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Jun 25, 2012, 11.27 AM IST
After a very volatile week, Wall Street ended higher on Friday led by a decent rally from the banking stocks. And back home, our market saw a resilient session on Friday which saw the Nifty closing at 5,146.
After a very volatile week, Wall Street ended higher on Friday led by a decent rally from the banking stocks. The Dow and S&P 500 both finished off mildly for the week while the Nasdaq rose a shade.
US Closing (Friday): Dow +0.5% at 12640.8; S&P +0.7% at 1335; Nasdaq +1.2%
US last week: Dow -0.9%; S&P -0.6%; Nasdaq +0.7%
European markets ended lower as all eyes turn to the EU summit this week. Recent poor macroeconomic data raised fresh concerns about the pace of global economic recovery.
Europe Closing (Friday): DAX -1.3%; FTSE -1%; CAC -0.75%
The 2-day Euro summit will be kicking off on Thursday. The leaders are expected to discuss cross border banking union at the summit. Steps like bank depository union & fiscal union are also expected to be part of the agenda. The debate on whether to let Greece renegotiate its terms for bailout is another important matter to be discussed.
Greek prime minister and incoming finance minister will not attend this week's EU leader summit due to health issues. Greece's foreign minister and outgoing finance minister will represent the country as it looks to renegotiate the terms of its bailout. Reports also say Greece’s international creditors - the troika, have postponed their visit to Athens due to the health scares. Officials were due to arrive today to resume their monitoring of Greek finances.
Meanwhile German chancellor Angela Merkel is locked in talks with MPs to try and get Europe's fiscal pact approved through the German parliament. All of Germany's 16 states are reportedly demanding billions euro in financial aid from Berlin in return for approving the treaty and its new bailout fund. Germany's upper house is expected to vote on the treaty on Friday.
The Bank for International Settlements (BIS) is backing plans for a banking union in Europe. In its annual report, the BIS says the move towards fiscal integration would ease the regions debt crisis. The BIS also said that the global central banks are being cornered into prolonging the monetary stimulus measures because governments are dragging their feet. The BIS also conveyed its discomfort over interest rates staying so low for so long.
Asia starts off trade on a cautious note this week as well.
Currencies & Commodities
In other asset classes, the dollar index held above 82 after its rally last week. The euro remained stable at 1.25. Gold is steady above USD 1,570/oz.
In the commodities space, Brent crude is close to USD 91 per barrel as tropical storm Debby threatens production in the Gulf of Mexico. US crude futures surged nearly 2%. Around 23% of the oil & gas production is shut in the area. The storm is expected to be upgraded to hurricane status by Tuesday.
And back home, our market saw a resilient session on Friday which saw the Nifty closing at 5,146.
Stocks in News
The prime minister's office (PMO) has once again stepped in to resolve the pending issue of fuel supply pacts between power companies and Coal India . Sources indicate that the PMO accepted trigger levels of 65% on FSA versus 80% earlier and asked for removal of the three-year moratorium on FSAs. The PMO is in favour of the pre-2009 level of penalty.
CNBC-TV18 learns that the CCI could pass another adverse order against cement makers in the next one-week to 10 days. The new order against cement companies would be in response to a complaint filed in 2006 but imposition of a fine is unlikely.
Suzlon sells its China unit for Rs 340 crore.
LIC has upped its stake in Cairn India to 5.03% from 4.99% on June 19.
Coal India hikes prices in select Western blocks by 10-15%, reports the PTI.
ONGC is mulling to list ONGC Videsh Ltd next year to raise funds for acquisitions, reports the Financial Express.
The Andhra Pradesh High Court has issued an interim order suspending the DRDA’s notice to cancel SKS Microfinance ’s registration in Mahabunagar district, reports the Business Standard.
GVK has launched legal proceedings against KFA for dishonored cheques, reports the Economic Times.
Jet Airways has sought government approval to reduce flights to the North East by half, to cut losses, reports the Business Standard.
MahaGenco has taken Coal India’s arm to the competition tribunal, reports the Business Standard.
Tata Communications is eyeing deals in the UK and US, reports the Financial Express.
Maruti has started trial runs of a new 800cc car, reports the Mint.
The government revives plans to convert Rs 523 crore IFCI debt into equity, reports the Economic Times.
SAIL will pay Rs 200 crore to fund CRPF presence at mines in Chattisgarh, reports the Economic Times.
RINL has approached the Steel Ministry to defer its IPO, reports the PTI.
Tags: markets, Nifty, Sensex, rupee, Indian equities, dollar, Indian stocks, US markets, European Markets
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