Nifty Falls Below 5000 The Debt Of The Eurozone Revival

A pullback in Asian markets triggered by renewed fears of a Europe of sovereign debt crisis weighed on the open stock trading in India, with 50 units of S & P CNX Nifty fell below the psychological 5000. The barometer index BSE Sensex fell from 263.47 points or 1.56%. Information and metal stocks led to the initial drop. Shares of software recently extended steep losses triggered by economic concerns in the United States and Europe, the two largest markets for Indian companies. The size of the market was weak. Index heavyweight Reliance Industries fell in early trading. Except for the index of consumer goods all other BSE sectoral indices on BSE were in red.

Investors look forward to data from the second quarter to September 2011 the company’s pre-tax charge of access September 15, 2011, which may provide clues in Q2 September 2011 results.

At 9:28 IST, the BSE Sensex fell 263.47 points, or 1.56% to 16,603.50. The index fell 198.72 points to 16,668.25 on the day high in early trading. The index fell 292.87 points to 16,574.10 on the day a bit in early trading, its lowest level since September 6, 2011.

S & P CNX Nifty fell 85.50 points, or 1.7% to 4977.40. Nifty hit a low 4,966.95 in intraday trading, the lowest level since September 6, 2011.

Extension of the market, shows the general health of the market was weak. BSE 834 shares declined, 257 shares rose. A total of 39 shares remained unchanged.

Among the 30-share Sensex pack fell by 29 and a single rose. FMCG giant Hindustan Unilever rose 0.66% on the purchase of the defensive and was the lone winner Sensex pack. Hindalco Industries, Jindal Steel & Power and ICICI Bank fell between 3.03% to 3.63%.

Index heavyweight Reliance Industries (RIL) shed 1.59%. The company denied the cost inflation in its D6 gas field in Krishna-Godavari (KG) basin. RIL said that the revisions to three independent experts found that the cost of KG-D6 field is not too large, and the company had lived up to the PSC (Production Sharing Contract). With regard to the Comptroller and Auditor General of India (CAG) observation that the operator has an incentive to keep costs high, says the independent auditor Ernst & Young (E & Y) of any increase in spending capital is very harmful to the contractor and the government. Consultant Daniel Johnston noted that the evaluation activities that RIL has carried over to the various discoveries in KG-D6 block in accordance with good international petroleum industry (GIPIP).

RIL, said independent reports E & Y, IPA and Daniel Johnston & Co. Inc. RIL stand fully validate their responses to the ACG. The independence of the studies conducted by renowned consultants in the world recognized the commendable work flow RIL carrying India’s first production of hydrocarbons in deep water in record time, RIL said. The fact that the major BP Energy has entered into a strategic alliance with EFI on the block, still justifies the position of RIL, RIL said. With its new partnership with BP, RIL hopes to release the full potential of KG-D6 block and the other, bringing more benefit to the nation, RIL said.

RIL, issued a statement after trading hours on Friday 9 In September 2011, the CAG said that the final report to Parliament on Thursday 8 In September 2011, the RIL is initially estimated capital expenditures for the D -1 and D-3 gas discovery was $ 2.4 billion, later revised to $ 8.8 billion. CAG report also said that RIL has started to implement the revised capital expenditure plans, before they were approved by the government. The report also found that RIL did not give a little ‘less of a priority for the KG D6 block, which the government would be able to give other companies the further studies.

Shares of software recently extended steep losses triggered by economic concerns in the United States and Europe, the two largest markets for Indian companies. The second largest software exporter Infosys India services decreased by 3.27%. Infosys Co-Chief Executive S. Gopalakrishnan, September 8, 2011 said customers are not likely to cut their technology budgets in 2011, but can finish the cut for next year. He also warned that customers can keep the cost estimates for this year. Infosys had previously said he has seen delays in decision making by clients.

The largest exporter of software services in India, TCS fell 2.46%. TCS recently said that none of its projects, which are not urgent in nature, cut and saw no specific delays in decision-making.

India’s third largest software services exporter Wipro declined 2.93%. HCL Tech, Tech Mahindra and Patni iGate paid by between 2.3% to 2.84%.

Foreign institutional investors (IIE) has sold shares worth Rs 427.67 crore Friday, September 9, 2011, according to preliminary data scholarships.

The Council will release industrial production data today, July 12, 2011 in September 2011. Growth of industrial production has seen a slowdown from 6.2% in July 2011 by 8.8% growth recorded in June 2011, according to the median estimate of 15 economists that responded to the capital market.

Prolonged rainfall in the latter part of the season helped ease concerns that the monsoon this year could fall below the average long term after a brief lull in July, when the country usually receives one third its monsoon rains. The monsoon of 3% on average in the September 7, 2011, the latest data from India Meteorological Department (IMD). Most of the country received an average of above average rainfall this year, but the season was marked by two moments of calm and periods of heavy rain in western and eastern regions.

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 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.

Annual inflation in food articles group declined to 9.55% for the week ended August 27, 2011, from 10.05% the previous week, the latest data show. Was 14.76% for the same period last year. However, inflation in the major group rose to 13.34% in the week in review articles of 12.93% for the week ended August 20, 2011. Was 15.24% in the period last year. Inflation in fuel and electricity group was 12.55% in the week ended August 27, unchanged from the previous week, the latest data show. Was 12.61% in the corresponding week last year.

Reserve Bank of India (RBI) said that a change in anti-inflationary monetary policy will be motivated by evidence of a sustained decline in inflation. Industrial production data for July 2011 announced today, and data on global inflation September 14, 2011-August 2011 will give signals of the most probable position of the central bank in the mid-quarter, Monetary Policy September 16, 2011. Reserve Bank of India raised its key rate 11 times over the last 18 months to keep inflation high.

Inflation based on wholesale prices is expected to top 9.6% reading in August 2011 of 9.22% in July 2011, according to the median estimate of 13 economists that responded to the capital market. The data is due on Wednesday, September 14, 2011. Eleven of the twelve economists who responded to the capital market to expect 25 points (bps) increase in the repo rate, the key short-term interest policy, the Reserve Bank of India with its mid-quarter review of the policy on September 16 2011.

Moody Investors Service affirmed its Baa3 rating for India foreign currency debt of the government and its rating to Ba1 local currency debt in an annual credit analysis released last week. The firm’s ratings a positive outlook for India’s rupee-denominated bonds, says he will consider an overall rating of Baa3 for all obligations, if India improves its financial position and its willingness to strengthen the internal 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.

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 the public debt / GDP, the report said NRI demat account.

India, exports of goods grew by 44.2% in August 2011 over the previous year, for a total of $ 24.3 billion, a sharp slowdown from the previous pace, Commerce said Rahul Khullar Friday, September 9, 2011. Imports account for just over a month increased by 41.8% year on year and 38.4 billion U.S. dollars, which increased the trade deficit of $ 14.1 billion from $ 11.1 billion in July NRI Pan Card.

Asian stocks plunged on Monday, 12 In September 2011, some of the shares hit a multi-year low, as renewed fears of European sovereign debt crisis has led to strong sales in the U.S. and European markets late last week. Benchmark indices in Hong Kong, Indonesia, Japan and Singapore fell by between 1.73% and 3.34%. South Korea, Taiwan and mainland China markets were closed holidays.

China’s trade surplus fell sharply in August, exports pulled back to a record and imports increased, which shows the second largest economy in the world feels a pinch of weakening global economic growth while domestic demand remains resistant.

The heavy losses in Asian stocks Monday, September 12, 2011, came after the Dow Jones Industrial and S & P 500 each fell 2.7% Friday, September 9 and Europe Stoxx 600 fell 2.6%. Among a development framework by Friday in western markets, had resigned from the European Central Bank (ECB) board member Juergen Stark, a promoter of higher interest rates, whose departure was seen by some as a sign of a political dispute with the ECB.

Group of Seven finance ministers pledged on Friday to a coordinated response to a slowing global economy, but offers few differences with emphasis on debt crisis in Europe.

The Federal Open Market Committee (FOMC) is scheduled to conduct a policy review in two days on U.S. interest rates, 20 and September 21, 2011.

U.S. index futures said the Dow could fall 87 points at the opening bell Monday, September 12, 2011.


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