T20 2nd March 2011

Global Markets

1. S&P down this week on back of fears of rising crude prices. S&P Chart

2. US Dollar seeing a down trend due to rising global fuel prices. Dollar Chart

3. Crude prices rose this week due to political unrest in North Africa and the Middle East. Oil Chart

4. Gold prices on the rise, has touched a new 8 week high. Gold Chart


Economy

5. Core infrastructure industries output grew by 7.1% in January, 2011.

6. January exports up 32.4% YoY; close to a target of 15% growth for the current FY.

7. India's food inflation at 11.49% on Feb 12, 2011.

8. Indian Economy grew 8.2% in Q3 of current FY on back of robust growth in Agriculture and Services sectors.


Indian Markets

9. Nifty rejoices the budget announcements; is this sustainable? Nifty Chart

10.FIIs sold shares worth a net Rs. 5,529.7 cr from Feb to Date, 2011; Domestic funds bought shares worth a net Rs 23,979 cr for the same period.



Sector

11. Oil retailers raised ATF prices by 3.4% in line with spike in crude oil prices.

12. Budget & Sectors Highlights

•Budget Positive for auto sector, no hike in excise duty.

•Budget positive for banking sector, Rs. 6000 crores have been pledged to public sector banks to strengthen their capital base.

•Budget provides free tax bonds for Rs. 30000 crores to boost infrastructure development.

•Provisions were also made to extend the benefit of investment linked deductions to businesses engaged in the production of fertilizer.

•Budget not very positive for Telecom sector as a service tax exemption expected on broadband was not delivered in the budget, this would have boosted demand and revenues for broadband providing companies.Recent regulator recommendation has stimulated some uncertainty in the sector, especially with regards to      recent 2G pricing and license renewal fees. However, increasing rural penetration and data services offers immense potential going forward.
•The budget also provided for a 20% hike in export duty for iron ore, which drew a positive reaction from the Indian steel sector as it will help to contain escalating raw material costs.

13.Auto sales surge in Feb, 2011 in expectation of excise duty hike fears.

14.State run oil firms to raise petrol prices by up to Rs.4/ liter to offset rising crude prices.

15.Cement makers to increase cement price by Rs. 5 per 50Kg bag to pass on the proposed hike in excise duty to consumers.

16.Indian Agrochemical industry expected to grow at 7.5% to reach $ 1.7 Bn in 2012 driven by need for food grain self sufficiency.


Stocks

17. Mphasis scrip hammered over price cut issues with Hewlett Packard and a 20% fall in net profit. HewlettPackard Chart

18. TVS Motors reported a 24% growth in sales in February 2011. TVS Motors Chart

19. Marico’s Rs. 200 Crore bid for Unibic highlights their ambitions in the Indian food segment. Marico’s Chart

Quotes

20."Why not invest your assets in the companies you really like? As Mae West said, "Too much of a good thing can be wonderful" –Warren Buffett"