Infosys hits 52-week low after cutting FY 2013 guidance in dollar terms

Key benchmark indices fell for the fourth straight trading session to reach their lowest closing level in 2-1/2 weeks on concerns about slow progress of the annual monsoon rains, with sentiment also hurt by remarks over the weekend from Chinese Premier Wen Jiabao that the economic rebound in China isn't yet stable. China is the world's second biggest economy after the US. The barometer index, BSE Sensex, shed 110.39 points or 0.64%, off close to 180 points from the day's high and up about 25 points from the day's low. The market breadth was negative. From a recent high of 17,618.35 on 10 July 2012, the Sensex has declined 515.04 points or 2.92% in four trading sessions. The Sensex has lost 326.67 points or 1.87% in this month so far (till 16 July 2012). The Sensex has jumped 1,648.39 points or 10.66% in calendar 2012 so far (till 16 July 2012). From a 52-week low of 15,135.86 on 20 December 2011, the Sensex has risen 1,967.45 points or 12.99%. From a 52-week high of 18,944.60 on 26 July 2011, the Sensex has lost 1,841.29 points or 9.71%. Coming back to today's trade, IT major Infosys hit 52-week low, with the stock extending last week's steep slide triggered by the company revising downwards both earnings and revenue growth guidance for the year ending March 2013 (FY 2013) in dollar terms after reporting disappointing Q1 June 2012 results before trading hours on Thursday, 12 July 2012. Index heavyweight Reliance Industries (RIL) edged higher in volatile trade. Another index heavyweight and cigarette maker ITC dropped. Metal shares declined for the second day in a row as metals prices dropped on the London Metal Exchange (LME) following remarks over the weekend from Chinese Premier Wen Jiabao that the economic rebound in China isn't yet stable. Bank stocks fell in volatile trade. Tata Motors edged lower after the company reported global sales data for June 2012. The market edged higher in early trade tracking gains in Asian shares. The market soon pared gains. A bout of volatility was witnessed as key benchmark indices regained positive zone after slipping into the red in morning trade. The market once again reversed intraday gains in mid-morning trade. Volatility ruled the roost as the key benchmark indices once again regained positive zone in early afternoon trade after the latest data showed the rate of growth in inflation based on the wholesale price index slowed in June 2012. The market trimmed gains in afternoon trade as European stocks dropped in early trade there. Key benchmark indices once again slipped into the red in mid-afternoon trade. The market extended losses in late trade. The BSE Sensex lost 110.39 points or 0.64% to settle at 17,103.31, its lowest closing level since 28 June 2012. The index rose 68.60 points at the day's high of 17,282.30 at the onset of the trading session. The index fell 134.07 points at the day's low of 17,079.63 in late trade. The S&P CNX Nifty shed 30 points or 0.57% to settle at 5,197.25, its lowest closing level since 28 June 2012. The index hit a high of 5,246.85 and a low of 5,190.45 in intraday trade. The BSE Mid-Cap index declined 0.62% and the BSE Small-Cap index fell 0.61%. Both these indices outperformed the Sensex. The total turnover on BSE amounted to Rs 1828 crore, lower than Rs 1934.89 crore on Friday, 13 July 2012. The market breadth, indicating the overall health of the market, was negative. On BSE, 1,661 shares declined and 1,160 shares gained. A total of 112 shares were unchanged. From the 30-share Sensex pack, 20 stocks declined while the rest of them gained. Index heavyweight Reliance Industries (RIL) rose 0.22% at Rs 720.30. The stock hit a high of Rs 724.30 and low of Rs 715.50. RIL has bought back 3.47 crore shares for about Rs 2484 crore till 10 July 2012 under its ongoing share buyback program. RIL has set maximum buyback price of Rs 870 per share. The company has set aside Rs 10440 crore for share buyback. The buyback program opened on 1 February 2012 and closes on 19 January 2013. Last month, RIL chairman Mukesh Ambani said at the company's Annual General Meeting in Mumbai that the company's buyback program represents a 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. Another index heavyweight and cigarette maker ITC shed 0.55% to Rs 252.25. India's second largest software services exporter by revenues, Infosys fell 2.48% to Rs 2,172.60. The stock hit a 52-week low of Rs 2,164 in intraday trade today. The stock extended last week's steep slide triggered by the company revising downwards both earnings and revenue growth guidance for the year ending March 2013 (FY 2013) in dollar terms after reporting disappointing Q1 June 2012 results before trading hours on Thursday, 12 July 2012. The company has cut the guidance citing slower IT spends by large corporations due to challenging global economic situation. India's largest software services exporter by revenues, TCS declined 3.16%. The stock had risen 1.1% on Friday, 13 July 2012 after company said after market hours on Thursday, 12 July 2012, its consolidated net profit as per Indian GAAP jumped 14.6% to Rs 3318 crore on 12.1% growth in revenue to Rs 14869 crore in Q1 June 2012 over Q4 March 2012. Operating profit rose 10.8% to Rs 4077 crore in Q1 June 2012 over Q4 March 2012. Consolidated net profit as per International Financial Reporting Standards (IFRS) rose 2.89% to $604 million on 3.02% growth in revenue to $2.728 billion in Q1 June 2012 over Q4 March 2012. India's third largest software services exporter by revenue, Wipro, dropped 1.02%. The company announces Q1 results on 24 July 2012. Metal shares declined for the second day in a row as metals prices dropped on the London Metal Exchange (LME) following remarks over the weekend from Chinese Premier Wen Jiabao that the economic rebound in China isn't yet stable. China is the world's largest consumer of copper and aluminum. Jindal Steel & Power, Sterlite Industries India, Hindalco Industries, JSW Steel, Sail, Sesa Goa fell by between 0.59% to 2.69%. Hindustan Zinc rose 0.72%. Tata Steel lost 3.95% as the stock turned ex-dividend today, 16 July 2012, for dividend of Rs 12 per share for the year ended 31 March 2012 (FY 2012). Auto stocks were mixed. India's largest commercial vehicle maker by sales Tata Motors declined 2.63%. Tata Motors on Monday, 16 July 2012, said its global sales rose 6% to 94,055 vehicles in June 2012 over June 2011. Sales at its UK-based Jaguar Land Rover PLC unit surged 39% to 28,215 units. The company said sales of Jaguar sedans fell 5% to 3,829 vehicles, but those of Land Rover sport-utility vehicles climbed 49% to 24,386 units. Robust demand for Land Rover vehicles helped Tata Motors post a 7% increase in overall passenger car and SUV sales globally to 46,159 units. Sales of trucks and buses in June grew 6% to 47,896. Sales of Tata-branded cars and SUVs in the past month fell 21% to 17,944 autos, it added. Tata Motors, like most of its peers, is battling weak demand for new cars and SUVs in its home market in India where expensive loans and fuel, prolonged inflationary pressures and an economic slowdown are keeping buyers away. Tata Motors is developing a new range of fuel-efficient trucks and buses to keep its leadership of the commercial vehicles market in India where it expects the entry of several auto makers to challenge its domination in the coming years, Tata Motors chairman Ratan Tata said in the company's annual report for the year ended 31 March 2012 (FY 2012), which was released on Friday, 13 July 2012. In the coming years, Tata Motors' predominance in commercial vehicles will be challenged by the entry of international brands like Mercedes-Benz, Volvo and Navistar which have all entered, or are in the process of entering India, Mr. Tata said. In passenger cars, Tata Motors will face even greater competition from the many automotive brands that are in the country, Mr. Tata said. The company will need to address the marketplace more effectively with its existing and future products in order to regain the level of market share that it earlier enjoyed, he added. Mr. Tata also said that Tata Motors' UK-based unit Jaguar Land Rover Plc. will introduce several new sport sedans and sports cars in the next two years and a new line of competitively priced range of SUVs. Jaguar Land Rover has undertaken its most ambitious product development program in its history, Mr. Tata said. Tata Motors bought Jaguar Land Rover from Ford for $2.3 billion in 2008, just before the global downturn hit global auto makers hard, forcing Tata Motors to cut production, shut down plants and reel under losses. Fortunes gradually turned for the luxury brands, which eventually became Tata Motors' highest revenue generator globally. Global rating agency S&P on 9 July 2012 said it has raised its long-term corporate credit rating on Tata Motors and given it a positive outlook as it expects the company's cash flow to improve on account of strong sales at its UK-based unit Jaguar Land Rover Plc (JLR). S&P also said that it may further upgrade Tata Motors' ratings if JLR's risk profile improves or if Tata Motors is able to bring down its consolidated debt-to-operating profit ratio to 2.5. S&P raised Tata Motors' rating to BB from BB- previously and said it assesses the company's business risk as "fair." S&P said JLR's business risk profile has improved to fair from weak due to healthy vehicle sales -- particularly in emerging markets -- strong demand for Land Rover's sport-utility vehicles and introduction of the Evoque SUV. It said Evoque is expected to be the best-selling model for JLR in 2013. The rating agency said, however, that JLR still faces a challenge in repositioning the Jaguar brand in the competitive and technologically advanced luxury car market. JLR sells luxury sedans under the Jaguar brand. M&M declined 0.33% on concerns lower rains this year may hit demand for tractors adversely. M&M last week said it has suspended its plans to develop a vehicle for the US market due to changes in the US regulatory and market situation. M&M said it will continue to monitor the US situation and remain flexible with its approach to this market. India's largest car maker by sales Maruti Suzuki India gained 1.62%. The company early this month said its total sales jumped 20.3% to 96,597 units in June 2012 over June 2011. Automobile industry body -- the Society of Indian Automobile Manufacturers (SIAM) – on 10 July 2012, cut its forecast of domestic car sales for the year through March 2013 to 9%-11% from 10%-12% earlier. But it raised the guidance for total domestic car and sport-utility vehicle (SUV) sales to 11%-13% from 10%-12% due to expectations of higher SUV sales, most of which run on diesel. Sales of diesel cars and SUVs are surging as the price of diesel in India remains cheaper than petrol. In New Delhi diesel is 39% cheaper than petrol. India's second largest motorcycle maker by sales Bajaj Auto slipped 0.93%. Bajaj Auto early this month said its total sales fell 6% to 3.45 lakh units in June 2012 over June 2011. The company's commercial vehicles sales plunged 39% to 26,785 units in June 2012 over June 2011 as three-wheeler exports to Sri Lanka and Egypt were disrupted in June 2012. Bajaj Auto expects sales to normalise from July 2012 onwards. Hero MotoCorp (HMCL) rose 0.41%. The company recently launched a 125 cubic-centimeter motorcycle Ignitor. The Ignitor motorcycle will be available in two versions, costing Rs 55,900 and Rs 57,900 at dealerships in New Delhi, the company said. The latest model follows the 110cc Maestro scooter, which was launched in March, and the 150cc Impulse motorcycle, introduced last October. The Ignitor will add to the Glamour and the Super Splendor -- the two 125cc motorcycle models sold currently by Hero MotoCorp. Hero MotoCorp sells motorcycles with 100cc to 225cc engines. It also sells two scooter models, including the Maestro. Hero MotoCorp's total sales rose 4.26% to 5,34,091 units in June 2012 over June 2011. With sales of 5,34,091 units in the month of June, HMCL's cumulative sales for the first quarter (April-June) of this financial year (2012-13) has touched 16,42,292 units -- its highest-ever sales in any single quarter. Bank stocks dropped in volatile trade. India's largest private sector bank by net profit ICICI Bank declined 0.71% to Rs 919.45. The stock gyrated in a range of Rs 933.70 and Rs 916.70. India's second biggest private sector bank in terms of branch network HDFC Bank fell 0.67% to Rs 582.90 after hitting an intraday high of Rs 592.50 and an intraday low of Rs 580.70. The private sector bank said during market hours on Friday, 13 July 2012, its net profit jumped 30.6% to Rs 1417.40 crore on 34.3% growth in total income to Rs 9536.90 crore in Q1 June 2012 over Q1 June 2011. HDFC Bank's operating expenses jumped 25.7% to Rs 1934.60 crore in Q1 June 2012 over Q1 June 2011. The core cost-to-income ratio rose to 49.2% in Q1 June 2012 from 48.3% in Q1 June 2011, the bank said in a statement. The country's biggest commercial bank in terms of branch network State Bank of India gained 0.7%. The bank has raised interest rate by 25 basis points to 9% on fixed deposits for the tenure of three years to less than five years with effect from 1 July 2012. This is applicable for deposits below Rs 15 lakh. Airline stocks fell as crude oil prices gained. Jet Airways and SpiceJet shed by between 1.8% to 5.5%. Kingfisher Airlines declined 3.73% to Rs 9.94. The stock hit a record low of Rs 9.85 in intraday trade today, 16 July 2012. 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. US crude futures for August delivery were down 41 cents at $86.69 a barrel in electronic trade on Monday, 16 July 2012. The contract had settled at its highest closing level in more than one week on Friday, 13 July 2012. Directorate General of Civil Aviation (DGCA) has advised all airlines to ensure that the airfares remain within the fare band, Ministry of Civil Aviation said in a statement today, 16 July 2012. In view of the media reports about increase in airfares over the last few days, the DGCA had done study of airfares and concluded that the airfare offered by various scheduled domestic airlines on different sectors remained within the fare bands available on their respective websites. In the last 15 to 20 days airfares of flights to and from Delhi have gone up on account of increased user development fee (UDF) and service tax. Fares for 14 days in advance of the journey are still available in the lowest fare buckets. Random monitoring of airfares by DGCA has not revealed an alarming trend. Pharma stocks rose on renewed buying. Sun Pharmaceutical Industries, Ranbaxy Laboratories, Dr Reddy's Laboratories and Cipla rose by between 0.68% to 1.81%. Lupin surged 2.98% to Rs 571. The stock hit a record high of Rs 574.10 in intraday trade today, 16 July 2012. Realty stocks edged lower on profit booking after recent strong gains. DLF, HDIL, D B Realty and Unitech shed by between 0.69% to 3.28%. Realty stocks witnessed strong gains over the past few weeks after the Competition Commission of India directed cement firms last month 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. Cement is a key raw material in housing construction. The Union Cabinet early this month approved the proposal for extending the scheme of interest subvention of 1% on housing loans upto Rs 15 lakh where the cost of the house does not exceed Rs 25 lakh for the year 2012-13 and to amend the operational part of guidelines for release of funds. A budgetary provision of Rs 400 crore has been made for Financial Year 2012-13 for implementing the scheme. Consequent upon the extension of scheme, the limit of subsidy for an individual borrower would be Rs 14,912 for a loan of Rs 15 lakh and Rs 9,925 for a loan of Rs10 lakh. The extended scheme will benefit all house loans availed in Financial Year 2012-13. Castrol India fell 0.3% to Rs 553.60 on profit booking after recent strong gains. The company's board at its meeting held today, 16 July 2012, approved a liberal 1:1 bonus issue. The stock had surged over the past few weeks. The scrip jumped 15.61% to settle at Rs 555.25 on Friday, 13 July 2012, from a recent low of Rs 480.25 on 4 June 2012. Shares of telecom major Bharti Airtel jumped 3.85%. The Empowered Group of Ministers (EGoM) on telecom last week allowed mobile phone companies to mortgage airwaves, a move that will allow telcos to use spectrum as collateral and raise funds from banks for the upcoming auctions. It was the first meeting of the EGoM under the chairmanship of Home Minister P Chidambaram, after it was reconstituted following the resignation of Pranab Mukherjee as the finance minister. EGoM also decided it would try to meet the Supreme Court's deadline of August 31, despite a fresh deadline for the appointment of the auctioneer and also the release of the information memorandum for the auction only on August 22, instead of the earlier decision for August 6. On April 23, the Telecom Regulatory Authority of India (Trai) had recommended a base price of Rs 3622 crore for a megahertz of spectrum at pan-India level which is around 10 times higher than the price for 2G licences in 2008 when A Raja was the Telecom Minister. According to Trai recommendations, a minimum of 5 Mhz should be allotted which would mean that a pan-India spectrum in 1800 MHz band will cost Rs 18000 crore. The reserve price is five times the base price of Rs 3500 crore for 3G auction. However, telecom operators have been opposing the Trai recommendations, saying that it will hurt investment in the sector further and expansion of the industry in rural areas. Welspun India clocked highest volume of 1.05 crore shares on BSE. Kingfisher Airlines (66.73 lakh shares), Cals Refineries (55.91 lakh shares), Gujarat Pipavav Port (45.78 lakh shares) and Unitech (30.20 lakh shares) were the other volume toppers n that order. SBI clocked highest turnover of Rs 85.18 crore on BSE. Infosys (Rs 76.35 crore), ICICI Bank (Rs 69.39 crore), Welspun India (Rs 55.37 crore) and United Spirits (Rs 35.09 crore) were the other turnover toppers in that order. The annual rate of inflation, based on monthly wholesale price index (WPI) eased to 7.25% (provisional) for the month of June 2012 (over June, 2011) from 7.55% (provisional) for the previous month and 9.51% during the corresponding month of the previous year. Build up inflation in the financial year so far (April-June 2012) was 1.99% compared to a build up of 2.41% in the corresponding period of the previous year, the Ministry of Commerce & Industry said in a statement. The official WPI for All Commodities for the month June 2012 rose 0.2% to 164.2 (provisional) from 163.9 (provisional) for the previous month, it said. For the month of April 2012, the final WPI for All Commodities stood at 163.50, higher than the provisional figure of 163.1. The annual rate of inflation in April 2012 based on final index stood at 7.5%, higher than provisional 7.23% reported on 14 May 2012. The Central Statistics Office (CSO) will announce data on consumer price index (rural)/consumer price index (urban)/consumer price index (combined) for June 2012 on Wednesday, 18 July 2012. On Friday, 20 July 2012, CSO will announce data on consumer price index (agricultural labourers/rural labourers) for June 2012. The Reserve Bank of India (RBI) announces first quarter review of the Monetary Policy 2012-13 on 31 July 2012. The RBI unexpectedly left its key lending rate unchanged at its last meeting in June 2012, citing inflationary concerns. Rainfall in the country till July 15 was 22% short of the long-term average, raising concerns that farm output may be hurt and could lead to a rise in food prices. It is a challenge for farmers to maintain the same performance compared with the last two years, Farm Minister Sharad Pawar said on Monday, 16 July 2012. The key agricultural states of Karnataka, Maharashtra and Andhra Pradesh have experienced the worst shortage of rain, Mr. Pawar said. Maharashtra is the country's largest producer of sugar and second-biggest producer of soybeans, while Karnataka is the largest coffee producer and Andhra Pradesh one of the biggest rice producers. The government has prepared contingency plans to help farmers increase output, Mr. Pawar said. The agriculture ministry has sent seeds for late sowing to areas that have received insufficient rain, he said. Steps have also been taken to provide sufficient quantities of seeds of rabi pulses to compensate for any loss in pulses production in the kharif season, he said. According to data released by the Ministry of Agriculture, rice was sown in 96.79 lakh hectare (ha) till 13 July 2012, compared with 55.4 lakh ha a week back, but it still remains lower than 111.63 lakh ha during the corresponding period last year. Cumulative sowing of coarse cereals totaled 39.76 lakh ha as on 13 July 2012, sharply lower than 79.82 lakh ha during the corresponding period last year. Sowing of pulses totaled 20.54 lakh ha as on 13 July 2012, much lower than 32.88 lakh ha during the corresponding period last year. Sowing of oilseeds totaled 67.7 lakh ha, lower than 78.33 lakh ha during the corresponding period last year. Sugarcane and cotton have been sown in more area than the area covered by these crops this time last year. The monsoon rains--which make up around 70% of India's annual rainfall--are crucial to the nation's agriculture sector and broader economy. More than 60% of the country's farmland is rain-fed. The timing, distribution and quantity of rainfall are all important for crops. Prime Minister Dr. Manmohan Singh on Friday, 13 July 2012, approved the constitution of an expert committee on anti-avoidance tax proposal viz. the General Anti-Avoidance Rules (GAAR) to undertake stakeholder consultations and finalise the guidelines for GAAR by 30 September 2012. Foreign direct investments in India fell 38% in the April-May period, according to central bank data which reflect the battering the country's appeal has taken in the past few months. FDI flows into India in the first two months of the fiscal year which began April 1 dropped to $3.2 billion from $5.15 billion a year earlier. In May alone, net foreign direct investment more than halved from a year earlier to $1.38 billion, adding to worries about India's current account deficit. India depends on capital inflows to finance its current account deficit, which widened to a record 4.5% of gross domestic product in the January-March period. India's trade deficit narrowed in June, helped by a sharp fall in imports, director-general of foreign trade Anup Pujari said on Friday, 13 July 2012. The trade deficit was $10.3 billion during the month, down from $14.4 billion a year earlier. Exports in June fell 5.45% from a year earlier to $25.1 billion while imports declined 13.46% to $35.3 billion due slide in crude oil prices. An India-Mauritius joint panel will in August discuss a series of proposals to review the double taxation avoidance treaty between the two nations, Mauritius Foreign Minister Arvin Boolell said on Thursday, 5 July 2012. India has been looking to negotiate the double taxation avoidance agreement with Mauritius for the past few years to check so-called round tripping and other potential abuses. Round tripping entails moving money out of one country to another, and getting it back under the garb of foreign capital. Capital gains tax is close to zero in Mauritius and almost 40% of investments into India come through the island nation. Under the bilateral agreement, capital gains from sale of securities can be taxed only in Mauritius. India and Mauritius will discuss the renegotiation of the tax pact between 22-24 August in Mauritius. The India-Mauritius joint working group will also discuss the inclusion of a so-called limitation of benefit clause, similar to the Singapore tax treaty with India, to ensure only genuine Mauritius-based companies are benefited. India's tax agreement with Singapore says that only those companies that spend a minimum of $200,000 (about Rs 1 crore) in Singapore can avail the benefits of the treaty. Sanctity of tax residency certificates issued by a country to companies operating in its jurisdiction to enable the firms to claim tax benefits under various treaties is another issue between India and Mauritius. While India in this year's national budget said the certificates are a necessary but not sufficient condition, Mauritius wants those issued by it honoured. Draft guidelines issued by Indian government for implementing the controversial anti-avoidance tax proposal viz. the GAAR state that GAAR provisions should be invoked on a foreign institutional investor (FII), if it chooses to take a treaty benefit, but would not in any case be invoked in the case of the non-resident investors of the FII. The draft guidelines suggested that the onus of proving wrongdoing should be on the authorities. Prime Minister Dr. Manmohan Singh said in a newspaper interview this month that he has identified controlling the fiscal deficit, achieving clarity on tax matters, reviving the mutual funds and insurance industries, clearing a backlog of foreign investment proposals and boosting infrastructure as his focus areas in the short term. Singh said there will be no arbitrariness in tax matters. The statement assumes significance in the context of a raging controversy over the Income Tax amendment to re-open tax demands with retrospective effect from companies like Vodafone over acquisition of companies having operations in India but registered abroad to avoid taxes. Singh last month said he is chalking out plan for the country's economic revival. Singh last month took additional charge at the finance ministry after Pranab Mukherjee resigned as finance minister on 26 June 2012 to contest the presidential polls scheduled on Thursday, 19 July 2012. Mr. Mukherjee is the leading contender in the July 19 presidential election, having been nominated by the Congress party-led United Progressive Alliance government for the largely ceremonial post. Corporate affairs minister Veerappa Moily said in a newspaper interview published on 11 July 2012 that the government is hopeful of the passage of the pension bill in the monsoon session of parliament. The monsoon session of parliament begins on 7 August 2012. The first quarter June 2012 earnings season has just begun. In the next one month, investors and analysts will closely watch the management commentary that would accompany the result to see if there is any revision in their future earnings forecast of the company for the current year or the next year. A deceleration in top line growth of India Inc amid economic slowdown and slowdown in investment cycle will weigh on bottom line growth in Q1 June 2012 as the core operating profit margin could be negatively impacted by deceleration in top line growth. Axis Bank announces Q1 results tomorrow, 17 July 2012. Bajaj Auto reports Q1 results on Wednesday, 18 July 2012. Kotak Mahindra Bank, Hero MotoCorp and Dr Reddy's Laboratories unveil Q1 results on Thursday, 19 July 2012. Reliance Industries and Asian Paints unveil Q1 results on Friday, 20 July 2012. Hindustan Unilever, L&T and Cairn India unveil Q1 results on 23 July 2012. Wipro, Sesa Goa and Jindal Steel & Power unveil Q1 results on 24 July 2012. GAIL (India) and Power Grid Corporation of India unveil Q1 results on 25 July 2012. HCL Technologies announces Q4 June 2012 results on the same day. ITC and Bhel unveil Q1 results on 26 July 2012. Cement majors ACC and Ambuja Cements unveil Q2 June 2012 results on the same day. ICICI Bank, Grasim Industries and Punjab National Bank unveil Q1 results on 27 July 2012. Maruti Suzuki India announces Q1 results on 28 July 2012. Mahindra & Mahindra announces Q1 results on 8 August 2012. Ranbaxy Laboratories announces Q2 June 2012 results on 9 August 2012. BPCL announces Q1 results on 10 August 2012. Hindalco Industries announces Q1 results on 14 August 2012. European stock markets edged lower on Monday, 16 July 2012, after Chinese Premier Wen Jiabao said over the weekend that China's economic rebound isn't yet stable and hardship may continue for a period of time. China is the world's second biggest economy after the US. Key benchmark indices in Germany, France and UK were down by 0.01% to 0.27%. The European Central Bank (ECB) has reported advocated imposing losses on holders of senior bonds issued by Spain's most troubled banks. But, European finance ministers have reportedly rejected ECB's advice on Spain out of fear financial markets would react badly. As per reports, ECB's new position was presented by ECB President Mario Draghi at a meeting of euro-zone finance ministers on July 9. The position is a turnaround from the ECB's position in 2010, when it successfully insisted that senior bondholders of Irish banks shouldn't suffer losses. Germany's Federal Constitutional Court will announce a decision on lawsuits challenging the country's participation in the permanent euro-zone rescue fund, the European Stability Mechanism, and the fiscal pact on 12 September 2012. The court held a public hearing earlier this month to examine complaints that participation in the fund and the fiscal pact violated German law by taking some authority over the national budget away from parliament. Spain and France are scheduled to hold bond auctions on Thursday, 19 July 2012, ahead of a meeting of European officials scheduled on Friday, 20 July 2012, to hammer out the final details of the Spanish bank bailout. Consumer prices across the 17-nation euro zone rose 2.4% in June compared to the same month last year, unchanged from the rate posted in May, European Union statistics agency Eurostat reported on Monday. The figure matched an earlier preliminary estimate. June consumer prices fell 0.1% on a monthly basis. Most Asian stocks rose on Monday, 16 July 2012, after US shares ended with solid gains on Friday, 13 July 2012, on the back of better-than-expected quarterly results from J.P. Morgan Chase & Co. and Wells Fargo & Co. Key benchmark indices in Hong Kong, Indonesia, Singapore and South Korea were up by 0.11% to 0.69%. Taiwan's Taiwan Weighted fell 0.2%. Japanese markets were closed for a public holiday. Mainland Chinese stocks tumbled on Monday, 16 July 2012, after several corporate profit warnings and some downbeat comments on the economy from China's premier. The Shanghai Composite index lost 1.74% to settle at 2,147.96, its lowest closing level since March 2009. The Shenzhen Composite Index saw a sharper decline, shedding 3.6% to end at 889.10. Chinese Premier Wen Jiabao said over the weekend that China's economic rebound isn't yet stable and hardship may continue for a period of time, according to a state-media report. Wen also pointed to China's actions to address the economic deceleration. The economic growth rate is still within the government target range set early this year, and stabilization policies are working, Wen was quoted as saying in a Xinhua news agency report. The comments followed government data released on Friday, 13 July 2012, showing China's second-quarter economic growth slowed to 7.6% from a year earlier, compared to 8.1% in the first quarter. It was the weakest rate of growth in more than three years. The Bank of Japan (BoJ), last week, left ultra-low interest rates unchanged at its policy meeting. The BoJ reaffirmed its commitment to steadily increasing the size of its asset purchase program, but didn't announce any immediate increase in the overall size of the program. The Asian Development Bank said in a report released on 12 July 2012 that weaker global demand is helping ease international oil and food prices in Asia, which is reducing inflationary pressures in the region. The bank trimmed its inflation forecast for developing Asia for this year to 4.4% from 4.6% previously. It cut its inflation forecast for China this year to 3.7% from 4% previously. The World Bank on Thursday revised down its 2013 Indonesia growth forecast to 6.4% from 6.5% a month ago, but said a severe global downturn could send growth tumbling even further to 4%. Trading in US index futures indicated that the Dow could fall 28 points at the opening bell on Monday, 16 July 2012. US stocks rallied on Friday, 13 July 2012, after better-than-expected quarterly results from J.P. Morgan Chase boosted enthusiasm about earnings season. The Dow Jones Industrial Average jumped 203.82 points, or 1.6%, to 12777.09. The Standard & Poor's 500-stock index advanced 22.02 points, or 1.6%, to 1356.78. The Nasdaq Composite Index rose on 42.28 points, or 1.5%, to 2908.47. US retail sales data for June 2012 and Federal Reserve Bank of New York's Empire Manufacturing Survey Index for July 2012 are due for release on Monday, 16 July 2012. US consumer price index for June 2012 and the July US home builders index are due for release on Tuesday, 17 July 2012. It remains to be seen if Federal Reserve Chairman Ben Bernanke suggests that fresh policy-easing moves are expected soon in his semi-annual testimony to Congress this week. Bernanke testifies before the Senate banking committee on Tuesday, 17 July 2012 and the House Financial Services committee on Wednesday, 18 July 2012. The Fed's Beige Book report is slated for release on Wednesday, 18 July 2012. A report from Federal Reserve Bank of Philadelphia is due for release on Thursday, 19 July 2012. Quite a few prominent US companies report Q2 June 2012 earnings this week. Citigroup Inc. reports results on Monday, 16 July 2012. Johnson & Johnson Inc., Coca-Cola Co., Goldman Sachs Group Inc., Intel Corp., and Yahoo Inc. report Q2 results on Tuesday, 17 July 2012. Honeywell, Bank of America Corp., IBM and Qualcomm Inc. report Q2 results on Wednesday, 18 July 2012. Microsoft Corp. and Google Inc. report Q2 results on Thursday, 19 July 2012. Wrapping up the week, General Electric Co. reports Q2 results on Friday, 20 July 2012.