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Saturday, September 17, 2011

Gold's roller coaster ride


The move sparked the latest round of volatility in gold, which has since traded in a more than $100 range. Seeing the gold price lurch down or up $50 in as many minutes has become a fairly regular feature of the market over the last few weeks.

"I think the market will go higher, but a $100+ correction cannot be ruled out, especially if the dollar decides to strengthen even further," said Saxo Bank senior manager Ole Hansen. "A pretty strong stomach might be required short-term."

Financial markets around the world have been subjected to extreme price movements as investors grow increasingly unnerved by the ability of Eurozone leaders to solve the regional debt crisis that has engulfed Greece, Portugal and Ireland and now threatens Italy and Spain.

RBI hikes policy rates by 25 bps...Maintains hawkish stance


The Reserve Bank of India (RBI) raised the key policy rates - the repo rate and the reverse repo rate - by a quarter percentage point, as it persists with its efforts to tame the inflation beast despite signs of moderation in economic growth. So, the repo rate now stands at 8.25% and the reverse repo rate now stands at 7.25%. There has been no change in the Cash Reserve Ratio (CRR), which stands at 6%. The bank rate has been retained at 6%. The Marginal Standing Facility (MSF) rate, determined with a spread of 100 bps above the repo rate, stands recalibrated at 9.25% with immediate effect. The policy action in this review is expected to reinforce the impact of past policy actions to contain inflation and anchor inflationary expectations, the RBI said in a statement.

Markets rise for 3rd week


It was an action-packed week, with the markets reacting to the events like IIP, Inflation and RBI policy. The Sensex ended the week 67 points higher and the Nifty gained 25 points

Major news for the week

RBI hikes repo rate by 25 basis points

August inflation at 9.78% versus 9.22% in July

July IIP at 3.3% versus 8.8%

Petrol prices increase by Rs3.14 a litre

Tata Motors' August global vehicle sales rise 3%

GTL out of F&O from September 16

RBI policy day ends well; Sensex up for 3rd day


Though markets witnessed a drop post RBI’s move, it gained momentum to close the trade on a positive note. The Sensex rose by 57 points and the Nifty surged by 9 points

Major headlines

RBI hikes repo rate by 25 basis points

ONGC surges as petrol prices rise

Tata Motors soars on rise in global sales

NTPC gains as a power unit starts commercial operation

Key global events to dictate near term trend


Key global events remain on investors' radar as euro-zone worries persist. The Indian government's decision to defer the mega Rs 11000 crore follow-on public offer (FPO) of ONGC has helped ease concerns of the large issue sucking secondary market liquidity.

With Q2 September 2011 drawing towards a close, focus may shift to expectations of Q2 results of individual firms. Advance tax payments made by the top 100 companies based in the country's financial capital Mumbai reportedly rose 18% in Q2 September 2011. The tax collections are not uniformly good or bad across companies and sectors, except for oil marketing companies, which saw a decline in levies paid.

Market gains for the third straight day; ONGC jumps


Key benchmark indices managed small gains amid high intraday volatility, after the central bank delivered another 25 basis points hike in repo rate--the key short-term policy rate--at its mid-quarter review today, 16 September 2011, to rein in inflationary expectations. The market extended gains for the third straight day and scaled one-week closing high. The barometer index BSE Sensex settled below the psychological 17,000 level, having alternately swung above and below that mark in intraday trade. The BSE Sensex rose 57.29 points or 0.34%, off close to 190 points from the day's high and up about 45 points from the day's low. The market breadth was negative, having alternately swung between positive and negative zone earlier in the day.

Friday, September 16, 2011

Grey Market Premium - Sep 16 2011


Company Name

Offer Price

(Rs.)

Premium

(Rs.)

Vaswani Ind.

49

Discount

SRS Ltd.

58

2 to 3

P. G. Electroplast

190 to 210

3 to 3.50

Prakash Constrowell

130 to 138

Daily News Roundup - Sep 16 2011


Mahindra & Mahindra said its board has approved the sale of 8.09% stake in its hospitality arm, Mahindra Holidays & Resorts India. (BS)

SpiceJet expects its new fleet of 15 Bombardier Q400 next-generation turboprop aircraft to start contributing to its bottom line in 12 to 18 months. (BS)

Tamil Nadu Newsprint and Papers Ltd plans to invest Rs3.7bn, diversifying into cement and paperboard manufacturing to derisk its business. (BS)

Sensex spurts on global bounce...RBI meet eyed


The Indian markets ended with smart gains for the second straight trading session on Wednesday with the NSE Nifty shutting above the 5050 levels while the BSE Sensex ended above 16,800 levels.

Overnight gains in the US markets coupled with positive trend across Asian as well as European markets today lifted the Indian benchmarks. Sentiment got a boost after government data showed a drop in food inflation in the early days of September.

Pause-itive at start!


"Honest differences of views and honest debate are not disunity. They are the vital process of policy making among free men." -Herbert Hoover.

Global stocks have extended their rally, fueled by coordinated central bank action to ease credit conditions in the fiscally strained Europe. The liquidity boosting measure was led by the ECB in close cooperation with the Fed, BOJ, BOE and the Swiss central bank.

Stocks to watch out today


Tata Motors August JLR Sales:

JLR Sales - Very strong sales for August especially since it tends to be a weak month seasonally. The company was reporting flat sales for the last couple of months. Growth is attributable to Chinese markets which continued to grow at 100% for JLR even in August 2011. Volume growth in Land rover was very strong , new Land rover Evoque saw 1750 units. Volume growth ex- Evoque was 20% MoM

Market may extend recent gains on firm Asian stocks; RBI policy review in focus


The market may extend two day gains on firm Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a gain of 21.50 points at the opening bell.

Eleven out of twelve economists polled by Capital Market expect a 25 basis points (bps) hike in repo rate, the key short-term policy interest, from the Reserve Bank of India at its mid-quarter policy review today, 16 September 2011. The Reserve Bank of India (RBI) has said that a change in its anti-inflationary monetary stance will be motivated by signs of a sustainable downturn in inflation. The Reserve Bank of India has raised its key policy rate 11 times in the past 18 month to tame high inflation. Interest rate sensitive auto, realty and banking stocks will be in action ahead of monetary policy.

SGX Nifty Live Update - Sep 16 2011


5,130.00 +33.00