1. India-Global Market Summary 06-06-2012
• Market gained and Nifty fell below the psychological 5,000 mark after regaining
that level in late trade. Indian stocks rose for the third straight day on expectations
that Prime Minister meeting with ministers later in the day would result in fresh
steps to boost the sagging infrastructure sector. Expectations of government action
have risen amid gathering signs of a rapidly slowing economy. Sensex up by
2.52% to 16424.21 and Nifty up by 2.55% to 4987.35. All the 30 BSE Sensex
constituents rose.
• Data released by the government last week showed India's economy grew 5.3% in
Q1 March 2012, the slowest pace of growth in nearly a decade. The low growth
numbers also led the Reserve Bank of India's Deputy Governor Subir Gokarn to
say early this week that the central bank could further look at cutting interest rates.
Positive global stocks also supported the sentiment.
• India's services sector grew at its fastest pace in three months during May, and
firms were more optimistic about the year ahead. HSBC's services purchasing
managers' index, compiled by Markit, rose almost two points to 54.7 in May from
52.8 in the previous month. It has posted an above-50 growth reading since
November. The index measuring business expectations jumped to a 15-month high
of 76.7 last month from 73.8 in April, more than 14 points above its March level.
• World stocks rose on expectations of an announcement from the European Central
Bank later in the global day of a schedule for an additional long-term refinancing
operation (LTRO) as insurance against a further flight of bank deposits in Europe.

2. • Aviation shares rallied, Cement stocks rose and Power generation stocks surged.
Tyre stocks surged as rubber prices have dropped sharply in the last few weeks.
Metal stocks gained on hopes for Chinese policy-easing. FMCG stocks rose on
arrival of monsoon rains in Kerala. Interest rate sensitive auto stocks jumped on
hopes Reserve Bank of India (RBI) will cut interest rates at mid-quarter monetary
policy review on 18 June 2012. Shares of two-wheeler makers also edged higher.
Construction stocks rallied on expectations that Prime Minister Manmohan Singh's
meeting with ministers later in the day would result in fresh steps to boost the
sagging infrastructure sector.
• Gail (India) climbed up in the market after the company said its bond issue of Rs
500 crore with a green shoe option of Rs 250 crore launched today, 6 June 2012,
was oversubscribed by around 5 times.
• Gujarat Pipavav Port surged in the market after the company’s board approved the
project expansion plan for Pipavav Port at a total cost of Rs 1097.20 crore.
• Ashok Leyland bags $6 million overseas order
• Suzlon launched its newest wind turbine, the S111 which is a 2.1 mw machine
designed for low wind speed sites.
• Alstom T&D India secured a contract worth Rs 41 crore
• Dr Reddy's Laboratories entered in to a collaboration with Merck Serono, a division
of Merck KGaA, Darmstadt, Germany, to develop and commercialize Biosimilars

3. Global news
• European shares surged on Wednesday on expectations of an announcement from
the European Central Bank (ECB) later in the global day of a schedule for an
additional long-term refinancing operation (LTRO) as insurance against a further
flight of bank deposits in Europe. Asian stocks edged higher on expectations of an
announcement from the European Central Bank (ECB) later in the global day of a
schedule for an additional long-term refinancing operation (LTRO) as insurance
against a further flight of bank deposits in Europe. Hopes for Chinese policy-easing
and upbeat data on the US services sector aided gains in Asian stocks.
• Spanish industrial production dropped 8.2% in April on an annual basis, that comes
after a fall of 7.5% in March. Industrial production has been on the decline or flat
for 14 months. In May and August of 2011, production was unchanged. The April
fall was the biggest in more than a year.
• Moody's Investors Service cut the credit ratings of several German banks, citing
increased risk of further shocks emanating from the euro zone debt crisis and their
limited loss-absorption capacity. The ECB holds its monthly rate-setting meeting
later in the global day today, 6 June 2012. The ECB is widely expected to keep
policy rate unchanged at 1%.
• Australia's gross domestic product increased 4.3% in Q1 March 2012 from the
year-ago period, far above forecasts. Business investment, led by miners, remained
strong in the first quarter while households also increased spending. The data
comes close on the heels of a 25 basis points rate cut by the Reserve Bank of
Australia

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