India-Global Market Summary 01-06-2012• Market continued its decline trend on weak Asian markets. Investors’ dumped risky assets after data showing downbeat manufacturing activity from China to Europe raised doubts about global economic recovery. Reports indicating that monsoon rains over Indias mainland will be delayed by about four days also weighed on sentiment. Sensex fell below the psychological 16,000 mark. The market breadth was weak. Sensex fell by 1.71% to 15940.71 and Nifty fell 1.81% to 4834.95. Among the 30-share Sensex pack, 27 fell while the rest rose.• Prime Minister has approved the setting up of a mechanism that will track the progress of all major infrastructure projects to avoid delays in their completion. The government said it will periodically review the progress of projects under the Investment Tracking System to ensure that issues are quickly identified and resolved. All public-sector projects with an investment of 10 billion rupees ($178 million) or more will be monitored by the National Manufacturing Competitive Council.• Monsoon rains over Indias mainland will be reportedly delayed by about four days and are expected to hit the southern state of Kerala around June 5. The state-run India Meteorological Department had initially forecast the monsoon would arrive by June 1, but the progress of rains has stalled over Sri Lanka. Around 60% of summer crops are rain-fed, and if monsoon rainfall is more or less on schedule and in sufficient amounts, crops that benefit from the rains account for around half of Indias total agricultural output.• Indias merchandise exports rose by 3.2% to $24.45 billion in April while imports rose by 3.83% to $37.94 billion. Indias trade deficit stood at $13.48bn in April versus $13.91bn in March• Indias manufacturing sector kept up its steady expansion in May, with fast-rising output evened out by slowing growth of domestic order books. The HSBC manufacturing Purchasing Managers Index (PMI), compiled by Markit, slipped marginally to 54.8 in May from 54.9 in April. It has stayed above the 50 mark, that separates growth from contraction, for a little over three years now. The surveys output index rose to 56.4 in May from 56.1 in April, while the employment sub-index rose to its highest level in ten months.
• Reliance Industries was down over 3%. Jindal Steel & Power hit 52-week low. ITC rose 1.89% on defensive buying. Cairn India fell 4.6% and ONGC declined 3.04%. Oil India rose 1.62%.• M&M fell 1.03%, its total sales rose 28.2% to 43,988 units in May 2012 over May 2011.Maruti Suzuki India shed 2.92%, its total sales declined 5% to 98,884 units in May 2012 over May 2011.• Tata Motors total sales of Tata commercial and passenger vehicles rose 4% to 64,347 vehicles in May 2012 over May 2011.• Automobile and hotel stocks were down across the board after the government announced a series of austerity measures in the context of the current fiscal situation where there is a tremendous pressure on governments resources. The finance ministry has banned purchase of new vehicles until further orders, including against condemned vehicles. The finance ministry also announced a ban on holding meeting and conferences at five-star hotels.• Oil exploration firms mostly declined as crude futures fell to its lowest level in seven months today, after Chinas manufacturing index missed estimates, adding to speculation global demand will falter. Lower crude oil prices will result in lower realization from crude sales for oil exploration firms such. Realty stocks declined.• Shares of two-wheeler makers edged lower on worries recent steep hike in petrol could hit demand for petrol driven two wheelers. Construction stocks declined across the board.
Global news• European stock markets turn sharply lower on Friday after downbeat European PMI data threw clouds over the regions manufacturing sector, while investors awaited U.S. nonfarm payrolls due later in the day. Most Asia markets fell Friday after data indicated that momentum is slowing in the Chinese economy. US stocks fell modestly on Thursday to close out the worst month since September as investor sentiment sank on Europes deepening credit problems. The continuing worry over Europe and a batch of disappointing US economic figures weighed on the market. Jobless claims rose for the seventh week in eight, putting investors on edge before todays US monthly payrolls report.• The May purchasing managers index for Britains manufacturing sector released on Friday fell sharply to post a three-year low, indicating a steeper- than-expected contraction in activity. The Markit/CIPS manufacturing PMI fell to 45.9 from a reading of 50.2 in April.• Manufacturing sector activity across the debt-stricken eurozone contracted at the fastest pace in three years in May. The Markit purchasing managers index for the sector fell to 45.1 last month from 45.9 in April and was little changed from a preliminary estimate of 45.0.• Chinas official version of the manufacturing Purchasing Managers Index declined to 50.4 in May, from 53.3 in April, well below forecasts. Meanwhile, the HSBC survey showed that Chinas factory activity contracted for a seventh straight month in May.
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