India-Global Market Summary 04-06-2012• Market opened negative and later reversed on comments from deputy governor Subir Gokarn that the Reserve Bank of India has some room to reduce policy rates following moderate core inflation and soft global oil prices improved sentiment. The market breadth was negative. Sensex up by 0.27% to 16008.74 and Nifty up by 0.31% to 4856.45.• India Meteorological Department said that weather conditions are "becoming favourable" for the arrival of Indias 2012 monsoon rains over southern Kerala coast in 48 hours.• Rupee opened weaker, with the outlook negative as global sentiment, fuelled by weak U.S. non-farm payrolls and Chinese non- manufacturing PMI, continued to hurt risk assets. However, later it advanced due to huge selling of dollars by banks and corporates• Euro edged back towards a two-year low against the dollar, failing to hold the previous sessions gains as concerns over the euro zone overcame hopes for more fiscal stimulus in the wake of a grim U.S. jobs report• Gold futures held steady at the opening, as investors booked profits following Fridays 4% rally, though further upside was seen amid growing speculation for more monetary easing from the Federal Reserve after Fridays surprisingly weak U.S. jobs data. Later, gold prices declined due to a firm rupee and a drop in global prices
• PSU OMCs rose as crude futures fell for the fifth straight day today, 4 June 2012, its lowest level in almost eight months. Shares of aviation companies gained on reports the aviation ministry has called for abolition of service tax on air tickets and reduction in sales tax on aviation fuel from an average 25% to a uniform 4%. Capital goods stocks reversed intraday losses. Interest rate sensitive banking stocks recovered on hopes RBI may cut interest rates in the monetary policy later in this month to prop up slowing economy.• Maruti Suzuki India signed State Support Agreement (SSA) with the Government of Gujarat for purchase of land near Mehsana to set up an all new manufacturing facility.• ACCs cement dispatches rose 3.01% to 2.05 million tonnes and cement production rose 0.49% to 2.02 million tonnes in May 2012 over May 2011.• Hero MotoCorp total sales rose 11.3% to 5,56,644 two-wheelers in May 2012 over May 2011.• Indraprastha Gas rose after the Delhi High Court had pronounced the judgement on 1 June 2012 in favor of the company that the Petroleum and Natural Gas Regulatory Board does not have the authority to fix tariffs• Ambuja Cements cement production rose 8.75% while dispatches rose 11.91% in May 2012 over May 2011.• Man Industries has received new orders worth approximately Rs 800 crore from Middle East and domestic customers for supply of large diameter pipes for oil and gas sector.
Global news• European stocks were mixed on Monday following the dismal US nonfarm payrolls report on Friday, which has sparked fears of a global slowdown in economic growth. Asian markets skidded Monday as investors took their first chance to react to much weaker-than-expected U.S. jobs data, adding to ongoing worries about global growth, including the drag from Europes debt crisis. U.S. stocks fell more than 2% on Friday, dragging the Dow Jones Industrial Average into negative territory for the year after a dismal U.S. jobs report added to fears that Europes spiraling debt crisis was dragging down the world economy• Rating agency Moodys Investors Service said it had lowered its ratings ceiling on Greek domestic debt issuers due to the rising risk of the country exiting the euro zone, but added it did not consider that the most likely scenario for the country. Moodys said it lowered its assessment of the highest rating that can be assigned to a domestic debt issuer in Greece to Caa2, below the highest existing rating by the firm on any Greek security, which is B1 for certain covered bonds. Unemployment fell 0.6% in May versus the prior month in Spain, according to official data released Monday. The number of jobless dropped 30,113 against the prior month to a total of 4,714,122.• Chinas non-manufacturing industries expanded at the slowest pace in more than a year, as export orders declined and weakness in real estate countered strength in retailing and leasing, an official survey indicated. The purchasing managers index fell to 55.2 in May from 56.1 in April, the National Bureau of Statistics and China Federation of Logistics and Purchasing said in Beijing. The U.S. economy added just 69,000 jobs in May, less than half what expected, while the unemployment rate rose for the first time in almost a year, to 8.2%.
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