Market May Extend Recent Losses On Weak Asian Stocks

Market May Extend Recent Losses On Weak Asian Stocks

The market may extend the three-day losing 3.5% on weak Asian equities. Trading in the S & P CNX Nifty on the Singapore Stock Exchange showed a decrease of 58 points at the opening bell. Asian stocks fell Friday, July 29, 2011 by the American debt impasse kept a large market sentiment at bay, with Japan also hit by weak earnings and profit outlook NRI Share Trading Account.

FII bought shares worth a net Rs 64.66 crore on Thursday 28 July 2011, provisional data for trade. Domestic institutional investors (DIIS) has bought shares worth Rs 409.34 crore on that day. The benchmark index sank to its lowest closing stocks of five weeks on Thursday, July 28th, 2011 on fears that rising interest rates will hurt corporate profit growth. BSE Sensex fell 222.73 points, or 1.21% 18,209.52 to solve its lowest closing level of the date of 23 June 2011.

Net income rose 11.83% to ONGC Rs 4094.90 crore on 18.7% increase in revenues from sales to 16,268 crores RS in the first quarter, in June 2011 at the First District in June 2010. A sharp increase in its contribution to burden sharing profit growth limited to the state oil exploration major. The burden of subsidy ONGC inflated 118.4% to Rs 12,046 crore in the first quarter, in June 2011 in the first district in June 2010. The result was announced after trading hours, Thursday, July 28, 2011.

ACC net profit fell by 6.11% RS 328.12 crore an increase of 17.17% of net sales of RS 2538.97 crore in Q2 June 2011 over Q2 June 2010. The results announced after hours trading on Thursday, July 28, 2011. ACC said while the market is currently small, the overall demand for cement will take the post-monsoon and the ACC is well positioned to benefit from the expected growth in demand in the coming months.

HCL Technologies announced after market hours on Thursday, was selected by the Blue Cross and Blue Shield Association (BCBSA) to be part of a national purchasing agreement for the transition to ICD-10. With this agreement, HCL products and service capabilities will be available for the 39 independent Blue Cross and Blue Shield across the country.

Investors’ attention remains on the benefit of businesses Q1. Investors focused on post-Q1 June 2011 Management Report results to assess the future benefits at a time when Indian companies are seeing the cost pressures of rising interest rates and central personnel costs. Among the leading companies, says ICICI Bank, Power Finance Corporation, Bhushan Steel, Idea Cellular and TVS Motor profit for the first quarter today, July 29, 2011.

Sun TV has announced its Q1 results on 1 August 2011. Power Grid Corporation will publish its Q1 results of the August 2, 2011. Bharti Airtel and United Spirits Q1 reveals the results of the August 3, 2011. Adani Power, Mundra Port and Special Economic Zone and the Indian Hotels Q1 to publish the results of August 4, 2011. Cipla and IL & FS Transportation Networks to Report Q1 Results August 5, 2011.

M & M Q1 report the results of August 8, 2011. ABB, Tata Communications, Mahindra and GMR Infrastructure, Satyam will publish its interim report August 9, 2011. Tata Power Corporation and Rural Electrification will publish its Q1 results 10 August 2011. Tata Motors and Castrol India reveals its interim report on August 11, 2011. Hindalco and Coal India to unveil the Q1 results of the August 12, 2011. Aditya Birla NUVO to publish the results in Q1 August 13, 2011.

Securities market regulator Securities and Exchange Board of India (SEBI) on Thursday brought radical changes to the Takeover Code, including raising the threshold that triggers an open offer of 25% to 15%. Sebi has also changed the minimum size that provides open, saying that when one company acquires at least 25% of another listed company must make a mandatory offer to open another 26%. Under current legislation, a company needs to make a mandatory offer for only an additional 20%. Part of the acceptance of the recommendations of a panel appointed by Sebi on the issue, Sebi has also decided to abolish the non-competition fees that acquirers typically pay the sellers of merger and acquisition agreements.

The government on Thursday approved a bill to create a corruption of the Ombudsman Office, which has come to define the debate on what India should do to try to root out graft. The last few months, a handful of defenders of corruption has been negotiated with the government on the creation of the power and extent of Lokpal or the broker. Bill to give the agency the power to probe graft in the upper echelons of Indian bureaucracy, Parliament and ministries, but the release of Office is the prime minister and the judiciary.

On the macroeconomic front, the rise in food prices in the week ended July 16, 2011 due to more expensive vegetables and fruits, the latest data show. Index of wholesale prices for food items rose 0.8% to 193.3 from 191.7 the previous week, data from the Ministry of Trade and Industry showed on Thursday. The index rose by three of the four weeks ending July 16th. The data also show the index of primary articles, which includes food and non food items, have changed little over 198 in the week ended 16th July from 197.7 one week earlier.

Reserve Bank of India (RBI) raised its key lending rate by 50 basis points of the policy review Tuesday, July 26, 2011 to tame high inflation. The RBI has increased the inflation target for end March 2012 of 7%, compared to the previous estimate of 6%, says inflation has exceeded the expectations. He has maintained its economic growth forecast to 8% this fiscal year. The RBI revised downwards by the non-food credit growth forecast of 18% in the period ending March 2012 (FY 2012) to 19% in the past.

Although the impact of recent policy actions is still being transmitted, given the overall growth and inflation scenario, it is necessary to persevere in the fight against inflation, the RBI said. Since then, monetary policy will depend on the trajectory of changes in inflation, which in turn is determined by trends in domestic growth and global commodity prices, the RBI said. A change in position will be motivated by evidence of a lasting slowdown in inflation, he said.

Uncertain global macroeconomic environment is a challenge for the national economy in terms of financing the current account deficit, RBI said. In this context, the composition of capital flows remains a problem. In recent months, some changes in the composition of capital inflows from foreign direct investment (FDI) was observed. This trend will be strengthened through policy actions to improve the financing of current account deficit, RBI said.

Finance Minister Pranab Mukherjee on Wednesday, July 27, 2011, said food inflation was around 8% at current levels is not acceptable. He added that the government should take measures to support the fight stubbornly high inflation, the RBI, which could see a further increase. I do not think we’ve reached the end of the tunnel, Mukherjee said, referring to the RBI tightening interest rate period. Appropriate measures are taken, Mukherjee said, referring to the government with the support of central policy measures, without providing details.

Mukherjee said the government would keep its spending under control in order to achieve its target for the deficit, but gave no details. We are looking for ways to cut spending. There are plenty of recipes, and together I believe they will help us achieve the budget deficit, he said.

The RBI Deputy Governor Subir Gokarn said Wednesday that the decision to go for an increase of 50 basis points repo rate, instead of the baby steps of 25 basis points above the RBI took was influenced by a strong demand in the economy, which was partially affected by fluctuations in interest rates. High costs of the government was also stimulates demand pressures, he said on a conference call with analysts.

Gokarn said the downside risks to growth rising interest rates would be quite limited, and a gentle hike could have been perceived as inadequate. We thought that more effort is essentially consistent with the new attitude that we reported in May, he added.

Asian stocks fell on Friday, July 29, 2011, as the impasse of the U.S. debt kept off the market sentiment under control, with Japan also suffered from weak earnings and earnings outlook. Loss of depth in the various stock markets after Thursday’s vote on a Republican bill to lift the debt ceiling U.S. was canceled. Just days before the rest of the August 2 deadline, when the U.S. government is expected to run out of money to pay all your bills. The key benchmark indices in South Korea, Singapore, Indonesia, Hong Kong, China, Japan and Taiwan decreased from 0. 2% to 1.26%.

The unemployment rate in Japan has gone through higher industrial production in June and was softer than expected, while consumer prices rose less than expected, according to data released Friday.

Poor performance of U.S. stocks pulled lower Thursday, July 28, 2011. Recent data indicate that the first application for unemployment benefits fell from 24 000 and 298 000 in the last week, marking the first time in four months, the number was below 400,000. National Association of Realtors count of Americans signing contracts to purchase homes rose a second month of June, although the trade group also said a growing number of potential buyers is to terminate the contract on the shutdowns.


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