deceleration in top line growth of India Inc amid economic slowdown and slowdown in investment cycle will weigh on bottom line growth in Q1 June 2012 as the core operating profit margin could be negatively impacted by deceleration in top line growth.
Key benchmark indices trimmed losses to provisionally settle slightly lower after slipping into the red from positive terrain in late trade. Weak global stocks dampened sentiment. The barometer index, BSE Sensex, was provisionally down 7.70 points or 0.04%, up close to 105 points from the day's low and off about 25 points from the day's high. The market breadth was negative. Index heavyweight Reliance Industries (RIL) edged lower in volatile trade. Realty shares declined on profit booking after recent strong gains triggered by the Competition Commission of India directing cement firms last month to cease and desist from indulging in any activity relating to agreement, understanding or arrangement on prices, production and supply of cement in the market. Metal stocks fell as metal prices declined on London Metal Exchange on Thursday, 5 July 2012. Jindal Steel & Power declined on reports that the company has suspended operations at its iron ore mine in Bolivia.
The market rose for the fifth consecutive week as foreign funds remained buyers of Indian stocks. Expectations of measures from the government for revival of the slowing economy aided gains on the domestic bourses. The Sensex gained in three out of five trading sessions of the week that ended on Friday, 6 July 2012. The BSE Sensex rose 91.14 points or 0.52% to 17,521.12. The 50-unit S&P CNX Nifty gained 38.05 points or 0.72% to settle at 5,316.95. The BSE Mid-Cap index rose 2.60% and the BSE Small Cap index gained 4.26%. Both these indices outperformed the Sensex. The Sensex has jumped 2,066.20 points or 13.36% in calendar 2012 so far (till 6 July 2012). The Sensex has gained 91.14 points or 0.52% so far in July month. From a 52-week low of 15,135.86 on 20 December 2011, the Sensex has risen 2,385.26 points or 15.75%. From a 52-week high of 19,131.70 on 8 July 2011, the Sensex has lost 1,610.58 points or 8.41%.
Shares of Kingfisher Airlines surged 4.11 percent in early trade on a volume of 3.99 million shares, ahead of a meeting of the creditors to discuss the future of the loans given to the troubled carrier. The debt-ridden airline has been struggling to raise funds to stay afloat. The lenders have lost hope that the company will be able to bring in capital and may resort to sales of its assets, a Reuters report said. Kingfisher has a debt of $1.4 billion as of March-end. The Reuters report said three bankers involved in the process would consider invoking securities and guarantees against the debt to recover their money.