India-Global Market Summary 15-06-2012• Market rose to hit six weeks high as stocks rose across the globe on reports central banks of major economies are ready to provide liquidity if needed after crucial elections in Greek on Sunday, 17 June 2012. The vote is expected to determine the Greeces future in the euro zone. The market breadth was positive. All the 13 sectoral indices on BSE were in the green. Sensex up by 1.55% to 16936.22 and Nifty up by 1.58% to 5134.40From 30-share Sensex pack, 27 stocks rose and rest of them fell.• The government raised the minimum support prices of various kharif (June- October) crops 2012 in the range of 15.3% to 53.1%, which is expected to further fuel persistently high food inflation in the coming months. Food inflation has been in double digits for around a year and has been contributing significantly to overall inflation.• Easing of core inflation, falling crude oil prices, weak industrial production data for April 2012, sharp deceleration in GDP growth in Q4 March 2012 and latest data showing decline in exports in May 2012 have raised expectations that the central bank will cut interest rates to revive economic growth.• The countrys crucial monsoon rains were 50% below average in the week to June 13, a second week of scant rain and confirmation the four-month season has got off to a slow start. The India Meteorological Department (IMD) has forecast average rainfall for the whole June to September season -- the third year in a row to avoid a drought.
• Auto and banks stocks edged higher as the Reserve Bank of India is seen cutting its key policy rate viz. the repo rate by 25 basis points at mid-quarter monetary policy review on Monday, 18 June 2012. Shares of two-wheeler makers were mixed. Shares of diesel vehicles makers had dropped recently on reports the government is planning to compensate the subsidy on diesel by taxing cars running on diesel.• Public sector oil marketing companies IOC, HPCL, BPCL are reportedly expected to cut petrol prices by up to Rs 2 per litre today, 15 June 2012, due to falling international crude prices.• Cairn India climbs up in the market tracking the gains in crude prices• Pantaloon Retail (India) rose more than 2% after the company said it has raised Rs 800 crore by allotting optionally fully convertible debentures to Peter England Fashions and Retail on a preferential basis.• Shares of gas distribution firms rose after the Delhi High Court recently quashed the Petroleum & Natural Gas Regulatory Boards tariff order served to Indraprastha Gas• Corporation Bank, VST Industries and UCO Bank declined in the market as these stocks turned ex- dividend today.• State Bank of India’s advance tax payment rose 6.36% to Rs 1170 crore in first quarter ended June 2012 over year ago period.• Tata Motors total global sales for the month of May 2012 rose 12%, Jaguar Land Rover vehicles sales rose 35% and passenger car vehicles rose 21% from previous year.• Alstom T&D India declined after rallying 9.45% in past seven days on profit booking• US hope to increase arms Sales in India in the next fiscal 2012• Tata Power is looking to build more imported based power projects and awaiting for government to formulate a firm policy on the sourcing of fuel from overseas mines.• The GE India has planned to open a new manufacturing facility worth Rs 1100 crore for developing products for the energy sector• VA Tech Wabag Ltd had received an order valued Rs270 crore
Global news• European stocks traded positive on Friday, as investors cheered reports that central bankers stand ready to act if the Greek elections over the weekend send financial markets in severe headwind. Asian stocks were mostly higher in choppy trade on Friday after reports central banks of major economies are ready to provide liquidity if needed after crucial elections in Greek on Sunday, 17 June 2012. The vote is expected to determine the Greeces future in the euro zone. US stocks jumped Thursday after media reports signaled possible central-bank action and economic data added to the case for further moves by the Federal Reserve to bolster growth. On Thursday, the government said first-time applications for jobless benefits rose by 6,000 to 386,000 last week and consumer prices in May fell 0.3%, the sharpest drop in roughly three years.• Moodys has cut the ratings of 11 European banks and said it would cut again if Greece ditched the euro, kicking off a long-awaited round of downgrades for major European institutions.• The European Central Bank stands ready to provide support to the euro-zone system. The Eurosystem will continue to supply liquidity to solvent banks where needed. Central bankers are ready to take measures to keep liquidity flowing in international markets should the results of Sundays Greek elections trigger a credit crunch.• S&P said the move to liberalize the countrys interest-rate regime would make Chinas banking system more efficient in allocating credit and lead to a more diversified loan portfolio, which could outweigh the short-term strain on Chinese banks profitability.• Bank of England Governor Mervyn King said that the UK central bank will activate a sterling liquidity facility to aid banks, and plans to have a form of credit easing operating to boost lending as the case for looser policy is growing.
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