Banks Stocks Slides

Benchmark indices fell even after recovery from the lows intraday trade in the morning weak Asian stocks, which fell after European Union finance ministers gathered this weekend in Poland, did not break new ground to address the debt crisis in euro area. U.S. index futures mixed. BSE Sensex fell 124.18 points, or 0.73%, close to 55 points the day high and almost 35 points lower than today. Extension of the market turned positive from negative.

Stocks fell at the rate of interest concerns Realty higher interest rates could affect demand for residential and commercial properties. Interest rate sensitive banking stocks falling on fears that higher interest rates on loans are loans crimp growth. Index heavyweight Reliance Industries (RIL) lower cut.

The market edged down in early trade as the euro zone debt worries surface. The weakening of the market again after coming down in morning trading intraday.

Q2 September 2011 with the drawing to the end, the emphasis can shift the expectations of Q2 results for individual companies. The decision to pre-tax payments made by the Top 100 companies on the basis of the country’s economic capital Mumbai apparently increased by 18% in Q2 September 2011. Tax collections are not as good, bad, or between companies and sectors, with the exception of the oil marketing companies, and has seen a decline in taxes paid.

At 10:20 IST, the BSE Sensex fell 124.18 points, or 0.73% to 16,809.67. The index fell 67.90 points to 16,865.93 on the day high in early trading. The index fell 161.38 points to 16,772.45 on the day a bit in early trading, its lowest level since September 15, 2011.

The S & P CNX Nifty lost 29.70 points or 0.58% to 5054.55. The Nifty hit a low of 5035.50 in intraday trading, its lowest level since September 15, 2011. The Nifty hit a high of 5068.40 in intraday trade.

Extension of the market, shows the overall health of the market has turned negative. BSE, 1129 shares rose and 875 shares declined. A total of 72 shares remained unchanged.

The 30-share Sensex pack, 22 fell and the rest of the squad. Hindalco Industries, Sterlite Industries and Larsen & Toubro fell between 1.46% and 2.08%. Maruti Suzuki India, Tata Motors and Bharti Airtel rose 0.19% and from 0.89%.

Index heavyweight Reliance Industries (RIL) fell 0.59%, the stock fell on the second day straight. The company reported pre-tax payment jumped 67% to around Rs 2000 crore in Q2 September 2011 over Q2 September 2010.

BP PLC will be able to start working to jointly develop oil and RIL gas blocks in India, but only after a contract revised production sharing is drafted and signed by the parties concerned, the upstream regulator said Thursday 15th September 2011. The modification of the production sharing contract has not yet signed. BP will come when the amendment is signed, said SK Srivastava, Director General of Hydrocarbons, journalists on the sidelines of an industry conference. In the production sharing contract, in agreement with the government explorers to bear the risks, costs of production and development in exchange for a share of production.

Srivastava said that RIL has yet to address the regulatory authority of a new draft agreement. RIL ended August 30, 2011 agreement with BP to sell 30% stake in 21 blocks of oil and gas exploration in India, the British explorer.

RIL has denied recent cost inflation in its D6 gas field in Krishna-Godavari (KG) basin. RIL was clarified after the CAG said in its final report presented to Parliament Thursday, September 8, 2011, RIL capital spending originally planned for D-1 and D-3 gas discovery in the 2.4 million dollars, after a revised $ 8.8 million.

Bank interest sensitive part fell on fears that higher lending rate would crimp growth in loans. India’s largest private sector bank by net profit ICICI Bank fell 1.37%. Payment of the ICICI Bank withholding tax would have remained unchanged at Rs 600 crore in the second district in September 2011 during the Second Quarter in September 2010.

The largest bank branch network in India and the State Bank of India net profit (SBI) fell 1.79% to 1910.70 rupees The stock hit a 52-week low of Rs 1812.90 in the Intra-day, September 14, 2011. The prepayment of tax on the OSE had fallen by 10% of the 1,700 crore in Q2 September 2011 over R Q2 September 2010.

Punjab National Bank, Indian Bank and Bank of Baroda fell by between 0.62% and 1.01%.

The bank of India’s private sector HDFC Bank net profit shed 0.68% to 480.25 rupees. HDFC Bank’s Payment of withholding tax would have increased 33% to Rs 800 million rupees in Q2 September 2011 in Q2 September 2010.

Real estate stocks fell on concern interest rates may be higher demand Dent residential and commercial properties. Purchase of two residential and commercial buildings are largely driven by finance. DLF, HDIL, Indiabulls Real Estate and Unitech pays between 0.46% to 2.27%.

State-run ONGC rose 1.27%, 5.61% jump extending last Friday that the latest increase in gasoline prices could help reduce the subsidy to share the burden of the state-run oil exploration majeure, which is required to attend the under-recoveries of the state-owned oil marketing companies (OMC PSU) to sell diesel and cooking at prices fixed by the government.

Meanwhile, the government Friday, September 16, 2011, reported by about Rs 11,000 crore Monitoring public offer (FPO) of ONGC. ONGC said in a statement that the government has decided not to proceed with the FPO by ONGC to the schedule contained in the prospectus dated 5 September 2011 and Red Herring will evaluate its decision with respect to the Freedom Party in its time. FPÖ was scheduled for September 20, 2011 and close on 23 September 2011.

Sun Pharmaceutical Industries was up 0.14% after the company said before the markets open today that one of its American units were able to solve a problem caused by a diet US and Drug Administration (FDA ) warning to its manufacturing facilities in Cranbury, New Jersey, on violations of regulations. Plant Sun Pharmaceutical Industries Inc. has proven to be an acceptable regulatory status by the FDA reinspected in June, the generic company said in a statement.

The FDA has issued a warning letter to the installation of 25 August 2010, after the identification of violations of standards of good manufacturing practices during an inspection. Sun Pharma has also held that Caraco, a wholly owned subsidiary of the company, still working with consultants to resolve issues raised by the FDA at its plant in Detroit.

GVK Power & Infrastructure rose 6% after the company said it will pay 1.26 billion dollars for a controlling interest in three coal mines in Australia and a port and rail project owned by the Hancock Group .

Alfa Laval (India) surged 13.95% before a board meeting today, September 19, 2011 to consider the cancellation of his shares in Bombay Stock Exchange and National Stock Exchange.

Foreign institutional investors (IIE) bought shares worth Rs 395.16 crore Friday, September 16, 2011, according to provisional figures. FII inflows amounted to Rs 531.71 crore in two negotiating sessions in 15 and September 16, 2011, according to the bag.

A recent survey of investors prepared by JP Morgan India Asset Management benchmark Sensex ValueNotes expected to trade between 20,000 and 22,000 later this year. According to the report, the investment sentiment is affected by problems such as recession, increases the frequency of interest rates and volatility in the domestic investment environment. Despite seeing a decrease of 4.2 points from last quarter, the index of optimism among retail investors, “the highest levels of 137.5 points. The activity of small investors in mutual funds has increased by 11% from last quarter, according to the survey. The survey was conducted from July 22 to August 4, 2011.

The study also shows that investors are becoming more cautious about capital preservation is seen as an investment strategy popular among private investors (40%). But 40% of investors, compared to 57% in March 2011, is expected to get a little aggressive about their investment strategy over the next six months.

At that time, reported by 25 basis points rate hike, the Reserve Bank of India (RBI) on Friday, 16 In September 2011, said it was necessary to continue the current anti-inflation stance, because the change in the lines too early guide may harden in inflation expectations, which dilutes the impact of policy actions of the past.

In recent weeks, as global risk aversion, the rupee has depreciated, which can have negative consequences for inflation, the RBI said. Inflation remains high, wide and well above the comfort zone of the Reserve Bank of India, said. The central bank said the increase Friday (September 16, 2011) ‘s interest rate is expected to increase the impact of past policy actions to contain inflation expectations and inflationary anchor. Since monetary policy acts with a lag, the cumulative impact of policy measures must now be increasingly felt additional demand moderation and reverse the path of inflation towards the latter part of 2011 – 12, RBI, said.

In the future, monetary policy affects the signs of downward movement in the trajectory of inflation, which should promote moderation in demand and the impact of global developments, RBI said.

Although exports of India have fared well in recent times, this trend is unlikely to be sustained in light of weaker global demand, the RBI said. This, combined with the slowdown in domestic demand, monetary policy also helps to suggest that the risks to the projection of growth for 2011-12 made in July 2011 review of monetary policy is oriented downward, the RBI said.

Margins of companies in Q1 June 2011 in several areas of moderate levels of T4 in March 2011. However, except in some areas, the impact of input costs is still visible, RBI said.

State fiscal imbalances widened during April-July 2011, mainly reflecting the impact of the decline in revenue receipts, combined with the pressure of the non-plan expenses due to higher oil revenues and fertilizer subsidies. The budget deficit of 55.4% of the budget in the first four months of this fiscal year was significantly higher than 42.5% during the same period last year (after adjusting for the over budgeted income spectrum ).

Responding to the recent rate hike RBI, Navneet Munot, Office of Investment (DPI), said SBI Mutual Fund, the layer effect of past actions and the global environment would moderate domestic demand and the trajectory of inflation forward, in our opinion. Our feeling is that the RBI is likely to take a break from the price action today. This should be viewed positively by the stock and bond markets. Emotions in the equity markets should improve the visible signs of peak rate cycle. Markets will closely monitor global developments and movements in commodity prices.

Research Bank of America Merrill Lynch note said last excursion of the RBI, which continues to believe that India’s share of the cycle is at its peak, and this growth is likely to rise less than 7.5% in the second half of 2011 and the ‘ Inflation to come out from 7% in Q1 2012. The RBI will stop after the final 25 points (bps) hike policy rates, October 25, 2011 and the reduction of 100 basis points since April 2012, he said. Lending rates seems almost ready, and we expect 75 bps cut in the months of April-September 2012 season, said Note.

Reacts with the latest rate hike RBI Dhawal Dalal, Senior Vice President and Head of Fixed Income, DSP Black Rock Mutual Fund, said that the RBI is likely to increase the interest rate by another 25 basis points in the next policy review October 25, 2011. We expect the RBI to pay much more attention to the trajectory of inflation, focusing on core inflation. The RBI is not too worried about a possible slowdown in the number of GDP, and I’m sure the flexible nature of the economy Dalal said.

Secretary for Economic Affairs R. Gopalan Thursday, September 15, 2011, said the government raised the ceiling on foreign borrowing for businesses 750 000 000 500 000 000 $ $. Indian companies can now borrow up to $ 1 billion Chinese yuan, said Gopalan. A relaxation of borrowing abroad will help Indian companies tap funds abroad cheaper in the cost of higher average credit in the local market. American and European countries have interest rates close to zero in an attempt to support weak economic growth.

Finance Minister Pranab Mukherjee on Tuesday 13 In September 2011, said the central banks of emerging countries have been forced to raise interest rates several times, as they battle high inflation, exposing them to volatile capital flows. The question of immediate interest to emerging economies, is the management of large inflows of capital, he said. Large capital flows and volatility of emerging markets can be volatile, because they lead to large fluctuations in exchange rates and in some cases, make a consolidated maintain high foreign currency reserves in case of sudden and large capital flight international.

Given the government’s slow initial response FII sharp increase in the ceiling for FII investment in long-term bonds issued by companies in the infrastructure sector in March 2011, the government Monday, September 12, 2011, has also relaxed the rules FII investment in such bonds. The Ministry of Finance said in a statement that FIIs can now invest in long-term links below to a limit of $ 5 billion limit, which has an initial term of five years old at the time of issuance and maturity of one year from the date of purchase for the first IFI. These investments are subject to a retention period of one year. FIIs can trade in these bonds, but can not sell to domestic investors during the holding period of one year.

FIIs can invest up to a maximum of $ 17 billion in long-term bonds below which a maturity of five years or older at time of issuance and expiration of three years at its original purchase by FII. These investments are subject to a grace period of three years. During the period of three years of blockade, FIIs can change, but can not sell to investors. The Securities and Exchange Board of India (SEBI) is expected to deliver notifications to incorporate these changes in the schedule for October 15, 2011.

SEBI was the beginning of August 2011 allowed qualified foreign investors (QFIs) plans to subscribe to Mutual Fund debt, investing in infrastructure in the overall height of up to $ 3 billion of the total funding up to $ 25 billion.

Vice President Planning Commission Montek Singh Ahluwalia, Monday, September 12, 2011, told a conference that private financing account for half of investment in infrastructure planned $ 1 billion for five years during the years 2012-2017. Indian Prime Minister Manmohan Singh, told the conference that to overcome the crisis of funding for infrastructure projects, the government proposes the creation of a $ 11 million to help finance infrastructure projects. We have also established a high-level committee to propose the necessary measures to fund our ambitious program of infrastructure development, Mr. Singh said.

In the long-term rainfall in the second half of the season helped to alleviate concerns that the monsoon this year could fall below their long-term average, after a brief pause in July, when the country usually receives one third of monsoon rains. Initial estimates for the 2011-12 season Kharif rice select discography, oilseeds and cotton, while the output pulses can be calculated.

A good monsoon season can often be improved farm incomes and the impact on the wider economy by increasing consumption and a reduced price of food. But food prices are not necessarily, if the delays and excessive rains in some areas, affecting hundreds.

Moody’s Investors Service confirmed the Baa3 rating for the debt of India’s foreign currency government and its Ba1 rating for local currency debt annual credit analysis published earlier this month. The company marks a positive attitude of bonds denominated in India rupees, and said it will consider a Baa3 stop shop for all obligations that India improves its financial position and its commitment to strengthen the domestic market. The outlook for foreign currency debt is stable.

The report was optimistic about India’s ability to withstand a global economic slowdown. Although it is not immune to a slowdown in international growth, strong domestic demand and economic diversity provides protection against a downturn in the areas of overall risk, the report said. He noted that India’s foreign exchange reserves equal to four times its external debt.

A debt-GDP ratio of 71% is worrisome because the interest on this debt eats 25% of revenues from India every year. However, Moody’s expects continued growth incremental GDP and fiscal consolidation efforts will continue to reduce public debt / GDP, the report said.

Asian stocks fell on Monday, September 19 In 2011, when concern about the default back to Greece he enrolled at the center that Europe is losing patience with the country’s efforts to reduce its debt pile. Benchmark indices in China, Hong Kong, Indonesia, Singapore, South Korea and Taiwan fell by between 0.48% and 2.1%. Japanese equity markets were closed for a holiday.

Zone debt debt worries resurfaced after talks between EU finance ministers to try to avoid a debt crisis escalation over the weekend with little progress. In addition, reports that Europe has warned Greece that additional funding would be withheld unless the Athens meet its savings targets has not helped sentiment. Without more money, and Greece is expected to run out of funds next month, according to reports. Greek Prime Minister George Papandreou decided to stay home instead of traveling to the United States as planned in order to manage emergency meetings of the Greek government, reports said.

The U.S. index futures said the Dow could fall 155 points on market opening Monday, September 19, 2011.

U.S. stocks rose for the fifth day in a row on Friday, and the S & P 500 has scored its best week since early July on signs across the euro area should work together to limit the damage of the crisis of the national debt. U.S. economic data showed consumer confidence rose in early September, but the Americans were gloomy for the future. Measure of expectations fell to its lowest level since 1980.

The Federal Open Market Committee (FOMC) is scheduled for a two-day policy review of U.S. interest rates 20:21 September 2011. It remains to be seen whether the Federal Reserve announced further measures to boost the U.S. economy. Among the options that the Fed may also consider a second round of quantitative easing, or QE3, Operation Twist to buy long-term verses sell short-term securities to reduce long-term yields and reduce the rate of excess reserves held by banks the Fed to increase the monetary aggregates.


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