Market scales 2 week closing high on central banks' liquidity move

Key benchmark indices gained for the second straight day to hit highest level in two weeks as world's six major central banks move to come together to tame a liquidity crunch for European banks by providing cheaper dollar funding boosted sentiment. The BSE Sensex was up 359.99 points or 2.23%, off close to 235 points from the day's high and up about 50 points from the day's low. The market breadth was positive.

Interest rate sensitive banking, realty and auto stocks gained triggered by hopes a slowing economy could prompt the Reserve Bank of India (RBI) to pause on rate increases this month. Metal stocks jumped after LMEX, a gauge of six metals traded on the London Metal Exchange surged 5% on Wednesday, 30 November 2011. Maruti Suzuki India fell on poor November sales. Index heavyweight Reliance Industries (RIL) trimmed initial gains.

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Lipitor patent expires, all eyes on Ranbaxy generic

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PFC going slow on fund raising

Daily News Roundup - Dec 1 2011

Reliance Industries will not make fresh investments needed to revive sagging output from the D6 block until legal issues are resolved. (ET)

Public sector oil retailers have cut petrol prices by up to Rs 0.83 a litre. (BL)

Ranbaxy is expected to earn US$600mn if it manages to sell the Lipitor generic, exclusively for six months. (BS)

Kingfisher Airlines, which was supposed to pay at least its interest dues to lenders by November 30, has failed to do so rendering the account a potential non-performing asset for banks. (BL)

Sensex climbs despite dismal GDP data

Indian markets closed with decent gains at the end of a choppy session, as investors hoped that the RBI will support growth going forward by pausing its aggressive monetary tightening.

For a change, the key indices managed to shrug off the political stalemate in parliament and the ongoing war of words on FDI in retail. Not only that, they also ignored the general weakness in the overseas markets and drop in the rupee versus the dollar.

The GDP data was the main highlight of the day. The markets sort of heaved a sigh of relief that Q2 economic growth didn’t come below estimates. India’s economy grew by 6.9%, the weakest in two years, and lower than 7.7% in Q1. India’s GDP growth in the year-ago period was at 8.4%. The Finance Minister and his chief economic advisor expressed disappointment as did Moody’s. But, the key indices still managed to advance modestly.

Right Said Fed!

"To ease another's heartache is to forget one's own." - Abraham Lincoln.

Brace for a gap-up opening. No, nothing has changed on the domestic front – things continue to be quite bleak. But a coordinated move by world’s top central banks to ease market tension has sent stocks soaring world over.

‘You’re my mate and I will stand by you’ is what the Federal Reserve and five other central banks seem to be singing to one another as they got their act together to make it cheaper for banks around the world to borrow US dollars - a staple of global financial transactions.

Bullions applaud central bank's move to boost liquidity

For November, gold gains but silver drops

Precious metals ended higher on Wednesday, 30 November 2011 at Comex. Other than a weak dollar, stocks and commodities worldwide applauded news that the Federal Reserve and five other central banks together moved to ease the flow of funds to banks hit by Europe's debt crisis.

Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa. But bullion metals have registered increase in prices despite strong dollar in recent times and vice versa.

Crude prices at two week highs

More than expected build up in crude stockpiles keep the rise under check

Crude prices ended at highest level in almost two weeks' time on Wednesday, 30 November at Nymex. Other than a weak dollar, stocks and commodities worldwide applauded news that the Federal Reserve and five other central banks together moved to ease the flow of funds to banks hit by Europe's debt crisis. Market also was boosted as traders reacted to news that officials in China have lowered the reserve requirement for the country's banks.

But the weekly inventory report from energy department showing more than expected buildup in crude inventories for last week put a check on the price rise.

Market may surge on central banks liquidity move; food inflation data eyed

The market is set for a strong start as global stocks rallied after the world's six major central banks moved to tame a liquidity crunch for European banks by providing cheaper dollar funding. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a jump of 158 points at the opening bell.

On the macro front, the government will today, 1 December 2011, will 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 19 November 2011.

SGX Nifty Live Update - Dec 1 2011

5006.25 +170.75 (+3.53%)

Sensex ends volatile trade 115 points higher

The Indian markets rallied for the second consecutive day, with the Sensex rising by 115 points and the Nifty up by 27 points

Headlines for the day

India’s GDP at 6.9% in Q2 versus 7.7% in Q1

Economy likely to grow 7.3% in FY12: Pranab

Ansal Housing hits 20% upper circuit on buyback plan

Thomas Cook arm ties up with Bajaj Allianz

Bharti Airtel crosses 50 million mobile customers in Africa

Nifty December 2011 futures at premium

Turnover surges

Nifty December 2011 futures were at 4843.25, at a premium of 11.25 points compared to spot closing of 4832. Turnover on NSE's futures & options (F&O) segment surged to Rs 112728.47 crore from Rs 92298.96 crore on Tuesday, 29 November 2011.

ICICI Bank December 2011 futures were at 734.40, at a premium over spot closing of 730.30.

State Bank of India (SBI) December 2011 futures were at 1734, at a discount compared to spot closing of 1739.25.

Market edges higher amidst volatility

Key benchmark indices edged higher amidst volatility supported by gains in index heavyweight Reliance Industries (RIL), which jumped nearly 2%. News trickled in after market hours that China's central bank cut the reserve requirement ratio for its banks by 50 basis points for the first time in nearly three years to ease credit strains and shore up activity in the world's second-largest economy. The BSE Sensex was up 115.12 points or 0.72%, up close to 275 points from the day's low and off about 55 points from the day's high. The barometer index, BSE Sensex settled above the psychological 16,000 mark after alternately moving above and below that level earlier in the day. The market breadth was negative.

Daily News Roundup - Nov 30 2011

Reliance Industries has shut four wells in its Krishna Godavari-D6 gas fields, off the east coast, due to high water ingress leading to output dipping to 41mn cubic meters per day. (BS)

In yet another warning from Infosys about the economic environment, the company has said clients are asking for a slower start. (ET)

Lenders to the GTL group have sought a personal guarantee from the company’s promoter as part of the negotiations for corporate debt restructuring. (BS)

Sensex slips on political woes…Bucks global trend

Indian stock indices resumed their southbound journey, reversing part of the previous session’s stellar rally, after the Government failed to build a political consensus on the thorny issue of allowing FDI in multi-brand retail. The parliament was adjourned for the sixth consecutive day today as various parties, including key UPA allies, continued to demand a rollback of the Cabinet decision on opening up the retail trade.

Adding pressure to the fragile sentiment were reports that Standard & Poor's could downgrade the outlook on France's 'AAA' rating to negative in the next few days. Moody's Investors Service said that it may cut subordinated debt ratings on some EU banks. In addition, Fitch Ratings warned the US about its ballooning budget deficit.

Bitter trials continue!

What seems to us as bitter trials are often blessings in disguise – Oscar Wilde.

Blessings in the market are hard to come by for now. The bitter trials and tribulations continue even as a ray of hope appears in Europe. The ongoing hullabaloo over FDI in retail remains while the PM strongly, for a change, defends the move. Parliament has hardly functioned in the six sittings this winter session. The scenario may not change much, as the opposition to FDI in retail reaches a crescendo.

In fact, the Centre may have to brace for another political storm; this time over the proposed Lokpal Bill. Anna Hazare is not happy with a draft and has threatened another agitation. In short, political developments are likely to hog the headlines in the short term.