EQUITY UPDATE: 24 AUGUST 2012

ASIA

Qantas – Australian airliner reported a loss of AUD 244 m (USD 256 m) for the FY11-12 period ended 30 June vs profit of AUD 250 m a year ago. The co. has also cancelled its USD 8.5 b order of 35 Boeing Dreamliner aircrafts citing lower demand and restructuring. The delivery date for additional 50 planes has also been postponed to 2016. Rising fuel costs, intense competition from other firms on the international route and other charges affected the firm. (Financial Times)

Hyundai Motors – Co.’s operations are affected by the possibility of an all-out strike by workers at its plants in South Korea. The co. has seen its exports decline 25 percent in July on a m/m basis to 94,576 units as the co. suffers losses of USD 1 b or 60,000 units. (Financial Times)

INDIA

According to domestic rating agency ICRA, revised its GDP forecast to 5.7 per cent from its previous estimate of 6.2-6.4 per cent in June. The rating agency cited sluggish investment sentiment, weaker monsoon and likely rise in inflation. ICRA also expects that the lack of monsoon’s to increase the fiscal deficit target of 5 per cent to 5.7 – 6 per cent.  Government borrowing target of INR 2000b to overshoot by INR 600b to INR 900b; current account deficit to improve to 3.7 per cent from 4.3 per cent, the rating agency said. ICRA revised headline inflation to 7.5 to 7.7 per cent from earlier 7 to 7.5 per cent. (Money Control/PTI)

FII’s made gross purchases of INR 2,473cr and sale of INR 2,161.93cr. DII’s made gross purchases of INR 929.59cr and gross sales of INR 1,090.69cr. (Business Standard)

Cochin Shipyard – Co. plans to launch an IPO to fund its INR 1500 cr expansion of a ship construction project. The majority state-owned co. expects a divestment programme in which the proceeds would be used to construct a ship building and repair centre at Cochin. (Business Standard)

Reliance Life – Co. is talks with banks to offload a 5 percent stake in the firm. (Business Standard)

Tata Steel – Co. plans to arrange a USD 5 b loan from a consortium to fund its expansion plans in India. Expansion of its plant in Jamshedpur, addition of a plant in Odisha is the main purpose of its expansion plans. (Business Standard)

Wockhardt – Macquarie maintained a ‘outperform’ rating on co., with price target increased to INR 1,575. Citing 20 per cent expected growth in FY 13 and a strong product pipeline. (Economic Times)

GVK Power and Infrastructure – Co. secured federal environmental clearance for its Alpha Mine and Rail Project in Queensland, Australia. (MoneyControl)

EUROPE

According to a source, the European Central Bank of considering setting a yield target on purchases of new bond – buying plan, without making the levels public. (Reuters/ CNBC)

Kazakhmys PLC – Mining firm saw lower copper prices coupled with rise in inventory levels affect its 1HY12 earnings. Revenues declined 17 percent y/y to USD 1.5 b on lower volumes. Rising wages and input costs saw operating costs rise 20 percent to USD 966 m. Copper sales declined to 118,000 tonnes a year from 136,000 tonnes a year ago. (Financial Times)

NORTH AMERICA

U.S Initial jobless claims rose by 4000 to a seasonally adjusted 372,000 applications for week ending 18 August vs forecasts of 365,000. The lack of a pickup in the labour markets could hasten the process of a stimulus or a QE stimulus to prop up the economy. The four-week moving average rose by 3750 applicants to 368,000 for first time claims. No. of people filing for benefits came in at 3.32 m while the 4 week moving average rose to 3.31 m. (Reuters/IBT)

Sales on new homes in the U.S rose 3.6 percent to 372,000 units on a seasonally adjusted rate for July vs 359,000 in June vs exp sales of 365,000 units. But median homes prices declined 2.5 percent on a y/y basis to USD 225,000 a home. New home inventory declined 0.7 percent to 142,000 units, leading to record lows. (Reuters)

ISS, a shareholder organization followed by institutional investors in the U.S has disapproved the merger of Glencore and Xstrata. Valuation of the firms and compensation packages granted to the executives were the downside of the deal while a rise in output was viewed as a favourable event for the deal. (Financial Times)

HP – Co. reported a 2Q12 loss at USD 8.9 b, on an USD 8 b writedown it took on its services business. Revenues declined 5 percent y/y on lower sales of printers and computers. Sales clocked in at USD 29.7 vs expectations of USD 30.1 b. The co. alongwith Dell, is losing out on market share to Asian firms such as Asus, Lenovo and Acer. FY12 EPS forecasts came in at USD 4.05 – 4.07 a share ,below expectations of USD 4.08 a share. The firm plans to reduce its workforce by 8 percent, leading to 27,000 job cuts by 2014. (Financial Times)

General Motors – Co. is to downsize on its operations at two plants in Germany on lower sales. GM’s Opel division will halt production for 20 days in the last four months of 2012 on lower demand for vehicles on account of the crisis in Europe. (Reuters)

 

EQUITY UPDATE: 23 AUGUST 2012

ASIA

According to S&P ratings, China can afford to deliver a round of fiscal stimulus, but warned of making bad investments. The rating agency warned that inefficient spending could impair China’s future. (Economic Times/Reuters)

Chinese firms made record cumulative acquisitions of U.S based co’s of USD 7.8 b on a YTD basis in FY2012 and is expected to surpass USD 8.9 b of deals set in FY2007. The rising wealth in Chinese firms could mean more activity in the M&A market, inspite of a slowdown in the global markets. (Financial Times)

Japan saw its Trade deficit for July widen to JPY 517 b (USD 6.5 b), exceeding forecasts by more than twice the amount on lower exports and shipments to the EU. (Financial Times)

INDIA

DII’s made gross purchases of INR 809.99cr and gross sales of INR 1,040.13cr. FII’s made gross purchases of INR 1,554.76cr and gross sales of INR 1,458.12cr. (Business Standard)

Cairn India – Co. plans to invest around USD 2b over coming two years in the exploration and production of oil and gas, both domestically and abroad. (The Hindu Business Line)

Jaypee Group – Co. is to sell a 51 percent stake in its Gujarat cement plant to Ireland based firm CRH for INR 4200 cr. Jaypee intends to reduce its debt of INR 40000 cr by selling a 51 percent stake in the plant. (Economic Times)

EUROPE

Germany paid zero interest rate on a two-year treasury note (Schatz) versus a minus 0.06 yield at the previous auction conducted in June. German finance agency sold EUR 4.082b worth of two year bonds and received bids worth EUR 6.238b; bid-to-cover ratio stood at 1.5. (Economic Times/AFP)

According to ratings agency S&P, Spain’s request for a sovereign bailout would not directly affect the nation’s credit rating. The agency believes that timely aid would in fact promote government reforms and other fiscal policies in the country. Spain is rated at BBB+ by S&P and bond yields declined to 6.27 percent in trade on the news. (Bloomberg)

According to freight carrier Hapag Lloyd AG, price increases are in container lines are required to offset the rising fuel or bunker costs. Freight co.’s around the industry have suffered from overcapacity on lack of demand. Shanghai, the port which sees the busiest activity has seen a decline of 6.2 percent in freight since the Europe crisis. (Bloomberg)

NORTH AMERICA

According to the Congressional Budget Office, the United States is expected to have a USD 1.1t budget deficit for 2012. The US economy is expected to grow at a modest annual rate of 2.25 per cent. The budget office reiterated it earlier warning of long-term fiscal outlook being uncertain. Also the agency, stated in its report that the U.S could face a double dip recession early next year. Stalemate over policies over the fiscal cliff could weigh negatively on the economy. Lack of strict implementation of tax increases and spending cuts as planned could see the U.S economy declining 0.5 percent in 2013. Unemployment rate could shoot up to 9.1 percent from 8.2 percent currently. (Economic Times/AP/FT)

Sale of existing homes in the U.S rose 2.3 percent to 4.47 m units vs forecasted rise of 4.51 m. The availability of cheaper properties coupled with record low mortgage rates could see a modest recovery in the property markets in the 2HY12 period. Median home prices rose to a 12 month high of USD 187,300 a home vs USD 171,200 previously. (Bloomberg)

ConocoPhillips – Co. to sell its indirect 30 per cent stake in the NaryanMarNefteGaz to its joint venture partner Lukeoil. (Cnbc)

 

 

 

 

 

EQUITY UPDATE: 22 AUGUST 2012

ASIA

CnooC – China’s offshore drilling firm saw its 1HY12 profit decline 19 percent on a y/y basis to RMB 31.9 b vs prv RMB 39.3 b on higher costs and lower gas output. The co. reduced its interim dividend by 40 percent to HKD 0.15 a share to save up for its USD 15.1 b takeover deal of oil firm Nexen. Oil production output declined 4.6 percent to 161 m barrels. The oil spill at its Penglai field contributed to the fall in output. (Financial Times)

Thailand’s 2Q12 GDP expanded 4.2 percent vs growth of 0.3 percent in the prv quarter. The emergence of the nation from the flood crisis affecting it last year saw a strong comeback from sectors such as tourism, manufacturing and construction. (Financial Times)

INDIA

According to the Reserve Bank of India’s minutes, five of the seven external members of the advisory committee favored the governor’s decision to keep interest on hold in July. The advisory committee members were in opposition to the bank’s surprise rate cut in April. (MoneyControl)

The research firm Dun & Bradstreet, expects Indian economy to grow at a 6 per cent rate during the current fiscal.  Research firm cited unsatisfactory progress in monsoon, posed an upside risk to overall inflation. As food prices remained elevated. (MoneyControl/PTI)

FII’s made gross purchases of INR 2,220.91cr and sales of total of INR 2,079.54cr. DII’s made gross purchases of INR 1,022.73cr and gross sales of INR 1,164.37. (Business Standard)

Bharti Airtel – Telecom firm saw its stock downgraded by Morgan Stanley to equal weight from overweight with a price target of INR 280. Pressures on operating margins arising from expansion and higher traffic coupled with intensity in tariff competition could affect the co. further. Lowering 3G rates was also cited weighing on its dismal results. (Economic Times)

ONGC – Offshore drilling firm is to extract geothermal energy from the South Cambay basin in Gujarat with a 50:50 joint venture with Talboom. (Economic Times)

Tata Steel – Co. to pay USD 471.17m to redeem its FCCBs maturing on 5 September 2012. (Business Standard/PTI)

Gail – Co. has cut its stake in ONGC’s Dahej project to 15.5 per cent from 19 per cent as project cost escalated by 9.5 per cent. (Business Standard/PTI)

L&T – Utility and engineering firm’s subsidiary L&T Const. saw its orders received rise to INR 2044 cr in the second quarter period. (Economic Times)

Wockhardt – Pharma firm received US FDA permission to market the generic version of the Felodipine tablets in the U.S.(Business Standard)

Tata Global Beverages – Co.  and European Bank of Reconstruction and Development, together acquired the remaining 49 per cent shares of SuntyCo Holdings. (The Hindu Business Line)

EUROPE

Great Britain posted a budget deficit of GBP 557 m (USD 878 m) vs a surplus of GBP 2.84 b a year ago for the July 2012 period on a y/y basis. Expectations came in at a surplus of GBP 2.2 b. Lower corporate tax collections partly on closure of the Elgin gas field in the North Sea contributed to the deficit. Government spending rose by 5.1 percent and tax revenues declined 0.8 percent. (Bloomberg)

According to PIMCO’s Mohamed El-Erian, capping interest rates to control the borrowing costs of European countries was a not a likely option for the ECB to adopt. Mohamed EL-Erian further added that, capping yield levels signaled unlimited intervention. (Economic Times/Reuters)

Glencore International plc – Miner did not back down to demands from Qatar’s Sovereign wealth fund to improve terms of its takeover plan of Xstrata plc. The sovereign fund is a 12 percent stakeholder in Xstrata which collectively negotiated better terms from Glencore. The deal was stated by Glencore Chief Ivan Glasenberg as not a must-do deal which explains its firm stance. In related news, the co. reported a 26 percent decline in its 1HY12 profit to USD 1.8 b vs exp of USD 1.6 b on lower prices of commodities. The co. declared a dividend of 5.4 cents a share. (Financial Times/Bloomberg)

Julius Baer – Asset management firm plans to reduce its rights issue from Swiss Franc (SFr) 750 m to SFr 500 m on shareholder backlash. (Financial Times)

NORTH AMERICA

Best Buy Inc – Retailer saw its 2Q12 profits drop 91 percent on higher restructuring costs which prompted the co. to suspend its earnings guidance. Shares declined 10 percent to USD 18.16 a share over prv period’s decline of 10 percent over the failure of the co.’s former chairman’s r takeover plans. Sales came in 3 percent lower at USD 10.5 b. Profits came in at USD 12 m vs USD 128 m a year ago. EPS came in at 4 cents vs 34 cents a year ago. Restructuring charges amounted to USD 91 m. EPS excl charges came in at 20 cents vs exp. 31 cents. (Financial Times)

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)

 

 

 

 

 

EQUITY UPDATE: 17 AUGUST 2012

ASIA

Japan would soon overtake China to become the biggest creditor to the U.S as it purchased USD 10.4 b of Treasuries in June to take its total to USD 61.3 b. total holdings in U.S Treasuries came in at USD 1.193 t vs China’s USD 1.164 t. (Bloomberg)

South Korea’s jobless rate declined marginally to 3.1 percent in July vs 3.2 percent in June. Expectations came in at 3.3 percent. The decline was contributed by rise in the no. of self-employed workers and rise in service-sector jobs. (Reuters)

China National Gold Group Corp – Precious metals mining firm is in early talks to purchase Barrick Gold Corp’s 73.9 percent stake in mining firm African Barrick Gold plc. (Bloomberg)

China Mobile – Co. reported lower than expected 2Q12 profit at RMB 54.40 b (USD 5.4 b) vs RMB 34.42 b a year ago, based on its 1HY12 earnings data. The co. saw its sales rise to RMB 139.1 b vs USD 131.9 b in the quarter a year ago. Estimates came in at RMB 140.5 b. The co. saw higher costs on attracting new customers amid slowdown in the economy. (Bloomberg)

INDIA

DII’s made gross purchases of INR 1,259.33cr and sales of INR 1,034.03cr. FII’s made gross purchases of INR 2,447.90cr and sales of totaling at INR 2,352.89cr. (Business Standard)

Indian oil marketing co.’s (OMCs) are faced with losses of INR 450 cr a day on rising prices of crude oil in the international markets and the fall of the rupee. Since the OMCs purchase oil, diesel and cooking gas at international rates and sell them at government-controlled rates, the difference in prices would see losses widen if it does not receive timely subsidies from the government. (Business Standard)

Maruti Suzuki – Co. to restart its Manesar plant on 21 August and said it is planning to remove 500 contract workers over their alleged involvement in the violence.  Co. to make 150 cars a day at its Manesar plant. (Times of India/PTI/Reuters/Yahoo)

Bank of Baroda – Nomura downgraded co. to a ‘reduce’ from ‘neutral; price target cut to INR 590 from INR 628. According to Nomura co.’s asset quality will continue to impacts its earnings growth over the next several quarters, and increased its delinquency forecast for fiscal 2013 and its loan loss provisioning forecast for fiscal 2012. Also expected change in top management later in 2012 reiterate the asset quality risk to earnings. (Economic Times/Reuters)

Punjab National Bank – Nomura downgraded co. to a ‘reduce’ from ‘neutral; price target cut to INR 680 from INR 719. Nomura expected loan delinquency to continue to increase over the next few quarters. (Economic Times/Reuters)

Wockhardt – Co. got US FDA approval to market Clopidogrel bi-sulfate tablets, used to help reduce risk of heart attack or stroke, in 75 mg strength. Co. also got a tentative nod for the 300 mg strength tablets. (MoneyControl)

Tata Motors – Co.’s July global sales at 101,605 units, up 21 per cent. (The Hindu Business Line)

Gitanjali Group – Co. acquired 15.3 per cent stake in Japanese firm Verite for INR 25cr. (Indian Express)

INDIAN EARNINGS

Nalco – Co. reported 1Q12-13 net profit at INR 223cr vs. previous 1Q11-12 net profit at INR 377cr. Net sales at INR 1,718cr vs. previous INR 1,733cr. (Yahoo/IANS)

RINL – Co. reported 1Q12-13 net profit at INR 150cr vs. previous 1Q11-12 net profit at INR 74cr. Turnover at INR 2,976cr vs. previous INR 2,582cr. (Financial Express)

ABG Shipyard – Co. reported its 1Q12-13 net profit at INR 41.31cr vs. previous 1Q11-12 net profit at INR 40.06cr. (Business Standard)

Jain Irrigation – Co. reported 1Q12-13 net loss of INR 16cr vs. previous 1Q11-12 net profit at INR 82cr. Sales at INR 865cr vs. previous INR 951cr. (The Hindu Business Line)

EUROPE

Spain’s exports touched EUR 18.9 b (USD 23.2 b), exceeding imports by EUR 1.2 b for the period of June 2012. The county still faces risk of declining exports as demand for its goods mainly comes in from Europe, which is still in recession. Besides, the exporters are not receiving adequate financing and incentives from the government, which itself is reeling from severe austerity cuts. Imports have declined to EUR 21.6 b in June vs EUR 21.4 b two years ago. The marginal rise is due to lack of domestic demand, which can be a worrying factor. (Reuters)

According to the Bank of England policy maker Martin Weale, the British economy was mired in stagnation rather than recession. The European debt crisis was the biggest source of uncertainty. The BOE policy maker was of the opinion that, squeeze on household spending through rising fuel prices was coming to an end. (Economic Times/Reuters)

ArcelorMittal – Steel mining giant is planning to hold discussions with the Indian government to expedite the procurement of a mining lease for its proposed INR 50,000 cr plant in Jharkhand, India. (Economic Times)

Airbus – Co. saw a loss of 10 A-380 aircrafts amounting to USD 3.8 b as Hong Kong airlines wound up its first class business category flight services. (Financial Times)

NORTH AMERICA

Construction of New homes in the U.S declined 1.1 percent to 746,000 vs June’s 754,000, falling below estimates of 756,000. The decline was offset by a rise in building permits to 812,000, its highest since 2008. The mixed data of low mortgage rates, decline in foreclosures, rising hiring and access to cheaper credit could show signs of an improvement in the property markets in the 2HY12 period. Construction of single-family homes declined 6.5 percent to 502,000 and multi-family home construction rose to 244,000, a five month high in 2012. (Bloomberg)

U.S initial jobless claims rose marginally by 2000 applicants to 366,000 for week ended 11 August vs prv week’s revised 364,000 vs exp rise to 365,000. The less volatile four week moving average declined to 363,750, a sign that labor markets picked up in July after the temporary layoffs caused by the auto plant maintenance activity. Unemployment rate remained at 8.3 percent. People on continuing jobless benefits declined by 31,000 to 3.31 m for week ended 4 August. (Bloomberg)

Ford Motors – Co.’s EU sales down 12.3 per cent at 83,100 units from a year earlier. YTD sales down at 10.6 per cent. Industry sales down 7.1 per cent through July, the lowest since 1995. (Boston.com/AP)

NORTH AMERICAN EARNINGS

Walmart – Retailer’s rising profits were reduced on unfavourable movements in the exchange rates which affected its revenues from international operations. Profits came in at USD 4 b, a y/y rise of 5.7 percent. EPS came in at USD 1.18 a share, marginally exceeding expectations. Revenues came in at USD 114.3 b vs exp USD 115.8 b. U.S like-for-like sales rose 2.2 percent on a y/y basis. Revenues from its global operations rose 4.5 percent to USD 113.5 b. The co. plans to expand its operations in markets such as Mexico, China and Brazil. (Financial Times)

7 banking firms have been issued subpoenas from U.S State prosecutors in the context of rigging the Libor rates. Banks summoned will be HSBC, Deutsche Bank, Citigroup, J P Morgan, UBS, RBS and Barclays. (Financial Times)

Brazil will implement a Brazilian Rias (BRL) 133 b (USD 66 b) worth of stimulus measures to increase investments in the nation to prop up the economy. The government plans to grant concessional opportunities on rail and roadways construction. Slowdown in the economy combines with shortage of skilled labour raised inflation and contributed to a slowdown in the economy. (Financial Times)

Cisco – Networking equipment manufacturer saw its profits and revenues rise that it raised its dividend and full year earnings estimate. Revenues rose to USD 11.7 b, exceeded estimates of USD 11.6 b. EPS came in at 47 cents vs exp. 45 cents, all on a pro forma basis. Cost cuts and prudent utilization of its resources saw the co. raise its FY12 forecasts at USD 46 b and EPS to 1.85 a share. The co. raised its dividend for the next quarter to 14 cents, a 75 percent increase. (Financial Times)

 

 

 

 

EQUITY UPDATE: 11 AUGUST 2012

ASIA

Singapore’s GDP declined 0.7 percent in the 2Q12 period on a q/q basis. Preliminary estimates pegged the GDP to decline 1.1 percent. (Bloomberg)

INDIA

Issuance of structured notes in India declined more than 70 percent to INR 5.88 b (USD 106 m) in the 1HY12 period on a y/y basis. Stricter regulations aimed at risk minimization and investors avoiding securities linked with co.’s not performing well in the equity markets was cited as some of the major factors contributing to the declining volumes. (Bloomberg)

GMR Infra – Co. received approval from its Board to raise INR 2500 cr through issuance of fresh equity or bonds. The co. aims at issuing equity, depository receipts, foreign currency convertible bonds to raise the required amount. (Business Standard)

Some of the FII’s investing in India have decided to surrender their licenses on SEBI’s tightening market norms. The move by SEBI to identify FII’s into similar groups based on their investments affected FII’s with multiple operating licenses prompting them to cease operations. As per Indian law, FII is permitted to hold a maximum stake of 10 percent in a co and would now on count an owner’s investments in a co. through multiple sub-accounts into a single one. The no. of FII’s registered with SEBI have declined to 1756 from 1781 in March. (Business Standard)

According a BNP Paribas Securities report, FII’s nought USD 10.7b of Indian equities till August, the highest ever on a year to date basis.(Economic Times)

Maruti Suzuki India Ltd – Co. is most likely to decide this weekend on its decision to resume operations at its Manesar plant. The plant was shut on account of violent clashes between the workers and the management and is expected to resume operations early next week. (Economic Times)

Indian Oil Corporations – According to Moody’s, co.’s refining margins declined more than expected. Margins capped at USD 4 a barrel for the full year ending FY13. (Economic Times/PTI)

Tata Motors – Fitch rating affirmed co.’s and JLR’s rating at ‘BB’ and ‘BB-‘; with outlook stable.  (MoneyControl)

Reliance Infra – Co. has been shortlisted for various national level road projects worth INR 40,000 cr. (Business Standard)

INDIAN EARNINGS

Sun Pharma – Co. reported 1Q12-13 net profit at INR 795.55cr vs. previous 1Q11-12 net profit at INR 501cr. Net Sales at INR 2,658.14cr vs. previous INR 1,635.72cr. Co.’s board declared an interim dividend of INR 4.25 per share of INR 1 each. (Financial Express)

Siemens India – Co. reported 3Q11-12 net profit at INR 36.42cr vs. previous 3Q10-11 at INR 154.77cr. Sales at INR 2,793cr, up 2 per cent. (Financial Express)

Novartis India – Co. reports 1Q12-13 net profit at INR 26.98cr vs. previous 1Q11-12 net profit at INR 37.57cr. Net sales at INR 219.52cr vs. previous INR 200.13cr. (Financial Express)

Eros International – Co. reported 1Q12-13 net profit at INR 31.7cr vs. previous 1Q11-12 at INR 21.7cr. Total income at INR 259.cr vs. previous INR 162.2cr. (Economic Times/PTI)

EUROPE

Greece’s Public Debt Management agency to auction EUR 3.125b in short term debt to pay off a EUR 3.2b bond repayment due on August 20. (Boston.com/ AP)

Julius Baer Group Ltd – Swiss investment management firm is almost finalizing a takeover of Bank of America Corp’s Merrill Lynch wealth management business outside the U.S. The total buyout could be valued at USD 2 b. (Bloomberg)

KKR & Co. – PE firm’s investments in European distressed debt rose almost twice as much over the previous year as banking institutions have cut back on lending activities amid the crisis. KKR increased its investments to USD 512.5 m in 1HY12 vs USD 260 m a year ago. Lending in the euro region declined to high yield borrowers globally excl. U.S to USD 104 b vs USD 139.4 b a year ago. (Bloomberg)

NORTH AMERICA

According to Philadelphia Federal Reserve’s survey of 48 forecasters, showed that 3Q GDP annual growth rate at 1.6 per cent  versus previous estimate of 2.5 per cent in May. real GDP growth at 2.2 per cent in 2012 versus a previous growth forecast of 2.3 per cent. FY 2013 real GDP forecast at 2.1 per cent, 2.7 percent in 2014, and 3.1 percent in 2015.(Reuters/Philadelphia Fed)

Prices of imported goods in the U.S declined 0.6 percent in July vs 2.4 percent decline in June on lower costs of fuel and food. Expectations came in at a price rise of 0.2 percent. Prices excl. fuel declined 0.4 percent. Petroleum products saw a 1.6 percent decrease in their prices vs 12 percent decline a year ago. (Bloomberg)

EQUITY UPDATE – 9 AUGUST 2012

ASIA

Cathay Pacific Airways Ltd – Co. reported its 1HY12 results at a loss of HKD 935 m (USD 121 m) vs exp. Profit of HKD 490 m vs. profit of HKD 2.8 b a year ago, on lower freight traffic, higher fuel costs and decline in demand for premium travel. Slowdown in global trade led to declining volumes and intense competition from other airline firms reduced its profit margins. Stock price declined 4 percent to HKD 12.36 in trade and will not pay an interim dividend to shareholders. Cargo revenues declined 7.6 percent to HKD 11.9 b on 64 percent of luggage capacity, which was lower than the previous period. Sales rose 4.4 percent to HKD 48.9 b. (Bloomberg)

INDIA

According to a FICCI survey of 418 manufacturing units and associates, the July-September quarter is expected to register lower growth as compared to the previous quarter. (Business Standard/PTI)

FII’s made gross purchases of INR 2,751.60cr and gross sales of INR 1,637.39cr. DII’s made gross sales of INR 794.71cr and gross purchases of INR 928.83cr. (Business Standard)

Coal India – Co. to supply 8.8 per cent more coal in FY 12-13. The co. is expected to supply 470m tons of coal in the current fiscal compared to 432.94m tons in FY11-12.  (Yahoo/Reuters)

Maruti Suzuki India Ltd – According to industry body Assocham, the ongoing strike at the firm’s Manesar factory is expected to cost the co. upto INR 90 cr a day as the impending strike continues. The strike has affected around 650 units and could affect around 270 auto parts suppliers. (Economic Times)

INDIAN EARNINGS

Oil India – Co. reported 1Q12-13 net profit at INR 929.93cr vs. previous 1Q11-12 net profit at INR 849.61cr. Turnover up 8.22 per cent at INR 2,439.63cr. 1Q12-13 fuel subsidies at INR 2,015.52cr vs. previous INR 1,780.65cr. (Financial Express)

Mahindra – Co. reported 1Q12-13 net profit at INR 726cr.vs expected INR 625cr. Total revenue came in at INR 9248cr. vs estimated INR 9045 cr. M&M’s exports in 1Q12 were up by 37% to 7,845 units. EBITDA margin decreased by 150 basis points on a q/q basis to 11.80 percent for the 1Q12 period.  (Moneycontrol)

Tata Power – Co. reported 1Q12-13 net profit at INR 312.30cr vs. previous INR 281.56cr. Total income from operations at INR 2284.10cr vs. previous INR 1,921.24cr. (Financial Express)

Abbott India – Co. reported 2Q12 net profit at INR 29.52cr vs. previous 2Q11 net profit at INR 17.10cr. Net sales at INR 402.83cr vs. previous INR 351.50cr. (Business Standard/PTI)

Puravankara Projects – Co. reported 1Q12-13 net profit at INR 50cr vs. previous 1Q11-12 net profit at INR 31cr. Revenue at INR 248cr vs. previous INR 191cr. (Financial Express)

United Breweries – Co. reported 1Q12-13 net profit at INR 1.32cr vs. previous 1Q11-12 net profit at INR 1.88cr. Net sales at INR 98.64cr vs. previous INR 70.03cr. (Financial Express)

EUROPE

Germany’s exports for June declined 1.5 percent vs May’s gain of 4.2 percent vs expectations of a gain of 1.3 percent. Falling demand in the euro zone, which is Germany’s biggest markets, contributed to lower exports. The trade surplus rose to EUR 17.9 b vs EUR 15.6 b in May. Current account surplus rose to EUR 16.5 b vs EUR 8.1 b a month ago. The data rose on account of rising wages in the country coupled with low unemployment levels. (Bloomberg)

Germany’s Industrial Production declined 0.9 percent in June on a m/m basis on lower output from the construction sector. Expectations came in at a decline of 0.8 percent. Factory orders declined more than twice as forecasted. Manufacturing output declined 1 percent, while capital goods saw lower output by 1.6 percent. Construction sector saw its biggest fall in June’s data to 2 percent vs 2.6 gain in May. (Bloomberg)

Bank of England’s Governor Mervyn King supported U.K Prime Minister’s budget curtailment plans as he stated that growth in the UK would be a slow process. He also lowered his GDP forecast for the coming two years that it would expand by 2 per cent , lower than his earlier forecast of 2.5 percent expansion in May. Lack of policies undertaken by the government could also substantiate this lower forecast. Bond purchases would continue for the same level and that interest rates could be reduced in the 2Q13 period. (Bloomberg)

According to the French central bank, French GDP was expected to shrink 0.1 per cent in the 3Q12. (Reuters)

Greece’s credit rating could be cut further from CCC by S&P on concerns that the nation would need more than expected financial assistance from the EU. The outlook on the credit rating was lowered from stable to negative. The nation is deadlocked in talks with the international troika of IMF, ECB and EC to decide on the funding available to the nation. (Bloomberg)

ArcelorMittal – Fitch downgraded co. to ‘BBB-‘ from ‘BBB’, citing challenging short-term outlook for steel markets, particularly in Western Europe. (FoxBusiness)

 

 

 

 

EQUITY UPDATE – 8 AUGUST 2012

INDIA

Rating agency CRISIL reduced it’s forecast for India’s GDP growth in FY12-13 to 5.5 percent from 6.5 percent. Rainfall deficiency and the worsening of the Euro zone crisis are the major factors which could affect GDP, it cited. The agency noted that it expects the Indian economy to attract lower foreign capital inflows compared to its earlier estimates. The rupee was also expected to settle around 53 to the US dollar vs 50 earlier.  The report also revised up its average WPI inflation forecast for 2012-13 to 8.0 percent from 7.0 percent. (Moneycontrol)

According to Dun and Bradstreet Indian CFO survey, macro-economic conditions in India are likely to remain ‘unfavourable’ or remain unchanged in the July-September quarter. Around 73 per cent candidates surveyed were pessimistic or neutral about the macro-economic outlook during 3Q12. (Financial Express)

The Micro and Small Medium Enterprise (MSME) Additional Secretary opposed IKEA’s plan to set up operations in India if it did not source 30 percent of its supplies from domestic industries. With IKEA lobbying for 100 percent FDI, it also was keen on avoiding compulsory sourcing from domestic markets on various investment and cost concerns. (Economic Times)

According to RBS private banking, Nifty index is expected to hit 5,700 level by December 2012. The forecast is based on investor-friendly policy reforms, a 0.50 per cent rate cut by RBI post-September, improvement in fiscal and revenue deficit and a third round of QE from United States. The report also highlighted that a stronger growth in developed world, an enhanced QE programme and a firmer domestic growth could take nifty beyond 6,200 mark. However in an opposite scenario, if US growth falters and disappoint on the QE front, and policy paralysis could take nifty to 4,900 levels. (Economic Times/PTI)

FII’s made gross purchases of INR 2,455.56cr and sales of totalling INR 1,639.61cr. DII’s made gross purchases of INR 1,234.50cr and sales totalling INR 1,179.26cr. (Business Standard)

Reliance Industries/British Petroleum plc – Co.’s received a conditional approval for over USD 1 b of investments in the KG-D6 basin to raise output at these fields. It was also asked by the management Committee to drill additional wells to confirm oil discovery at three wells in the Krishna Godavari basin. (Economic Times)

Coal India – Mining co. agreed to pay a penalty on its failure to provide adequate supply of coal to Indian power projects which resulted in a shortfall ranging from 1.5 percent to 40 percent. It would also negotiate with the Central Electricity Authority on combining prices of imported and domestic coal to market it to customers.  In other news, co. plans to import 20m tons of coal in the current fiscal to bridge the supply shortage. (Economic Times/Fox Business)

Jet Airways – Co. to hive-off its loyalty programme ‘JetPrivilege’ into a wholly-owned subsidiary. (Economic Times/PTI)

Lanco Infratech – Crisil downgraded the rating on co.’s bank facilities to ‘BB’ from ‘BBB’. The rating agency cited relative less time left to meet the debt payment of INR 700cr between October 2012 to January 2013. (Business Standard)

Kingfishers Airlines –  According to a source, co.’s pilots and engineers has decided not to report to work from tomorrow (8^th August), due to non payment of salaries. (Financial Express)

INDIAN EARNINGS

Punj Lloyds – Co. reported 1Q12-13 net loss of INR 13.37cr vs. previous net loss of INR 12.25cr. Net sales of at INR 2,706.82cr vs. previous INR 2,248.31cr. (Business Standard/PTI)

Sobha Developers – Co. reported 1Q12-13 net profit at INR 45cr vs. previous INR 26cr. Total operating income at INR 433.2cr vs. previous INR 277.7cr. (Business Standard/PTI)

NHPC – Co. reported 1Q12-13 net profit at INR 669.81cr vs. previous INR 791.05cr. Total income at INR 1,729.53cr vs. previous INR 1,666.89cr. (The Hindu Business Line)

Bombay Dyeing – Co. reported 1Q12-13 net loss at INR 27.50cr vs. previous net loss of INR 39.79cr. Net sales at INT 465.73cr vs. previous INR 394.84cr. (Financial Express)

EUROPE

According to Eurogroup’s President Jean-Claude Junker, the exit of Greece from the eurozone would still be manageable inspite of the risks it posed to the citizens of the country. He ruled out an exit as early as autumn. (Reuters)

A Fitch rating’s investor survey showed that, European fixed-income investors expected eurozone to resist pressures and stay intact. Around 21 per cent respondents expected Greece and possibly one or two more countries to exit the EU. However, according to the rating agency, full break-up and demise of the euro was highly unlikely, because of the huge costs and the strong political commitment anchored to the EU. (Economic Times/Reuters)

Switzerland’s foreign reserves swelled to Swiss Franc (SFr) 406 b (USD 419.7 b) in July as its central bank purchased huge amounts of euros to prevent the franc from strengthening against it. The Swiss National Bank had targeted a rate of 1.20 to the euro as the ceiling exchange rate. Euro holdings of the bank rose to 60 percent of its total reserves in the 2Q12 period vs 51 percent in the 1Q12 period. With inflation still lower in the country, the central bank is expected to channel the euro funds into other currencies. (Financial Times)

Xstrata Plc – Miner reported 1HY12 operating profits at USD 2.5 b, a 42 percent decline on a y/y basis, but came above expectations of a decline of more than 50 percent. EPS excl items came in at 73 cents, down 25 percent on a y/y basis. The co. stated that it would cut down on various fixed costs as slowdown in the economy affected demand, which affected commodity prices. The co. saved around USD 105 m through various cost cutting measures. The co. would also postpone its planned USD 1 b capex plans on opposition from investors to curtail spending. Capex would now be reduced to USD 7.2 b. (Financial Times)

Munich Re – German reinsurer saw its profits exceed expectations on lower outlays arising from claims. Profits for 2Q12 came in at EUR 808 m vs EUR 736 m a year ago. Gross premiums rose 5.5 percent to EUR 12.6 b, a reason which contributed to higher profits. The co. saw its 1HY12 earnings come in at EUR 1.60 b and hence raised expectations of exceeding its targeted profit of EUR 2.5 b stated earlier. EPS for the quarter came in at EUR 4.54 a share vs EUR 4.14 previously. (Financial Times)

Standard Chartered plc – Shares of the bank declined 25 percent in trade on charges of conducting illegal transactions worth USD 250 b with Iranian entities. The bank’s shares to GBP 1195 pence a share in trade and would have time until 15 August to respond to charges against it. Adverse consequences would mean that the firm could lose its license to operate in the United States. (Financial Times)

NORTH AMERICA

According to Fed’s Eric Rosengren,  has suggested that Fed should launch an aggressive open-ended bond buying program , which would continue until economic growth picks up and unemployment starts falling again. (WSJ)

Citigroup – Co. could have to take a writedown of USD 6 b during this quarter on the valuation of its retail brokerage unit formed with Morgan Stanley. Citi valued the joint venture business at USD 22 b while Morgan Stanley pegged it at USD 9 b. The two firms disagreed on the valuation of the brokerage business and a third party appraiser would be appointed to evaluate the outcome. (Reuters)

Facebook Inc – Social networking provider will provide online wagering games to users in U.K with games such as bingo and slot machine online games. Regulations would not permit the co. to start its operations in the U.S, where it generates most of its revenues from. (Financial Times)

GLOBAL

According to research firm Gartner, global expenditure on IT outsourcing projects is expected to rise 2.1 percent to USD 251 b in FY2012 vs USD 246 b a year ago. The advent of cloud computing, expected to grow 48 percent to USD 5 b vs USD 3,4 b prev, would make a significant contribution to outsourcing outlays. (Economic Times)

 

 

 

 

 

EQUITY UPDATE – 7 AUGUST 2012

ASIA

China Vanke Co. – Property developer reported 1HY12 profit to RMB 3.73 b (USD 585 m) vs RMB 2.98 b a year ago. EPS came in at RMB 0.34 a share vs RMB 0.27 a share a year ago. Revenues rose 54 percent to RMB 30.72 b as co. cut its property prices by 10.6 percent on average to increase sales in a market under strict government regulations. (Bloomberg)

Taiwan Semiconductor Manufacturing Co. – Co. will infuse EUR 1.11 b (USD 1.4 b) in ASML Holding NV for a 5 percent stake to develop technology in lithography. TSMC would join Intel Inc which has already acquired a stake in the co through a USD 4.1 b investment. (Bloomberg)

According to a report by UBS AG, China’s stock index is expected to rise 20 percent by the end of FY12. The firm also expects another rate cut by the central bank to stimulate the economy. (Bloomberg)

HTC Corp – Taiwan based smartphone manufacturer saw its stock price decline almost 7 percent to NTD (New Taiwan Dollar) 258.50 as it forecasted lower than expected revenues for the 3Q12 period. Estimates came in at NTD 70 – 80 b vs expectations of NTD 87 b. The co.’s One Series is expected to face stiffer competition from Samsung’s Galaxy phone which could be one of the reasons for the lower estimate. (Reuters)

INDIA

According to Fitch, the outlook on the Indian real estate sector will continue to be negative in second half of 2012. The rating agency cited the persistence of sluggish demand, high construction costs and liquidity pressures. High property prices and elevated inflation to keep demand sluggish. Further to this Fitch said that, real estate companies will continue to face margin compression from high construction costs for building materials and labour. (Financial Express)

The rating agency Fitch, downgraded its outlook on the Indian retail sector to ‘negative’ from ‘stable’. Fitch cited sustained deterioration in discretionary spending, which was unlikely to improve over the short-term. In addition to this, the funding requirement of most retailers were likely to increase, due to store expansions and possibly higher inventory-holding periods. Also private final consumption expenditure was the weakest in last seven years. (Business Standard/PTI)

FII’s made gross purchases of INR 1,738.14cr and made gross sales of INR 1,182.41cr. DII’s made gross purchases of INR 876.85cr and gross sales totalling INR 881.08cr. (Business Standard)

According to Bank of America Merrill Lynch, the worst was not over for rupee, as it stuck to it September end forecast of USD /INR at 57. The bank believed global risk flows and uncertainty over reforms will keep confidence fragile. (Yahoo/Reuters)

ICICI – ICICI ventures to sell its property in central Mumbai, according to sources. The deal is expected to fetch around INR 180cr. (MoneyControl/CNBC-TV18)

SAIL – A consortium of firms led by SAIL plan to make an investment of USD 75 m in the Hajigak iron ore mines in Afghanistan. (Economic Times)

INDIAN EARNINGS

DLF – Co. reported 1Q12-13 net profit at INR 292.79cr vs. previous 1Q11-12 net profit at INR 358.36cr. Consolidated income from operations at INR 2,197.71cr vs. previous INR 2,445.82cr. (Financial Express)

Essar Shipping – Co. reported 1Q12-13 net profit at INR 53.90cr vs. previous 1Q11-12 net profit at INR 18.83cr. Revenue at INR 925.18cr vs. previous INR 670.31cr. (Financial Express)

EIH – Co. reported 1Q12-13 net profit at INR 9.45cr vs. previous INR 15.45cr. Total income from operations at INR 241.55cr vs. previous INR 231.37cr. (Business Standard/PTI)

Uttam Galva – Co. reported 1Q12-13 net profit at INR 10.24cr vs. previous net profit at INR 9.10cr. Net sales at INR 2,057.72cr vs. previous INR 1,533.21cr. (Business Standard/PTI)

Cadila Healthcare – Co. reported 1Q12-13 net profit at INR 194.79cr vs. previous 1Q11-12 net profit at INR 229.82cr. Net sales from operations at INR 1,516.10cr vs. previous INR 1,173.51cr. (Financial Express)

Wockhardt – Co. reported 1Q12-13 net profit at INR 377.97cr vs. previous INR 193.96cr. Consolidated net sales at INR 1,425.82cr vs. previous INR 1,053.21cr. (Economic Times/PTI)

Britannia Industries – Co. reported 1Q12-13 net profit at INR 43.45cr vs. previous INR 41.80cr. Net Sales at INR 1,221.62cr vs. previous INR 1,102.97cr. (Financial Express)

EUROPE

The standoff between the ECB and the European Union over the provision of a bailout package to Italy and Spain could see a breakup of the eurozone, said Italian PM Mario Monti. The leaders of Spain and Italy will await the ECB’s plan of action on government bond purchases as they fear that a request for a full fledged bailout package could mean imposition of ECB’s strict conditions and austerity measures. (Bloomberg)

Greece and the troika of the European Commission, ECB and IMF have reached an agreement on the need for stronger policies to stabilize the economy. The discussions follow two weeks of talks to determine whether the nation would continue to receive international funding worth EUR 240 b from the rescue funds designed for the crisis. The country would have to reduce its budget for 2013 and 2014 by EUR 11.5 b in order to receive international aid. (Bloomberg)

Siemens AG – Co. won a INR 1988 cr supply contract from India-based miner NMDC. The project, which involves the construction of a steel plant in Chattisgarh, India, is expected to be completed by HY2015. (Economic Times)

Standard Chartered plc – Co. could have its U.S unit suspended over allegations that it conducted over USD 250 b worth of transactions with Iranian entities which violated money laundering laws. The imposition of sanctions on Iran saw most banks curtail or stop its funding or lending activities to Iran. (Bloomberg)

NORTH AMERICA

According to Federal Reserve Chairman Ben Bernanke, broader economic data, which may point to a recovery in the U.S, the economy could still witness subdued consumer spending and business activity. He stated that the financial conditions in the country had still not improved as individuals and businesses continue to witness lower demand. (Reuters)

Lending by banks in the U.S rose to its highest since June 2009 to USD 7.1 t for week ended 25 July 2012. New auto loan issuance saw a 56 percent rise to USD 134 b for the Jan-Apr period on a y/y basis over 2009. Easier regulations to access credit for buyers of automobiles could have contributed to the higher lending data amongst other reasons. (Bloomberg)

Best Buy Co. – Co.’s founder Richard Schulze has offered to purchase the co. at USD 24 – 26 a share valuing the deal at around USD 8.5 b. Schulze could finance the deal with USD 1 b in equity contribution from the stake sale in which he owns 20 percent. The rest of the funding would be through PE firms. (Bloomberg)

Knight Capital Group – Electronic trading firm received funding worth USD 400 m in cash through sale of convertible securities. The sale of these instruments is due to make do for the huge losses it suffered due to software errors during a trading session on 1 August 2012. (Bloomberg)

WEEKEND EQUITY UPDATE: 4 AUGUST 2012 TO 5 AUGUST 2012

INDIA

FII’s investing through the Mauritius route has exited their holdings in about 24 Indian companies in FY12 on a YTD basis. Co.’s such as Yes Bank, Axis Bank, Bajaj Hindustan all saw selling pressure from the FII’s who have exited their positions from these companies. The total value of the sale of shares is about INR 3000 cr. (NDTV Profit)

According to the Centre for Monitoring Indian Economy (CMIE), an economic research organization, profits of Indian firms are expected to rise by around 25 percent in the FY13 period on lower commodity prices and stable interest rates. FY12 saw profits decline by 0.6 percent. The organization also stated that firms would have incorporated the impact of the fluctuation in the Rupee as well as compared to the previous fiscal. (NDTV Profit)

Indian foreign exchange reserves increased by USD 1.3b to USD 288b over the week ended 27 July. Foreign currency assets at USD 256b, gold reserves 25.7b, drawing at USD 4.3b and reserve position at the IMF at USD 2.1b. (Business Standard)

The top eight companies on the Sensex saw their market capitalization rise by INR 35,882 cr for week ended 3 August 2012. NTPC gained the most by adding INR 10,926 cr with Reliance Industries following the firm. SBI, Infosys, ONGC also rose but Coal India and Bharti Airtel saw a decline in their values. (Economic Times)

Coal India Ltd – Co. has entered into a fuel supply agreement with 29 power plants in India to supply these firms with fuels for power generation, based on a directive from the Indian Government. The co. will also import around 20 m tonnes of coal to meet the supply shortage gap. (Economic Times)

Jindal Steel and Power – Co. is in advanced talks to plan an investment of INR 100,000 cr to expand output at its plants in Raigarh and construct new plants in Odisha and Jharkhand in India. The total expected output by 2020 is about 20 m tonnes per annum, as stated by Chairman Navin Jindal. (Economic Times)

Emami – FMCG firm has voiced concerns that rising costs of raw materials and a higher inflation could affect the firm in FY12-13 period. However, the co. plans to implement certain cost efficient measures and strengthen its distributor network to overcome these challenges. (Economic Times)

NTPC – India’s power producer would conduct capital expenditures of INR 138,000 cr on various power projects to increase its power output to 27,000 megawatts. A total of INR 95,965 cr would be funded from issuing debt securities. (Economic Times)

Maruti Suzuki – According to Haryana Chief Minister Bupinder Singh Hooda, expected co.’s Manesar plant to resume production shortly. However he did not provide a time-line for the plant to resume its activities. (Financial Express)

Jet Airways – FII holdings in co. increased from 6.70 per cent to 7.12 per cent during the 1Q12-13. (Economic Times/PTI)

Kingfisher Airlines – FII holdings in co. increased from 0.34 per cent to 0.98 per cent during the 1Q12-13. In others news, Airport Authority of India (AAI) has refused aircraft lessors to take back their aircrafts leased to co., as co. owes INR 300cr to AAI.  (Economic Times/PTI/The Hindu Business Line))

SpiceJet – FII holdings in co. increased from 2.61 per cent to 3.59 per cent during the 1Q12-13. (Economic Times/PTI)

EUROPE

According to Italian Prime Minister Mario Monti, the Italian Government did not require German cash to recover from its current situation. (Reuters)

The Spanish finance minister Luis de Guindos, the Spain had covered 70 per cent of its 2012 financing need and will wait for clearer guidelines from ECB, before requesting for aid. (FoxBusiness DowJones Newswire)

Yields on Spanish two-year notes declined 1.35 percent to 3.96 percent and 10 yr bonds fell below 7 percent on speculative news of the ECB buying short-term bonds to calm the bond markets. Spain’s bonds returned -6.3 percent while German debt provided returns of 4.5 percent and Italy with 6.5 percent. (Bloomberg)

According to the inspectors from IMF, the European Commission and the European Central Bank said that, Greece had made some progress in finding budget cuts needed to continue its bailout programme. However the international inspectors said that, not all work had been done and inspectors will return early September for a final verdict. Greece has a EUR 3.2b bond maturing in August. (The Telegraph UK)

Standard and Poor’s downgraded Slovenia’s long term credit rating to ‘A’ from ‘A+’; short term rating affirmed at ‘A-1’. Outlook: negative. (Economic Times/AFP)

Marks & Spencer – According to an Sunday Times reports, Bank of America Merrill Lynch have been assessing possibilities of providing debt financing for a speculative bid for co. Co. is been viewed as a GBP 6b bid target, as shares in co. have tumbled 50 per cent since 2007. (FoxBusiness/Sunday Times)

NORTH AMERICA

U.S Trade Deficit for June is expected to have lowered as the nation imported less oil  and slower growth reduced demand for U.S made goods abroad. Data due on 9 August forecasts deficit to come in at USD 47.5 b vs USD 48.7 b in May. Lower outlay on imports are due to lower prices of crude oil and lower exports due to slowing economies in Asia and Europe exhibiting lower demand for U.S made goods. (Bloomberg)

Boeing Co. – Airplane manufacturer secured orders to conduct the sale of 94 single-aisle 737 airplanes to Asian airline firms including 54 jet deal with Singapore Airlines Ltd. The deals are expected to touch USD 8.4 b. (Bloomberg)