India-Global Market Summary 2-07-2012• Market declined slightly in late trade as ITC declined more than 4%. The market breadth was strong as buying was witnessed in select mid cap and small cap stocks. Sensex down by 0.27% to 17383.39 and Nifty down 0.11% to 5273.25. From the 30-share Sensex pack, 15 stocks fell and the rest rose.• Indias factories in June stepped up production and hired workers at the fastest rate in more than two years, but sagging demand abroad took a toll on growth in new export orders. The HSBC manufacturing Purchasing Managers Index (PMI) rose to 55.0 in June, a four-month high, from 54.8 in May. It has kept above the 50 mark that divides growth and contraction for more than three years.• Indias exports fell 4.16% to $25.68 billion in May, while imports fell 7.36% to $41.9 billion. Mays trade deficit was $16.3 billion, while oil imports rose 14.02% year-on-year to $14.99 billion.• Indias current account deficit shot up to $78.2 billion, 4.2% of GDP for the year ended March 2012, from $46 billion, 2.7% of GDP the previous year. The growth rate of eight infrastructure sectors slowed to 3.8% in May as opposed to 5.8% in the comparable year ago period, led by the poor performance of crude oil, natural gas and fertiliser. The eight core industries comprising coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity have a combined weight of 37.9% in the Index of Industrial Production (IIP).
• Reliance Industries edged lower in volatile trade. Metal stocks were mostly higher as LMEX, a gauge of six metals traded on the London Metal Exchange jumped 3.85% on Friday. Realty shares extended recent gains triggered by the Competition Commission of India recently directing cement firms to cease and desist from indulging in any activity relating to agreement, understanding or arrangement on prices, production and supply of cement in the market. Most power generation stocks extended recent gains as lower international coal prices could boost profitability. HDFC Bank hit record high. Indias largest car maker by sales Maruti Suzuki India gained on strong sales in June 2012. Capital goods stocks also gained. FMCG stocks fell on weak progress of monsoon rains. FMCG firms derive substantial sales from rural India.• Tata Power Company has completed the purchase of 51% equity shares of Tata BP Solar India, which were held by BP Alternative Energy Holdings. Consequently, Tata BP Solar India is now a wholly owned subsidiary of the company.• Maruti Suzuki India total sales jumped 20.3% to 96,597 units in June 2012 over June 2011.• M&M climbed up in the market after its total sales rose 16% to 41322 units in June 2012 over June 2011• Jubilant FoodWorks’s Dominos Pizza has launched its new product offering, all-new stuffed garlic bread.• Tata Motors fell after total sales declined 3% to 64,341 vehicles in June 2012 over June 2011.• TVS Motor Company total sales declined 7.54% to 168,693 units in June 2012 against 182,456 units in June 2011.• IL&FS Transportation Networks has received a letter of award from National Highways Authority of India for a highway contract estimated at Rs 650.84 crore in Rajasthan.
Global news• European stocks posted slight gains Monday, extending a rally scored at the end of last week after a summit meeting of European Union leaders produced more progress than expected toward shoring up the euro-zone banking sector. Asian stocks were mostly higher on Monday after manufacturing indicators in Japan and China beat forecasts and European leaders agreed on measures to ease the debt crisis.• Germanys parliament resoundingly approved the euro zones permanent bailout scheme and new budget rules on Friday. Britains manufacturing sector continued to contract in June, but at a slower-than-expected pace, according to the Markit/CIPS purchasing managers index (PMI) for the sector released on Monday. The index rose to 48.6 from a three-year low of 45.9 in May.• Euro zone manufacturing took another hefty blow in June and factories are preparing for worse to come. Markits Euro zone Manufacturing Purchasing Managers Index (PMI) was unchanged at 45.1 in June, above the preliminary reading of 44.8 and holding at its lowest reading since June 2009.• Chinas manufacturing expanded at the weakest pace in seven months as overseas orders dropped, and South Korea cut its estimate for export growth this year, underscoring risks to Asian economies from Europes debt crisis. The Purchasing Managers Index fell to 50.2 in June from 50.4 in May. South Koreas Ministry of Knowledge Economy lowered its projection for overseas sales to an increase of 3.5% from 6.7%, citing a slowdown in major economies.• Japans large manufacturers became less pessimistic as declines in commodity prices aided profitability, boosting the outlook for the worlds third- biggest economy even as a stronger yen crimps exports.
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