Tuesday, July 31, 2012
Maruti Suzuki is planning an extensive public relations campaign to reassure potential buyers. Under this, it expects to give some clarity on the situation at Manesar and give a new tentative delivery schedule for cars that have already been booked. (BL) DLF is in advanced stages of negotiation with Lodha Developers to sell its prime land in Mumbai for about Rs.27bn and a deal is expected to be finalised shortly. (BL) Reliance Infrastructure Ltd’s special purpose vehicle, SU Toll Road Pvt Ltd announced that it has completed the Rs.10.61bn 136-km Salem-Ulundurpet road in Tamil Nadu and has commenced collecting toll charges on the road. (BL)
After a gap up opening, Indian indices continued their rise aided by buying in Power, Capital Goods, Consumer Durables, Banks, and some rate-sensitive sectors such as Realty and Auto. Markets finished near the day’s high levels with the Sensex surging over 300 points and the Nifty crossing the psychological 5,200 mark. The broader 50-stock index also closed at the crucial level. The Nifty has now ended with gains for the second straight trading session and has rebounded by ~170 points after hitting a low of 5032 in previous week. The Mid-Cap and the Small-Cap stocks which were badly beaten down also witnessed some buying momentum. The BSE Small-Cap index closed up 1.3% while the BSE Mid-Cap index ended with gains of 1.5%.
Continuous effort - not strength or intelligence - is the key to unlocking our potential - Winston Churchill The Reserve Bank of India says the ball is in the Government’s court and wants the centre to provide the impetus and the stimulus to boost investment and revive growth. Calling for aggressive steps, the RBI in its monetary policy review stated that persistent inflation limits the scope for monetary policy to revive growth. We won’t speculate on what the RBI will do in a few hours but there is hardly any room for cheer unless the RBI governor springs a positive surprise for the market. Status quo is the expectation. Monday was a happy day as the Nifty and the Sensex had gained following a widespread rally across sectors including power, realty, capital goods, banks, consumer durables and auto. Outside the market some happiness of course came with the first Olympic medal of the London Games for India.
Prices rise for fourth straight day Yellow metal prices ended little higher on Monday, 30 July 2012 at Comex. Prices rose as traders anticipated that Central banks will take some action in both US and Europe as a step to solve their respective problems. Gold for August delivery ended higher by $0.7 or 0.04%, to end at $1,618 an ounce on the Comex division of the New York Mercantile Exchange on Monday. Prices rose for fourth straight session. On Monday, silver prices for September delivery ended higher by54 cents or 2% at $28.03.
The market may extend recent gains on firm Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a gain of 18 points at the opening bell. Asian shares were mostly higher on Tuesday ahead of monetary policy meetings by the European Central Bank and the U.S. Federal Reserve, with expectations for more stimulus steps to support fragile global economies. The Reserve Bank of India (RBI) is unlikely to cut its key policy rate viz. the repo rate at first quarter review of the Monetary Policy 2012-13 today, 31 July 2012, to guard against higher inflation as the country faces the possibility of a drought. The RBI unexpectedly left its key lending rate unchanged at its last meeting in June 2012, citing inflationary concerns. RBI has said that fiscal consolidation by the government is critical for interest rates to ease.
Indian markets may open on a flat note tracking mixed global cues. SGX Nifty is also trading 11 points higher. Events for the day: First quarter review of monetary policy 2012-13. Results: Bhushan Steel, Cipla, Jaiprakash Associates, Ipca Laboratories, IDBI Bank, Hexaware Technologies, Gujarat Mineral Development Corporation, Gujarat Fluorochemicals, Titan Industries, Petronet LNG.