SHARETIPSINFO >>Stock Market Buzz >>Major Updates (As on 14 July 2011)

ECONOMY

Inflation inch up to 9.1% during May 2011:
India's WPI inflation for May 2011 has inched up to 9.06% from 8.66% during April 2011. More importantly, the inflation for March 2011 has been revised upwards to 9.68% compared to 9.04% reported earlier. The inflation for May 2011 was mainly driven by sharp increase in inflation for manufactured products to 7.27% in May 2011 from 6.18% during April 2011. Meanwhile, the inflation for primary articles and fuel products eased to 11.3% and 12.3%, respectively in May 2011 from 12.05% and 13.32% in April 2011.

The index of all commodities for May 2011 has shown an increase of 0.7%, on m-o-m basis, from April 2011 level. The index for primary articles group rose by 0.3% during May 2011, on m-o-m basis, as the index for 'Food Articles' group rose by 1.6%, while the index for 'Minerals' group also rose by 1.1%. However, the inflation for 'Non-Food Articles' group declined by 4.4% in May 2011, on m-o-m basis.

The index for fuel and power group rose by 0.3% during May 2011, on m-o-m basis. Meanwhile, the index for manufactured products group increased by 1.0% during May 2011, as the index for 'Food Products' group rose by 1.2% while the index for ‘Textiles' group surged 2.5%.

POLITICS

SC to hear on Kanimozhi's bail plea on June 20:

SC issued notice to CBI seeking explanation on what happened to the Rs 214 crore money
In response to the bail petition filed by the Dravida Munnetra Kazhagam (DMK) MP Kanimozhi and Kalaignar TV MD Sharad Kumar, the Supreme Court on Monday, 13 May 2011, issued notice to the Central Bureau of Investigation (CBI).

The Supreme Court asked the CBI to reply by 20 June 2011, on what is the current status of the Rs 214 crore money that was allegedly paid as bribe by the Swan telecom promoter- Usman Balwa to the Kalaignar TV-owned by the DMK chief Karunanidhi's family, where Kanimozhi and Sharad Kumar has 20% stake each.

The Supreme Court has also asked the status report from the CBI on the loss caused to the state exchequer in the award of Unified Access Service licences for 2G-spectrum during the tenure of A Raja as telecom minister and the status of the case before the special CBI court.
Kanimozhi and Sharad Kumar moved to the Supreme Court seeking bail after the Delhi High Court dismissed their bail petition on 8 June 2011.

FOREIGN MARKET

US stocks eke out minor gains:
US stocks eked out minor gains at Wall Street on Monday, 13 June 2011. Though stocks kicked off the day in a steady mode, stocks slipped in the red during the mid session hours. Drop in energy stocks following lower crude prices weighed on market sentiments. Ultimately indices ended in a mixed mode. Global economic worries resurfaced once again questioning the pace of global recovery following further downgrade of Greece's debt rating. The dollar stayed considerably weak for the whole day.

A spurt of corporate deals helped the indices bounce back after six consecutive weeks of losses. A modest bit of relief buying helped stocks start this session on a strong note, but the lack of underlying conviction allowed stocks to slide lower so that the major equity averages ended mixed.

In the currency market on Monday, the dollar spent the entire day in the red, but that failed to convert participants into full-fledged buyers. In fact, the dollar's weakness seemed to be of little overall concern to the market. Even after S&P took Greece's debt rating deeper into junk territory by reducing it to CCC, the greenback was unable to overcome the euro. The dollar index, which measures the strength of the dollar against a basket of six other currencies, fell by 0.5%.

Crude oil prices plunged for second straight day on Monday, 13 June 2011 at Nymex. Prices dropped commodities on fears the global recovery could be hitting a rough patch. Prices were also impacted by news during last weekend that Saudi Arabia will increase production from next month. On Monday, crude oil futures for light sweet crude for July delivery closed lower by $1.99 (2%) at $97.3/barrel.

FUTURES MARKET

Nifty June 2011 futures above 5500 :
Nifty June 2011 futures were at 5501.90, at a premium of 19.10 points over spot closing of 5482.80. Turnover on NSE's futures & options segment declined to Rs 82244.24 crore from Friday's (10 June 2011) Rs 89453.69 crore.

State Bank of India (SBI) June 2011 futures were at 2235.70, at a premium compared with spot closing of 2221.85. Titan Industries June 2011 futures were at 4652.80, at a discount to spot closing of 4734. Tata Steel June 2011 futures were at 566.15, at a premium over spot closing of 562.90.
In the cash market, the S&P CNX Nifty lost 3 points or 0.05% to settle at 5,482.80, its lowest

COMMODITIES MARKET

RUPEE: Marginally Up Alongside Regional Peers :

The Indian rupee commenced marginally higher on Tuesday, June 14, 2011 in line with most of the regional currencies after the domestic unit dropped to its lowest level in a week yesterday. The local currency opened higher by mere 2 paise at Rs 44.84 per dollar, tracking positive local shares and an improving euro overseas. Rupee hit a high of 44.77 in early trades and was last seen trading at 44.79 at 10.40 AM IST in the spot currency market, higher by around 7 paise or 0.16% as compared to previous close at 44.86.

India's key benchmark indices edged higher in early trade on firm Asian stocks and higher US index futures. Asian stocks rose after Chinese consumer inflation data came in roughly in line with expectations. Meanwhile the domestic unit would also watch for the data on headline inflation for May 2011 to be unveiled today. The RBI is seen raising its key lending rate by 25 basis points at its mid-quarter monetary policy review on 16 June 2011 to tame inflation.

Pepper Prices Under Selling Pressure:
Weak export demand, stable spot market and strong supplies from Vietnam added bearish cues in the Indian pepper futures. Traders started switching over to July month futures.
Indian pepper futures for the June delivery fell by Rs 249 to the session low of Rs 30045 and the contract session high was Rs 30310 per 100 kg. The contract is currently trading lower at Rs 30098 per 100 kg. The open interest dipped 0.86% to 6,450 tonnes. Volume traded as of now stood at 590 tonnes.

 Indian Red Chilli Futures Up BY Rs 100 On Short Covering:
Indian Red Chilli futures extended the gains with futures prices increasing Rs 100 per 100 kg over the last close. Prices gained on short covering and also on declining arrivals in the Guntur mandi.
Chilli 334 prices stood steady at Rs 8,600 per quintal in the Guntur spot market with the total arrivals of around 30,000 bags (15,000 bags of Khammam teja) against 35,000 bags on Monday. The price of Vyadi variety was down by Rs 200 to Rs 11,500 per 100 kg over last close.

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