India-Global Market Summary 06-06-2012• Market gained and Nifty fell below the psychological 5,000 mark after regaining that level in late trade. Indian stocks rose for the third straight day on expectations that Prime Minister meeting with ministers later in the day would result in fresh steps to boost the sagging infrastructure sector. Expectations of government action have risen amid gathering signs of a rapidly slowing economy. Sensex up by 2.52% to 16424.21 and Nifty up by 2.55% to 4987.35. All the 30 BSE Sensex constituents rose.• Data released by the government last week showed Indias economy grew 5.3% in Q1 March 2012, the slowest pace of growth in nearly a decade. The low growth numbers also led the Reserve Bank of Indias Deputy Governor Subir Gokarn to say early this week that the central bank could further look at cutting interest rates. Positive global stocks also supported the sentiment.• Indias services sector grew at its fastest pace in three months during May, and firms were more optimistic about the year ahead. HSBCs services purchasing managers index, compiled by Markit, rose almost two points to 54.7 in May from 52.8 in the previous month. It has posted an above-50 growth reading since November. The index measuring business expectations jumped to a 15-month high of 76.7 last month from 73.8 in April, more than 14 points above its March level.• World stocks rose on expectations of an announcement from the European Central Bank later in the global day of a schedule for an additional long-term refinancing operation (LTRO) as insurance against a further flight of bank deposits in Europe.
• Aviation shares rallied, Cement stocks rose and Power generation stocks surged. Tyre stocks surged as rubber prices have dropped sharply in the last few weeks. Metal stocks gained on hopes for Chinese policy-easing. FMCG stocks rose on arrival of monsoon rains in Kerala. Interest rate sensitive auto stocks jumped on hopes Reserve Bank of India (RBI) will cut interest rates at mid-quarter monetary policy review on 18 June 2012. Shares of two-wheeler makers also edged higher. Construction stocks rallied on expectations that Prime Minister Manmohan Singhs meeting with ministers later in the day would result in fresh steps to boost the sagging infrastructure sector.• Gail (India) climbed up in the market after the company said its bond issue of Rs 500 crore with a green shoe option of Rs 250 crore launched today, 6 June 2012, was oversubscribed by around 5 times.• Gujarat Pipavav Port surged in the market after the company’s board approved the project expansion plan for Pipavav Port at a total cost of Rs 1097.20 crore.• Ashok Leyland bags $6 million overseas order• Suzlon launched its newest wind turbine, the S111 which is a 2.1 mw machine designed for low wind speed sites.• Alstom T&D India secured a contract worth Rs 41 crore• Dr Reddys Laboratories entered in to a collaboration with Merck Serono, a division of Merck KGaA, Darmstadt, Germany, to develop and commercialize Biosimilars
Global news• European shares surged on Wednesday on expectations of an announcement from the European Central Bank (ECB) later in the global day of a schedule for an additional long-term refinancing operation (LTRO) as insurance against a further flight of bank deposits in Europe. Asian stocks edged higher on expectations of an announcement from the European Central Bank (ECB) later in the global day of a schedule for an additional long-term refinancing operation (LTRO) as insurance against a further flight of bank deposits in Europe. Hopes for Chinese policy-easing and upbeat data on the US services sector aided gains in Asian stocks.• Spanish industrial production dropped 8.2% in April on an annual basis, that comes after a fall of 7.5% in March. Industrial production has been on the decline or flat for 14 months. In May and August of 2011, production was unchanged. The April fall was the biggest in more than a year.• Moodys Investors Service cut the credit ratings of several German banks, citing increased risk of further shocks emanating from the euro zone debt crisis and their limited loss-absorption capacity. The ECB holds its monthly rate-setting meeting later in the global day today, 6 June 2012. The ECB is widely expected to keep policy rate unchanged at 1%.• Australias gross domestic product increased 4.3% in Q1 March 2012 from the year-ago period, far above forecasts. Business investment, led by miners, remained strong in the first quarter while households also increased spending. The data comes close on the heels of a 25 basis points rate cut by the Reserve Bank of Australia
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