FMCG, cement stocks advance

Key benchmark indices edged higher for the second straight day on expectations the Reserve Bank of India (RBI) will cut interest rates at mid-quarter monetary policy review on 18 June 2012 to prop up slowing economic growth. The barometer index, BSE Sensex, attained its highest closing level in over 5 weeks. The 50-unit S&P CNX Nifty reached its highest closing level in nearly 6 weeks. The Sensex advanced 17.71 points or 0.11%, up about 90 points from the day's low and off close to 60 points from the day's high. The market breadth was positive. Index heavyweight Reliance Industries (RIL) edged lower. From a recent low of 16,668.01 on 11 June 2012, the Sensex has risen 212.50 points or 1.27% in two trading sessions. The Sensex has risen 661.98 points or 4.08% so far in this month (till 13 June 2012). The barometer index has gained 1,425.59 points or 9.22% in calendar 2012 so far (till 13 June 2012). From a 52-week low of 15,135.86 on 20 December 2011, the Sensex has risen 1,744.65 points or 11.52%. From a 52-week high of 19,131.70 on 8 July 2011, the Sensex has lost 2,251.19 points or 11.76%. Coming back to today's trade, shares of most gas distribution firms rose. Cement stocks extended recent gains triggered by Prime Minister's thrust on infrastructure sector. Shares of diesel vehicles makers declined on reports the government is planning to compensate the subsidy on diesel by taxing cars running on diesel. FMCG stocks rose, with FMCG major Hindustan Unilever hitting a record high. Capital goods stocks also edged higher. The market alternately swung between gains and losses in early trade. Key benchmark recovered and moved into the positive terrain after hitting fresh intraday lows in morning trade as gains in Asian stocks boosted sentiment. The market trimmed gains after hitting fresh intraday high in mid-morning trade. Volatility continued as the market trimmed losses after hitting fresh intraday low in early afternoon trade. Key benchmark indices hit fresh intraday highs in afternoon trade as European stocks rose in early trade there. The 50-unit S&P CNX Nifty touched its highest level in over 5-1/2 weeks. The BSE Sensex touched its highest level in more than five weeks. Volatility continued as key benchmark indices alternately swung between positive and negative terrain in mid-afternoon trade. The market regained positive terrain after slipping into the red for a brief period in late trade. The BSE Sensex advanced 17.71 points or 0.11% to settle at 16,880.51, its highest closing level since 7 May 2012. The index rose 81.31 points at the day's high of 16,944.11 in afternoon trade. The index fell 69.93 points at the day's low of 16,792.87 in early afternoon trade. The S&P CNX Nifty advanced 5.55 points or 0.11% to settle at 5,121.45, its highest level since 3 May 2012. The index hit a high of 5,144.90 and a low of 5,095.45 in intraday trade. The BSE Mid-Cap index fell 0.21% and underperformed the Sensex. The BSE Small-Cap index gained 0.13% and outperformed the Sensex. BSE clocked turnover Rs 2111 crore, higher than Rs 1963.28 crore on Tuesday, 12 June 2012. The market breadth, indicating the overall health of the market, was positive. On BSE, 1,403 shares rose and 1,301 shares fell. A total of 145 shares were unchanged. From 30-share Sensex pack, 18 stocks fell and rest of them rose. Index heavyweight Reliance Industries (RIL) fell 0.84%. RIL chairman Mukesh Ambani said at the company's Annual General Meeting in Mumbai last week that the company has cumulatively bought back a total of 2.7 crore shares under the share buyback programme, which is 22.5% of share buyback target. Ambani said the company's buyback programme represents highly accretive use of cash by the company and it will supplement earnings growth from operations, for higher EPS (earnings per share), in the near future. Ambani said RIL will invest about Rs 1 lakh crore over the five years in expanding its business in India. Ambani said RIL is targeting to double its operating profit in about five years. Cement stocks extended recent gains triggered by Prime Minister's thrust on infrastructure sector. Jaiprakash Associates, Ambuja Cements, India Cements and UltraTech Cements gained by between 0.94% to 5.41%. But, ACC fell 0.78%. Prime Minister Manmohan Singh last week laid out ambitious infrastructure development plans for the current fiscal year, in an effort to counter criticism over a perceived policy paralysis that has led India into its worst slowdown in nearly a decade. Shares of most gas distribution firms rose. Petronet LNG, Gujarat Gas Company, Gujarat State Petronet and Indraprastha Gas (IGL) rose by between 0.31% to 4.79%. But, GAIL (India) fell 0.28%. The Delhi High Court recently quashed the PNGRB's (Petroleum & Natural Gas Regulatory Board) tariff order served to Indraprastha Gas (IGL). In its order Delhi High court said that PNGRB is not empowered to fix/regulate maximum retail price at which gas is to be sold by entities like IGL to the consumers. The court also said that PNGRB is also not empowered to fix any component of Network Tariff/Compression Charge for an entity like IGL having its own distribution network. FMCG stocks rose. ITC, Marico, Nestle India, and Dabur India rose by between 0.64% to 3.35%. FMCG major Hindustan Unilever rose 3.03% to Rs 445.90. The stock hit a record high of Rs 446.90 today. Capital goods stocks rose. ABB, Bhel, Siemens and Alstom Projects rose by between 0.42% to 2.21%. V. Narayanasamy, minister of state in the Prime Minister's office, said at an industry conference Wednesday that India is in talks with Russia, France and South Korea to buy nuclear reactors as it seeks to set up 63,000 megawatts of nuclear power generation capacity by 2032. At 4,780 megawatts, nuclear generation currently accounts for only 2.4% of India's total installed power generation capacity. The South Asian nation aims to rapidly ramp up nuclear capacity to cut its dependence on coal. Engineering and construction major L&T rose 2.6%. Last week, L&T Shipbuilding -- a subsidiary of L&T -- bagged orders valued at Rs 483 crore for four specialized commercial vessels in Q1 June 2012. L&T also announced last week that its construction division bagged new orders worth Rs 2410 crore across various businesses in Q1 June 2012. Shares of diesel vehicles makers declined on reports the government is planning to compensate the subsidy on diesel by taxing cars running on diesel. As per reports, Oil Minister S Jaipal Reddy has recommended a steep Rs 2.55 lakh additional tax on large and medium diesel cars and Rs 1.70 lakh on small diesel cars. Reddy on Friday, 8 June 2012, said his ministry has recommended that the tax on diesel vehicles should be raised. India's largest commercial vehicle maker by sales Tata Motors declined 2.1%. Tata Motors' total sales (including exports) of Tata commercial and passenger vehicles rose 4% to 64,347 vehicles in May 2012 over May 2011. The company's domestic sales of Tata commercial and passenger vehicles for May 2012 rose 6% to 60,128 units in May 2012 over May 2011. The company announced the monthly sales data early this month. India's largest utility vehicles maker Mahindra & Mahindra (M&M) fell 1.75%. The company on Monday announced that it has received an overwhelming 7,200 plus bookings for its cheetah-inspired XUV500 from customers within just 2 days of opening all India bookings for the vehicle. All India bookings for the XUV500 were opened from 8th June 2012. The XUV500 is now available at more than 100 dealerships across India, including those cities where it had been launched earlier. Small-car major Maruti Suzuki India dropped 3.38%. The company said during market hours on Tuesday that the board of directors of the company has approved a proposal to merge Suzuki Powertrain India (SPIL) with the company. SPIL, which supplies diesel engines as well as transmissions for vehicles to Maruti Suzuki, is a subsidiary of Suzuki Motor Corporation (SMC), Japan. SMC holds 70% share in SPIL and remaining 30% is held by Maruti Suzuki. As per the terms of the proposed merger, SMC will receive one share of MSIL of Rs 5 each for every 70 shares of Rs 10 each it holds in SPIL. There will be no cash outflow from MSIL due to the merger. MSIL proposes to make a fresh issue of about 1.31 crore equity shares to SMC in lieu of SMC's 70% holding in SPIL. Consequent to the merger, SMC's holding in MSIL will go up from 54.2% to 56.2%. With the merger, MSIL will be able to bring its entire diesel engine capacity under a single management control. All key initiatives to strengthen the business, including sourcing, localization, production planning, manufacturing flexibility and cost reduction can be controlled, monitored and improved by the MSIL management, MSIL said in a statement. The proposed merger also promises benefits for the combined entity through synergies in areas like finance, capital structuring, and administration and consequent reduction of transaction costs, MSIL said. Maruti early this month said total sales declined 5% to 98,884 units in May 2012 over May 2011. Shares of two-wheeler makers also edged lower. India's second largest motorcycle maker by sales Bajaj Auto shed 0.65%. The company early this month said its total sales fell 2% to 3,52,219 units in May 2012 over May 2011, as exports to Sri Lanka were nil in May 2012 against a typical monthly average of 10,000 motorcycles and 3-wheelers each per month. The company expects recovery in Sri Lankan exports from July 2012 onwards. The company's exports rose 3% to 1,30,573 units in May 2012 over May 2011. Hero MotoCorp (HMCL) declined 1.72%. The board of directors of the company recently approved a proposal to merge Hero Investments (HIPL), the investment arm of the Hero Group, into HMCL. The shareholders of HIPL include the partnership firm Brijmohan Lall Om Prakash (BMOP) which holds 71.63%, and private equity (PE) investors BC India Private Investors (19.81%) and Lathe Investment (8.56%). BC India Private Investors is an affiliate of Bain Capital LLC, while Lathe Investment is a wholly-owned subsidiary of Government of Singapore Investment Corporation (GIC). Hero MotoCorp reported its best-ever monthly sales in May 2012, thus underlining the robust momentum the company has sustained since embarking on its solo journey. Marking its 10th consecutive month of over five lakh sales, Hero MotoCorp total sales rose 11.3% to 5,56,644 two-wheelers in May 2012 over May 2011. The company's sales in May this year surpassed its previous highest of 5,51,557, recorded only last month (April 2012). Shares of power finance companies extended recent gains as Prime Minister Manmohan Singh last week laid out ambitious infrastructure development plans for the current fiscal year which includes plans to add a record 18,000 megawatts (MW) of power capacity this year. Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) rose 2.57% to 4.69%. Bank shares recovered from initial weakness on hopes the Reserve Bank of India (RBI) will cut interest rates at mid-quarter monetary policy review on 18 June 2012 to prop up slowing economy after the latest data showed industrial output grew just 0.1% in April 2012. India's largest commercial bank in terms of branch network State Bank of India rose 0.7%. The state-run bank has cut its retail term deposit interest rates by 0.25% in tenors up to 240 days with effect from 8 June 2012. India's largest private sector bank by net profit ICICI Bank rose 1.23%. India's second largest private sector bank by net profit HDFC Bank fell 1.25%. State-run Neyveli Lignite Corporation (NLC) was flat at Rs 80.60. The company announced during trading hours today, 13 June 2012, that pursuant to the memorandum of understanding (MoU) entered into with Uttar Pradesh Rajya Vidyut Utpadan Nigam (UPRVUNL), the Cabinet Committee on Infrastructure, Government of India has accorded its approval for formation of joint venture company with UPRVUNL with shareholding of 51% of the equity capital by NLC and 49% by UPRVUNL for setting up of a 1980 megawatts coal based Thermal Power Project in Ghatampur Tehsil, Uttar Pradesh. At a function held on 11 June 2012 at Ghatampur, Kanpur District, Union Minister for Coal, Sriprakash Jaiswal laid foundation stone for the project. IT pivotals rose across the board. India's second-largest software exporter by revenue Infosys gained 0.57%. Dansk Supermarked A/S, a leading retailer in the Nordics, has engaged Infosys as its strategic partner to transform its cross-channel commerce program, Infosys said in a release on Tuesday. Through this engagement, Dansk Supermarked A/S which has over 1,300 stores across Denmark, Sweden, Germany and Poland will provide its consumers a seamless and convenient cross-channel shopping experience, Infosys said. Infosys was selected by Dansk Supermarked A/S for its capabilities in delivering end-to-end digital commerce programs for global retailers, Infosys said. This transformation program will start with Bilka.dk, one of Dansk Supermarked's store chains and is expected to help increase Bilka.dk's sales to 2.4 Billion Danish kroner by 2016, Infosys said. India's largest IT company by revenue Tata Consultancy Services (TCS) rose 0.22%. India's third largest software services exporter by revenue, Wipro, gained 0.6%. HCL Technologies rose 1.21%. HCL AXON, the Enterprise Application Services division of HCL Technologies, today announced that it has successfully developed a joint enterprise mobility solution on its HCL Citizen Connect platform as part of its global strategic alliance with Radio IP Software, the developer of advanced mobile virtual private network (MVPN) solutions. The prime focus of the partnership draws upon the strengths of each company in providing a combined go-to-market (GTM) strategy, delivering combined value added mobility solution offerings to HCL AXON and Radio IP Software customers, as well as prospective clients in the Public Services market globally, HCL Tech said. HCL Tech also said during market hours today that it has successfully implemented the first phase of Oracle's PeopleSoft solutions suite for Sharda University, India's leading educational institution. The end-to-end ERP implementation, one of the first for a private university in India, will help Sharda University automate all its back-end and front-end process to deliver a better user experience. Shares of Vijay Mallya-led UB Group companies rallied. United Breweries (Holdings), Kingfisher Airlines, United Spirits (USL) and United Breweries rose by between 6.29% to 20%. Media reports had recently suggested that Diageo, the world's largest spirits company, is in the process of buying a stake in United Spirits. Metal stocks were mixed. Sterlite Industries, Sesa Goa, Tata Steel, NMDC, and Hindustan Zinc fell by between 0.13% to 2.21%. Sail, Jindal Steel & Power, and Bhushan Steel rose by between 0.11% to 1.71%. Hindalco Industries fell 0.49%. The company will announce its audited consolidated results for the year ended 31 March 2012 on 27 June 2012. JSW Steel declined 0.4%. The company said during market hours on Tuesday its crude steel production rose 25% to 7.24 lakh tonnes in May 2012 over May 2011. The capacity utilisation at Vijayanagar works remained at around 80% in May 2012 due to constraints in availability of iron ore in the Karnataka, the company said in a statement. Airline stocks gained for the 2nd day in a row as oil prices fell. Jet Airways, Kingfisher Airlines and SpiceJet rose 1.97% to 6.29%. US crude futures have lost 16% this year. Jet fuel or aviation turbine fuel (ATF) typically makes up almost half of an airline's operating cost. Prices of jet fuel are directly linked to crude oil prices. State-run oil marketing companies--Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation revise jet fuel prices on the 1st and 16th of every month based on the average international crude price in the preceding fortnight. Realty stocks edged lower on profit booking after recent gains triggered by hopes the Reserve Bank of India (RBI) will cut interest rates at mid-quarter monetary policy review on 18 June 2012 to prop up slowing economy after the latest data showed industrial output grew just 0.1% in April 2012. Lower interest rates may help revive demand for properties. Purchases of both residential and commercial property are largely driven by finance. Sobha Developers, Unitech and HDIL fell by between 0.66% to 2.77%. Real estate major DLF fell 0.89% after Tuesday 2.2% gain. The company during trading hours on Tuesday said its wholly-owned subsidiary, DLF Hotel Holdings, has divested its entire shareholding in Adone Hotels and Hospitality (Adone) for Rs 567 crore. DLF said that the transaction is in line with its stated objective of divesting its non-strategic assets. Telecom stocks were mixed on reports the Reserve Bank of India has allowed telecom companies to mortgage spectrum to raise funds from banks. Bharti Airtel (down 0.34%) and Idea Cellular (down 1.79%) edged lower. MTNL (up 1.08%) and Tata Teleservices (Maharashtra) (up 2.86%), edged higher. According to reports, the Reserve Bank of India (RBI) has approved the proposal to allow mobile phone companies to mortgage spectrum, a move that will allow telcos to use spectrum as collateral and raise funds from banks for the upcoming auctions. The RBI has reportedly said that banks will be allowed to seize spectrum in the event of a default or cancellation of mobile permits. Banks will enjoy the rights to sell, transfer, assign, exchange and dispose of the spectrum without any restraining conditions to protect their interests. According to reports, the finance ministry has endorsed the RBI stance and has asked the telecom department (DoT) to expedite policy changes to allow spectrum to be used as collateral by lenders of telecom companies. Currently, all spectrum is owned by the government and is given on a 20-year lease to the operators, on the condition that it will be returned to the government. Reliance Communications (RCom) rose 2.62% after the company said during market hours today that the Singapore Exchange Securities Trading has granted an eligibility to list to a Singapore business trust of the firm subject to the requisite conditions being satisfied. RCom had earlier announced that it was evaluating a potential initial public offering and listing in Singapore of its subsea telecommunications infrastructure network business, through a Singapore business trust. Reliance Capital fell 0.16%. The company said during market hours today that it has received approval from the Securities and Exchange Board of India (SEBI) for its proposed 26% stake sale in Reliance Capital Asset Management (RCAM), India's largest and most profitable asset management company (AMC), to Nippon Life Insurance. Approval for the stake sale has also been received today from the Monetary Authority of Singapore (MAS). Nippon Life will invest Rs 1450 crore to acquire 26% strategic stake in RCAM. The Reserve Bank of India (RBI), Competition Commission of India (CCI), and the Pension Fund Regulatory and Development Authority (PFRDA) have already granted their approval for the proposed stake sale. The company had signed final agreements with Nippon Life Insurance to sell 26% stake in RCAM earlier this year, subject to regulatory approvals. Future Ventures clocked highest volume of 1 crore shares on BSE. Kingfisher Airlines (98.99 lakh shares), IDFC (65.94 lakh shares), SpiceJet (65.86 lakh shares) and Lanco Infratech (57.09 lakh shares) were the other volume toppers in that order. SBI clocked highest turnover of Rs 159.46 crore on BSE. L&T (Rs 117.04 crore), IDFC (Rs 88.45 crore), United Spirits (Rs 80.12 crore) and Indraprastha Gas (Rs 53.39 crore) were the other turnover toppers in that order. Data on first installment of the advance tax payment due on Friday, 15 June 2012 could provide cues on Q1 June 2012 corporate earnings. Housing finance major HDFC announces Q1 June 2012 results on 11 July 2012. Finance Minister Pranab Mukherjee on Tuesday, 12 June 2012, said that the government is taking several measures to kick-start the economy. The government is committed to ensure faster project clearances, attracting new investments, both domestic and foreign, fixing regulatory issues, etc to boost investors' confidence, he said. Mukherjee on Monday, 11 June 2012, said the government hopes to introduce a bill for a direct tax code (DTC) during the monsoon session of parliament. The monsoon session usually runs from July to August. The code, which will replace the existing Indian Income Tax Act 1961, intends to cut tax rates to bring more people and companies under the tax net, phase out profit-linked exemptions for companies and replace them with investment-linked incentives. Industrial production in April rose a dismal 0.1% from a year earlier as manufacturing output remained weak and mining output shrank, deepening worries of a slowdown in the economy. Manufacturing output, which has a 75.5% weight in the index of industrial production, grew a mere 0.1% from a year earlier in April, government data showed Tuesday. Capital goods production in April shrank 16.3% while mining output contracted 3.1%. The government slightly revised upwards March industrial output data to a contraction of 3.2% from a contraction of 3.5% reported earlier. Data on inflation for May 2012 due at 11:30 IST tomorrow, 14 June 2012 could provide cues on the central bank's likely policy stance at mid-quarter monetary policy review on 18 June 2012. The annual rate of inflation, based on monthly wholesale price index (WPI), is projected at 7.4% for May 2012, as per the median estimate of a poll of economists carried out by Capital Market. The annual rate of inflation, based on monthly wholesale price index (WPI), stood at 7.23% (provisional) for the month of April 2012. Global rating agency Standard & Poor's on Monday warned that India could become the first BRIC nation to lose its investment-grade rating if the South Asian country doesn't revive its growth and push the pedal on reforms. Setbacks or reversals in India's path toward a more liberal economy could hurt its long-term growth prospects and therefore its credit quality, Joydeep Mukherji, S&P's credit analyst, stated in a report titled 'Will India Be the first BRIC Fallen Angel?'. S&P currently rates India BBB-minus, just one notch above junk. The other three BRIC group of emerging nations--Brazil, Russia and China--are also rated investment-grade. S&P had in April this year cut the outlook on India's long-term credit rating to negative from stable and warned that the country could lose its investment-grade status if the government fails to bring its fiscal house in order. Data released on 31 May 2012 showed India's economic growth slowed to its weakest pace in nine years in the January-March quarter, when it expanded 5.3% from a year earlier. For the fiscal year ended March 31, the economy grew 6.5%, below the 6.9% expansion the government had projected. US Treasury Secretary Timothy Geithner will meet India's finance minister in Delhi in June to strengthen economic and financial ties between the two countries, the US Treasury Department said early this week. Developing countries should brace for a long period of financial market volatility and weaker growth as tensions rise over a worsening euro zone debt crisis, the World Bank said on Tuesday. Warning the situation in Europe could worsen, the World Bank said in a report that developing nations should prepare for tougher times by reducing short-term debt, cutting budget deficits and moving to a more neutral monetary stance so that policies can be loosened quickly if needed. The Global Economic Prospects report forecast that growth in developing countries is likely to slow to 5.3% in 2012 from 6.1% last year. The World Bank said it expects it to strengthen to 5.9% in 2013 and to 6% in 2014. The forecast was little changed from January. The World Bank said the global economy, which grew 2.7% last year, would likely expand 2.5% this year, accelerating to 3% in 2013 and 3.3% in 2014 -- unchanged from its January outlook. European stock markets reversed initial gains on Wednesday, 13 June 2012, as investors turned cautious ahead of a key bond auction in Italy. Key benchmark indices in France and Germany were down 0.28% to 0.36%. UK's FTSE 100 rose 0.01%. Italy holds a key bond auction tomorrow, 14 June 2012. The threat of contagion from the banking crisis in Spain has contributed to worries over Italy, Europe's 3rd biggest economy. Italian Prime Minister Mario Monti, however, insisted in a radio interview with the German Public Radio ARD, that the country is not lining up for a bailout and that Italy is more disciplined than many other European countries. Greek voters return to the polls on 17 June 2012 after the splintered results of a May 6 parliamentary election left no party able to put together a government. The poll could potentially decide whether the nation will remain in the euro zone. Core euro-zone countries may need to increase spending to help more indebted countries limit contagion effects in the event that Greece is forced to leave the euro, a senior director at Fitch Ratings said Tuesday, ahead of key elections in Athens this weekend. The effect of a Greek exit from the euro-zone is without precedent, and is "a great unknown," but the liabilities of core euro-zone countries could increase in the case of a disorderly exit, Fitch Sovereign Managing Director Ed Parker said. Fitch Ratings on Tuesday downgraded 18 Spanish banks less than a week after the agency cut the country's sovereign debt rating, underscoring the potential for lenders' assets to deteriorate further. Fitch, which already cut Santander and BBVA on Monday, cut the ratings for CaixaBank, Bankia, Banco Popular Espanol and others. Last week Fitch slashed Spain's rating by three notches to BBB. Spain on Saturday, 9 June 2012, agreed to receive euro 100 billion ($125 billion) in financial aid for its struggling banking sector from the European Union. The request made Spain the fourth euro-zone country to require international assistance. European Central Bank Vice-President Vitor Constancio made a fresh push for the bank to become the supervisor of the euro zone's biggest banks on Tuesday, saying the wording of Europe's founding treaty meant it would be an easy change to make. Constancio became the latest top ECB policymaker to stake the bank's claim to the powerful supervisory role, saying that while there was no official ECB stance on the issue, the bank was "prepared" to take the role on. Industrial production in the 17-nation euro area fell 0.8% in April compared with March, the Eurostat statistics agency reported on Wednesday. Industrial output for the 27-nation European Union fell 0.4%, the agency reported. Compared with the year-earlier month, industrial production fell 2.3% in the euro zone and fell 1.7% within the broader EU. Year over year, production of durable goods for consumers slumped 6.2% in the euro zone and dropped 4.5% in the broader EU. Capital-goods output declined 0.3% in the euro zone and rose 0.4% in the EU27, Eurostat reported. Asian stocks rose on Wednesday on hopes that policy makers around the globe would step in to limit the fallout from Europe to the global economy. Key benchmark indices in China, Hong Kong, Japan, South Korea, Taiwan and Indonesia rose by between 0.2% to 1.27%. Singapore's Straits Times fell 0.36%. Japan's machinery orders increased more than economists expected in April, signaling that reconstruction spending is helping companies cope with the yen's strength and the euro area's debt crisis. China's bank lending and the money supply expanded more than expected in May, with households and corporations showing a strong appetite for loans of medium and longer-term duration, indicating that Beijing's policy easing was beginning to find traction. Chinese financial institutions issued 793.2 billion yuan ($125.6 billion) in May, compared with 682 billion yuan in April, according to data released by the People's Bank of China early this week. Trading in US index futures indicated that the Dow could fall 12 points at the opening bell on Wednesday, 13 June 2012. Chicago Fed President Charles Evans on Tuesday said the central bank would be in favor of moves to spur more rapid job growth in the US, the world's biggest economy. The Federal Open Market Committee holds its next policy meeting on June 19-20. It remains to be seen if the Fed extends Operation Twist -- a plan expiring this month that lengthens the average duration of bonds in the Fed's portfolio. The Fed launched Operation Twist in September 2011 to lower long-term borrowing costs. The Organization of Petroleum Exporting Countries (OPEC), which supplies about 40% of the world's crude, may maintain its official daily production ceiling at 30 million barrels a day when the group meets in Vienna tomorrow, 14 June 2012. On Tuesday, Saudi Arabia's Oil Minister Ali Naimi said his country wouldn't ask for OPEC to increase its production levels at this week's meeting Nigeria's oil minister said Wednesday she expects currently volatile prices to settle in the next six months. Diezani Alison-Madueke said volatility in various markets had affected oil prices. The International Energy Agency on Wednesday said global oil supply rose slightly in May 2012. The 7th Group of 20 industrial and developing nations summit is scheduled to be held in Los Cabos, Mexico on 18 and 19 June 2012. The agenda of the summit is to address growing global risks from Europe's sovereign-debt crisis.