Equity Market Update
• Indian equity markets closed nearly 2% higher, after WPI inflation eased to 4.7% in May, which remained within the RBI's comfort zone for the second straight month. This, coupled with a steady rupee, made a section of investors hopeful that the RBI might consider a rate cut at its policy meet early next week.
• Key benchmark indices, S&P BSE Sensex and CNX Nifty, gained 1.86% and 1.92% respectively. Broader indices, S&P BSE Mid-cap and Small-cap, gained more than 1%.
• Tata Motors rose 4.91% on BSE after its U.K.-based subsidiary Jaguar Land Rover Limited recorded a strong growth in retail sales in May 2013. Infosys rose nearly 1% after the company said its U.S. subsidiary, Infosys Public Services, has won a contract from CareFirst BlueCross BlueShield. Apollo Tyres fell to its lowest level since January 2012 on worries over debt following the buyout of Cooper Tire & Rubber.
Global Market Update
• Asian markets recovered as investors sought value-buying after recent heavy sell-off. Today (as on Monday), Asian shares remained subdued ahead of the Fed policy meeting amid concern that monetary stimulus for the U.S. economy could unwind soon.
• As per the last closing, European shares pared earlier gains to end narrowly higher amid mixed economic reports from the U.S. These data did little to calm investors who worried that a reduction in central liquidity will bring financial markets to their knees. The disappointing Euro zone employment report weighed on sentiments.
• As per the last closing, U.S. shares gave up earlier gains to end lower amid mixed economic reports and caution ahead of the upcoming Fed policy board meeting. The U.S. industrial production remained flat, consumer sentiment retreated and current account deficit widened while producer prices witnessed modest gains.
Domestic News
• The Wholesale Price Index‐based (WPI) inflation stood at 4.70% (provisional) for the month of May against last month’s reported figure of 4.89% (provisional) and the same period last year’s figure of 7.55%. This is the fourth consecutive month of fall in WPI numbers.
• Finance Minister P Chidambaram said that the Government needs to take long-term measures for economic growth and stability as there are no quick-fix solutions to solve economic problems. He further said that more reforms measures will come up by the end of June-July to boost investment and growth.
• Chief Economic Advisor Raghuram Rajan said CAD for the fourth quarter of financial year 2012-13 is likely to be around 4% of the GDP.
• According to Planning Commission Deputy Chairman Montek Singh Ahluwalia, the Current Account Deficit (CAD) is likely to ease in the current fiscal with moderation in demand for gold.
• The Foreign Investment Promotion Board has deferred the decision to approve the Jet Airways’ deal with Etihad.
International News
• The Commerce Department reported that the U.S. retail sales rose marginally in May. It increased by 0.6% following a rise of 0.1% in April.
• The Labor Department reported that the U.S. weekly jobless claims fell unexpectedly to 3,34,000 from the previous week's figure of 3,46,000.
• Eurostat reported that the number of employed persons in the Euro area fell a seasonally adjusted 0.5% quarter-on-quarter to 415.1 million in the March quarter.
Debt Market Update
• Bond yields fell on Friday following lower WPI inflation numbers and a recovery in the domestic currency, but hopes of a rate cut still remain dim at the central bank's policy meeting on June 17.
• The yield on new 10-year benchmark bond, 7.16% GS 2023, ended down 2 bps at 7.31%, compared to its previous close of 7.33%, with a traded volume of Rs. 1,010 crore in NDS-OM platform.
• Banks’ net average borrowings under the central bank’s Liquidity Adjustment Facility (LAF) stood at Rs. 74,765 crore, much higher compared to the previous day’s figure of Rs. 44,890 crore.
• Indian equity markets closed nearly 2% higher, after WPI inflation eased to 4.7% in May, which remained within the RBI's comfort zone for the second straight month. This, coupled with a steady rupee, made a section of investors hopeful that the RBI might consider a rate cut at its policy meet early next week.
• Key benchmark indices, S&P BSE Sensex and CNX Nifty, gained 1.86% and 1.92% respectively. Broader indices, S&P BSE Mid-cap and Small-cap, gained more than 1%.
• Tata Motors rose 4.91% on BSE after its U.K.-based subsidiary Jaguar Land Rover Limited recorded a strong growth in retail sales in May 2013. Infosys rose nearly 1% after the company said its U.S. subsidiary, Infosys Public Services, has won a contract from CareFirst BlueCross BlueShield. Apollo Tyres fell to its lowest level since January 2012 on worries over debt following the buyout of Cooper Tire & Rubber.
Global Market Update
• Asian markets recovered as investors sought value-buying after recent heavy sell-off. Today (as on Monday), Asian shares remained subdued ahead of the Fed policy meeting amid concern that monetary stimulus for the U.S. economy could unwind soon.
• As per the last closing, European shares pared earlier gains to end narrowly higher amid mixed economic reports from the U.S. These data did little to calm investors who worried that a reduction in central liquidity will bring financial markets to their knees. The disappointing Euro zone employment report weighed on sentiments.
• As per the last closing, U.S. shares gave up earlier gains to end lower amid mixed economic reports and caution ahead of the upcoming Fed policy board meeting. The U.S. industrial production remained flat, consumer sentiment retreated and current account deficit widened while producer prices witnessed modest gains.
Domestic News
• The Wholesale Price Index‐based (WPI) inflation stood at 4.70% (provisional) for the month of May against last month’s reported figure of 4.89% (provisional) and the same period last year’s figure of 7.55%. This is the fourth consecutive month of fall in WPI numbers.
• Finance Minister P Chidambaram said that the Government needs to take long-term measures for economic growth and stability as there are no quick-fix solutions to solve economic problems. He further said that more reforms measures will come up by the end of June-July to boost investment and growth.
• Chief Economic Advisor Raghuram Rajan said CAD for the fourth quarter of financial year 2012-13 is likely to be around 4% of the GDP.
• According to Planning Commission Deputy Chairman Montek Singh Ahluwalia, the Current Account Deficit (CAD) is likely to ease in the current fiscal with moderation in demand for gold.
• The Foreign Investment Promotion Board has deferred the decision to approve the Jet Airways’ deal with Etihad.
International News
• The Commerce Department reported that the U.S. retail sales rose marginally in May. It increased by 0.6% following a rise of 0.1% in April.
• The Labor Department reported that the U.S. weekly jobless claims fell unexpectedly to 3,34,000 from the previous week's figure of 3,46,000.
• Eurostat reported that the number of employed persons in the Euro area fell a seasonally adjusted 0.5% quarter-on-quarter to 415.1 million in the March quarter.
Debt Market Update
• Bond yields fell on Friday following lower WPI inflation numbers and a recovery in the domestic currency, but hopes of a rate cut still remain dim at the central bank's policy meeting on June 17.
• The yield on new 10-year benchmark bond, 7.16% GS 2023, ended down 2 bps at 7.31%, compared to its previous close of 7.33%, with a traded volume of Rs. 1,010 crore in NDS-OM platform.
• Banks’ net average borrowings under the central bank’s Liquidity Adjustment Facility (LAF) stood at Rs. 74,765 crore, much higher compared to the previous day’s figure of Rs. 44,890 crore.
1 comment:
market outlook by epicresearch.co,The Sensex fell 5.83 pts to 28879.38 and the Nifty gained 2.05 points at
8780.35.
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