The document provides an overview of the Indian stock market on December 19th, 2012, noting that the key indices rose as foreign funds remained net buyers and that the Lok Sabha approved a bill making corporate social responsibility spending mandatory for large companies. It also discusses global market news, including European stocks edging higher and Asian stocks gaining on optimism over US fiscal cliff negotiations.

1. India-Global Market Summary 19-12-2012
• Market edged higher as world stocks gained following a credit-rating upgrade for Greece, rise in US
home-builder confidence and progress in negotiations to avert the US fiscal cliff. The market
breadth was positive. The market sentiment was boosted by data showing that foreign funds
remained net buyers of Indian stocks on Tuesday. From the 30-share Sensex pack, 23 stocks gained
while the rest of them declined. Nifty rose 0.56% to 5929.60 and Sensex rose 0.57% to 19476.
• The Lok Sabha on Tuesday approved the much-awaited Companies Bill, 2011, making it mandatory
for profit-making companies to spend on activities related to corporate social responsibility (CSR).
If a company does not do so, it will have to explain the reasons for it. The Bill, aimed at improving
corporate governance, also contains provisions to strengthen regulations for companies and auditing
firms.
• The changes in the bill include provisions that make it mandatory for firms -- those that have
reported profits of Rs 5 crore or more in last three years -- to spend at least two per cent of their
average net profit on CSR activities. Companies failing to meet the obligation and not disclosing
reasons for it in their books of account would face action, including penalty.
• The Reserve Bank of India (RBI) kept its key policy rate viz. the repo rate unchanged at 8% after
mid-quarter monetary policy review on Tuesday, 18 December 2012. The central bank said that in
view of inflation pressures ebbing, monetary policy has to increasingly shift focus and respond to
the threats to growth from this point onwards. Liquidity conditions will be managed with a view to
supporting growth as stated in the Second Quarter Review (SQR) of Monetary Policy 2012-13 on 30
October 2012, thereby preparing the ground for further shifting the policy stance to support
growth, RBI said. Overall, recent inflation patterns and projections provide a basis for reinforcing
October guidance about policy easing in the fourth quarter, RBI said. However, risks to inflation
remain and accordingly, even as the policy emphasis shifts towards growth, the policy stance will
remain sensitive to these risks, RBI said.

2. • Metal stocks rose for the fourth straight day after data on 14 December 2012 showed that a preliminary version of HSBC's
China manufacturing Purchasing Managers' Index hit a 14-month high in December 2012. Auto stocks advanced on hopes of
strong earnings due to higher sales in the festive season that peaked with Diwali in November, with Bajaj Auto hitting record
high. ITC dropped after a block deal on BSE. Reliance Industries (RIL) retained positive zone. Asian Paints scaled record
high.
• Reliance Power (RPL) shed 0.71% and Reliance Infrastructure rose 0.16%. As per BSE data, investors put in bids for 24.04
crore shares till 15:20 IST for the Offer for Sale (OFS) of Reliance Power (RPL) shares through the stock exchanges
mechanism. The indicative price, which is the volume weighted average price of all the valid/confirmed bids, is Rs 95.56.
• Natco Pharma jumped more than 5% as it has received the approval from USFDA for its abbreviated new drug application
for Lansoprazole Delayed Release Capsules in 2 strengths for the prescription market.
• Eros International Media rose 0 after the promoter, Eros Worldwide FZ LLC, on Tuesday, 18 December 2012, announced an
Offer for Sale of 25.73 lakh equity shares of the company
• Rashtriya Chemicals & Fertilizers rose 3.89% on report the cabinet committee on economic affairs is likely to meet on
Saturday, 22 December 2012, to take a decision on the divestment of 12.5% stake in the company.
• Axis Bank declined, with the stock extending Tuesday's 0.65% fall triggered by the bank's decision to raise funds through
GDR/QIP issue and preferential issue of shares to promoters
• Tata Motors rose after the company announced the launch of a new variant of its crossover vehicle Tata Aria viz. Tata Aria
Pure LX with a bouquet of features.
• ONGC rose after the oil minister on Tuesday said that Rosneft has invited ONGC Videsh to participate jointly in the
exploration of two blocks in Russia.
• NSE has decided to remove two stocks viz. Gujarat Fluorochemicals and Suzlon Energy from trading in futures and options
(F&O) segment.
• The Offer for Sale (OFS) of Reliance Power (RPL) shares through the stock exchanges mechanism takes places today, 19
December 2012.
• Mahindra & Mahindra Financial said a meeting of the board of directors of the company will be held on Friday, 21 December
2012, to consider a proposal for sub-division shares

3. Global news
• European equities edged higher on Wednesday led largely by banks with continued optimism over
US fiscal-cliff negotiations inspiring investors.
• Asian stocks edged higher on Wednesday with investors taking heart from fresh signs of progress
on a compromise solution to avert the fiscal cliff of tax hikes and spending cuts due to take place
next year in the United States, the world's biggest economy.
• Japanese stocks extended this week's gains triggered by a landslide election victory for the
Liberal Democratic Party in Sunday's general elections, which sparked fresh optimism for the
introduction of deflation-fighting policies. The Nikkei 225 average jumped 2.39%. Trading in US
index futures indicated that the Dow could rise 24 points at opening bell on Wednesday, 19
December 2012. US stocks surged on Tuesday with investors taking heart from fresh signs of
progress on a compromise solution to avert the fiscal cliff of tax hikes and spending cuts due to
take place next year.
• The Ifo German business climate index, the most closely-watched gauge of business confidence
in Europe's largest economy, rose for a second consecutive month in December, coming in at a
slightly stronger-than-expected 102.4, the Munich-based Ifo Institute said Wednesday. The index
ended a six-month string of declines in November, when it rose to 101.4.
• Greece had its credit rating raised by Standard & Poor's after a debt buyback as the ratings
company cited the "strong determination" of euro-area governments to keep the nation in the
currency zone. The grade was lifted from selective default to B- with a stable outlook, S&P said
in a statement on Tuesday, 18 December 2012. The stable outlook balances our view of euro zone
member states' determination to support Greece's euro zone membership and the Greek
government's commitment to a fiscal and structural adjustment against the economic and political
challenges of doing so, the ratings company said.
• The Bank of Japan's two-day meeting on interest rates in Japan begins today, 19 December 2012.

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