Dr. Reddy's Lab scales record high

Key benchmark indices saw divergent trend as the barometer index, the BSE Sensex settled with minor losses while the 50-unit S&P CNX Nifty settled a tad higher. The barometer index, BSE Sensex, lost 14.41 points or 0.07%, up 47.37 points from the day's low and off 68.32 points from the day's high. The market breadth was positive. Index heavyweight and cigarette maker ITC trimmed intraday losses. Another index heavyweight Reliance Industries (RIL) edged lower. Seven of 13 sectoral indices on the BSE logged declines. The Sensex declined for the second day in a row today, 10 December 2012. From a recent high of 19486.80 on 6 December 2012, the Sensex has declined 77.11 points or 0.40% in two trading sessions. The Sensex has gained 69.79 points or 0.36% in this month so far (till 10 December 2012). The Sensex has surged 3,954.77 points or 25.59% in calendar 2012 so far (till 10 December 2012). From a 52-week low of 15,135.86 on 20 December 2011, the Sensex has risen 4273.83 points or 28.24%. The Sensex is off 152.18 points or 0.78% from a 52-week high of 19,561.87 hit on 7 December 2012. Shares of organised retailers dropped following reports of global retail giant Walmart lobbying US lawmakers to get into India. In auto pack, two-wheeler makers rose. Most bank stocks rose as the Banking Laws (Amendment) Bill, 2011 will be brought for consideration and passage in Lok Sabha today, 10 December 2012. Shares of PSU banks rose across the board. Three associate banks of State Bank of India surged. Housing finance major HDFC scaled record high. Pharma stocks rose on renewed buying, with Dr. Reddy's Laboratories hitting record high. Realty stocks extended recent gains as investors bet that retail real estate will get a boost from the entry of foreign supermarket chains in the country. Shares of Uttar Pradesh-based sugar companies fell after the state government on Friday, 7 December 2012, hiked the state advised price for sugarcane for the 2012-13 crushing season. The market was volatile. A bout of volatility was witnessed in early trade as key benchmark indices regained positive zone after slipping into the red after higher opening. Key benchmark indices trimmed gains after regaining positive terrain after sliding into the red to hit fresh intraday low in morning trade. The market trimmed gains after hitting fresh intraday high in morning trade. Key benchmark indices edged lower in choppy trade as Rajya Sabha was adjourned till 14:00 IST due to uproar following news reports on Walmart lobbying for its entry into India. The Sensex cut losses after hitting fresh intraday low in afternoon trade. The Sensex once again trimmed losses after hitting fresh intraday low in mid-afternoon trade. Intraday volatility continued in late trade. The BSE Sensex was down 14.41 points or 0.07% to 19,409.69, its lowest closing level since 5 December 2012. The index fell 61.78 points at the day's low of 19,362.32 in mid-afternoon trade. The index gained 53.91 points at the day's high of 19,478.01 in mid-morning trade. The S&P CNX Nifty was up 1.50 points or 0.03% to 5,908.90, its highest closing level since 6 December 2012. The index hit a low of 5,888.10 in intraday trade, its lowest level since 6 December 2012. The index hit a high of 5,919.95 in intraday trade. The BSE Mid-Cap index rose 0.65% and the BSE Small-Cap index rose 0.32%. Both these indices outperformed the Sensex. The total turnover on BSE amounted to Rs 2281 crore, lower than Rs 2889 crore on Friday, 7 December 2012. The market breadth, indicating the overall health of the market, turned positive from negative in late trade. Earlier, the breadth had turned negative from positive for a short while in mid-afternoon trade. On BSE, 1,536 shares rose and 1,406 shares fell. A total of 117 shares were unchanged. From the 30-share Sensex pack, 15 stocks fell while the rest of them rose. Index heavyweight Reliance Industries (RIL) fell 0.85% to Rs 827.15. The stock hit high of Rs 838.05 and low of Rs 822. RIL on 5 December 2012 said that the board of Ex-Im Bank has voted to extend the single largest financing transaction of $2.1 billion to Reliance Industries. This includes a $1.06 billion direct credit loan and to guarantee a $1.06 billion JP Morgan Chase loan to the company. The loan will be primarily used to finance goods and services procured from exporters and suppliers in the United States as part of RIL's expansion projects at Jamnagar, Gujarat, RIL said in a statement. Located on the Gulf of Kutch, the Jamnagar complex overseas the largest single-location refinery operations in the world. RIL Intends to increase the complex's petrochemical output by constructing a petcoke gasification unit that will top the world's rosters in size and significantly enhance the efficiency of the company's refinery business. RIL also plans to erect a refinery off- gas cracker with matching downstream units that will better integrate polymer and polyester production. RIL on 5 December 2012 said its wholly owned subsidiary, Reliance Exploration and Production DMCC, has signed the completion documents for divestment of its 25% working interest in the Production Sharing Contract (PSC) for Yemen Block-9 with Medco Yemen Malik, a wholly owned subsidiary of PT Medco Energi Internasional Tbk of Indonesia. The effective economic date of the transaction is 1 January 2012 and the transaction has been approved by the Ministry of Oil and Minerals of Yemen. RIL has bought back 4.62 crore shares for about of Rs 3357.27 crore till 27 November 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. The Organization of Petroleum Exporting Countries (OPEC) meets in Vienna on Wednesday, 12 December 2012, to discuss its production quota. OPEC is likely to leave its group production quota of 30 million barrels a day of oil unchanged at Wednesday's meeting. Index heavyweight and cigarette maker ITC was down 0.13% at Rs 301.05. The stock hit a high of Rs 302.10 and a low of Rs 298.05. The stock had hit record high of Rs 302.80 on Friday, 7 December 2012. The Ministry of Health and Family Welfare in October 2012 notified new pictorial health warnings to be depicted on tobacco product packs which will come into effect from 1 April 2013. The Ministry of Health and Family Welfare said in a statement on 22 October 2012 that three sets of warnings each have been notified for smoking as well as smokeless forms of tobacco product packages. The well-designed health warnings and messages are part of a range of measures to communicate health risks due to tobacco use. Pictorial health warnings communicate health risks in a visible way, provoke a greater emotional response and increase the motivation of tobacco users to quit and to decrease their tobacco consumption, the ministry's statement said. Graphic warning labels have a greater impact than text-only labels and can be recognized by low-literacy audiences and children, the statement added. Dabur India gained 0.38%. The company after trading hours on Friday, 7 December 2012, said that credit agency rating CRISIL has reaffirmed ratings of credit facilities of the company. Colgate Palmolive (India) rose 0.62%. The board of directors of Colgate Palmolive (India) today, 10 December 2012, declared interim dividend of Rs 6 per share for the year ending 31 March 2013 (FY 2013). The company has already fixed 17 December 2012 as record date for payment of interim dividend. Shares of Uttar Pradesh-based sugar companies fell after the state government on Friday, 7 December 2012, hiked the state advised price for sugarcane for the 2012-13 crushing season. Balrampur Chini Mills, Dhampur Sugar Mills, Dwarikesh Sugar Industries, Triveni Engineering & Industries, and Bajaj Hindusthan dropped by between 1.25% to 9.34%. According to reports, the Uttar Pradesh government hiked the state advised price (SAP), or the price below which mills cannot buy cane from farmers, for sugarcane by 40 per quintal to 280 per quintal for the normal variety of cane for the 2012-13 crushing season. The SAP for the early variety has been fixed at Rs 290 per quintal and Rs 275 for the substandard variety. The price for the normal, early and substandard variety of cane in the previous season of 2011-12 was fixed at 240, 250 and 235 per quintal, respectively. Auto stocks edged lower. Small car maker Maruti Suzuki India fell 1.25% to Rs 1,491.15, off the day's high of Rs 1,523.45. The stock had struck 52-week high of Rs 1,537 in intraday trade Friday, 7 December 2012. The car major will reportedly raise prices of cars by up to Rs 20,000 from January 2013 to counter currency fluctuations. Japan accounts for up to a fourth of parts sourced by Maruti from overseas. More than half of the company's foreign exchange exposure is to the yen, as it also pays royalty its parent Suzuki for using its technology. Maruti Suzuki India early this month said its total sales rose 12.5% to 1.03 lakh units in November 2012 over November 2011. Domestic sales rose 9.7% to 90,882 units in November 2012 over November 2011. Export sales jumped 38.4% to 12,318 units in November 2012 over November 2011. Tata Motors declined 0.8%, with the stock reversing initial gains. The company early this month said its total sales (including exports) of Tata commercial and passenger vehicles in November 2012 stood at 66,500 vehicles. The company's domestic sales of Tata commercial and passenger vehicles fell 13.96% to 62,354 units in November 2012 over November 2011. The company's total exports declined 4.66% to 4,146 units in November 2012 over November 2011. Meanwhile, Tata Sons on Saturday, 8 December 2012, said that in Ratan N. Tata's interview with the Financial Times, he spoke about coherence in implementation of government policy. Mr. Tata has always supported the Prime Minister, Dr. Manmohan Singh, even when there was mass criticism of him and the last thing he would wish to do is to be a critic of the Prime Minister, as has been reported, Tata Sons said its clarification. Mahindra & Mahindra (M&M) fell 1.26% to Rs 925. The stock had scaled a record high of Rs 964.45 on Monday, 3 December 2012. The company early this month said its total automobile sales rose 18% to 48,143 units in November 2012 over in November 2011. The company's domestic sales rose 23% to 46,755 units in November 2012 over November 2011. Passenger vehicle sales rose 38% to 24,604 units in November 2012 over November 2011. The 4 wheeler commercial segment which includes the passenger and load categories registered a growth of 7% to 14,353 units, while the 3 wheeler segment grew by 17% at 6,867 units in November 2012 over November 2011. Exports for the month of November 2012 stood at 1,388 units. M&M's total tractor sales rose 17% to 20,476 units in November 2012 over November 2011. Domestic tractor sales jumped 22% to 19,757 units in November 2012 over November 2011. Exports for the month of November 2012 stood at 719 units. Two wheeler makers gained. Hero MotoCorp rose 0.85%. Bajaj Auto gained 0.95% to Rs 1958.15. A block deal of 1.25 lakh shares was executed in Bajaj Auto on BSE at Rs 1,933.40 per share at 9.51 IST. Bajaj Auto, last week, said its total sales fell 1% to 3.72 lakh shares in November 2012 over November 2011. Motorcycle sales fell 2% to 3.26 lakh units in November 2012 over November 2011. The company said sales bigger and sportier Pulsar and Discover brands contributed 68% of motorcycle sales in November 2012. Sales of Discover brand totaled 1.5 lakh units in November 2012. Bajaj Auto's three-wheeler sales rose 7% to 45,566 units in November 2012 over November 2011. The company said growth in its diesel three-wheeler sales and growth in the company's market share in this segment continues. Bajaj Auto's total exports fell 4% to 1.24 lakh units in November 2012 over November 2011. Most bank stocks gained as the Banking Laws (Amendment) Bill, 2011 will be brought for consideration and passage in Lok Sabha today, 10 December 2012. India's second largest private sector bank by net profit HDFC Bank rose 0.12% to Rs 693.35. The stock had hit a record high of Rs 705 in intraday trade on 30 November 2012. HDFC Bank's net profit jumped 30.06% to Rs 1559.98 crore on 24.47% growth in total income to Rs 9869.8 crore in Q2 September 2012 over Q2 September 2011. HDFC Bank announced the second quarter results on 12 October 2012. ICICI Bank fell 0.93% to Rs 1120.35. The stock had hit 52-week high of Rs 1,144 in intraday trade Friday, 7 December 2012. ICICI Bank clarified on 30 November 2012 that the bank is currently not considering merger or acquisition of any bank. ICICI Bank on 27 November 2012 said it successfully launched and priced a $250 million tap of its $750 million 4.70% 2018 notes originally issued in August 2012. The securities referred were offered only to non-US persons outside the United States under Regulation S of the Securities Act and will be listed on the Singapore Stock Exchange. The notes are fungible with the existing Reg S/144A tranche after the expiration of a 40-day distribution compliance period, taking the total aggregate nominal amount issued under the series to $1 billion. The offering was oversubscribed by 5.6 times and had an order book of $1.4 billion. The notes were offered at an issue price of 102.953%, which is a spread of 318 basis points over equivalent LIBOR. Federal Bank rose 4.93% to Rs 505.80. The stock hit a record high of Rs 511.90 in intraday today, 10 December 2012. PSU bank stocks rose across the board. State Bank of India (SBI) rose 0.27%. SBI's net profit rose 30.16% to Rs 3658.14 crore on 12.21% increase in total income to Rs 32983.47 crore in Q2 September 2012 over Q2 September 2011. The result was announced on 9 November 2012. The bank's ratio of net non-performing assets to net advances stood at 2.44% as on 30 September 2012, higher than 2.22% as on 30 June 2012 and 2.04% as on 30 September 2011. The bank's ratio of gross non-performing assets (NPA) to gross advances stood at 5.15% as on 30 September 2012, higher than 4.99% as on 30 June 2012 and 4.19% as on 30 September 2011. During the quarter ended 30 September 2012, the bank made additional provisions of Rs 115 crore (net) against an account pending restructuring and against certain non performing domestic advances. The bank's provision coverage ratio as on 30 September 2012 works out to 62.78%. Among other PSU banks, Canara Bank, Union Bank of India, Bank of India, Bank of Baroda, and Punjab National Bank rose by between 0.95% to 4.29%. Indian Bank rose 2.59%. The state-run bank said before market hours today, 10 December 2012, that its board of directors of the banks has approved a proposal to merge/hive-off Ind Bank Housing, a subsidiary of the bank with Indian Bank. Indian Overseas Bank gained 3.21% after bank said before market hours today, 10 December 2012, that the board of directors of the bank at its meeting held on 8 December 2012 considered and accorded sanction for raising of Rs 800 crore by way of Tier 1 (Perpetual) bonds in one or more tranches. Oriental Bank of Commerce rose 5.33% to Rs 364.70. The stock hit a 52-week high of Rs 367.50 in intraday today, 10 December 2012. Three associate banks of State Bank of India. State Bank of Bikaner and Jaipur surged 13.66% to Rs 468.75 after scaling a 52-week high of Rs 491.60 in intraday trade today, 10 December 2012. The stock surged on high volume of 4.19 lakh shares as against an average daily volume of 7,701 shares in the past one quarter. State Bank of Travancore jumped 14.53% to Rs 619.20. The stock jumped on high volume of 2.24 lakh shares as against an average daily volume of 2,693 shares in the past one quarter. State Bank of Mysore galloped 17.39% to Rs 698.55 after scaling a 52-week high of Rs 714.05 in intraday trade today, 10 December 2012. As at 30 September 2012, SBI owned 75.07% stake in State Bank of Bikaner and Jaipur, 75% in State Bank of Travancore and 92.33% in State Bank of Mysore. There are five associate banks of SBI of which State Bank of Hyderabad and State Bank of Patiala are unlisted. SBI had merged its associate State Bank of Saurashtra with itself in 2008. State Bank of Indore was merged with SBI in 2010. The Banking Laws (Amendment) Bill, 2011 calls for increasing the voting rights of large shareholders in private banks to 26% from 10%, increase in voting ceiling in state-run banks to 10% from 1%, and giving the central bank more powers. The Reserve Bank of India has held back approvals of new bank licenses, urging the government to first get the bill passed in parliament India's largest dedicated housing finance firm by revenue HDFC rose 3.76% to Rs 868.50. The stock hit record high of Rs 869.90 in intraday trade today, 10 December 2012. Mahindra & Mahindra Financial Services rose 5.66% to Rs 1,055.45. The stock hit a record high of Rs 1,117.10 in intraday today, 10 December 2012. India's third largest software services exporter by revenues Wipro rose 0.40%. The company on Saturday, 8 December 2012, announced that it has signed a definitive agreement to acquire 100% shareholding of the L.D. Waxsons Group, a Singapore based fast moving consumer goods (FMCG) company for an all cash consideration of about $144 million. L.D. Waxsons had revenues of about $68 million on run-rate basis for FY 2012, Wipro said in a statement. This transaction will give Wipro, the leadership position in the facial skincare market in Malaysia and Singapore, expand its presence in China, besides enhancing its market position in other Asian markets, Wipro said. The transaction is expected to be closed within the next 60 days. L.D. Waxson Group, headquartered in Singapore, is a leading company with a wide portfolio of brands, including leading skin care brands Bio-essence and Ginvera, and health care brand Ebene. The company has manufacturing facilities in China and Malaysia and a strong footprint in Singapore, Malaysia, China, Taiwan, Hong Kong and Thailand. Commenting on the transaction, Mr. Vineet Agrawal, President, Wipro Consumer Care and Lighting, said: "We welcome LD. Waxson group to the Wipro family. We have a great track record of successful acquisitions including Unza and Yardley. We see L.D.Waxson as a good strategic fit. This transaction helps us consolidate our successful facial skincare business in Malaysia to a dominant leadership position, and moves us to market leadership in Singapore as well." Mr. Nagender Arya, Regional Director (East Asia, Middle East and Africa), Wipro Consumer Care and Lighting, said: "This acquisition enables us to establish a significant presence in the China skin care market. It helps us to expand to Western and Eastern China markets, and enter the Taiwan market. It also makes us stronger in pharmacy channel in Malaysia" Commenting on the acquisition Dr. Tor Lam Huat, Chairman of L.D. Waxson Group said: "We are happy to join Wipro, a company that shares our passion in developing brands, driven by consumer insight and innovative marketing and have seen their success in this region. Bioessence's success is driven by providing skin care products that truly perform, with visible results for consumers. We are confident that with Wipro's marketing expertise and extensive distribution network, together we will be able take Bio-essence, Ginvera and other brands to new heights." Realty stocks extended recent gains as investors bet that retail real estate will get a boost from the entry of foreign supermarket chains in the country. DLF (up 0.36%), Indiabulls Real Estate (up 1.34%), HDIL (up 2.35%), Unitech (up 3%), and Parsvnath Developers (up 2.04%) gained. Shares of organised retailers declined amid uproar in Rajya Sabha over news reports on Walmart lobbying for its entry into India. Bharatiya Janata Party (BJP) leader Ravi Shankar Prasad raised the issue in the Upper House and said that there should be an inquiry into who was paid by Walmart. The decision on FDI in multi-brand retail should be put on hold, inquiry should be ordered and the government should respond, the BJP leader said. He was joined by members from other opposition parties, including the Left and Trinamool Congress. The Congress pointed out that Walmart had only lobbied with US senators and not got in touch with Indian leaders. The report tells that Walmart lobbied US senators to pass FDI in retail. It doesn't question any politician, administrative officer or institution of India, Congress leader Jagdambika Pal said. Shoppers Stop was down 4.68% to Rs 440. The stock had hit 52-week high of Rs 494 on 5 December 2012. Pantaloon Retail (India) was down 5.06% to Rs 230.65. The stock had hit 52-week high of Rs 252 on 6 December 2012. Trent shed 2.7% to Rs 1,245. The stock had hit record high of Rs 1,324.70 on 5 December 2012. The UPA government on Friday, 7 December 2012, won vote on FDI in multi-brand retail in Rajya Sabha. Earlier, FDI in multi-brand retail on 5 December 2012 got the approval of the Lok Sabha as the Opposition motion seeking immediate withdrawal of the decision was rejected convincingly as MPs of BSP and SP walked out of the house before the vote. Lok Sabha also rejected the motion seeking amendment to the rules notified by the Reserve Bank under Foreign Exchange Management Act (FEMA) to enable FDI in multi-brand retail. The government in September 2012 allowed 51% FDI in multi-brand retail in India. Dr Reddy's Laboratories gained 3.14% to Rs 1896 after striking a record high of Rs 1899.90 in intraday trade today, 10 December 2012. NHPC fell 0.21%. NHPC after trading hours today, 10 December 2012, said that Unit 1, 2 and 3 of Chutak hydro electric project (4X11 megawatt) are declared under commercial operation with effect from 29 November 2012. Power Grid Corporation of India shed 0.25%. The company announced after market hours on Friday, 7 December 2012, that the company's board of directors at a meeting held on 6 December 2012 have accorded approval for the formation of a joint venture company with Odisha Power Transmission Corporation for taking up intra state transmission projects in Odisha. The board also approved the formation of a joint venture company with Bihar State Power (Holding) Company for taking up intra state transmission projects in Bihar. These two joint venture companies (JVCs) may have a debt equity structure of 80:20 and will have a suitable payment security mechanism, Power Grid Corporation of India said. The scope work for the JVCs is yet to be finalized, Power Grid Corporation of India said. Reliance Power fell 0.55%. The board of Reliance Power has approved the scheme of amalgamation of Reliance Clean Energy, its 100% subsidiary company, with Reliance Power. As per the scheme, no shares are proposed to be issued since the entire share capital of Reliance Clean Energy is held by Reliance Power and its nominees. The announcement was made after market hours on Friday, 7 December 2012. Karnataka Bank was the top traded counter on the BSE with turnover of Rs 136.01 crore followed by SBI (Rs 57.06 crore), United Spirits (Rs 56.13 crore), Sun TV Network (Rs 44.16 crore) and Tata Motors (Rs 37.01 crore). Cals Refineries was the volume topper on the BSE with volume of 2.81 crore shares followed by Unitech (75.02 lakh shares), Karnataka Bank (72.17 lakh shares), Kingfisher Airlines (53.74 lakh shares) and SpiceJet (51.97 lakh shares). Data on Q3 advance tax paid by key Indian companies will start trickling from Saturday, 15 December 2012, providing cues of their financial performance for Q3 December 2012. Advance taxes are paid in four installments -- 15% by 15 June; 40% by 15 September; 75% by 15 December and 100% by 15 March. The winter session of the parliament which began on 22 November 2012 has heavy legislative agenda. The key financial sector reforms bills that the government intends to pass this session include insurance and pension bills and the Banking Laws (Amendment) Bill, 2011. The insurance bill will aim to raise the limit for foreign direct investment in the sector to 49% from 26%, while the pension bill will seek to allow foreign investments of up to 49% in local pension-fund managers. The Banking Laws (Amendment) Bill, 2011 calls for increasing the voting rights of large shareholders in private banks to 26% from 10%, increase in voting ceiling in state-run banks to 10% from 1%, and giving the central bank more powers. The Reserve Bank of India has held back approvals of new bank licenses, urging the government to first get the bill passed in parliament The Banking Laws (Amendment) Bill, 2011 will be brought for consideration and passage in Lok Sabha today, 10 December 2012. On the macro front, industrial production is seen expanding 4.7% in October 2012, as per the median estimate of a poll of economists carried out by Capital Market. The Central Statistical Organization (CSO) will unveil industrial output data for October 2012 on Wednesday, 12 December 2012. Industrial production declined 0.4% in September 2012. Inflation based on the wholesale price index is seen inching up to 7.6% in November 2012 from 7.45% in October 2012, as per the median estimate of a poll of economists carried out by Capital Market. The CSO will unveil data on inflation based on the wholesale price index (WPI) for November 2012 on Friday, 14 December 2012. WPI inflation had eased to 7.45% in October 2012 from 7.81% in September 2012. Reserve Bank of India Governor D Subbarao on 6 December 2012 said that current rate of inflation at 7.5% is still high while economic growth has slowed sharply. Mr. Subbarao said he expects inflation to start moderating from the January-March 2013 quarter, reiterating the guidance the central bank had given at its rate-setting meeting on 30 October 2012. The Reserve Bank of India next undertakes monetary policy review on Tuesday, 18 December 2012, which is a mid-quarter policy review. After Second Quarter Review of Monetary Policy 2012-13 on 30 October 2012, RBI kept its key policy rate viz. the repo rate unchanged at 8% citing high inflation. At that time, the central bank announced a reduction in cash reserve ratio (CRR) requirement of scheduled commercial banks by 25 basis points to 4.25%. The baseline scenario suggests a reasonable likelihood of further policy easing in Q4 March 2013, RBI said on 30 October 2012. RBI said that the policy guidance will, however, be conditioned by the evolving growth-inflation dynamic. Industry body Associated Chambers of Commerce and Industry of India or Assocham in its pre-Budget memorandum for 2013-14 has suggested reduction service tax and excise tax to 8% from 12%, increase income tax deduction of interest on housing loan to Rs 5 lakh and increase in personal income tax exemption limit to Rs 3 lakh to revive consumer demand and boost investment. The excise duty and service tax rates were increased in the last two Union Budgets from 8% to 12%. In a statement issued last week, Assocham said that the tax base for goods and services has already expanded to generate high revenue and the government can selectively increase customs duty rates to neutralize the effect of lower tax rate of excise duty and service tax. Besides, by increasing customs rates, the government should protect the domestic industry from unfair competition from countries like China, it said. There are cases where goods are being sold in the global market below production cost in highly competitive markets abroad, it said. The industry body has also suggested reduction in the effective rate of corporate income tax to 25% from current 32.45%. It has also suggested increase in the rate of depreciation on plant and machinery to 25% from the existing level of 15% in view of the technologies. Assocham has sought continuation of deduction under 801A (4) to encourage investments in infrastructure during the 12th five-year plan period. The industry body has also sought removal of surcharge and education cesses on corporate assesses and education cess on non-corporate assesses. The Congress led UPA government at the Centre has been reduced to a minority government after Trinamool Congress (TMC) withdrew support to the UPA in September 2012. Trinamool Congress withdrew support to the UPA in September this year over the big bang reforms introduced by the Centre which included a cap on subsidised LPG cylinders and 51% FDI in multi-brand retail, among others. The next general elections must be held in India before May 2014. Assembly polls will be held in Gujarat in two phases on 13 and 17 December 2012. Counting of votes of assembly elections in Gujarat and Himachal Pradesh (HP) Pradesh will take place on the same day on 20 December 2012. Assembly polls were held in HP on 4 November 2012. European stock markets edged lower on Monday, with Italian banks leading the drive south, after Mario Monti, Italy's technocratic prime minister, over the weekend said he is prepared to resign. Key benchmark indices in France, Germany and UK shed by between 0.32% to 0.77%. Monti over the weekend said he is ready to resign as soon as parliament passes a pending budget law. The announcement comes after Silvio Berlusconi last week withdrew his party's support for Monti's technocratic government, which fueled fears of an early election in the country. A two-day European Union (EU) summit is scheduled in Brussels on 13 and 14 December 2012 to examine a detailed plan for completing a banking union and strengthening euro zone fiscal policy aimed at resolving euro zone fiscal crisis. German exports unexpectedly rose in October as shipments to countries outside Europe offset weaker demand in the euro area. Exports adjusted for work days and seasonal changes increased 0.3% from September, when they decreased 2.4%, the Federal Statistics Office in Wiesbaden said today. Asian stocks were mostly higher on Monday, 10 December 2012, as investors picked up on some signs of improvement in the world's top two economies. Key benchmark indices in China, Hong Kong, Indonesia, Singapore and Japan rose by between 0.07% to 1.07%. Taiwan's Taiwan Weighted fell 0.43%. South Korea's Kospi was flat. Chinese data on Sunday, 9 December 2012, showed some strength, with November industrial output rising 10.1% over the same month in 2011 to its best level since March. Among the other upbeat data, property fixed-asset investment (FAI) in China rose 16.7% in the January-November period, up from 15.4% in January-October. Chinese export- and import-growth rates cooled off in November, leading the nation's monthly trade surplus to shrink sharply to $19.6 billion, according to official data released today, 10 December 2012. November exports grew 2.9% from the year-ago period, far lower than the 11.6% expansion recorded in October. The value of imports was unchanged from the year-ago period, versus a 2.4% growth in October. Economic data in Japan showed a widening current-account surplus in October and gross domestic product contracting 0.9% in the third quarter, unrevised from an initial estimate. The Bank of Japan's two-day policy meeting on Dec. 19 and 20 will take place after general elections on Dec. 16. Trading in US index futures indicated that the Dow could fall 32 points at the opening bell on Monday, 10 December 2012. US Stocks gained on Friday, 7 December 2012, after a better-than-expected November employment report offset a drop in consumer sentiment. The Labor Department reported that nonfarm payrolls rose by 146,000 jobs last month, and the unemployment rate fell to 7.7% from 7.9%. Investors also monitored developments in Washington. House Speaker John Boehner said Friday there has been no progress in negotiations with the White House to avoid the fiscal cliff, or hundreds of billions of dollars of automatic tax hikes and spending cuts due to take effect in the new year. The US fiscal cliff refers to the year-end deadline for the expiration of hundreds of billions of dollars worth of tax cuts and the triggering of $109 billion in across-the-board spending cuts, if the US Congress fails to act. The US Congress created the hazardous deadline of 31 December 2012 in August 2011 when it agreed to a deficit deal as a way out of a deadlock over raising the US debt ceiling. Investors are looking ahead to the outcome of two-day meeting of the Federal Open Market Committee on 11-12 December, where the central bank is expected to outline whether it will continue purchases of longer-dated securities under a policy that is popularly known as Operation Twist. Operation Twist, the name given to the Fed policy of selling short-term Treasurys in exchange for buying longer-term securities, expires at the end of this year.