T20 7th June 2011

Global Markets

1. S&P witnesses a dramatic fall due to slower than estimated growth in jobs. SP Chart

2. US fell last week on the back of information that U.S. employers in May added the fewest jobs in eight months, increasing concerns the recovery is slowing. US Dollar Chart

3. Crude prices slump on news that OPEC may increase oil output. Crude Oil Chart

4. Gold prices hit a one year high on weak economic news from the US. Gold Chart

Economy

5. India’s manufacturing sector growth at quarter ended 31st march, 2011 stood at 5.1% which is lower than the world average according to a UN body report. China’s manufacturing output rose by 15% for the same period.

6. India’s forex reserves rose by $ 1.68 Billion to stand at $ 310.21 Billion for week ended may 27th, 2011 on the back of sharp increase in foreign currency assets.

7. India’s service sector grew at its slowest pace in 20 months in May, 2011 due to rising interest rates.

8. Food inflation falls to 8.06% for week ended may 21st, 2011 on the back of cheaper pulses, wheat and vegetables.

9. Indian exports jump 34.4% in April YOY to USD 23.8 Billion while imports for April rose 14% YOY to stand at USD 32.8 Billion. This growth is mainly derived due to export of engineering good, oil products and gems.

10. Growth in India’s 6 core sectors slows to 5.2% in April due to a decline in cement production and lower finished steel production.

Indian Markets

11. Nifty moves marginally upwards on positive FII buying, which was negated by negative global cues and a decline in GDP growth. Nifty Chart

12. FIIs purchase shares worth a net Rs. 2481 cr in the month of June to date; Domestic funds bought shares worth a net Rs 873.6 cr for the same period.

13. Desperate shipping companies are betting on the oil and gas industry. Top Indian shipping services companies still reeling under margin pressure due to soft rates in the dry bulk and crude carrier segments, are looking to expand their presence in the oil and gas segment hoping the oil rally to continue.

14. Maruti Suzuki under pressure due to disruption in production at its plant in Manesar after a section of workers went on strike. Around 800 workers went on strike demanding the recognition of a new union, resulting in a production loss of about 650 units.

15. Global Airline companies may be forced to slash industry profit expectation as fears grow of relapse in the world economy due to weak global cues.

16. Banks nonperforming assets may rise in FY12 as SME companies that borrowed at low rate regimes may find it difficult to difficult to service their loans due to hike in rates.

Stocks

17. Havells India plans to enter the Rs. 5,200 Cr home appliances segment with an initial investment of Rs. 70 to 80 Cr. Havells India Chart

18. Bajaj Auto May total sales up 20% to 3.59 lakh units. Bajaj Auto Chart

19. Reliance Industries Limited (RIL) to be debt free in FY12 according to an announcement made during the AGM of the company. RIL Chart

Quotes

20. “Your net worth to the world is usually determined by what remains after your bad habits are subtracted from your good ones.” --Benjamin Franklin.