A Clever Hits Six-week Low, 52-week Low Maruti Suzuki

Key benchmark indices fell slightly in early trade on weak Asian stocks. The market sentiment remained weak in September 2011 following bad Q2 revenues. The 50 units of S & P CNX Nifty hits 6-week low and the barometer index BSE Sensex hit 5-1/2-week low. The Sensex fell 139.70 points or 0.85%. The size of the market was low. Except the BSE Healthcare index, all other 12 sectoral indices on BSE in the red. Index heavyweight Reliance Industries (RIL) edged lower. PSU OMC increased and oil exploration companies dropped while crude oil prices fell. ICICI Bank, Maruti Suzuki India, Hindalco Industries and BHEL touched 52-week low.

Corporate profits have been weak. Combined net income of a total of 3675 companies fell to 35.9% RS 67,507 crore is a growth of 20.6% of sales in the RS 1135022 crore in Q2 September 2011 over Q2 September 2010. Q2 earnings season was over Tuesday, November 15, 2011.

The data showed that sales of foreign funds recently also weighed on confidence. Foreign institutional investors (IIE) has sold shares worth Rs 195.20 crore on Thursday, November 17, 2011, according to preliminary data of the award. Its production amounted to 1093.86 crore in three trading session R 15-17 noviembre, 2011.

At 9:29 IST, the BSE Sensex fell 139.70 points, or 0.85% to 16,322.01. The index fell 74.01 points higher on the day of 16,387.70 in early trading. The index fell 167.73 points or less on the day of 16293.98 in early trading, their lowest level since October 10, 2011.

S & P CNX Nifty fell 48.80 points, or 0.99% to 4,885.95. Nifty has hit its highest 4,902.25. The index hit a low of 4,876.70 in intra-day trading to the lowest level since Oct. 7, 2011.

Extension of the market shows the overall health of the market was weak. BSE, 760 shares declined and 279 rose. A total of 23 shares remained unchanged.

Of 30-share Sensex pack, 27 declined and only three of them left. Tata Motors, Sterlite Industries and Wipro shed by between 1.99% to 3.06%.

Index heavyweight Reliance Industries (RIL) fell 1.84%, extending a 8.28% loss in the last four trading days of sessions. RIL Infotel Broadband Services unit recently acquired a 38.5% stake in privately held digital learning educational extra marks. He did not disclose financial details of the investment. The agreement will allow extra marks develop digital distribution services and expand market penetration, RIL said. Last year, Reliance acquired Infotel Broadband, the only company to win a national license for wireless broadband spectrum in an auction of the government for $ 1 billion, marking his return to the carrier.

India’s largest automaker in India Maruti Suzuki sales fell 2.55% to 923.90 RS. The stock reached 52 weeks low of Rs 921.75 today. Maruti has recently stated that the decision to buy land in Gujarat is to build additional capacity. He also stated that the board approved the purchase of land in Gujarat for the future needs of the company. Logistics to achieve the finished cars to large domestic markets in Western and Southern India, and the nearby port of Mundra for future exports, has played an important role in the decision, Maruti said.

Exploration of oil inventories have fallen with the price of crude oil. Cairn India, ONGC and Oil India pays between 0.5% to 1.63%. Declining oil prices will result in lower realizations from crude sales for oil exploration companies.

Shares of state-owned oil marketing (WTO PSU) increased crude oil prices fell. Indian Oil Corporation (IOC), HPLC and BPCL rose by between 0.42% to 1.45%. The decline in crude prices reduced recoveries of PSU WTO on domestic sales of diesel, LPG and kerosene at controlled prices. The government has liberalized gas prices.

At the same time a new group meeting of ministers (EGoM) in November to check prices of diesel and cooking, has reportedly been postponed. The meeting was to take place before the winter diet, which begins November 22, 2011. The government controls the prices of diesel, kerosene and cooking fuel to keep the lid on inflation.

Oil prices fell on Thursday in U.S. crude oil fell by nearly 4% as investors booked profits after the recent rally. Supply of crude oil in the United States in December, ending on Friday, November 18, 2011, settled $ 98.82, down $ 3.77, or 3.67% largest one-day percentage loss in front-month crude oil is the New York Mercantile Exchange since September 28, 2011.

GAIL (India) fell 0.67%. President, BC Tripathi said Thursday that GAIL (India) are considering the purchase of BG Group PLC stake in Gujarat Gas Company. London-listed explorer BG Group seeks to sell its stake in city gas distribution in India. It acquired a majority stake in Gujarat Gas in 1997 and currently holds 65.12% of the company. Gujarat Gas distributes gas to consumers, commercial, industrial and private through 42 retail stores in Gujarat. We study this (effort), Mr Tripathi told reporters in the media. We are in the same industry (gas distribution), so it makes sense for us. He said.

Reliance Infrastructure rose 0.22% after the company said that under the terms of external commercial loans (ECBS) to collect $ 360 million (about Rs 1,815 crore) was raised by the Company in November 2006, the Company repaid the entire outstanding ECBS when making a payment on the due date information. November 16, 2011.

The government raised the foreign investment limit in government bonds and businesses of $ 5 billion each. The movement aims to encourage foreign capital flows, which remained silent so far this year, and it is likely that support for India’s currency has lost almost 13% against the dollar this fiscal year that began on 1 in April. Thomas Mathew, assistant secretary of capital markets, told reporters Thursday, November 17, 2011, the additional limit of $ 5 billion may be invested in securities with residual maturity is not a criterion.

The government has postponed the introduction or treatment and disclosure of key bills including the bill of purchase of land, the draft Code of Direct Taxes, banking and insurance bills during the winter session of Parliament. The winter session is scheduled to start from November 22, 2011. The bank bill was referred to the Standing Committee in March, when the insurance bill was sent to the committee in 2009. Provides detailed information on the society of the proposed session, said Minister of Parliamentary Affairs, Mr Pavan Kumar Bansal, Wednesday, November 16, 2011 that the Standing Committee on Rural Development needs more time on the bill of land acquisition.

Bansal announced a list of 31 bills for treatment and the transition to the winter session. The government also aims to introduce 23 new bills over the last 21 meetings of the session. Treasury will also seek parliamentary approval to spend more.

The Union Board is Wednesday, November 16, 2011, removed from the pension bill, but decided not to limit foreign direct investment in the sector, maintaining the flexibility to impose or to change the border of the executive committee of a decision . The government appoints the Pension Fund Regulatory and Development Authority Bill 2011 in the winter diet.

Food prices increased by 10.63% and the index of fuel prices increased by 15.49% on November 5, 2011, government data released Thursday, November 17th, 2011, showed. The previous week, a food and fuel annual inflation was 11.81% and 14.50% respectively. The articles main index rose 10.39% to 11.43% annual increase in recent weeks.

The Reserve Bank of India (RBI) announced its first redemption of government bonds in open market operations of the program this year, in an attempt to ease liquidity problems in the banking system. The plan to buy up to Rs 10,000 crore of government bonds November 24, 2011 is that banks have lent Rs 80,000 crore from Rs 3.1 lakh crore and the day of last week, highlighting the lack of liquidity in the banking system. The Reserve Bank of India said it will buy bonds through an auction of several levels of security using multiple price method. It will announce details of its obligations will buy at auction soon, he said.

RBI announced an increase of 25 basis points at its policy rate is the key. the interest rate to 8.5% after mid-year monetary policy review October 25, 2011. The central bank has cut its GDP growth forecast for the fiscal year through March 2012 to 7.6% vs. 8% previously. However, it maintained its forecast for March to the end of inflation of 7%. RBI said that the inflation forecast trajectory indicates that inflation will start to decline in December 2011 (January 2012 version), then continue on a stable path of 7% in March 2012. It is expected to fall further in the first half of 2012-13. This reflects a combination of movements in prices of raw materials and the cumulative impact of monetary tightening. In addition, moderate inflation can positively influence expectations.

Emerging markets like India should take steps to encourage long term foreign direct investment to mitigate the volatility of exchange rates and capital controls must be selective and temporary, a senior official of developing Asia, he said, Monday, November 14 2011. While capital flows and exchange rates tend to be volatile in the short term amid constant worries of debt in the euro area, India should focus on improving its investment climate, providing better infrastructure, through the development of a coherent development and manufacturing of financial markets, Director General Rajat M. Nag said on the sidelines of India Economic Summit.

Asian stocks fell for a fourth straight day on Friday, November 18, 2011, driven by new concerns about the misfortunes of Europe due to the outstanding debt obligations refer to tender in Spanish. Reference key indices in China, Hong Kong, Japan, Indonesia, South Korea, Taiwan and Singapore fell 1.02% to 1.77%.

The losses came after the auction Thursday, November 17, 2011, taking into account the average yield at 10 years of the Spanish government has reached a euro was high ahead of a weekend there are elections, sending U.S. European shares a sharp decline.

Meanwhile, the new Italian government announced sweeping reforms in response to a European debt crisis on Thursday, pushed borrowing costs for France and Spain significantly higher. Italy new technocratic prime minister, Mario Monti, announced sweeping reforms to dig the country out of crisis and said that the Italians had to face a serious emergency.

Commerce U.S. index futures showed the Dow could gain 10 points at the opening bell Friday, November 18, 2011. Investors dumped stocks in U.S. markets on Thursday, scared a sudden fall through key technical levels has brought more worries about debt problems. Benefits of new U.S. unemployment claims hit seven months low last week and promised future home construction taken substantially in the month of October, the latest data suggest that the economy was gaining traction. NRI PAN Card


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