EQUITY UPDATE – 11 JULY 2012

GEO-POLITICAL

Iran’s oil output for June came in at 3.2 m barrels, leading to record 20-yr low output. Sanctions imposed on the country have adversely impacted its output. (Financial Times)

ASIA

China’s trade surplus rose of USD 31.7 b in June, nearly twice as that in May. Exports increased 11.3 percent on a y/y basis  but was lower than May’s number by 15.3 percent. Imports increased 6.3 percent on a y/y basis and 12.7 percent on a m/m basis. Lower imports would be a cause of concern for investors as a slowdown in the Chinese economy could further dent global recovery. (Financial Times)

Superior Aviation Beijing – Co. is in talks to acquire  airplane manufacturer Hawker Beechcraft for around USD 1.79 b. (Financial Times)

INDIA

Non-resident Indian, or Indians living abroad infused a total of USD 4.753 b in Indian banks in the form of deposits during the April – May 2012 period. The amount was almost 7 times in excess of the amount invested a year ago for the same period. The weakening rupee and India’s high domestic interest rates contributed to the inflow. (Economic Times)

Direct tax collections incl. refunds rose 47.2 percent to INR 84,273 cr for the April-June 2012 period vs INR 57,267 cr a year ago.  (Business Standard)

Renault India – Co. launched its brand Renault Duster in Kerala and aims to sell a total of 30,000 vehicles of the brand in India by 2012. The co. is also keen on introducing smaller cars costing below INR 450,000. (Economic Times)

FII’s were net buyers in today’s trade at INR 606.54 cr on gross purchases of INR 2170.26 cr and gross sales at INR 1563.72 cr. Domestic institutional investors were net sellers at INR 488.33 cr. They made gross purchases of INR 830.16 cr and sold INR 1318.49 cr in trade. (Business Standard)

Vehicle sales in India for the June 2012 period  rose by 8.2 percent under tough market conditions. Sales totaled 155,763 units with domestic ca sales at 143,851 units. Maruti Suzuki led the sales by recording a 23 percent m/m rise at 70,977 units.  Tata Motors saw a decline in sales of around 26 percent at 13,595 units vs 18,522 units in the previous month. (Economic Times)

Automobile industry body Society of Indian Automobiles Manufacturers (SIAM) stated that forecasts for March 2013 would be lower than expected on higher costs,  slower economic expansion and fuel prices affecting consumers. The body also stated that demand would revive by the second half of the year.  Rise in excise duty also pushed up vehicle prices. (Economic Times)

Gujarat State Petroleum Corporation (GSPC): Co. plans to invest a total of INR 25,000 cr with INR 13,704 cr outlined for two gas transmission projects.  The firm is also in talks to acquire a 65 percent stake in BG Group for INR 2500 cr. (Business Standard)

EUROPE

UK trade manufacturing data for May exceeded expectations of median forecasts, which was taken as a positive signal in today’s trade. Factory output rose 1.2 percent in May vs -0.8 percent in April. Median forecasts came in at a decline of 0.1 percent. (Bloomberg)

Italian Industrial Output data rose 0.8 percent in may vs a fall of 1.9 percent in April. (Bloomberg)

NORTH AMERICA

Job openings in the US rose by 195,000 to touch 3.64 m for May vs a 294,000 decline in April. Hiring picked up marginally as co.’s expanded sales and operations at a moderate pace while layoffs also increased. Employment rose by 148,000 to 4.36 m in May, driving the hiring rate to 3.3 percent vs 3.2 percent in April. Layoffs, excl. retirements rose  to 1.89 m in May vs 1.74 m in April. (Bloomberg)

The National Federation of Independent Business’s index of investor confidence in the US declined to 91.4 from 94.4 for May 2012 period. (Bloomberg)



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