T20 June 21st - 2011

Global Markets

1. S&P witnessed a rise last week snapping its 6 week losing streak on the back of positive new regarding Greece debt crisis. SP Chart

2. US Dollar lost some steam last week as US economic slowdown fears increase. US Dollar Chart

3. Crude prices slumped to a 4 month low last week on dimmer economic outlook and European debt crisis. Crude Oil Chart

4. Gold prices on the rise due to growing uncertainty regarding global economic growth. Gold Chart

Economy

5. India and Mauritius will soon review a three-decade-old taxation treaty, misused by many Indian and multinational companies to avoid paying tax or to route illicit funds. Stock markets reacted negatively to the news as 42% of India’s FDI flows have come from Mauritius.

6. April FDI inflow jumps by 43% to USD 3.1 Billion on investments in services, construction and auto sectors.

7. Continuing with its anti-inflationary stance, the Reserve Bank of India (RBI), in its mid-quarter policy review, hiked repo and reverse repo rates by 25 basis points (bps) each.

8. Advance tax payments for the Indian Industry rose by 45% form months April to June giving hope that the corporate sector is in good health despite fears of a slowdown in economic growth.

9. India’s foreign exchange reserves declined by $2.40 billion to $310.50 billion for the week ended June 10 from $312.90 billion in the previous week due to a sharp drop in the value of foreign currency assets.

Indian Markets

10. Nifty witnessed a steep fall last week due to RBI hike in interest rates, weak global cues and profit booking on index heavyweights. Nifty Chart

11. FIIs purchase shares worth a net Rs. 877 cr in the month of June to date; Domestic funds bought shares worth a net Rs 19218.6 cr for the same period.

Sectors

12. India's steel consumption grew by 1.8% in April this year to 5.030 million tonnes from 4.943 million tonnes in the same month a year ago on increased demand from infrastructure and automotive sectors.

13. The CAG has rapped oil ministry and its technical arm DGH for allegedly favouring Reliance industries (RIL) by allowing it to double KG-D6 gas field's cost, in the process causing massive loss of revenues for the government.

14. Maruti Suzuki put an end to the 13 day strike at its Manaser plant. Maruti has agreed to reinstate all 11 sacked employees. The striking staff will lose salary only for a few days and not for the entire duration of the strike. But the carmaker has not taken a decision on recognizing the new workers union. Production loss at the carmaker so far is estimated to be over. 600 crore, with over 13,200 units less produced.

15. The Indian biotech and life sciences industry recorded the fastest pace of growth in the last five years in 2010-11 to touch revenues of USD 4 billion The Biotech industry derived 51% of overall revenues from exports. Biocon retained its position as the No. 1 company, with overall revenue growing at a healthy 26%.

16. The auto industry is going through a tough time. Demand is already on the slide adding to this the industry feels that the increase in interest rates by the RBI will dampen demand further depending on how much of the hike banks will pass on the consumers.

Stocks

17. GTL stock crashed 62.3% to close at Rs. 127.8 its lowest in 5 years on news of liquidity cirisis and pullout of a major Mauritian shareholder. GTL stock Chart

18. Bharti Airtel adds 2.245 Million mobile users in the month of May taking its total to 167 million users thus maintaining its position as India’s largest mobile services provider. Bharti Airtel Chart

19. Glenmark gets USDA approval for generic oral contraceptives thus giving it access to the American market. Glenmark Chart

Quotes

20. “Money was never a big motivation for me, except as a way to keep score. The real excitement is playing the game.” –Donald Trump