Volatility In The Front

The volatility has been at the forefront as reference points once fell into the red in mid morning trade on weak Asian stocks down, U.S. equity futures index. 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. The BSE Sensex fell 25.88 points or 0.14%, almost 150 points higher a day and up almost 50 points below the day. The size of the market was positive.

Index heavyweight Reliance Industries (RIL) reversed early gains. Cutting IT stocks higher as the rupee fell by 3 years of high. Auto stocks were mixed. Telecom stocks were also mixed. State-owned Indian Bank was the first quarter profit rose.

The market recovered slightly after reaching its lowest level in over a month at the beginning of the trading session. The market rose to new intraday trading in the morning. The market once fell into the red in mid morning trade on concerns U.S. debt.

At 11:20 IST the BSE Sensex was down 25.88 points or 0.14% to 18,183.64. The Sensex rose 124.75 points to 18,334.27 Day High In morning trading, its highest level since Wednesday, July 27, 2011. The index fell 77.66 points to 18,131.86 few days in early trade, its lowest level since June 24, 2011.

S & P CNX Nifty fell 24.10 points or 0.44% at 5463.65. The low success in trading Nifty 5453.95 intraday, its lowest level since June 27, 2011. The Nifty hit a high of 5,520.30 in intraday trading, its highest level since Wednesday, July 27, 2011.

The market size, which indicates the general health of the market was positive. On BSE, 1,298 stocks rose and 1,064 declined stock. A total of 105 shares remained unchanged.

30 shares of the Sensex pack, 19 stocks fell and the rest is past. ITC, Maruti Suzuki India and NTPC rose 0.59% to 1.73%. ONGC, DLF and Jindal Steel & Power paid by between 2.58% to 2.82%.

Index heavyweight Reliance Industries (RIL) fell 0.36% to 834.30 rupees, high days of 847.65 rupees. Stocks extended their losses caused recently by the Q1 low operational performance. The action is within walking distance of a 52-week low of Rs 829, which had beaten June 20, 2011. RIL’s operating profit margin (OPM) declined sharply to 12.25% in Q1 June 2011 16.04% in Q1 June 2010 as the weak performance of oil and gas and petrochemical segment offset strong performance of the refining .

RIL’s net income rose to Rs 5661 crore on 16.69% increase from 39.1% in net sales of Rs 81.018 million rupees in June 2011 in Q1 Q1 June 2010. Growth in both net income and net sales exceeded market expectations. RIL has grown 15.44% on reports net profit of Rs 5600.35 crore on 28.7% growth in net sales of R 74951.47 crore in Q1 June 2011 in Q1 June 2010, according to the average estimate of 10 brokers. The result was announced earlier this week.

Gross investments of RIL in refining margins (GRM) rose to $ 10.3 per barrel from $ 7.3 per barrel in Q1 June 2010. KG-D6 gas production Ril field on the east coast has dropped to 18% of 156.2 BCF in Q1 June 2011 over Q1 June 2010. The gas condensate production jumped 81.6% left 0.21 million barrels in Q1 June 2011 on Q1 June 2010. The company said that the sale of gas to the government gave priority to the Directive with effect from May 9, 2011.

IT stocks edged higher as the rupee was released three years high. The partially convertible rupee was at 44.10/11 per dollar, slightly lower near 44.07/08 Thursday, July 28, 2011. The rupee had risen to nearly three-year high recently. A firm rupee hurt profit margins of IT companies in which the industry gets the lion’s share of revenue from exports. Infosys, TCS, iGate Financial Technologies and Patni increased from 0.36% to 0.82%. Wipro is flat.

Auto Stocks were mixed. Manufacturer of India’s largest selling trucks Tata Motors fell 0.62%, with the stock falls for the fourth consecutive day.

Trucks and tractors major Mahindra & Mahindra (M & M) fell by 0.26%. Last week, Ssangyong Motor Company, South Korea, a subsidiary of M & Ms, announced 43% growth in sales was KRW 1.3492 trillion in the first half of calendar 2011 the previous corresponding period. Ssangyong Motor revenues grew by 53% and 55 873 vehicles in the first half of calendar 2011 during the first half of calendar 2010. This is the highest level of sales achieved by the company for a year and a half since 2007.

Maruti Suzuki India rose 2.32%, production has resumed at its plant in Manesar in Haryana after a strike by temporary workers, Thursday, July 28, 2011 to protest against the suspension of some of their colleagues. The loss in automobile production of the strike on Thursday has been marginal, and will be collected Friday, reports suggest.

This is the second time in two months that the Maruti, the country’s largest automaker, whose sales were short of production because of unrest in the factory work in Manesar. The company closes for 10 days of June, after nearly 2,000 workers went on strike to demand recognition of new and re-11 colleagues who were fired and indiscipline.

Maruti net profit rose 18% to RS 549.20 crore is 3.3% growth in sales of RS 8319.90 crore in Q1 June 2011 on Q1 June 2010. Other operating income jumped 79.2% RS 180.07 billion rupees in Q1 June 2011 over Q1 June 2010. The company said at the time announced in Q1 June 2011 results of the passenger car market has been slow in Q1 June 2011, in particular a sharp rise in fuel prices and interest rates.

The result was announced during the opening hours of Tuesday, July 26, 2011. Maruti said higher commodity prices and currency volatility put pressure on margins in the first district in June 2011.

India’s largest bicycle maker Hero Honda Motors sales declined by 1.16%. The company announced during market hours today that it has received a new copy of the certificate in part be due to the change of name from the Hero Honda Hero Motors MotoCorp. India, second largest motorcycle manufacturer Bajaj Auto sales was 0.16%

India Bank rose 0.73% after the bank announced during market hours that net profit rose 10.53% to Rs 406.93 million rupees on 22.34% increase in total revenues of Rs 3030.74 crore in Q1 June 2011 in Q1 June 2010.

Bharti Airtel and Reliance Communications rose 0.57% and 0.89% respectively. Idea Cellular fell 1.22%. According to recent reports, Vodafone Essar, and the idea of ​​cell phone rates have increased by 20% in some prepaid plans in some areas of telecommunications services. Prepaid users account for over 95% of subscribers of both operators. It is recalled that Bharti Airtel, the country’s largest telecommunications company by users, has raised rates for two of their prepaid programs recently.

Investors continue to focus on corporate earnings in Q1. Investors focused on post Q1 June 2011 results to evaluate the management comments on the prospects for future earnings at a time when Indian companies are seeing the cost pressures in the midst of rising interest rates and staff costs.

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 announced its results for the first quarter quarter, Aug. 8, 2011. ABB, Tata Communications, Mahindra and GMR Infrastructure Satyam publish quarterly results Aug. 9, 2011. Tata Power and Rural Electrification Corporation announces the results of the first quarter of the 10th August 2011. Tata Motors and Castrol India reveals quarterly results Aug. 11, 2011. Hindalco and Coal India reveal the first result quarter, 12 August 2011. Aditya Birla Nuvo presents the results for the first quarter of the 13th August 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 approved Thursday a bill to create an anti-corruption ombudsman, an office that has come to define the debate on what India must do to try to eradicate graft. For months, a handful of anti-corruption activists negotiated with the government on the creation of the position and scale of power in Lokpal, or mediator. Bill proposed by the government will allow the Agency to probe graft in the upper echelons of Indian bureaucracy, the parliament and in government departments, but would exempt the Office of the Minister in the Prime and the judiciary.

On the macroeconomic front, food prices rose in the week ended July 16, 2011 due to cost vegetables and fruits, the latest data show. The wholesale price index for food rose 0.8% to 193.3 from 191.7 the previous week, data from the Ministry of Industry and Commerce on Thursday. The index rose in three of the four weeks ended July 16. The data also show that the index of primary commodities, including food and nonfood items, has changed little in 198 in the week ended July 16, from 197.7 the previous week.

Reserve Bank of India (RBI) raised its key rate by 50 basis points to a policy review Tuesday, July 26, 2011 to tame high inflation. RBI raised its inflation target of end March 2012 to 7% against the previous estimate of 6%, said inflation was higher than expectations. It kept its forecast for economic growth of 8% for the current fiscal year. RBI lowered projection of non-food bank credit growth to 18% for the year ending March 2012 (fiscal 2012) of 19% previously.

Although the impact of past monetary policy measures are still being downloaded, given the overall growth and inflation scenario, it is necessary to continue with the anti-inflation the RBI said. In the future, monetary policy will depend on developments in the path of inflation, which in turn will be determined by the evolution of domestic growth and global commodity prices, the RBI said. A change in attitude will be motivated by evidence of a sustained decline in inflation, he added.

The global macroeconomic environment of uncertainty is a challenge for the national economy from the perspective of financing the current account deficit, RBI said. In this context, the composition of capital flows remains a concern. In recent months, some changes in the composition of capital flows, foreign direct investment (FDI) has been observed. This trend must be reinforced by political action to improve the quality of the financing of current account deficit, RBI said.

Finance Pranab Mukherjee Wednesday, July 27, 2011 said food inflation of 8% around the current level is not acceptable. He added that the Government would take steps to support Thurs RBI against inflation stubbornly high, which will probably see further increases in interest rates. I do not think we’ve reached the end of the tunnel, Mukherjee said, referring to the tightening cycle rates RBI. Appropriate action will be taken, Mukherjee said, referring to government support of the political action of the central bank, without giving details.

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

The RBI Deputy Director Subir Gokarna on Wednesday, said the decision to go to 50 basis points increase in interest rates, rather than the small steps of 25 basis points, the RBI has done more, is strongly influenced demand in the economy, which was partly influenced by movements in interest rates. Public spending for the elderly was also maintained the pressure on demand, said analysts in a conference call.

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 were down between 0.21% to 1.37% NRI Share Trading Account.

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.

Moody’s said today it placed on the Spanish Aa2 rating for possible downgrade review.

The U.S. index futures said the Dow could fall 79 points at the opening bell Friday, July 29, 2011. Revenues of U.S. stocks weak low Thursday, July 28, 2011.

The latest data show for the first time claims for unemployment benefits fell last week to 24000 298000, the first time in four months that the number was below 400,000. The National Association of Realtors account of Americans signing contracts to buy homes rose for the second month of June, although the trade group also said a growing number of potential buyers have been completed before the closing contract.


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