T20 11th May - 2011

Global Markets

1. S&P 500 saw slight gains on encouraging job reports but lost out earlier due to a series of disappointing economic data. SP Chart

2. US Dollar: Gains as fears surrounding European debt crisis bears down on trader sentiment. US Dollar Chart

3. Crude prices on the rise again after a huge drop last week, following demand concerns. Crude Oil Chart

4. Gold prices suffer the largest weekly drop since Feb, 2009 on the back of profit booking. Gold Chart

Economy

5. Foreign Direct Investment (FDI) in India if down by 11% in March, 2011 to $ 1.07 billion from $ 1.2 Billion in the backdrop of financial crisis in Europe.

6. Indian government is nervous as they predict that a further rise in oil prices will clip 1% off its GDP growth predictions which stands between 8.5% to 9.25%.

7. The federation of Indian export organisations has wants the duty entitlement passbook scheme to stay as it as its withdrawal may lead to a fall in the exports of the country below $ 200 Billion.

8. Net interest margins (NIM) showed good growth of 3.81% in FY11 with a positive impact on profitability for most public sector banks.

9. Reserve Bank of India (RBI) has lowered has lowered economic growth projections to 8% for the current fiscal as it states that controlling inflation is its priority and that this will help create sustained growth over a long period.

Indian Markets

10. Nifty fall driven by rise in interest rate by 50 bps, which was higher than expected. Nifty Chart

11. FIIs purchased shares worth a net Rs. 1081.3 cr in the month of May, 2011 to date; Domestic funds sold shares worth a net Rs 4912.2 for the same period.

Sector

12. Indian banking sector is rejoicing as it witnesses a 22% rise in credit and a 17.5% rise in deposits which is a good indication of the up swing that is taking place in the Indian economy.

13. Oil Companies are positive after news of an up coming hike in petrol, diesel and cooking gas prices, but PSU oil refineries are further pushing for key initiatives which go beyond price hikes and duty cuts in order to stabilise the Indian fuels market.

14. Pharma exports have grown by 15% in FY11 to touch $10.3 Billion, major importers being US, Uk, Germany, South Africa and Russia. One of the key drives of this growth is the general improvement in macroeconomic factors in developed countries.

15. Private Airlines picked up 15,000 to 16,000 of Air India’s customers last week due to the strike that was called by pilots. This incident has left Air India with a huge loses and a severely damaged reputation which could lead to increase in passenger number for private players in the long run.

16. Car sales in India rose the slowest in two years in the month of April. The rise was just 13.2% from a year earlier as high interest rates, fuel prices and vehicle costs crimped demand.

Stocks

17. SKS Finance falls after its share price target was cut by more than half by JP Morgan. SKS Finance Chart

18. Shriram transport finance slides after Temasek holdings dropped plans to buy TPG’s Stake in the company. Shriram Chart

19. Hindustan petroleum rose on news of possible petrol price hike in coming days. Hindustan petroleum Chart

Quotes

20. “Money has never made man happy, nor will it; there is nothing in its nature to produce happiness. The more of it one has the more one wants.” -Benjamin Franklin