Jul 12, 2012, 08.23 AM IST
The US markets finished the final trading day of the second quarter with big gains. Wall Street cheered a surprise agreement by EU leaders to help the region's struggling banks.
The Dow Jones logged its best June gain since 1997, while the S&P 500 and Nasdaq posted their strongest since 1999 and 2000, respectively. The CBOE volatility index plunged more than 10% to close near 17, hitting a two-month low for the month, both the Dow and S&P 500 rallied close to 4% each and the Nasdaq advanced 5%.
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Meanwhile, it was a mixed bag of economic data form the US on Friday. The University of Michigan’s consumer sentiment index dipped to 73.2 in June from 79.3 in May. Economists had expected a reading of 74.1. Personal spending was flat in May for the first time in five months versus a 0.1% rise in April.
Personal income grew at 0.2% in May - following similar growth in April too. The institute for supply management, ISM-Chicago’s business index edged up to 52.9 in June from 52.7 in May - indicating a faster expansion in the regional economy.
The European shares closed at their highest level in seven weeks. Fresh measures taken by European leaders to tackle the region's debilitating debt crisis boosted benchmark equity indexes and battered bank stocks.
The Asian markets started off on a quietly positive note today. The Hong Kong markets are shut in trade today.
Back home, Indian equity benchmarks closed at a two-month high on Friday as global markets rallied quite sharply after European leaders agreed to take emergency action to bring down Italy's and Spain's spiraling borrowing costs at European Summit.
Sensex gained 439.22 points (biggest closing gains in the year 2012) to close at 17,429.98 while the Nifty rose 129.75 points to end at 5,278.90.
The euro rallied over 1.5%, firm above the 1.26 mark. The dollar index is below the 82 mark.
Brent crude slipped a percent in Asia trade to USD 96 a barrel after the big 7% spike on Friday. In the precious metals space, gold has softened after a 3% rally on Friday.
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Sources indicated that ICICI Bank has sold its entire debt exposure in Kingfisher Airlines. ICICI Bank is likely to have sold its debt to SREI.
According to the bank's spokesperson, they have recovered the entire debt exposure of Rs 430 crores and currently do not have any debt exposure to the airline.
June automobile sales:
Maruti is expected to post over 13% month on month decline. In the two-wheeler space, Hero Moto is likely to see a 3% growth while Bajaj Auto sales may decline by a percent. TVS Motors' sales remain weak and Tata Motors reported another lackluster month.
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