Market may gain on firm Asian stocks

The market may gain on firm Asian stocks which rose after a new aid plan for Greece's debt problem. Trading of S&P CNX Nifty on the Singapore stock exchange indicates a gain of 63 points at the opening bell. FIIs sold shares worth a net Rs 577.64 crore on Thursday, 21 July 2011, as per provisional data from the stock exchanges. Domestic institutional investors (DIIs) bought shares worth Rs 408.36 crore on that day.

Weak global cues pushed Indian stocks lower for the second straight session on Thursday, 21 July 2011. The BSE Sensex fell 66.19 points or 0.36% to 18,436.19, its lowest closing level since 12 July 2011.



Private sector bank Axis Bank reports Q1 results today, 22 July 2011.

As the crucial corporate earnings season gathers steam, investors will closely watch the post-Q1 June 2011 result management commentary to gauge the future earnings outlook at a time when Indian firms are witnessing cost pressures amid rising interest rates and staff costs. A hike in transportation costs will add to cost pressure of India Inc. As per reports, freight rates have gone up by 8% to 9% on all routes across India following the recent hike in diesel prices.

Godrej Consumer Products reports Q1 earnings on 23 July 2011. Reliance Industries and Sterlite Industries will announce Q1 results on 25 July 2011. Car major Maruti Suzuki, steel major JSW Steel, power equipment major Bhel, decorative paints major Asian Paints and Shriram Transport Finance Company are set to unveil Q1 results on 26 July 2011. UltraTech Cement, HCL Technologies, GAIL (India), Bank of Baroda, Infrastructure Development Finance Company (IDFC), Oil India and Lupin unveil results on 27 July 2011.

State-run oil exploration giant ONGC, FMCG giant Hindustan Unilever, Cigarette major ITC, Sun Pharma, cement majors--ACC and Ambuja Cements, Jindal Steel & Power, state-run Punjab National Bank and GSFC unveil results on 28 July 2011. ICICI Bank, Power Finance Corporation and TVS Motor unveil Q1 results on 29 July 2011. Bharti Airtel unveils Q1 results on 3 August 2011. IL&FS Transportation Networks announces Q1 results on 5 August 2011. M&M announces Q1 results on 8 August 2011. ABB announces Q2 results on 9 August 2011. Tata Power unveils Q1 results on 10 August 2011. Hindalco and Coal India unveil Q1 results on 12 August 2011.

Annual inflation in the Food Articles group declined to 7.58% in the week ended 9 July 2011, from 8.31% in the previous week, the Commerce & Industry Ministry said in a statement. Inflation in the Primary Articles group inched lower to 11.13% in the week under review, from 11.58% in the week ended 2 July 2011. Inflation in the Fuel & Power group remained static at 11.89% as compared to the previous week, the data showed.

Finance Minister Pranab Mukherjee on Wednesday, 20 July 2011, said that inflation is expected to remain high between August-December 2011. Mukherjee's latest comments on inflation come just a few days ahead of a likely 25 basis points hike in its key lending rate by the Reserve Bank of India (RBI) at its first quarter review of the monetary policy 2011-12 on 26 July 2011, to tame inflation, which remains much above the central bank's perceived comfort level of 5% to 6%.

The country's crucial monsoon rains were 7% above normal in the week to 20 July picking up from about a fifth below average in the previous week, the weather office said on Thursday. The four-month monsoon rains are crucial to crop production in 60 percent of the country that does not have adequate irrigation.

Asian stocks rose as a new aid plan for Greece eased concern Europe's debt crisis will spread, reducing uncertainty over earnings at financial companies. The key benchmark indices in China, Hong Kong, Japan, Indonesia, Singapore, South Korea and Taiwan rose by between 0.33% to 1.71%.

Euro zone leaders have agreed on a bold rescue package for debt-stricken Greece and will give their financial rescue fund sweeping new powers to prevent market instability spreading through the region. An emergency summit of leaders of the 17-nation currency area pledged on Thursday to conduct a second bailout of Greece with an extra 109 billion euros ($157 billion) of government money, plus a contribution by private sector bondholders estimated to total as much as 50 billion euros by mid-2014.

U.S. stocks climbed on Thursday as signs of progress on the U.S. debt talks and concrete action from Europe on its own debt crisis heartened investors.

Efforts to craft a broad $3 trillion deficit-reduction deal gained traction on Thursday as the White House and top lawmakers scrambled to sort through competing options and stave off a devastating U.S. default.

Standard & Poor's reiterated on Thursday it sees a real risk that future U.S. government deficits may meaningfully miss discussed targets and that there is a 50-50 chance the U.S. AAA credit rating could be cut within three months, perhaps as soon as August. If an agreement is reached to raise the debt ceiling but nothing meaningful is done in terms of deficit reduction, the U.S. would likely have its rating cut to the AA category, S&P said. The deficit reduction debate is coming up against an Aug. 2 deadline when the $14.3 trillion limit on America's borrowing capacity is exhausted.

The number of Americans filing new claims for unemployment benefits rose more than expected last week, pointing to a labour market that is struggling to regain momentum. Initial claims for state unemployment benefits increased 10,000 to a seasonally adjusted 418,000, the Labor Department said on Thursday.