T20 31st May-2011

Global Markets

1. The S&P 500 rose this week on speculation that European nations may pledge more funds towards a solution to EU debt crisis. SP Chart

2. US dollar declines as weak economic data dampens the country’s economic growth recovery. US Dollar Chart

3. Crude prices experienced positive movements last week due to weakening of USD and steady demand. Crude Oil Chart

4. Gold prices are at a three week high on persistent concerns over Greece debt woes. Gold Chart

Economy

5. Indian economic growth slowed down in the quarter ended 31st March, 2011, as RBI’s aggressive series of interest rate hikes to curb inflation slowed economic activity.

6. For FY11 India posted a GDP growth of 8.5% a shade below the government’s expectation of 8.6%. But FY12 GDP figures are expected to be lower due to rising crude prices and interest rate hikes by RBI to curb inflation.

7. India’s Apparel exports grew by about 13 per cent to $1 billion in April 2011 year-on-year, due to strong demand from the US and European markets.

8. Foreign Direct investment (FDI) in India's services sector, which contribute over 50% in the country's economic growth, declined by 22.5% to USD 3.4 billion in FY11. The global financial crisis mainly the EU Debt crisis is making players cautious of undertaking overseas investments.

9. India’s food inflation rose to a 4 week high to 8.55% for the week ended May 14th, 2011 from 7.47% from the previous week. The rise was mainly driven by a price rise in cereals, vegetables and milk.

Indian Markets

10. Nifty experiencing a positive run on expectations of good economic growth figures for quarter ended March 31, 2011. Nifty Chart

11. FIIs sold shares worth a net Rs. 4336.20 cr since 1st of May, 2011 to date; Domestic funds bought shares worth a net Rs 79.20 cr for the same period.

Sector

12. Indian cement industry is struggling due to oversupply and witnessed a capacity utilization of 83.9% in FY11 which is a 13 year low; this is according to the data supplied by the Cement Manufacturers association.

13. Indian Car sales are expected to slow down this year due to tighter credit conditions and rising energy prices. Due to higher interest rates the numbers of walk-in sales have declined.

14. India’s coal imports are expected to almost double in the next 4 years to feed a rapidly growing power industry. India's thermal imports could rise to more than 100 million tonnes by 2015, from around 67 million tonnes in 2011. Coal imports are expected to grow by 10 million tonnes this year.

15. 10 million users have opted for mobile number portability since its inception four and a half months ago. Vodafone have been the biggest gainers under this facility, followed by Idea cellular and Bharti Airtel.

16. Indian markets are witnessing a rejuvenated hotel industry after two bad years following a global meltdown. Nationwide occupancy has rise to 68% in FY11 which matches occupancy levels post recession and revenue per available room which is a measure of hotels’ profitability grew 10.7% in FY11.

Stocks

17. Tata motors profits almost trebled for FY11 driven by higher sale at home and JLR unit. Tata motors Chart

18. Oil India’s Q4 profits were up 31% at stood at Rs. 563 Cr as compared to Rs. 431 Cr for same period in corresponding year. Oil India Chart

19. Reliance communication net profit fell 86% in Q4, 2011 due to sharp rise in interest costs to service debt, higher costs of operations and fall in average revenue per user. Reliance communication Chart

Quotes

20. “One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute.”--William Feather