Search Now


Monday, October 01, 2012

Daily News Roundup - Oct 1 2012

Maruti Suzuki India is planning to offer low-cost houses to about 5,000 employees as it tries to walk the extra mile to improve relations with its workers. (ET) A government-controlled panel has approved Reliance Industries’ revised field development plan for MA oilfield in the predominately gas-rich KG-D6 block that will help the firm boost gas production. (ET) The engineers of Kingfisher Airlines went on a flash strike in Mumbai, making 80 passengers wait three hours in an aircraft for take-off clearance and forcing the cash-strapped airline to cancel 11 flights. (ET) Bharti Enterprises has started talks with Walmart and is hoping to form 50:50 joint venture to roll out retail outlets in India. (ET)

Sensex spurts on reform hopes...Nifty holds 5700

After a brief pause in the previous trading session, the frontline Indian stock indices once again showed strength as investors resumed their shopping spree. The NSE Nifty ended above the 5700 mark while the BSE Sensex ended above the 18,700 level. However, after hitting the intra-day high of 5735 in early morning trades, the Nifty was seen gradually losing some ground. Still, the Large-Cap index managed to end above the 5700 mark. Auto, Consumer Durables, FMCG, Metals and Power indices were among the major gainers. However, the Realty index was under pressure. The Small-Cap index and the Mid-Cap index continued to be buoyant.

Sedate start; adjusting to weakness

Life at any time can become difficult: life at any time can become easy. It all depends upon how one adjusts oneself to life. – Anonymous. Welcome to a truncated week. The opening is likely to be a sedate after stocks in the US and Europe closed lower on Friday. Asian markets open for trading are in the red. Markets in China, Hong Kong, South Korea and Australia are shut. Chinese markets will remain closed for the entire week while in Hong Kong there won’t be any trading till Thursday. The Indian markets will remain closed on Tuesday on account of the Gandhi Jayanti. Watch out for data on manufacturing PMI and Exports, besides monthly auto volumes today. Also, the Shome panel is due to submit its report on GAAR later in the day. Meanwhile, the Kelkar Committee has come out with its report on Government finances and what needs to be done to contain the spiraling fiscal deficit. There is some good news in the form of a drop in the current account deficit for Q1 FY13.

October trading to begin on a flat note

Indian markets may open on a flat note led by unsupportive global cues. SGX Nifty is also trading 2.50 points higher Events for the day: Monthly auto sales and cement dispatches. Release of import and export data. Headlines for the day: RIL seeks nod for proposal to triple gas prices from 2014. Bharti hopeful of 50:50 JV with Wal-Mart for retail stores. EGoM on spectrum to meet on Oct 3. BHEL, GAIL seek Maharatna status.

Market may open lower on weak Asian stocks

The market may open lower on weak Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could fall 5.50 points at the opening bell. Markit Economics will release the HSBC India Manufacturing PMI for September 2012 on Monday, 1 October 2012. Grid failures in the beginning of August and shrinking export orders saw manufacturing HSBC India Manufacturing falling to a nine-month low 52.8 points in August 2012 from 52.9 in July 2012. The Kelkar Committee (KC) set up by the government to outline a roadmap for fiscal consolidation released its report Friday, 28 September 2012. The KC recommends four pillars under which the government can lower its deficit to 5.2% of GDP in FY13, and further to 4.6% and 3.9% in FY14 and FY15, respectively.