23rd Dec, 2009
January Roy 31, 2011
Sutapa 2, 2010
WEEKLY CHART OF SENSEX WEEK IN RETROSPECT
Indian stock market ended nearly 2 percent lower in the last
week of the calendar year 2011. Selling was witnessed in Bank
shares on rising worries over asset quality in a slowing econ-
omy and in Reliance Industries on concerns over lower gas
output from KG-D6 field. Weakening rupee also hurt the sen-
Continuing its downward trend, India’s Food Inflation eased
sharply to 0.42 percent during the week ended December 17,
2011 against 1.81 percent in the previous week on account of
fall in food prices and higher base of last year.
India’s Core Infrastructure growth rebounded in November
2011, posting an increase of 6.8 percent YoY against a revised
0.3 percent YoY in October 2011, on account of a revival in
cement, steel, coal and electricity production and also because
of the lower base of last year.
Indian stock market is likely to remain volatile. Nifty may trade be-
On the global front, the U.S. Initial Jobless Claims rose for the
tween 4,500 and 4,750. Stock specific movements are likely to be first time in a month in the week ended December 24, 2011,
witnessed on result anticipation for the Q3FY12 season. Shares of climbing by 15,000 to 381,000.
Auto and Cement will be in spotlight as companies from these two
sectors start unveiling monthly sales data for December 2011. India’s Pending Sales of U.S. Existing Home increased 7.3 percent to
Exports-Imports data for November 2011 and PMI data for Decem- the highest level since April 2010 after climbing 10.4 percent
in the prior month.
ber 2011 will announce during the next week will be in focus. The
good thing for the overall market is that the food inflation has come Japan’s Unemployment Rate remained unchanged in Novem-
down and the Reserve Bank of India (RBI) may start reducing inter- ber 2011 from the previous month at 4.5 percent.
est rates sooner rather than later. It would also be interesting to see
the RBI's action on the rupee front. Japan’s Industrial Output dropped to a seasonally adjusted 2.6
percent in November 2011 from the previous month.
GLOBAL MARKET DURING LAST 5 DAYS
Current FY12 Current FY12 EST
NAME LAST PRICE 5D % CH 1M % CH 3M % CH 1Y % CH P/E EST P/E P/B P/B
DOW JONES 12217.56 0.39 1.65 11.95 5.53 12.62 12.53 2.59 2.51
NASDAQ 2605.15 0.22 (0.83) 7.86 (1.80) 22.32 15.75 2.63 2.50
S&P 500 1257.60 0.29 1.07 11.15 (0.00) 13.24 12.73 2.05 1.99
FTSE 100 5572.28 3.39 0.36 8.65 (5.55) 9.96 10.05 1.60 1.56
CAC 40 3159.81 2.87 (0.16) 5.96 (16.95) 9.25 9.22 1.08 1.02
DAX 5898.35 0.79 (3.00) 7.20 (14.69) 9.91 9.85 1.22 1.17
NIKKEI 225 8455.35 0.72 (2.18) (2.82) (17.34) 16.59 16.47 1.10 1.06
HANG SENG 18434.39 0.10 (3.18) 4.79 (19.97) 8.34 10.03 1.32 1.29
STRAITS TIMES 2646.35 (0.69) (4.58) (1.08) (17.04) 6.46 12.56 1.27 1.25
TAIWAN TAIEX 7072.08 (0.54) (0.96) (2.12) (21.18) 15.36 14.69 1.56 1.59
KOSPI 1825.74 (1.18) (1.18) 3.17 (10.98) 18.30 9.81 1.07 1.17
BRAZIL BOVESPA 56754.08 (1.04) (0.21) 8.47 (18.11) 9.20 10.01 1.27 1.16
RUSSIAN RTS 1380.49 (2.34) (10.68) 2.94 (22.02) 5.01 4.92 0.89 0.81
SHANGHAI SE COMPOSIT 2199.42 (0.24) (6.83) (6.77) (21.68) 11.53 10.60 1.78 1.63
BSE SENSEX 15454.92 (1.80) (8.26) (6.07) (24.64) 14.12 13.45 2.48 2.14
NSE S&P CNX NIFTY 4624.30 (1.90) (8.43) (6.45) (24.62) 13.59 13.19 2.30 2.03
MSCI INDICES INDUSTRIAL METALS & ENERGY MARKETS
LAST 5D% 1M% 3M% 1Y% LAST 5D% 1M% 3M% 1Y%
PRICE CH CH CH CH PRICE CH CH CH CH
MSCI WORLD 1182.59 0.03 (0.43) 7.11 (7.62) COPPER (USD/T) 7600.00 1.95 (3.61) 8.29 (19.96)
MSCI AC WORLD 299.51 (0.13) (0.97) 6.72 (9.42) ALUMINUM (USD/T) 2020.00 1.30 (4.27) (6.35) (17.69)
MSCI AC ASIA PACIFIC 113.86 0.16 (3.23) 0.66 (17.31) ZINC (USD/T) 1845.00 (0.32) (10.91) (0.81) (23.41)
MSCI EM 916.39 (1.22) (4.63) 4.08 (20.41) LEAD (USD/T) 2035.00 3.51 (3.55) 2.52 (19.15)
OIL (USD/BBL) 98.83 (0.70) (1.52) 24.79 10.01
VOLATILITY INDICES NATURAL GAS (USD/MMBTU) 2.99 (6.77) (16.46) (27.84) (41.89)
LAST 5D% 1M% 3M % 1Y%
PRICE CH CH CH CH PRECIOUS METALS
CBOE SPX VOLATILITY 23.40 10.59 (14.97) (45.53) 31.83
LAST 5D% 1M% 3M% 1Y%
INDIA NSE VOLATILITY 27.11 (1.02) 13.01 (15.12) 63.71 PRICE CH CH CH CH
GOLD (USD/OZ) 1563.70 (2.66) (10.46) (3.71) 11.32
10 YERS BOND MARKETS SILVER (USD/OZ) 27.84 (4.39) (15.09) (6.97) (8.54)
5D% 1M % 3M% 1Y%
CH CH CH CH INDUSTRY INDICES
US Generic Govt 10 Year Yield 1.88 (7.32) (9.27) (2.05) (44.24)
LAST 5D% 1M% 3M% 1Y%
UK Govt Bonds 10 Year Note Gen 1.98 (2.99) (14.49) (18.64) (43.09) PRICE CH CH CH CH
BALTIC DRY INDEX (2.74) (5.85) (8.48)
Brazil Government Generic Bond 3.97 (0.58) (0.43) (12.70) (6.72)
BBG WORLD IRON INDEX 197.13 (0.38) (6.57) (1.42) (36.81)
Japan Govt Bond Year to maturity 0.99 1.02 (7.84) (4.26) (12.41)
Australia Govt Bonds Generic M 3.67 (1.85) (6.71) (13.08) (34.71) AGRO MARKET
India Govt Bond Generic Bid Yi 8.57 2.50 (1.99) 1.65 7.95 LAST 5D% 1M% 3M% 1Y%
PRICE CH CH CH CH
COFFEE (USD/IB) 226.85 2.46 (4.24) (2.24) 2.14
COTTON (USD/IB) 91.80 5.23 0.98 (5.77) (1.40)
LAST 5D% 1M% 3M% 1Y%
PRICE CH CH CH CH SUGAR (USD/IB) 23.30 (0.60) (1.65) (7.87) 4.11
DOLLAR INDEX SPOT 80.18 0.27 2.29 2.07 0.83 WHEAT (USD/BU) 652.75 4.99 6.31 0.97 (23.99)
EUR-USD X-RATE 1.30 (0.64) (3.61) (3.18) (2.48) SOYBEAN (USD/BU) 1207.75 3.07 5.85 0.79 (6.14)
USD-GBP X-RATE 0.64 0.31 1.05 0.28 (0.74)
USD-BRL X-RATE 1.87 (0.58) (1.15) (1.42) (10.07) INSTITUTIONAL FLOW IN C R (26/12-30/12)
USD-JPY X-RATE 76.91 1.53 0.92 0.20 6.01 INSTRUMENT PURCHASE SALE NET
USD- X-RATE 53.07 (0.20) (1.61) (7.71) (15.26) FII (P) 5291.70 5399.65 (107.95)
USD-CNY X-RATE 6.29 0.68 1.34 1.37 4.96 DII 3315.84 3036.93 278.91
USD-KRW X-RATE 1152.45 (0.20) (0.86) 2.23 (1.53) MF (26/12-29/12) 979.20 803.10 176.10
MONEY MARKETS FII DERIVATIVE SEGMENT IN C R (26/12-30/12)
LAST 5D% 1M% 3M% 1Y% INSTRUMENT PURCHASE SALE NET
PRICE CH CH CH CH INDEX FUTURE 12915.17 12358.76 556.41
BBA LIBOR USD 3M 0.58 0.91 9.85 55.21 91.87 INDEX OPTION 78977.12 77705.56 1271.56
MIBOR Offer Market 3M 1.36 (2.86) (7.48) (12.26) 34.65 STOCK FUTURE 18616.35 18833.28 (216.93)
India Indicative Call Rate 8.90 4.71 4.09 7.23 61.82 STOCK OPTION 1252.21 1225.91 26.30
Data Source: Bloomberg, BSE, NSE
BANKING & FINANCIAL INFRASTRUCTURE
As part of the strategy to infuse liquidity in the system, the Reserve Singapore's Changi Airports is likely to buy a 26 percent stake in
Bank on Thursday bought bonds worth INR8,109.48 crore under GVK's airports business, forming a crucial partnership just before
open market operations (OMO), much lower than the INR12,000- bids are to be called for building a spanking new airport to cater
crore target. While the government security (G-Sec) maturing in to Mumbai's booming traffic. Changi Airports International, a
2018, with a coupon rate of 7.83 per cent, garnered over wholly owned subsidiary of Changi Airport Group, is likely to pay
INR5,234.89 crore, the 7.80 percent G-Sec maturing in 2021 gar- GVK Airport Holdings Private Limited INR2,000-2,200 crore for
nered INR2,874.58 crore. the 26 percent stake, valuing the Hyderabad-based company's
airport assets at 8,000 crore.
The Reserve Bank of India (RBI), deregulated interest rate on sav-
ings accounts in all state and central co-operative banks on Decem- NTPC commissioned yet another Super Critical Unit 2 of 660 MW
ber 26, 2011. The apex bank had freed these rates for the scheduled of NTPC-Sipat Super Thermal Power Project situated in Chhattis-
commercial banks in October. Like commercial banks now Co- garh, taking its total installed capacity to 36,014 MW. This is the
operative banks are free to determine their savings bank deposit second unit of NTPC as well as Sipat to be commissioned with
interest rate subject to two conditions. Under the first condition, super critical thermal power technology. Super critical power sta-
Each bank will have to offer a uniform interest rate on savings tions are eco-friendly, run on high efficiency and consume less
bank deposits up to INR1 lakh, irrespective of the amount in the coal compared to traditional coal-fired units. currently has 15 coal
account within this limit. The other condition states that for sav- -based, seven gas-based and six joint venture power stations and
ings bank deposits over INR1 lakh, a bank may provide differential plans to be 1,28,000 MW power company by 2032.
rates of interest, if it so chooses. Till now, co-operative banks were
mandated to give 4 percent interest rates on such deposits. The rate Engineering, procurement and construction (EPC) conglomerate
was increased from 3.5 percent. This move of RBI could have the Punj Lloyd has bagged a project worth INR1,050 crore from GMR
positive impact on the cooperative banks for the mobilization of Projects Private Ltd. Punj Lloyd will undertake the design, engi-
fund, as the banks are suffering from liquidity crunch, but the Net neering, procurement and construction of 124 km of the six-lane
Interest Margin (NIM) is also the matter of concern. Chittorgarh bypass to Udaipur (Rajasthan). it had got the letter of
intent from GMR for the project that is scheduled for commis-
Banks and financial institutions may get tax benefits on profits sioning in 36 months and has got it on a turnkey fixed EPC price
made through activities leading to financial inclusion. Further, any basis. With this contract, the order backlog for the Punj Lloyd
losses these institutions incur, as a result, may also be allowed to be Group on a consolidated basis has gone up to INR28,725 crore,
carried over for a longer period. At present under Section 72 of the reflecting the total value of unexecuted orders on September 30.
Income Tax Act, 1961, losses from any non-speculative business
activity are allowed to be carried over for up to eight subsequent Promoters of Lanco Infratech have informed the exchanges that
assessment years. they have pledged additional shares by creation of encumbrance
in favour of ICICI Bank and Infrastructure Development Finance
Union Bank of India has reduced its base rate by 10 basis points to Company Ltd (IDFC). Lanco Group Ltd, who hold about 56 per
10.65 percent from 10.75 percent, with immediate effect. This will cent equity in Lanco Infratech, have announced that they have
lead to reduction in rates of all loans linked to the base rate. pledged about 15.8 percent stake in ICICI Bank and another 15.12
percent in IDFC by creation of encumbrance.
ICICI Bank increased its one-year NRE term deposit rate from 3.82
percent to 6.50 percent. Customers investing over INR15 lakh and Bonds floated by the NHAI, sold like hot cakes on the first day
up to INR50 lakh get another 0.50 percent. Those investing over with demand outstripping the offer within hours of opening, be-
INR50 lakh and up to INR1 crore get 8.25 percent. Other top banks lying perception that people are averse to investing in infrastruc-
such as SBI and HDFC Bank have increased their NRE term deposit ture, which is getting a short shrift from the government. The
rates of the same tenor to between 9 percent and 9.25 percent. success of the first retail bond sale by the nation's roads builder is
due to the attractive post-tax returns from its bonds for as long as
The life insurance industry recorded a premium income of 15 years, when interest rates are poised to fall. Sovereign backing
INR2,91,605 crore during 2010-11 against INR2,65,447 crore in the to the entity is another comforting factor for investors since their
previous financial year, registering a growth of 9.85 percent. Out of capital would be returned even if some of the projects funded turn
the 23 life insurers in operations during 2010-11, twelve companies unviable, or even if NHAI incurs losses.
reported profits. The companies include Life Insurance Corporation
(LIC), ICICI Prudential, Birla Sunlife, Max New York, Bajaj Al- Fitch Ratings has affirmed India-based IRB Infrastructure Devel-
lianz, SBI, Kotak Mahindra, TATA AIG, MetLife, Aviva, Sahara opers Ltd's (IRB) National Long-Term rating at 'Fitch A-(ind)'
India and Shriram. with a Stable Outlook.
The Government will shortly write to Sterlite, a Vedanta Group company, asking it to submit a formal plan to buy the remaining Gov-
ernment stake in Balco. The Government went for a strategic sale of Balco`s equity to Sterlite in 2001. An Empowered Group of Minis-
ters, in its meeting on November 30, discussed various options in response to the Vedanta Group`s Chairman, Anil Agarwal`s, letter to
the Prime Minister on July 4. It was decided to respond by asking for a formal proposal, according to news report. Sterlite holds 51 per-
cent in Balco while the remaining 49 percent is with the Government.
The Chairman of Gas Authority of India, B.C. Tripathi, has said that GAIL shall take active steps to establish RLNG (re-gasified lique-
fied natural gas) terminal in the Krishna-Godavari Basin. Tripathi, who called on the Andhra Pradesh Chief Minister, N. Kiran Kumar
Reddy, at Secretariat on Friday outlined GAIL plans. According to a statement from the Chief Minister`s Office, initially a floating ter-
minal is planned to be set up. After its success, a land- based terminal will be set up in the State through the Andhra Pradesh Gas Dis-
Glenmark Pharmaceuticals has obtained the DCGI (India) approval to conduct the pivotal study of ``Crofelemer`` in Acute Watery
Diarrhoea patients. Post approval from the DCGI, dosing in patients has also commenced. This is a randomized, double blinded, pla-
cebo controlled, parallel Group, three arm, multicenter and multinational pivotal study that is being carried out to assess the Efficacy
and Safety of two dosage regimens of Crofelemer Tablets in the Treatment of Moderate to Severe Acute Watery Diarrhoea in Adult
Patients including cholera. This Phase III study will be done at leading centres in India and Bangladesh.
Havells India is entering into a Joint Venture (JV) with Shanghai Yaming Lighting, a company based at the people`s republic of China.
The 50:50 JV would leverage upon the technology and manufacturing strengths of its partners, providing energy and cost efficient
products for Global Sylvania and local Chinese markets.
Varun Group, which holds exploration rights for onshore oil at Madagascar covering an area of about 6884 sq. km., has entered into
joint venture co-operation agreement with Sure King Varun Hong Kong (SKVHL) as SPV formed at Hong Kong between Varun Group
and Da Qing Oil Field Company, one of the leading oil companies in China. Under the agreement Varun group has agreed to cede 51
percent of its stake in the oil field to Da Qing Group of china through the above SPV.
The Board Members of Bharati Shipyard met to consider the reference made to the Corporate Debt Restructuring (CDR) cell in its case.
The Board has noted and discussed the proposal for restructuring of Term/Working Capital Debt of INR28.54 billion out of a total debt
of INR32.5 billion. Currently, the company has robust order book visibility worth Rs 68 billion to be executed by 2014 and is in ad-
vance stages of completion of its two greenfield shipyards at Dabhol and Mangalore. The floating dock facilities and the equipments
that were bought from the famous British Shipyard, Swan Hunter are in advanced stages of commissioning. This will enhance the pro-
duction capacity, which will be used to execute large orders going forward.
Godrej Properties enters into private equity agreement with SUN-Apollo India Real Estate Fund, LLC acting through its affiliates/
companies (SUN-Apollo). The real estate developer sells 49 percent equity stake in a subsidiary developing its project at Sector 104 in
Gurgaon. Godrej Properties (GPL) the real estate development arm of the Godrej. Group, has announced an agreement with SUN-
Apollo. Through this agreement, GPL has sold 49 percent equity stake in its subsidiary, Godrej Premium Builders Private Limited
(GPBPL). SUN-Apollo has invested INR450 million out of which INR18.3 has been paid to GPL for sale of stake and
INR267 million has been invested in GPBPL.
Zuari Industries will be setting up a joint venture company in Singapore with Mitsubishi Corporation, Japan for the purpose of invest-
ments in rock phosphate assets. The company will have a 30 percent stake in the joint venture. An investments by way of equity of
upto USD20 million by the company in the joint venture has been approved.
Balaji Telefilms entered into binding business transfer agreements to sell its media education business and its mobile content produc-
tion business for a consolidated consideration of INR83.7 million. The transaction would be effective on receipt of the full considera-
tion within a period not exceeding 90 days.
Stone India signed an agreement with Turbo Power System, UK, a leading Permanent Magnet based rotating machine designer and
manufacturer. The agreement will permit joint development of sophisticated self-propelled permanent magnet based coach power gen-
eration system for high speed coaches of Indian Railways.
January 02, 2012 January 05, 2012
India’s Exports – Imports data for November 2011. India’s Weekly Food and Fuel Inflation data for the week
ended December 24, 2011.
India and Germany PMI Manufacturing data for December
2011. The U.S. Initial Jobless Claims data for the week ended De-
cember 31, 2011.
The U.S. Bloomberg Consumer Comfort data for the week
January 03, 2012 ended January 01, 2012.
The U.S. ISM Manufacturing data for December 2011.
Germany Retail Sales data for November 2011.
The U.S. Construction Spending data for November 2011.
Germany Unemployment Rate data for December 2011.
January 06, 2012
The U.K. PMI Manufacturing data for December 2011.
The U.S. Unemployment Rate data for December 2011.
Germany Factory Orders data for November 2011.
January 04, 2012
India and Germany PMI Services data for December 2011.
Minutes of the U.S. FOMC Meeting.
The U.S. MBA Mortgage Application data for the week ended
December 30, 2011.
The U.S. Factory Orders data for November 2011.
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