EQUITY UPDATE: 18 AUGUST 2012

INDIA

India’s PMEAC, an advisory body to the Government, revised growth to 6.7 percent from the projected 7.5 – 8 percent for FY2012-13. Inflation is to rise from forecasted 5 – 6 percent to 6.5 – 7.0 percent on higher food prices. Current account deficit could rise to USD 67.1 b, around 3.6 percent of GDP. Trade deficit could touch USD 181.1 b, i.e. around 9.7 percent of GDP. The PMEAC recommends that a price rise in diesel could mitigate higher expenditure on subsidies. The body also warned that India’s own credit rating could get downgraded if measures arent undertaken to prop up the economy. (Economic Times)

FII’s made gross purchases of INR 2,169.11cr and gross sales totalling INR 1,860.89cr. DII’s made gross purchases of INR 1,044.55cr and gross sales of INR 1004.36cr. (Business Standard)

According to India’s Coal Minister Sriprakash Jaiswal, the Comptroller and Auditor General (CAG) used an incorrect method of calculating the prices of the coal blocks under the scanner. He insisted that although the allocation was done on a transparent basis, private co.’s benefited from the auction as delays in the bidding process gave undue advantage to them. (Economic Times)

Ranbaxy Labs – The co. launched an authorized generic version of Takeda’s diabetes medicine in the U.S to be sold under the brand Actos. The co. would have a 180 marketing license with Mylan and Teva. (Economic Times)

Reliance Capital – Co. sold a 26 percent stake in its asset management and mutual fund divisions to Nippon Life for INR 1450 cr. (Economic Times)

Union Bank – PSU bank is expected to obtain a loan of around INR 950 – 1000 cr from the Indian Government. (Economic Times)

BHEL – Co. plans to construct a manufacturing facility in Maharashtra, India for about INR 159 cr. The plant is expected to manufacture tubular products to the western region of India. (Business Standard)

GMR Infra – Co.’s shares lost 4 per cent in intraday trade, as a CAG report highlighted that the Civil Aviation Ministry violated bid conditions, benefiting co. led DIAL by INR 3,415cr. (Economic Times/PTI)

Airlines Co.’s – According to the data released by the civil aviation ministry, domestic air passenger traffic fell to 45.37 lac in July from 51.08 lac in June. January – July domestic passenger at 354.52 lacs from 348.47 lacs in the January – July 2011. On a standalone basis IndiGo had the largest market share of 27 per cent, Jet Airways at 19.4 per cent, Air India at 18.2 per cent, SpiceJet at 17.8 per cent, JetLite at 7.2 per cent, Go Air at 7 per cent and Kingfisher Airlines at 3.4 per cent. (IANS/Yahoo)

Sail – Co. plans to raise at least INR 2.5b in funds through issuance of 5 to 10 year bonds, baring a coupon of 9.25 per cent. (Economic Times/Reuters)

INDIAN EARNINGS

Kamdhenu Ispat – Co. reported 1Q12-13 net profit at INR 95.24 lacs from INR 85 lacs in 1Q11-12. Turnover at INR 133.42cr from previous INR 113.29cr. (The Hindu Business Line)

EUROPE

According to the president of German BdB banking association, the ECB should supervise all banks across the euro zone. In related news German news paper Handelblatt reported that the ECB is to supervise all euro zones’ major banks, citing people familiar with the matter at the European Commission. (Fox Business)

According to a Spanish government spokeswoman, Spain to soon request for the first payment from the EUR 100b emergency eurozone line agreed in June. (Economic Times/AFP)

GSK – Co.’s clinical trial for its asthma drug ‘mepolizumab’ cut asthma attacks to nearly half, in people with severe asthma. (The Telegraph UK)

Qatar’s sovereign wealth fund is to purchase a 20 percent stake in BAA for GBP 900 m from Spanish infra co. Ferrovial. (Financial Times)

Aviva – Insurance co. has been approached by several US based PE firms as well as Guggenheim Partners, which have expressed interest in acquiring U.S unit of the firm. S&P also downgraded Aviva to its lowest level since 2001 on risks and costs to the co. The co. came down one notch to A -. (Financial Times)

NORTH AMERICA

The Thomson Reuters/University of Michigan Consumer confidence index rose to 73.6 in August vs 72.3 in July vs expectations of 72.2, suggesting that household spending could rise in the coming quarter. Rising payrolls, increasing retail sales show that consumers have gradually increased spending to set the tone for the third quarter. (Bloomberg)

The Conference Board’s measure of economic outlook for the next three to six months rose 0.4 percent in July vs a revised -0.4 percent in June. Factors such as an improving housing market and lower hirings contributed to the data. There is optimism that the consumer spending activity would increase along the coming few months. (Bloomberg)

 

 

 

 

 



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