Market May Extend Gains Wednesday On Real Asian Equities; Q2 Pre-tax Data To Develop

The market may extend to Wednesday (September 14, 2011) gain of 1.47% solids Asian equities. Futures S & P CNX Nifty on the Singapore stock market indicates a gain of 9 points at the opening bell. Investors will be keenly watching the data for the second quarter in September 2011 company tax payment due prior to today, September 15, 2011, which can give signals of Q2 September 2011 results.NRI demat account.

European share gains caused by the hopes of some movements of European leaders to ease the crisis of sovereign debt in the euro area provided by India breaking a sequence of three days to lose Wednesday, September 14, 2011. The BSE Sensex rose 242.16 points, or 1.47% to 16709.60, its highest close since September 9, 2011.

Foreign institutional investors (FIIs) sold shares worth 45.82 crore Wednesday R 14 In September 2011, according to provisional data. IFI unloaded shares worth Rs 1876.64 crore net in four sessions of 9-14 days in September 2011, as exchanges of information. Before the two days of sales, FIIs had bought shares worth a net Rs 2986.81 crore during Easy seven trading sessions from 29 August 2011-8 September 2011, as the exchange of information. NRI Pan Card.

A recent report from India Investor Survey prepared by JP Morgan Asset Management notes expect Sensex value reference to trade between 20,000 and 22,000 by the end of this year. According to the report, the investment sentiments influenced by the fear that a 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 confidence index of retail investors’ ranks the highest in 137.5 points. Private investment activity in mutual funds has increased by 11% since the last quarter, according to the survey. The survey was conducted from 22 August to 4 Juillet 2011 e

The study also shows that investors are still cautious to preserve capital, increase investment strategy popular among small investors (40%). However, 40% for investors, compared to 57% in March 2011, is expected to become a little ‘aggressive in their investment strategy over the next six months.

Indicator of risk appetite in global financial markets of America the largest bank Merrill Lynch, fell at the end of March 2009, according to a global survey of companies the fund manager. However, fund managers are overweight in emerging markets, including emerging markets portfolio manager survey, the Bank of America Merrill Lynch also issued Tuesday, September 13, 2011.

Share of fund managers who are bullish on emerging markets has increased from 27% last month, 30% today, says the report written by Michael Hartnett, Kate Moore and Brian Leung. If the banking crisis spirals out of control in Europe, equities in emerging markets are vulnerable to further selling, the report said. Global fund managers are reducing the level of underweight positions in India, according to a study.

Finance Minister, Pranab Mukherjee, Tuesday, September 13, 2011, these same central banks of emerging economies have been forced to raise interest rates repeatedly that his combat high inflation, exposing them to the volatility of capital. An immediate concern for emerging economies is to manage capital flows, he said. Big business and the volatility of emerging markets may be destabilizing, because they generate high volatility in the exchange rate and in some cases, it is to maintain a high level of foreign exchange reserves as insurance against sudden flight large international capital.

Secretary for Economic Affairs R. Gopalan Tuesday, September 13, 2011, said that the government will review the loan ceiling of foreign companies at the end of September 2011. The government currently allows foreign loans of up to $ 30 billion. However, the border should be reached quickly that companies are reluctant to the high cost of domestic borrowing costs. United States and other European countries have interest rates close to zero in an attempt to support weak economic growth.

Since the first IFI lackluster response to the government, and a strong upper limit of FII investment in corporate bonds issued by long-term infrastructure company in March 2011, the Board of Directors on Monday, September 12 In 2011, still a standard FII relaxed investment in such bonds. The Ministry of Finance said in a statement that FIIs can now invest in long-term infrastructure bonds, subject, limiting the maximum of $ 5,000 million, which has an initial term of five years or more, and the remaining time duration of a year for the first time to buy IFI. These investments are subject to a lock-in period of one year. IFI can sell their bonds with each other but can not sell to domestic investors during the lock-in 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 had, in early August 2011 has allowed qualified foreign investors (QFIs) to endorse the plan’s debt mutual funds that invest in the sector subject to a maximum cumulative total of infrastructure $ 3 billion in the overall ceiling of 25 billion dollars.

On the macroeconomic front, the recent steep slide of the rupee against the dollar added to the concerns of high inflation that India imports most of the crude oil requirements. Low rupee will boost import costs, which may worsen the current account. The Indian government will reveal some data on the knowledge index of wholesale prices. food price index, the index primary articles and fuel price index for the year through September 3, 2011 Today, September 15, 2011.

Inflation measured by wholesale prices (WPI) rose 9.78% in August 2011 from the previous initial reading of 9.22%, government data released on Wednesday, September 14 In 2011, shown. Inflation reading exceeded market expectations. The government has also raised inflation in 2011 to 9.51% in June from 9.44% of the temporary increase in a previously announced.

Eleven of the twelve economists polled by Capital Markets expected 25 basis points (bps) increase in the repo rate, the key policy interest in the short term, the Reserve Bank of India in its review of the medium-term policy , Friday, September 16, 2011. The Reserve Bank of India (RBI) said that a change in the anti-inflationary monetary policy is based on signs of a lasting slowdown in inflation. The Reserve Bank of India raised its key rate 11 times in the last 18 months to control high inflation.

Will the Commission Deputy Chairman Montek Singh Ahluwalia on Monday 12 In September 2011, the conference said that private funding is half the form of $ 1 trillion in infrastructure investment in a five-year program from 2012 to 2017. Prime Minister Manmohan Singh said during the meeting that the winning fund crunch for infrastructure projects, the government proposed to establish a fund of $ 11 billion to help finance infrastructure projects. We also formed a high-level committee to suggest measures needed to fund the ambitious 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. Monsoon was 3% above average until September 7, 2011, as per the latest information on the Indian Meteorological Department (IMD). A large part of the country were the average of the average rainfall this year, but the season has been characterized as well as cradle and periods of torrential rains in some parts of western and eastern.

Although it rained a key element in determining the status output, the timing and distribution of rainfall is also important to ensure a good harvest. Unusually this year, rains can delay the harvest, affect the Enter key to the summer-sown crops such as rice, oilseeds, sugarcane and cotton. Area of ​​rice that the September 2, 2011, up 12% from last year to 35.75 million hectares.

A good monsoon season in general, can improve farm incomes in rural areas and have an impact on the global economy through increased spending on consumer goods and lower prices for foodstuffs. But food prices are not necessarily fall if the rains and the long delay in some areas affecting crops.

Moody’s Investors Service confirmed the Baa3 rating for the debt of India’s foreign currency government and its debt rating to Ba1 local currency annual credit analysis published last week. 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 overcome an economic crisis. While not immune to a slowdown in international growth, the strength of domestic demand and economic diversity provides protection against a downturn in the exposed sectors worldwide, the report said. India noted that the foreign exchange reserves equivalent to four times its external debt.

Debt ratio of 71% is worrisome, because the interest on this debt eats 25% of annual sales in India. However, Moody’s expects continued growth and gradual fiscal consolidation reduces the debt / GDP of the government, the report said.

Merchandise exports from India grew by 44.2% in August 2011 over the previous year, a total of $ 24.3 billion, net slowdown in the pace of the previous month, Commerce Secretary Rahul Khullar said last week. Imports in the month just ended up 41.8% year on year to 38.4 billion, trade deficit widened to $ 14.1 billion from $ 11.1 million in July.

Asian stocks rose on Thursday, September 15, 2011, feeling supported by the knowledge of France and Germany and Europe lag behind the nation of Greece is struggling to reduce its debt pile. The key benchmark indices in China, Singapore, Indonesia, Japan, South Korea, Taiwan and Hong Kong increased from 0.21% to 2.37%.

This is a conference call, the greek prime minister said on Wednesday, September 14 In 2011, the country is determined to meet all its obligations and that the recent measures to contain costs contribute to the achievement of Athens 2011 – 2012 budget targets.

The addition of relief to investors, the Italian Prime Minister Silvio Berlusconi on Wednesday, September 14 In 2011, he won the vote of confidence in a plan rigorously for Italy, the third largest economy in the euro area.

U.S. stocks rose Wednesday, helped by reports of the leaders of France and Germany expressed their support to help Greece in the euro area remain. On the macroeconomic front, growth in retail sales stagnated in August, while business inventories rose less than expected in July, suggesting caution in the application business early in the third quarter.

The Federal Open Market Committee (FOMC) is scheduled for a two-day policy review of U.S. interest rates 20:21 September 2011.


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