Sensex, Nifty scale 7-week highs as FIIs resume buying

Key benchmark indices edged higher for the third straight trading session and attained seven-week closing highs after data showed resumption of buying of Indian stocks by foreign institutional investors on Wednesday, 20 June 2012. The barometer index, BSE Sensex, moved past the psychological 17,000 level. The Sensex jumped 135.93 points or 0.8%, up close to 235 points from the day's low and off about 20 points from the day's high. Banking, realty and capital goods stocks led the rally. Bank shares rose after Financial Services Secretary D.K. Mittal said India is very well poised to tackle a global economic crisis and played down concerns over the health of state-run banks. From a recent low of 16,705.83 on 18 June 2012, the Sensex has risen 326.73 points or 1.95% in three trading sessions. The Sensex has risen 814.03 points or 5.01% so far in this month (till 21 June 2012). The barometer index has gained 1,577.64 points or 10.2% in calendar 2012 so far (till 21 June 2012). From a 52-week low of 15,135.86 on 20 December 2011, the Sensex has risen 1,896.70 points or 12.53%. From a 52-week high of 19,131.70 on 8 July 2011, the Sensex has lost 2,099.14 points or 10.97%. Coming back to today's trade, most power generation stocks reversed initial losses as lower international coal prices could boost profitability. Telecom stocks rose as the Empowered Group of Ministers (EGoM) holds a meeting today, 21 June 2012, to decide on the base price for the 2G spectrum auction. Gas utility stocks also rose. FMCG giant Hindustan Unilever and pharma major Sun Pharmaceutical Industries scaled a record highs. Index heavyweight Reliance Industries (RIL) dropped after Canada's Niko Resources sharply cut the reserves estimate at the KG D6 gas blocks, off India's east coast, where the two companies -- RIL and Niko are partners. Shares of iron ore major Sesa Goa and copper major Sterlite Industries rose for the second day in a row. The market breadth was strong. The market edged lower amid initial volatility on weak Asian stocks. Key benchmark indices extended initial losses to slide to intraday lows in morning trade. The market cut losses in mid-morning trade. A bout of volatility was witnessed as key benchmark indices once again lost ground after erasing almost entire intraday losses in mid-morning trade. The market remained in red in afternoon trade. Key benchmark indices reversed intraday losses to hit fresh intraday highs in mid-afternoon trade, with the market sentiment boosted by provisional data showing resumption of buying of Indian stocks by foreign institutional investors on Wednesday, 20 June 2012. The market surged in late trade. Foreign institutional investors (FIIs) bought shares worth a net Rs 252.40 crore from secondary equity markets on Wednesday, 20 June 2012, data released by Securities & Exchange Board of India (Sebi) after trading hours today, 21 June 2012, showed. The inflow comes after a small outflow of Rs 89.10 crore on Tuesday, 19 June 2012. Earlier, FIIs made sustained purchases of Indian stocks. FIIs bought shares worth a net Rs 2693.50 crore from secondary equity markets during 9 trading sessions from 6 June to 18 June 2012, as per Sebi data. The BSE Sensex jumped 135.93 points or 0.8% to settle at 17,032.56, its highest closing level since 3 May 2012. The index jumped 153.81 points at the day's high of 17,050.44 in late trade. The index fell 97 points at the day's low of 16,799.63 in afternoon trade, its lowest level since 19 June 2012. The S&P CNX Nifty jumped 44.45 points or 0.87% to settle at 5,165, its highest closing level since 3 May 2012. The index hit a high of 5,170.40 in intraday trade. The index hit a low of 5,093.45 in intraday trade, its lowest level since 19 June 2012. The BSE Mid-Cap index rose 0.81% and outperformed the Sensex. The BSE Small-Cap index gained 0.76% and underperformed the Sensex. The total turnover on BSE amounted to Rs 1950 crore, higher than Rs 1,903.98 crore on Wednesday, 20 June 2012. The market breadth, indicating the overall health of the market, was strong. On BSE, 1,658 shares rose and 1,079 shares fell. A total of 124 shares were unchanged. Among the 30-share Sensex pack, 25 gained while only three of them declined. Index heavyweight Reliance Industries (RIL) dropped 2.58% to Rs 718.60 and was the top loser from the Sensex pack. The stock declined on reports Canada's Niko Resources has sharply cut the reserves estimate at the KG D6 gas blocks, off India's east coast, where the two companies -- RIL and Niko -- are partners. The Canadian oil and gas producer late Wednesday estimated that total proved plus probable reserves at the KG D6 block, as of March 31, had decreased to 1.93 trillion cubic feet. The block had been estimated to hold more than 9 trillion cubic feet (tcf) of gas. Niko holds a 10% stake in the D6 block. RIL holds 60%, while BP Plc has a 30% stake. RIL chairman Mukesh Ambani said at the company's Annual General Meeting in Mumbai early this month 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. Capital goods pivotals were in demand. India's largest power equipment maker by capacity Bhel surged 3.6%. The stock extended Wednesday's 1.68% gains. As per media reports, the power ministry will shortly move a note to the Union Cabinet, proposing a levy of 21% on imported power equipment in a bid to protect domestic manufacturers from Chinese and Korean competitors. India's largest engineering and construction firm by order book L&T rose 2.3%. FMCG stocks extended their recent gains triggered by reports that sowing of summer crops including rice, oilseeds and cotton has started with the monsoon covering half of India early this week. FMCG firms derive substantial sales from rural India. Good monsoon may boost farm incomes and consumer spending. India's largest FMCG firm by sales Hindustan Unilever rose 1.21% to Rs 460.10. The stock hit a record high of Rs 463 in intraday trade today, 21 June 2012. Among other FMCG stocks, ITC, Dabur India and United Spirits rose by between 0.6% to 2.64%. IT major Infosys reversed initial losses as the rupee today, 21 June 2012, hit a record low against the dollar. The stock was up 0.87% at Rs 2,492.20, off the day's low of Rs 2,442.30. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports. Bank shares rose after Financial Services Secretary D.K. Mittal said India is very well poised to tackle a global economic crisis and played down concerns over the health of state-run banks. The crisis of capital in the Indian banking system is highly overrated, Mr. Mittal said. India's largest private sector bank by net profit ICICI Bank rose 2.07%. India's second largest private sector bank by net profit HDFC Bank rose 1.4%. India's largest commercial bank in terms of branch network State Bank of India (SBI) gained 2.89% to Rs 2,177.95, off day's low of Rs 2,085.55. As per recent reports, the bank has slashed interest rates on term loans, agriculture loans and loans to small and medium enterprises (SMEs) by 50-350 basis points (bps), or 0.5%-3.5% with effect from 1 June 2012. SBI has kept the base rate unchanged at 10%. Among other banking stocks, Bank of India, Bank of Baroda and Punjab National Bank rose by between 0.35% to 3.32%. Interest rate sensitive realty stocks rose on bargain hunting after recent losses triggered by the Reserve Bank of India (RBI) keeping its key policy rate viz. the repo rate unchanged after a mid-quarter policy review early this week, contrary to market expectations of a 25 basis points reduction. Purchases of both residential and commercial property are largely driven by finance. D B Realty, HDIL, Unitech and DLF gained by between 1.28% to 8.33%. Shares of iron ore major Sesa Goa and copper major Sterlite Industries rose for the second day in a row. Sesa Goa rose 1.95%. The company's shareholders early this week cast their vote on the proposal to merge their firm with Vedanta Resources flagship Sterlite Industries and its various subsidiaries. Results of the vote on the merger is being closely watched as it will create the world's seventh largest diversified metals and mining conglomerate. The result will be known on 25 June 2012. At least 75% of shareholders need to approve the merger for it to become effective. Sterlite Industries (India) rose 2.16%. The company said that the court convened meeting of the shareholders of the company was held today, 21 June 2012, to consider the Scheme of Amalgamation and Arrangement. The results of the court convened meeting will be announced on 25 June 2012. Gas utility stocks were in demand on fresh buying. Indraprastha Gas, Gujarat State Petronet, Gujarat Gas Company, Petronet LNG and GAIL (India) rose by between 0.13% to 5.09%. The Delhi High Court early this month 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. Most power generation stocks reversed initial losses as lower international coal prices could boost profitability. Adani Power, Reliance Infrastructure, Tata Power Company, Reliance Power and NTPC gained by between 0.11% to 3.92%. Fall in international coal prices this year could boost the profitability of power generation firms using imported coal. Telecom stocks rose as the Empowered Group of Ministers (EGoM) holds a meeting today, 21 June 2012, to decide on the base price for the 2G spectrum auction. The base price of Rs 3622 crore per MHz (Mega Hertz) recommended by sector regulator Trai was roundly criticised by telecom operators, after which the Telecom Commission sought a regulatory report on the base price's impact on tariffs. Tata Teleservices (Maharashtra), MTNL, Bharti Airtel, Reliance Communications and Idea Cellular gained by between 0.23% to 1.1%. State-run oil exploration major ONGC rose 0.97%, with the stock extending gains for the third straight day. ONGC and China's China National Petroleum Corp. early this week decided to jointly explore oil and gas assets in other countries, cementing their existing partnerships in Myanmar, Syria and Sudan. India's largest pharma company by market capitalization Sun Pharmaceutical Industries rose 1.7% to Rs 615.05. The stock hit a record high of Rs 618.90 in intraday trade today, 21 June 2012. Ranbaxy Laboratories rose 0.61%, with the stock extending Wednesday's 0.81% gains. Daiichi Sankyo Company and Ranbaxy Laboratories on Wednesday, 20 June 2012, announced that Daiichi Sankyo's subsidiary Daiichi Sankyo Venezuela S.A. would begin marketing products of Ranbaxy in Venezuela as part of the hybrid business model. Till now, Ranbaxy Laboratories has been marketing the products in Venezuela through a local distributor. To kick off the new arrangement, Daiichi Sankyo Venezuela has already started the promotion of Ranbaxy products starting this month. The Venezuelan pharmaceutical market is the third largest in Latin America. Daiichi Sankyo has started its business in Venezuela prior to the other Japanese pharmaceutical companies and has built its presence with innovative pharmaceuticals such as the hypertension medicine Benicar. Daiichi Sankyo will now also focus on expanding Ranbaxy's portfolio of medicines to promote the hybrid business model, encompassing both innovative and established pharmaceuticals to expand and strengthen its presence in Venezuela. Construction shares rose for the second day in a row as Prime Minister Manmohan Singh recently said that the government is focusing heavily on infrastructure investment and it has set ambitious targets to keep infrastructure investment on track and also put in place a problem resolution mechanism to overcome implementation bottlenecks. Jaiprakash Associates, Gammon India, Valecha Engineering, NCC, Patel Engineering and IRB Infrastructure & Developers rose by between 1.29% to 10.06%. Prime Minister Manmohan Singh recently said that the government is focusing heavily on infrastructure investment and it has set ambitious targets to keep infrastructure investment on track and also put in place a problem resolution mechanism to overcome implementation bottlenecks. Singh early this month said that the government plans to award 9,500 kms of roads for construction this year and over 4,000 kms for maintenance under the new system. Auto stocks reversed initial losses. Small-car major Maruti Suzuki India gained 1.12%. India's largest utility vehicles maker Mahindra & Mahindra (M&M) rose 0.06%. India's largest truck maker by sales Tata Motors rose 1.02%. The company has decided to close its truck plant in Pune for three days from June 22 to June 24 to ensure alignment of production with demand. Tata Motors on Friday, 15 June 2012, intimated to the Bombay Stock Exchange (BSE) that Chairman Ratan N Tata purchased additional 4.25 lakh equity shares of Tata Motors from open market purchases on Thursday, 14 June 2012, for about Rs 9.94 crore. After the latest acquisition, Ratan N Tata now holds a total of 13.61 lakh ordinary equity shares of Tata Motors and 1.09 lakh 'A' Ordinary shares of Tata Motors, aggregating to 0.05% of voting rights of Tata Motors. Tata Motors on Friday, 15 June 2012, said sales of its luxury vehicles -- Jaguar Land Rover -- jumped 35% to 30,094 in May 2012 over May 2011. Tata Motors derives almost two-third of its revenue from its British unit Jaguar Land Rover. Tata Motors' global vehicle sales rose 12% to 96,089 units in May 2012 over May 2011. The company's overall global passenger vehicles sales rose 21% to 51,064 units in May 2012 over May 2011. Commercial vehicle sales rose 3% to 45,025 in May 2012 over May 2011. Shares of two-wheeler makers also rose. India's second largest motorcycle maker by sales Bajaj Auto gained 0.14%. 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) rose 2.01%. 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). Airline shares were mostly higher after US crude oil futures hit 8-month lows on Wednesday as US crude stockpiles unexpectedly increased and a report signaled China's manufacturing will shrink this month. Jet Airways (India) (up 1.1%) and Kingfisher Airlines (up 0.44%) gained. But, SpiceJet fell 0.46%. 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. Shares of public sector oil marketing companies rose for the fourth day in a row after Prime Minister Manmohan Singh this week said that the government is determined to take tough decisions, including on controlling subsidies. HPCL (up 4.35%), and Indian Oil Corporation (up 2.77%), edged higher. BPCL gained 0.65% to Rs 763.50 after hitting a 52-week high of Rs 774.60 in intraday trade today, 21 June 2012. Media reports suggest that the government will raise prices of diesel and cooking gas shortly as part of broader policy measures that the government is planning to unveil to attract capital inflows and boost investor confidence. These measures are reportedly aimed at averting a possible sovereign downgrade to junk status by rating agencies and reviving faltering growth. The three public sector oil marketing companies (PSU OMCs) -- BPCL, HPCL and IOC -- suffer revenue loss on domestic sale of diesel, LPG (cooking gas) and kerosene at a controlled price. The government decontrolled pricing of petrol in 2010. Shares of Cairn India fell 1.8% after US crude oil futures hit 8-month lows. Crude prices fell as US crude stockpiles unexpectedly increased and a report signaled China's manufacturing will shrink this month. Lower crude oil prices will result in lower realization from crude sales for oil exploration firms such as Cairn India. Cement stocks declined on profit taking after recent gains triggered by the government's thrust on the infrastructure sector. ACC, Ambuja Cements, and India Cements fell by between 1.11% to 2.19%. UltraTech Cements rose 2.31%. The Competition Commission of India (CCI) has found cement manufacturers in violation of the provisions of the Competition Act, 2002, which deals with anti-competitive agreements including cartels. The order was passed pursuant to investigation carried out by the Director General upon information filed by Builders Association of India. CCI has imposed penalty on 11 cement manufacturers at 0.5 times of their profit for the year 2009-10 and 2010-11. The penalty works out to more than Rs 6000 crore. The news of CCI penalty hit the market after trading hours today, 21 June 2012. The cement manufacturers upon whom the penalty has been imposed are ACC, Ambuja Cements, UltraTech Cements, Grasim Cements (now merged with UltraTech Cements), JK Cements, India Cements, Madras Cements, Century Cements, Binani Cements, Lafarge India and Jaypee Cements. While imposing penalty, CCI has considered the parallel and coordinated behaviour of cement companies on price, dispatch and supplies in the market. CCI found that the cement companies have not utilised the available capacity so as to reduce supplies and raise prices in times of higher demand. CCI has also observed that the act of these cement companies in limiting and controlling supplies in the market and determining prices through an anti-competitive agreement is not only detrimental to the cause of the consumers but also to the whole economy since cement is a crucial input in construction and infrastructure industry vital for economic development of the country. The contravening cement manufacturers have been directed to deposit the penalty amount within 90 days. They have also been directed to cease and desist from indulging in any activity relating to agreement, understanding or arrangement on prices, production and supply of cement in the market. CCI has also imposed penalty on the Cement Manufacturers Association (CMA). CMA has been asked to disengage and disassociate itself from collecting wholesale and retail prices through the member cement companies and also from circulating the details on production and dispatches of cement companies to its members. HDIL clocked highest volume of 69.32 lakh shares on BSE. Lanco Infratech (68.75 lakh shares), Bhoruka Aluminum (65.10 lakh shares), Acil Cotton Industries (50.94 lakh shares) and Cals Refineries (47.06 lakh shares) were the other volume toppers in that order. SBI clocked highest turnover of Rs 171.67 crore on BSE. L&T (Rs 64.45 crore), RIL (Rs 62.24 crore), HDIL (Rs 54.97 crore) and Tata Motors (Rs 41.97 crore) were the other turnover toppers in that order. The next major trigger for the market is Q1 June 2012 corporate earnings, which will start trickling from the second week of July 2012. HDFC announces Q1 results on 11 July 2012. Bajaj Auto reports Q1 results on 18 July 2012. The Reserve Bank of India governor D Subbarao on Tuesday warned that inflation is above acceptable levels and he called on the government to do more to support the flagging economy after a controversial decision early this week to leave rates unchanged in the face of pressure for a cut. In his first comments since the rate meeting, Subbarao said it was critical that the RBI contained demand pressures while the government works on easing supply bottlenecks in the economy, particularly in food distribution. Subbarao said there is "no new normal for inflation" in India, referring to unyielding price pressures that have plagued the economy for several months. The Reserve Bank of India's "medium-term inflation goal is still 4%-5%," Subbarao said in a presentation on the central bank's web site. Prime Minister Manmohan Singh at the G20 Plenary Session on Monday, 18 June 2012, said that the Indian government is determined to create an environment that will boost investor sentiment and promote an atmosphere conducive to enterprise and creativity. He said that the government's policies will be transparent, stable and designed to provide a level playing field to both domestic and foreign investors. Singh said that the government is focusing heavily on infrastructure investment and it has set ambitious targets to keep infrastructure investment on track and also put in place a problem resolution mechanism to overcome implementation bottlenecks. Like other countries, we too allowed the fiscal deficit to expand after 2008 to impart a stimulus. We are now focussing on reversing the expansion. Singh said that the government is determined to take tough decisions, including on controlling subsidies The BJP has decided to support P A Sangma for President of India against Finance Minister Pranab Mukherjee. The Congress-led United Progressive Alliance (UPA) coalition last week named Finance Minister Pranab Mukherjee as its nominee for the post of president in the upcoming presidential poll. Mukherjee is expected to step down as the country's finance minister later this month. Prime Minister Manmohan Singh is widely expected to handle the finance portfolio himself. Singh early this month 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. European stock markets edged lower on Thursday, 21 June 2012, after the latest data showed manufacturing activity cooling further in China and after investors hoping for major new Federal Reserve stimulus were disappointed. Key benchmark indices in France, Germany and UK were down by 0.13% to 0.62%. A gauge of June business activity in the euro zone remained near the prior month's 35-month low, according to results of a preliminary Markit survey. The Spanish government sold euro 2.2 billion ($2.8 billion) in a bond auction of varied maturities Thursday, with the amount sold coming in above its planned range of euro 1 billion to euro 2 billion. But, as seen in an auction of Spanish treasury bills earlier this week, the government had to pay a higher yield to get the bonds sold. An auction of April 2014 paper fetched an average yield of 4.71%, versus 2.07% seen at a prior auction of same-dated paper. An auction of July 2015 bonds commanded a yield of 5.45%, versus a prior yield of 4.88%, and an auction of July 2017 bonds fetched a yield of 6.07%, versus a yield on a prior auction of 4.96% The Spanish government will today, 21 June 2012, release the results of the first of two independent audits of Spanish banks, which have been hammered by the effects of a property crash and a recession. This exercise, which tested the banks' ability to handle trouble in the overall economy, will be followed by a more detailed review of the banking system due by 31 July 2012. ECB Executive Board member Benoit Coeure said in newspaper interview published on Wednesday that ECB is likely to discuss lowering its main interest rate at its July 5 council meeting. Coeure's comments are the clearest indication as yet that the ECB is willing to cut interest rates further in an attempt to stop the latest wave of volatility on the euro zone's debt markets in the wake of Spain's bank funding problems. A key summit of the European Union is scheduled on 28 and 29 June 2012 to discuss the ongoing European debt crisis. At the upcoming EU summit, European officials will reportedly launch the long process of deeper integration within Europe, starting with a push for a banking union, with the aim of finalizing a broad plan by December 2012. European nations will take all necessary measures to safeguard the integrity and stability of the euro zone, improve the functioning of financial markets and break the feedback loop between sovereign debts and banks, according to the statement released at the end of the G20 summit in the Mexican resort of Los Cabos on 19 June 2012. Most Asian stocks dropped on Thursday, 21 June 2012, as the latest data showed manufacturing activity cooling further in China and after investors hoping for major new Federal Reserve stimulus were disappointed. Key benchmark indices in Singapore, China, Taiwan, South Korea, Hong Kong and Indonesia were down by 0.76% to 1.4%. Japan's Nikkei 225 rose 0.82%. An initial reading of HSBC's China manufacturing Purchasing Managers' Index showed activity slowing in June from the previous month. HSBC China chief economist Hongbin Qu said the sharp fall in prices and moderation of new orders pointed to weak domestic demand. With external headwinds remaining strong, exports are likely to decelerate in the coming months, he said in a statement. South Korea, Taiwan, the United Arab Emirates (UAE) and Qatar failed to secure an upgrade at MSCI Inc. (MSCI), whose stock indexes are tracked by investors with about $7 trillion in assets. The New York-based index provider will keep South Korea and Taiwan's emerging-market status, and Qatar and the UAE's frontier classification, MSCI said in a statement. The two Asian countries -- South Korea, Taiwan -- will be kept under review for potential elevation to developed markets, while the Persian Gulf nations will remain under review for possible reclassification to emerging markets, it said. South Korea, the UAE and Qatar were evaluated for a fourth time for an upgrade, while Taiwan was reviewed for a third year, MSCI said. MSCI cited the absence of offshore currency markets for bypassing South Korea and Taiwan for upgrades. For South Korea, MSCI also cited limitations in equity settlement across multiple accounts. The nation is already classified as a developed market by FTSE Group, a rival index compiler. MSCI said the only remaining issue preventing the reclassification of Qatar to emerging markets is very low foreign ownership limits. Frontier markets typically have less-developed economies and financial markets than emerging markets, and have more restrictions on foreign stock ownership. MSCI tracks economic development, trading volumes and market accessibility to assess market classifications. Trading in US index futures indicated that the Dow could fall 13 points at opening bell on Thursday, 21 June 2012. US stocks were mostly lower on Wednesday after the Federal Reserve extended its Operation Twist program to push down long-end yields, but disheartened some investors by failing to issue more far-reaching measures. Ending a two-day meeting, the Fed said it would expand its program to replace short-term bonds with longer-term debt by $267 billion through the end of 2012. The central bank also cut its growth forecast for the US economy, with Chairman Ben Bernanke saying the labor market had lost some steam and leaving the door open to more stimulus if the situation deteriorates. The US Federal Reserve slashed its estimates for US economic growth this year to a range of 1.9 % to 2.4%, down from an April projection of 2.4% to 2.9%. The Fed raised its predictions for unemployment in each of the next three years. The Fed has forecast a jobless rate of at least 7.5% at the end of 2013. The Fed, which has held overnight interest rates near zero since December 2008, reiterated its expectation that rates would stay "exceptionally low" through at least late 2014.