Market may extend five-day winning streak on firm Asian stocks

The market may extend nearly 5% gains clocked in previous five trading sessions on strong Asian markets. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a gain of 42.50 points at the opening bell. Asian stock markets surged today, 11 June 2012 after euro zone finance ministers agreed to lend the Spain up to $125 billion to shore up its struggling banks. Dr Reddy's Laboratories will replace DLF in the benchmark 30-share Sensex with effect from today, 11 June 2012. Key benchmark indices rose for the fifth straight trading session and attained their highest closing level in 4-1/2 weeks on Friday, 8 June 2012 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. The BSE Sensex advanced 69.82 points or 0.42% to 16,718.87, its highest closing level since 7 May 2012. Foreign institutional investors (FIIs) bought shares worth a net Rs 202.01 crore on Friday, 8 June 2012, as per provisional figures from the stock exchange. The Reserve Bank of India (RBI) more than doubled the number of remittances nonresident Indians can make to individuals in a year, a step aimed at arresting a slide in the rupee that is worsening the nation's economic outlook. The maximum number of transfers from abroad to beneficiaries in India increased to 30 from 12. Remittances favoring foreign tourists visiting India are also permissible, the Reserve Bank of India said Friday. Last month, the central bank gave exporters 15 days to convert half their onshore foreign-exchange holdings into rupees. Before that, it raised the interest-rate ceiling on foreign-currency deposits and imposed restrictions on forward trades. The central bank's currency market intervention of selling dollars has only given the rupee short-term relief. 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. Singh said that the government plans to award 9,500 kilometer (kms) of roads for construction this year and over 4,000 kms for maintenance under the new system. In Railways, the government plans to award work on the Elevated Rail Corridor in Mumbai, two new Loco manufacturing units and the public private partnership (PPP) stretch of the Dedicated Freight corridor, in addition to redeveloping 4 or 5 stations through PPP mode in the current year. In shipping, Singh said the government has set the challenging task of awarding work for two new major PPP Ports, the first in decades, in addition to capacity addition targets which are three times the targets for the last year. In civil aviation, work will be awarded in the current year on three new Greenfield airports in Navi Mumbai, Goa and Kannur and new international airports at Lucknow, Varanasi, Coimbatore, Trichy and Gaya, Singh said. Also, two new hubs will be developed in the country making India a destination as well as a transit point. In power, the government plans to add a record 18,000 megawatts (MW) of capacity this year, Singh said. Data on first installment of the advance tax payment due on Friday, 15 June 2012 could provide cues on Q1 June 2012 corporate earnings. Data on industrial production for April 2012 due tomorrow, 12 June 2012 and inflation for May 2012 due on Thursday, 14 June 2012 could provide cues on the central bank's likely policy stance at mid-quarter monetary policy review on 18 June 2012. Industrial production registered a surprise 3.5% contraction in March 2012. The annual rate of inflation, based on monthly wholesale price index (WPI), stood at 7.23% (provisional) for the month of April 2012. Asian stock markets zoomed higher on Monday, after news of a plan to shore up Spanish banks, the source of much recent global financial anxiety. Key benchmark indices in China, Hong Kong, Japan, South Korea, Taiwan, Indonesia and Singapore rose by between 0.01% to 2.07%. Euro zone finance ministers on Sunday agreed to lend Spain up to 100 billion euro to help its battered banks. Meanwhile Spanish prime minister said that this bailout package is simply a line of credit, which means that it can avoid a full rescue. Chinese data showed exports grew last month at more than double the pace estimated, while imports of crude oil rose to a record. 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. U.S. stocks rose Friday, sealing their best week this year, on hope Europe would move to combat its economic crisis, including an anticipated recapitalization of Spanish banks. The Federal Open Market Committee holds its next policy meeting on June 19-20.