3-1/2-week Market Reaches Low

The key benchmark indices 3-1/2-week low blow in the first as data showing sustained selling by foreign funds in recent days have weighed on sentiment. The BSE Sensex fell 54.58 points or 0.31%. IT stocks extended their recent losses on weak economic data the U.S. and sovereign debt crisis in Europe. The size of the market was positive. Shares of RCOM R-Infra and dropped these populations will be excluded from the BSE Sensex from August 8, 2011.

At 9:25 IST, the BSE Sensex fell 54.58 points or 0.31% to 17,815.94. The Sensex gained 54.64 points the day high of 17,925.17 in early trading. The index lost 56.78 points to 17813.75 on the day a bit in early trading, its lowest level since May 25, 2011. NRI Demat account

S & P CNX Nifty fell 16.15 points, or 0.3% to 5350.25. The low success in trading Nifty 5348.70 intraday, its lowest level since May 25, 2011.

The size of the market, indicating the health of the market was positive. On BSE, 661 shares advanced while 556 shares declined. A total of 66 shares remained unchanged.

Among the 30-member Sensex pack, 18 shares fell, while the rest of them left. Hero Honda Motors, Maruti Suzuki India and Sterlite Industries rose 0.41% from 0.5%.

Index heavyweight Reliance Industries (RIL) rose 0.39% to RS 871.75 on bargain hunting following recent heavy losses. The stock had hit 52-week low of Rs 865.25 Friday, June 17, 2011. The stock was under selling pressure recently on reports of a government watchdog has accused the oil ministry in favor of the company by allowing it to double the cost of developing its gas field in KG-D6 . According to recent reports, a draft report of the Comptroller and Auditor General of India (CAG) has questioned the decision by the Ministry of Petroleum and its technical arm, Director General of Hydrocarbons (GH) to enable the EFI to meet the cost of developing its KG-D6 field. The Central Bureau of Investigation (CBI) is the examination of cases. PAN Card for NRI

Meanwhile, RIL advance payment of taxes would have jumped 38.46% to Rs 900 crore in Q1 June 2011 in Q1 June 2010.

In the public sector oil and gas company ONGC rose 0.23% on reports of the Council of Ministers of the Union approved the merger of Russian assets to ONGC-promoted system and RussNeft Bashneft. The deal will give India the company of a 25% stake in the combined entity and access to one of the largest oil fields discovered in Russia.

RCOM R-Infra and fell 3.88% and 2.42% respectively. Coal India and Sun Pharmaceutical major pharmaceutical companies won 2.44% and 2.03% respectively. The Bombay Stock Exchange (BSE) has removed two sharing Reliance Anil Dhirubhai Ambani Group (ADA), a unit of infrastructure (R-Infra) and Reliance Communications (RCOM), the BSE barometer index Sensex. Coal India’s state-owned pharmaceutical giant coal and major Sun Pharmaceutical Industries will replace the R-Infra and Sensex RCOM in the August 8, 2011. NRI Online Trading account

Axis Bank was flat. The bank, after the close Friday, June 17, 2011, said its board has authorized the loan / fund raising through the issuance of debt instruments on the basis of private investment to the extent permitted by the Reserve Bank of India (RBI) and other regulators of eligible investors, in one or more tranches. Therefore, according to the business plan for the year, Axis Bank plans to raise funds to national and / or abroad, are eligible for inclusion in Tier I and Tier II capital of the bank private sector, he said. NRI Share Trading Account

IT stocks extended their recent losses on weak economic data the U.S. and sovereign debt crisis in Europe. United States and Europe are the two main markets for Indian companies. Infosys, TCS, MphasiS, HCL Technologies and Wipro fell 0.31% to 2.04%.

A new funding strategy for Greece will be defined at the beginning of July 2011, the Eurogroup, said Sunday night that talks between the Greek government and the European Commission continued to solving the problems of the beleaguered nation of sovereign debt .

Closer to home, government tax revenue in advance in the first quarter of this fiscal year increased 19% to 33% growth recorded in the same period last year, highlighting some power lines at the bottom of society due to rising costs of inputs and high interest rates. The retention is mainly composed of business, personal input tax is not due until September 15. Corporate income tax withholding at source (TDS) increased at a healthy rate of 33% this year, up 8% last year.

Gross written premiums to the collection of direct taxes in the period April to June 2011 exceeded the 12 RS 1 lakh crore from Rs 40,797 crore, which was given as a refund, leaving a net tax revenue at Rs 60,087 crore. Growth in gross tax collection is 24% over the same period last year.

The RBI has raised the key lending, ie. repo rate by 25 basis points to 7.5%, as expected, while the mid-quarter monetary policy review June 16, 2011 to tame inflation, and said monetary policy will remain firmly anti-inflationary. Although the Reserve Bank of India has pursued its anti-inflation stance, the degree of political action is necessary to balance the adverse movements of recent global developments, inflation and their likely impact on the trajectory of internal growth, RBI said in a policy statement June 16, 2011.

Based on current growth and evolution and the scenario of inflation, the Reserve Bank of India needs to pursue its anti-inflationary monetary policy, the central bank. The RBI said it will continue to maintain liquidity so that neither excess liquidity dilutes the monetary deficit or choking off the flow of funds to productive sectors of the economy.

Asian stocks mixed on Monday, June 20, 2011. The benchmark indices in Japan, Indonesia, Hong Kong and Singapore, increased by 0.2% and 0.53%. Benchmark indices in China, Korea and Taiwan fell by between 0.08% and 0.88%.

The U.S. index futures indicated the Dow could fall 39 points at the opening bell Monday, June 20, 2011.

The International Monetary Fund cut its forecast for U.S. economic growth Friday and warned Washington and European indebted countries are playing with fire unless they take immediate steps to reduce their budget deficits. The IMF, in its regular assessment of the global economic situation, said most of the threats to growth had risen since the previous report in April, citing the debt crisis in the euro area and signs of overheating economies emerging market. The global lender based in Washington expected that the U.S. gross domestic product could grow by a tepid 2.5% this year and 2.7% in 2012. In its forecast two months ago, he had expected growth of 2.8% and 2.9% respectively.

Federal Reserve holds its next policy meeting Tuesday, June 21, 2011 and Wednesday, June 22, 1011, and will present his policy statement after the conclusion of the meeting. Second round of the Fed quantitative easing or QE2, a temporary policy intended to increase the money supply, to keep interest rates low and stimulate the economy, will expire June 30, 2011. Part of the market speculated on the possibility of a third quantitative easing program, the Fed, after the expire in June 2011.


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