T20_21Sep2010

Global Markets
1. S&P cuts above 1130; hits 4 month high S&P Chart
2. US dollar breaks-down from the triangle pattern; reaches $80 levels Dollar Chart
3. Crude consolidates, moving averages converge; shows no sign of a definite direction Oil Chart
4. Gold unperturbed; continues its upward spiral whilst equity markets remain robust Gold Chart

Economy
5. RBI hiked repo 25bps,reverse repo 50bps; high inflation, GDP growth prompt move; aggressive rate move to counter negative real interest rates & boost bank deposits
6. Ten-year bond yield hits 8%, 5 Yr paper at 24 month high
7. Food Inflation surges 15.10%, data based on new base yr, amended basket of items
8. Food Ministry asks FMC to extend ban on sugar futures; asks regulator to wait till end of festive season to prevent price speculation
9. Sensex, Nifty strike 32-moths high; breadth strong

Indian Markets
10. Nifty breaks above 6k; when will the marathon end? Nifty Chart
11. FIIs continue on a buying spree, bought share worth a net Rs 13,620 cr Month to date; Domestic funds sold shares worth a net Rs 2440 cr on that day
12. Gold has gained 7.8% since the start of Aug ’10; profit taking has been initiated, however citing the festive season, demand is likely to remain robust

Sectors
13. Capital goods segment in the overall industrial output rose by 63% in Jul ‘10 and pushed up the Index of Industrial Production (IIP) by 13.8%
14. Textile sector upset with hike in repo, reverse repo rates; this could disrupt the growth stringently
15. FDI norms for real estate may be relaxed; the 3 year lockin period may be relaxed
16. Companies in paints sector are bracing for the increased demand due to robust economic growth and rising incomes
17. Telcos get a call for service-tax records; CBEC seeks copy of telcos special audit from DoT

Stocks
18. Stemcor set to buy 10% in Ispat Inds; the deal is likely to be valued at INR 2.50bn - 3bn Ispat Industries Chart
19. Cairn to seal Vedanta deal by year end; no differences with Govt or ONGC Cairn India Chart

Quotes
20. "Although it's easy to forget sometimes, a share is not a lottery ticket...it's part-ownership of a business." - Peter Lynch