T20 19th April - 2011

Global Markets

1. S&P 500 tumbles on fears of European debt crisis, China’s latest market tightening policies and chances of America loosing its AAA debt rating. SP Chart

2. US Dollar: Rises on strong data regarding consumer price index and industrial production index. US Dollar Chart

3. Crude prices drop on concerns about high prices impact on demand. Crude Oil Chart

4. Gold prices rise a it becomes as safe haven from risky assets. Gold Chart

Economy

5. Food prices are expected to remain steady this summer as a bumper grain production is expected to cool off food inflations.

6. The Centre for Monitoring Indian Economy (CMIE) has projected India’s GDP growth at a robust 8.8%, mainly driven but the agricultural sector, an increase in private consumption and gross fixed capital formation.

7. India’s Inflation figures touched 8.98% in March as against 8.31% in February on higher fuel and manufactured product prices. This has added more pressure on the Reserve Bank of India (RBI) to tighten its monetary policy to curb inflation.

8. The planning commission is going to meet on 21st April to draft the 12th five year plan, with special focus on growth and inflation.

9. Indian local oil products sale rose 3.9% higher in March compared in February as elections in some states spurred demand.

Indian Markets

10. Nifty reacted negatively this week to inflation pressures and announcements of below the expectations results by Infosys technologies. Nifty Chart

11. FIIs purchased shares worth a net Rs. 7,656.40 from April 1st to Date, 2011; Domestic funds bought shares worth a net Rs 57,447.90 cr for the same period.

Sector

12. In a significant step towards securing energy security ONGC signed agreements with hydrocarbon rich Kazakhstan. Three agreements were signed out of which the most significant one was the purchase of 25% stake in Satpayev exploration block in the Caspian Sea which has estimated 1.75 million barrels of oil.

13. India emerges as the fastest growing car market in the world in 2010-11 beating Asian counterpart China. The Indian Auto sector grew by 29% and an unprecedented slowdown in the Chinese auto industry were key factors in Indian auto industries rise to the top.

14. Larsen & Toubro are in talk with several engineering firms regarding the sale of their electrical and electronics units which it estimates to be worth around $ 3 billion.

15. Infosys Technologies declared Q4, FY11 results which were below market expectations. A net profit of Rs. 1,864 Cr was expected but the company announced Rs 1,818 Cr net profit. Infosys also announced FY12 guidance where it expects an 18% to 20% YOY growth and to post an EPS of Rs. 126.05 to Rs. 128.21.

16. Reliance Industries may enter USD 32.5 Billion homeland security (defence) and aerospace sectors. This news is derived from RIL’s hiring of Vivek Lall, a former head of Boeing's military and commercial divisions in India who had helped win large orders for the US Company.

Stocks

17. Infosys announces results below market expectations, share tumbles almost 10%. Infosys Chart

18. IDBI Banks PAT surged 62% to Rs 516 Cr in Q4 FY11. IDBI Chart

19. HDFC Bank Q4 net up 33% at Rs 1115 Cr better than market expectations. HDFC Chart

Quotes

20. “Money may be the husk of many things but not the kernel. It brings you food, but not appetite; medicine, but not health; acquaintance, but not friends; servants, but not loyalty; days of joy, but not peace or happiness”. ~Henrik Ibsen