Monday, June 04, 2012
NHPC has obtained the concurrence of Central Electricity Authority for 600-MW Tawang-I and 800-MW Tawang-II projects in Arunachal Pradesh. (BL) Lanco Infratech Ltd has finalised a capital expenditure of about Rs 5,000 crore for the financial year 2012-13. (BL) Maruti Suzuki India Limited signed a state support agreement with the Gujarat government for the purchase of land near Mehsana to set up its third manufacturing facility. (BS) PowerGrid Corporation has firmed up plans to spend ~Rs100bn in the next three financial years on the setting up of intrastate transmission lines. (BS) The Ministry of Home Affairs has asked Department of Telecommunications to take action against Bharti Airtel and Hughes Communications for failing to provide data for specific user location and thereby not complying with conditions in their licence agreement. (BS)
Indian markets started off June on a terrible note on Friday as investors continued to fret about grim prospects for the domestic economy amid no sign of relief from policy inaction. A raft of disappointing global economic statistics added to the gloom. The bloodbath today was an extension of May's mayhem, which was sparked off by political turmoil in Greece, banking woes for Spain, slowdown in China, sluggish growth in USA and further deceleration in the Indian economy. It was a complete sea of red on Dalal Street today, as the BSE Sensex and NSE Nifty closed below crucial levels of 16,000 and 4850, respectively. After opening nearly at day’s high, markets seemed to behave like a falling knife; every upswing or consolidation was used to short the market, dragging the main indices to session lows in the last few minutes of trade. The Indian bourses witnessed relentless selling, with heavy offloading in Capital Goods, Power, Oil & Gas and Auto stocks. Only the FMCG index ended with smart gains, thanks to sustained strength in industry titan ITC.
Sometimes it takes a good fall to really know where you stand. – H Williams. Red ticks are set to invade your trading screen, as concerns about the US economy and slowdown in China add to ongoing problems in Europe. Domestic problems have only got compounded with the dismal GDP report. The much weaker-than-expected US jobs data has raised fresh doubt about the health of the world’s largest economy. The S&P 500 index is below 200-DMA while the Dow has erased its gain for 2012. The S&P 500 and the Nasdaq are down over 10% from the year's highs. The CBOE VIX was up ~11%.
Today’s start is excepted to be scary looking at a drastic fall across the globe. Panic selling will lead to a weak trade. SGX Nifty is trading 63.50 points lower. Events for the day: Ex-date for 2nd interim dividend of TVS Motor Company. Ex-date for stock split of Shubham Granites. Headlines for the day: RIL relents, signs gas supply pacts with Pragati Power, NTPC. Bharati Shipyard promoters to infuse Rs118 cr for CDR. Telecom Minister to continue to finalise new licence norms. DoT to finalise auctioneer on July 10 for spectrum auction.
The market may extend recent losses on weak Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 41 points at the opening bell. Asian stocks fell on Monday after a U.S. payrolls report showed fewer jobs were added to the world's largest economy than the most pessimistic forecast, adding to concern the global economy is slowing. Key benchmark indices fell for the third straight day on Friday, 1 June 2012 to hit their lowest closing level in over a week as global stocks faltered as investors dumped risky assets after data showing downbeat manufacturing activity from China to Europe raised doubts about global economic recovery. The BSE Sensex was down 253.37 points or 1.56% to 15,965.16, its lowest closing level since 23 May 2012. Foreign institutional investors (FIIs) sold shares worth a net Rs 220.37 crore on Friday, 1 June 2012, as per provisional figures from the stock exchange.