T20_17Aug2010

Global Markets
1. Weak economic data from Japan and worse than expected manufacturing report from the New York region pushed the S&P into negative territory S&P Chart
2. Oil steadies near 1- month low; awaits inventory, economic data Oil Chart
3. Dollar makes a smart rally past 200EMA; consolidates close to 50EMA – shows signs of weakness Dollar Chart
4. Gold consolidates around 50EMA and makes an uptick Gold Chart


Economy
5. Inflation falls to 9.97% in July ‘10; is in single digits for the first time since 5 months – considerable downturn in primary articles
Inflation
6. Government is planning to introduce Bills on the Direct Taxes Code (DTC) and the Goods and Services Tax (GST) by August 26, 2010
7. Price of ethanol fixed at Rs 27 a litre for blending
8. IRDA may cap fee on basic policies; traditional policies to face the heat
9. Government bond prices dropped on heavy selling pressure from banks / corporates and call rates also finished lower at 5.65%
10. Fixed Deposit rates all set to raise; Investors can wait a while before they put in their money
11. China may outperform India in H2FY2010: Merrill Lynch

Indian Markets

12. Nifty has been range bound for a long time; support seen @ 5345, resistance @ 5450 - 5500 Nifty Chart
13. FIIs & DIIs: FIIs remained net buyers to the extent of Rs. 5752.4 Cr (Month to date); DIIs sold Rs. 1262.5 Cr (Month to date)
14. India gold demand stays weak as prices hit 6-wk high; demand likely to pick up as festive season begins

Sectors

15. Cement firms July 2010 growth lowest since 2001; dispatch growth further slipped to 1.63%
16. AMJ 10 quarter results showed relative slowdown; Sales, margins, profit lose some momentum, as earlier stimulus effects lessened

Stocks

17. Vedanta readies financing for acquisition of Cairn; Plans to fund the deal through debt, Sesa Goa’s cash reserve Cairn Chart
18. Yes Bank raises Rs 665 crore from bond issues Yes Bank Chart
19. Sterlites Niyamgiri mining project illegal Sterlite Industries Chart

Quotes

20. "Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can't buy what is popular and do well." - Warren Buffett