Market skids to 3-week low as RBI to continue with anti-inflationary stance

Key benchmark indices dropped to three-week lows as concerns over Greece's debt crisis rattled world stocks. Index heavyweight Reliance Industries (RIL) was near 52-week low. The BSE Sensex lost146.36 points or 0.81%, off close to 165 points from the day's high and up close to 30 points from the day's low. The Sensex fell below the psychological 18,000 mark. The market breadth was weak.

Interest rate sensitive realty, banking and auto stocks declined after the Reserve Bank of India (RBI) raised its key lending rate viz. the repo rate by 25 basis points to 7.5%, as expected, after a mid-quarter monetary policy review today, 16 June 2011, to tame inflation and said the monetary policy stance remains firmly anti-inflationary.

Idea Cellular, Adani Power, Havells

Idea Cellular, Adani Power, Havells

Daily News Roundup - June 14 2011

Tata Communications has increased its effective holding in South Africa's second-biggest fixed-line phone operator Neotel to 61.5% from 49%. (BS)

The CAG said, the Oil Ministry and its technical arm, the DGH, bent rules for Reliance Industries. (FE)

Hindustan Zinc has hiked the price of lead by 2.6% to Rs1,32,000 per ton in sync with the rise at the London Metal Exchange. (BL)
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Reliance Brands, a part of Reliance Industries (RIL) said its association Timberland in India will not be impacted by VF Corporation's global takeover of the latter. (BS)

Reliance Communications has protested BSNL's move to pull the plug on interconnections between networks of both companies in Punjab and Haryana last month over a financial dispute. (ET)

Larsen & Toubro expects its electrical and automation business to double to Rs80bn by 2015. (BS)

The Goldman Sachs unit picked up 9.1% stake in Max India for about Rs5.22bn (US$116mn). (BS)

Larsen & Toubro has bagged a Rs1.10bn order from the West Bengal State Electricity Distribution Company to supply energy meters. (ET)

Power Grid Corporation of India and Birla Institute of Management and Technology have signed a MoU to jointly explore opportunities abroad for assignments in capacity building, institution development and training and development programmes. (BS)

Gitanjali Gems has acquired Italy-based jewellery firm DIT Group SpA for US$11mn. (BS)

ICICI Bank has reversed its decision to exchange three bonds with new ones due to negative reaction from investors and to avoid speculation about its funding position. (ET)

Infosys Technologies has bagged the first of the Department of Post’s IT modernisation contracts. (BS)

Punj Lloyd has won an EPC nuclear power contract from NPCIL worth Rs6.78bn for critical nuclear piping work at four pressurised heavy water reactors of 700 MWe each. (FE)

JSW Steel Ltd has approached six small mining companies in Goa to procure enough to feed its existing steel plant and the proposed pig iron project in the state. (BS)

The stalemate between the Maruti management and its striking workers at the Manesar plant continued for the 10th day, as a series of negotiations between the two parties failed to yield any result. (BS)
Economy Snippets

India will become the third largest market in the world after China and the US for light vehicles, including passenger cars and light commercial vehicles (LCVs), by 2020, according to market research firm JD Power Asia Pacific. (BS)

The telecom department has pegged the total subsidy for financing the countrywide rural wireless broadband rollout at Rs60-80bn. (ET)

The Commerce and Industry Minister urged the SAFTA member states to bring down all the protectionist trade barriers to achieve regional economies of scale at a much greater pace. (BL)

Farm credit flow surpassed the target by about 14% to Rs4,265bn during 2010-11 financial year. The government had set the target of farm credit disbursal at Rs3,750bn during the year. (BS)

Markets may see a quiet start

Today’s opening is expected to be subdued on account of mixed global cues. May inflation readings will remain in focus

Headlines for the day:

R-Infra looks for ongoing projects to boost toll biz

Citigroup to cut stake in HDFC in $260-300 mn deal

Maruti deadlock continues as negotiations fail

Market may open higher on firm Asian stocks; inflation data eyed

The market may open flat to slightly higher snapping recent losses on firm Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a gain of 6 points at the opening bell. Foreign institutional investors (FIIs) sold shares worth Rs 304.17 crore and domestic funds bought shares worth Rs 27.34 crore on Monday, 13 June 2011, as per provisional figures released by the stock exchanges.

SGX Nifty Live Update - June 14 2011

5,510.00 +8.00

Markets end flat in choppy trade

Markets close the first day of the week on a flat note. The Sensex down by 3 points and the Nifty down by 3 points.

Major headlines

Titan hits 52-week high on bonus, stock split nod

Max India allots shares to Goldman Sachs arm; stk soars

Atul Auto gains on plans to foray into LCV segment

NSE Bulk Deals to Watch - June 13 2011

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
13-JUN-2011,AANJANEYA,Aanjaneya Lifecare Ltd,CROSSEAS CAPITAL SERVICES PVT. LTD.,BUY,191252,324.31,-
13-JUN-2011,ACROPETAL,Acropetal Tech Ltd,BASMATI SECURITIES PVT LTD,BUY,12008,21.00,-
13-JUN-2011,ACROPETAL,Acropetal Tech Ltd,INDIA MAX INVESTMENT FUND LTD,BUY,950000,21.00,-
13-JUN-2011,ACROPETAL,Acropetal Tech Ltd,INDRAVARUN TRADE IMPEX PVT LTD,BUY,38040,21.00,-
13-JUN-2011,FIRSTLEASE,First Leasing Company ,AJAY,BUY,278699,110.26,-
13-JUN-2011,FIRSTLEASE,First Leasing Company ,CROSSEAS CAPITAL SERVICES PVT. LTD.,BUY,641997,110.21,-

Nifty June 2011 futures above 5500

Turnover drops

Nifty June 2011 futures were at 5501.90, at a premium of 19.10 points over spot closing of 5482.80. Turnover on NSE's futures & options segment declined to Rs 82244.24 crore from Friday's (10 June 2011) Rs 89453.69 crore.

Market recovers from 2-week trough

The key benchmark indices recovered as bargain hunting emerged after the market hit its lowest level in more than two weeks at the onset of the trading session. The barometer index BSE Sensex ended 2.51 points or 0.01% lower, up close to 145 points from the day's low and off close to 45 points from the day's high. Capital goods, consumer durables and infrastructure stocks gained. Metal stocks declined. Auto stocks rose on bargain hunting. The market breadth turned positive from negative in late trade. Index heavyweight Reliance Industries edged lower.

Daily News Roundup - June 13 2011

GAIL is making a non-binding bid for acquiring 20% interest in shale gas assets owned by a US company; the deal is estimated to cost some US$400-500mn. (TOI)

Reliance Industries to buy Bharti's 74% stake in insurance venture with AXA. (FE)

DGH refuses to accredit three natural gas discoveries made by Reliance Industries at its KG-D6 block. (ET)

PM assures support to set up refinery at Cairn-run oilfields. (ET)

Sensex slips on IIP data...Nifty ends below 5500

The Indian equity markets ended in the red for a third straight trading session on Friday, with the NSE Nifty closing below the crucial 5500 mark, as index heavyweights like L&T, Tata Steel, ICICI Bank and Hero Honda succumbed to fresh round of selling. The market sentiment was hit after the release of disappointing industrial production data.

India's industrial output grew by 6.3% in April 2011 as per the new series. This was lower as compared to the 8.8% expansion in March as per the new series. As far a the old series is concerned, Industrial output grew by a modest 4.4% in April this year versus 7.3% in March 2011.

Getting worse?

Time is that quality of nature which keeps events from happening all at once. Lately it doesn't seem to be working. - Anonymous.

The UPA II regime has really not lived up to expectations so far. The government has its task cut out on multiple battle fronts - be it inflation, corruption or foreign policy. Policy making is in a limbo and India Inc. is not amused, nor is the market. So, it remains to be seen if Manmohan Singh & Co. can still resurrect the situation.

Gap-down opening on the cards

The Indian indices head towards a lower start tracking losses across the globe. The trend on the Dalal Street is likely to remain range bound.

Headlines for the day:

Essar eyes Indonesia, Australia resources to meet domestic demand

Kingfisher may lease more planes, eye PEs for funds

HPCL Mumbai refinery to shut half of capacity for two-month revamp

Market may extend losses on weak Asian stocks; RIL in focus

The market may extend recent losses on weak Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 21.50 points at the opening bell. Foreign institutional investors (FIIs) sold shares worth Rs 170.05 crore and domestic funds bought shares worth Rs 336.98 crore on Friday, 10 June 2011, as per provisional figures released by the stock exchanges.

The key benchmark indices reached their lowest closing level in nearly two weeks on Friday, 10 May 2011. The BSE Sensex lost 116.36 points or 0.63% to 18,268.54, its lowest level since 30 May 2011 on that day.