T20 June 14th-2011

Global Markets

1. S&P falls due to fears of an economic slowdown and release of weak economic data. SP Chart

2. US dollar gains during the week due to softening of oil prices and pullback in most major currencies. US Dollar Chart

3. Crude prices slump on back of negative outlook on the US economy leading to fall in demand. Crude Oil Chart

4. Gold prices falls to a 3 week low on sales by investors to cover equity losses. Gold Chart

Economy

5. Government to extend tax break for exporters by prolonging to life of the Duty Entitlement Passbook (DEPB) Scheme beyond 30th June, 2011 deadline.

6. India’s forex reserves rose by USD 2.9 Billion to USD 312.9 Billion on the back of a healthy jump in foreign currency assets for week ended 3rd June.

7. India’s exports grew by 56.9% to USD 25.9 Billon YOY in May, 2011 on account of increase in demand from western markets. Imports also went up by 54.1% to USD 40.9 Billion.

8. As per the new series Index of Industrial Production (IIP) grew by 6.3% in April. According to the old index production grew by 4.4% in April compare to 7.3% in March. The new IIP series was dragged down by mining, electricity generation and consumer goods segments.

9. Food inflation up to 9.01% for the week ended May 28th, 2011 on the back of expensive fruits, onions and protein based items.

10. Desperate to reduce India’s fiscal deficit, the government of India yet again deferred the decision of raising prices of diesel, kerosene and cooing gas as it deals with a political crisis.

Indian Markets

11. Nifty negative due to weak global markets and disappointing IIP figures. Nifty Chart

12. FIIs purchase shares worth a net Rs. 1729.2 cr in the month of June to date; Domestic funds bought shares worth a net Rs 10597.9 cr for the same period.

Sectors

13. The cement sector has been witnessing continuous disappointment in demand which has resulted in drop in cement prices over the month and is likely to see further decline with the onset of monsoon.

14. Car sale rose 7% in May, 2011 the slowest in 2 years due negative factors such as rising interest rates and fuel costs. Key trigger for the industry will be the RBI’s monetary policy next week as a further interest rate hike can further slow sales growth.

15. India’s two wheeler industry is likely to grow at a CAGR of 12% on the back of good demand and steady GDP growth according to the ICRA.

16. State owned oil firms may hike petrol prices by about Rs. 0.50 per litre as last months increase in rates is not enough to cover cost of raw materials (Crude oil). The price hike is expected to be from midnight June 15th and 16th.

Stocks

17. Maruti Suzuki already struggling due to sluggish sales is set to take another hit due to continued strike at its Manesar plant in the form of millions of dollars in losses and spill over to other plants. Maruti Suzuki Chart

18. Idea Cellular reported a net profit of RS. 275 Cr registering a growth of 13% over the previous quarter. Idea Cellular Chart

19. Punj Lloyd gets Rs. 678 Cr contract from Nuclear Power Corp for critical nuclear piping work. Punj Lloyd Chart

Quotes

20. “You can take of a man's money, but when it's all said and done, you've only taken his money. When you take of a man's time, you've taken a part of his life.” -- Wayne Newton.