Current news & Rumours in the mkt

[praveen taneja]

The rupee rose to its highest in a week on Friday, as risk aversion over the euro zone debt crisis receded, bolstering dollar supplies from local exporters while a rally in domestic shares aided sentiment.

The partially convertible rupee ended at 46.35/36 per dollar, off an intraday peak of 46.32, its strongest since May 20, and more than 2 percent stronger than Wednesday's close of 47.29/30. It rose 1.3 percent on the week.

The market was closed on Thursday for a local holiday.

The euro gained on month-end fixing demand for euros and ahead of a long weekend in both the U.S. and U.K. markets. The dollar index against six majors was down about 0.1 percent.

"The euro's rise led to dollar selling from exporters from the beginning of trade. The undertone is bullish and I see a range of 46.20 to 46.50 for Monday," said a dealer with a foreign bank.

Traders said a rise in domestic share prices also supported sentiment.

The benchmark BSE share index posted its biggest weekly gain since early March, as it rose 1.2 percent on the day, tracking a rally in global markets and China's assurance that Europe will remain a major investment market.

The People's Bank of China said a Financial Times report that the State Administration of Foreign Exchange (SAFE) was concerned about its exposure to euro zone debt was groundless, lifting world stocks.

One-month offshore non-deliverable forward contracts were quoted at 46.46, weaker than the onshore spot rate.

In the currency futures market , the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX ended at 46.5050 and 46.51 respectively, with the total traded volume on the two exchanges at about $7.8 billion.

 

[praveen taneja]

NEW YORK: US corporate profits are rising more than 30 per cent year over year, which may help boost US growth in the midst of Europe's debt crisis,
A 30 per cent rise in profits has happened only six other times in the past six decades, Barclays said, suggesting solid growth and employment over the next year.

"Although worries about the European debt crisis persist, we believe the profit boom will be a more significant influence on US growth," Dean Maki, Barclays' head of US economics research, said in the report released late on Thursday.

Corporate profits rose 31 per cent year over year in the first quarter, slightly faster than the 30.6 per cent in the last quarter of 2009 and the largest quarterly gain since 1984, Barclays said.

"Profit growth is becoming more widespread across sectors," Barclays said.

Profits grew at domestic nonfinancial companies by 25.7 per cent and domestic financial firms by 77.2 per cent as profits from the rest of the world turned positive with 6.6 per cent growth, Barclays said.

 

[praveen taneja]

Important news compilation

Taiwan's Hon Hai to raise China salaries after deaths - Reuters
Accused adviser to wealthy hid from U.S. - Reuters
Nikkei rises 1.8 pct led by exporters, yen helps - Reuters
BP toils on oil 'top kill', Obama fights criticism - Reuters
Apple's iPad hits Japan in international launch - Reuters
Europe taking good steps - IMF chief - Reuters
Nikkei rises 1.7 pct after Wall St rally - Reuters
FACTBOX - What G20 finance chiefs will discuss in South Korea - Reuters
Tesla says Toyota deal on electric cars not formal - Reuters
ANALYSIS - Biggest bang for stimulus buck over for U.S. states - Reuters
ANALYSIS - Wall St hikes pay for stake in physical commods - Reuters
Accused adviser to wealthy hid from U.S. agents - Reuters
ANALYSIS - Obama makes spill personal, aims to assert control - Reuters
Spanish austerity vote helps reverse euro decline - Reuters
Prudential seeks to lower cost of AIA deal - source - Reuters
Oil jumps 4 pct on equities rally, storm forecast - Reuters
GLOBAL MARKET - Euro, stocks rally as China reassures investors - Reuters
BP oil spill shows need for biofuels, developers say - Reuters
Ford planning to eliminate Mercury brand - Bloomberg - Reuters
BP wrestles oil spill; Obama fends off critics - Reuters
ArcelorMittal to spend $1.2 bln in Brazil mill - Reuters
Wall St flies on China comment, Microsoft upgrade - Reuters
Obama takes responsibility for oil spill - Reuters
Spain austerity plan scrapes through parliament - Reuters
Pequot to pay $28 mln to settle insider trading case - Reuters
Wall St rallies on China comment, Microsoft upgrade - Reuters
Delhi Court Blocks Air India Strike - Wall Street Journal
Mahindra Buys Stake in Reva Electric Ca - Wall Street Journal
Air India Data Recorder Foun - Wall Street Journal
Singh Aims to Fix Pakistan 'Trust Deficit - Wall Street Journal
Tata Starts Car Inspection - Wall Street Journal
Musharraf Eyes Political Retur - Wall Street Journal
India Allows Cotton Exports Agai - Wall Street Journal
Abbott to Buy Indian Drug Busines - Wall Street Journal
KBC Sells Unit to India's Hinduj - Wall Street Journal
India's 3G Auction Raises $14.6 Billio - Wall Street Journal
India Vexes Vodafon - Wall Street Journal
Sensex surges for second day, closes 278 points up - Business Line
Forex market closed - Business Line
Rupee appreciates 40 paise vs dollar - Business Line
DHL to set up first free trade warehousing zone near Chennai - Business Line
Honda Motorcycle to infuse Rs 500 cr in second plant - Business Line
GM India to launch Chinese partner’s LCVs, cars by 2011-end - Business Line
Alok Industries redeems FCCBs - Business Line
Rei Agro to invest Rs 500 cr for expansion - Business Line
NTPC-BHEL jt venture mulls tech tie-up with global co - Business Line
Suzlon to consider rights issue - Business Line
Apollo Hospitals to consider stock split - Business Line
Corporate Filings - Business Line
LT Foods board recommends final dividend - Business Line

 

[praveen taneja]

At least 120 passengers are feared killed and 150 injured after suspected Maoists blasted rail tracks in West Midnapore district early on Friday, derailing 13 coaches of a Mumbai-bound express train, five of which were hit by a speeding goods train.

 

[praveen taneja]

DELHI: The coming week may begin on a positive note, when the growth figures for the 2010 fiscal will be released on Monday, as most economists
believe that the economy would have expanded higher than the official advance estimate of 7.2 per cent.

As per the official estimate made before the year came to an end, FY10 GDP growth was forecast at 7.2 per cent. And none of the economists PTI spoke to expect any lesser number, and, in fact, their forecasts touch as high as 7.5 per cent.

For the fourth quarter, economists expect the economy to have grown anywhere between 8.7 and 9.3 per cent. The government will unveil the GDP data on Monday morning.

"The fourth quarter GDP number is expected to surprise us positively due to a possible upside...it is likely to be printed at 9.3 per cent," said Religare's Jay Shankar.

The first three quarters of the past fiscal grew by 6.1 per cent, 7.9 per cent and 6 per cent in that order.

Shankar also expects a positive, marginal upward revision in the numbers for the other three quarters as well, which he said could move the FY10 GDP numbers closer to 7.5 per cent.

The chief statistician Pronab Sen, too, had recently said FY10 would have grown by 7.2 per cent to 7.5 per cent.

Rating agency Crisil chief economist Dharmakriti Joshi also had a better outlook than the advance estimates. "I expect 8.7 per cent growth in the fourth quarter. And, for full the fiscal, I expect it to be 7.3 per cent," Joshi said.

Chief economic advisor Kaushik Basu, too, had predicted the fourth quarter growth of over 8.6 per cent, which will ensure FY10 growth over the official estimate of 7.2 per cent.

Axis Bank economist Saugata Bhattacharya said, "the Q4 GDP growth is likely to be 8.8 per cent, and the full fiscal would have grown by 7.2 per cent, same as what the government expects."

Economic growth slowed down to 6.7 per cent in 2008-09 after over 9 per cent growth in the previous three fiscals as it came under the impact of global financial crisis.

Government stimulus to the industry pushed growth to 7.9 per cent in the second quarter of 2009-10, much higher than 6.1 per cent in the first quarter. However, growth again slipped to 6 per cent in the third quarter as agriculture production contracted by 2.8 per cent and community, social and personal services slipped by 2.2 per cent.

For the economy to grow by 7.2 per cent, it must expand by over 8.5 per cent in Q4, in case the figures for the previous quarters are retained.
(Forwarded)

 

[praveen taneja]

DELHI: Bank customers can soon withdraw up to Rs one lakh in a single day from ATM machines, and can shop for even an higher amount of Rs 1.25 Also, as much as Rs three lakh can be transferred in a day to another account through ATMs as also over phone.

The enhanced limits for ATM withdrawals, debit card swiping and fund transfers would save the consumers from running to bank branches, that too within banking hours, for such large transactions. Currently, the maximum the customers of most of the banks can withdraw through ATMs is Rs 50,000 in a day.

While HDFC Bank is allowing these enhanced banking limits to its customers with effect from June 1, other banks might soon follow the suit.

The ATM withdrawal limit for HDFC Bank Imperia Gold Debit Cards now stands increased to Rs 1 lakh, and that for shopping to Rs 1.25 lakh, from Rs 50,000 per day.
Besides, the ATM card and shopping limit for Easy Shop Regular International/ Maestro/ NRO Debit Cards would stand increased to Rs 25,000 and Rs 40,000 respectively, from Rs 15,000 and 25,000 respectively.

The bank is currently in the process of informing its customers about these enhanced debit card limits. Given the competitive nature of the banking business, other banks would have to soon follow HDFC Bank in increasing their own card limits for ATM withdrawals, shopping and fund transfers, a senior official at a rival bank said.

Also the holders of Kid's Advantage Debit Cards can withdraw and shop for Rs 2,500 in a single day, higher from Rs 1,500 and Rs 1,000 currently.

Further, for Women debit Card holders will get to withdraw Rs 25,000 from ATMs from Rs 20,000. Also customers can shop for up to Rs 40,000 crore with debit cards, from the present Rs 30,000.

"The above revised limit are not applicable to the card holders whose current limit are different from the ones stated above and will continue to enjoy their requested/offered limits as sanctioned before," HDFC said.

 

[praveen taneja]

Resignation of German president has been confirmed. This might trigger a sell off in Euro, therefore be wary of short dollar rupee positions...BP's London-listed shares drop 15% after 'top-kill' procedure fails

 

[praveen taneja]

Yesterdays RIL freak trade at 840 paniced many Traders / Investors lobby with IDIOT Box adding fuel to the FIRE.

Instead of ICICI Bank Sell order for 5 Lac Shares , RIL trade was punched & thereby leading Sensex to fall by 600 pts for few secornds & thereby recovered.

Bt at end of day Sensex Plunged by 400 pts only due to European fear.

 

[praveen taneja]

LIC has purchased 1 Cr shares for 2% stake in Adani Enterprises for Rs.548 Cr.

LIC bought 50 lakh shares each of Adani Enterprises on NSE and BSE at an average price of Rs 548 per share from a foreign institutional investor - Lotus Global Investments.

As on March 2010, Lotus Global Investments Ltd held 3.27% stake in Adani Enterprises, while LIC had less than 1% stake in the company.

LIC's major investments in 2010:
It has been investing huge amounts in large-cap stocks like Reliance Industries, Essar Oil, Tech Mahindra in 2010.
In January, LIC bought 2.58 Cr Reliance Industries shares for Rs.2,675 Cr. and Tech Mahindra shares from AT&T in beginning of May 2010 for Rs.560 Cr..
LIC emerged as the biggest subscriber and bailed out two mega follow-on issues of NTPC and NMDC, following poor response from other institutional investors.

 

[praveen taneja]

(Bloomberg) -- The Japanese government may suffer fiscal collapse in 10 to 15 years if the ruling Democratic Party of Japan maintains its expansionary spending policy, said Takao Komine , a professor at Hosei University and former bureaucrat