What's Happening, and Where, on Jun 4.

Indicators
* Nse Provisional Net Buy/(Sale) In Bln Rupees, June 3: Fii 5.75, Dii 1.00
* Institutional Net Buy/(Sale) In Bln Rupees, June 2: Mf (1.20)
* Fii Nse Futures Net Buy/(Sale) In Bln Rupee, June 3: Index (1.32), Shr 5.44
* Sensex 24858.59, Up 173.74 Points; Nifty 7415.85, Up 53.35 Points
* Crude: $102.66/Bbl; Rupee: 59.38/$1; Gold: $1,244.1/Ounce; 10-Yr Yld: 8.5978%

Global Stock Markets
* Us: After Gaining For Three Consecutive Sessions, Us Indices Retreated From All Time Highs On Tuesday, Ending Marginally In The Red.
* Asia: Most Asian Indices Were Trading Down Amid Weak Cues From Us Markets Overnight.

Sector News
* Banking: The Finance Ministry Is Mulling Creation Of A National Asset Management Company To Take Over Big Non-Performing Assets Of Banks. The Finance Ministry Discussed Various Options To Capitalise State-Owned Banks, Including Reducing Government's Stake In Some Banks Below 58%.
* Courts: The Supreme Court Will Today Pass Its Order On Whether To Allow Sahara Group To Sell Properties, Including Three Hotels In London And New York, And On Group Head Subrata Roy's Plea For Release From Jail.
* Government: Prime Minister Narendra Modi's Meeting With Secretaries Of All The Departments Scheduled Tuesday Has Been Postponed. Ahead Of The Full Budget, Ministers For Railways And Civil Aviation, D.V. Sadananda Gowda And Ashok Gajapathi Raju Met Finance Minister Arun Jaitley At The Latter's North Block Office.
* Weather: The Australian Bureau Of Meteorology Sees A 70% Chance Of El Nino Developing This Year In The Tropical Pacific Ocean And Expects The Weather Phenomenon To Be Established By August.

Stocks
* Autoline Industries: Has Not Got Suitable Offers Yet To Divest Us-Based Arm Autoline Industries Inc.
* Larsen & Toubro: Arm L&T Infrastructure Finance Plans To Issue Non-Convertible Debentures Up To 1 Bln Rupees On Private Placement Basis.
* Maruti Suzuki: Plans To Double The Dealer Outlets In The Next Three Years From 1,331 At Present.
* Orbit Corp: Morgan Stanley Asia Singapore Pte Has Bought 1.24 Mln Shares Or 1.09% Stake In Company At 22.25 Rupees Per Share.
* Tata Motors: Arm Jaguar's Us Sales In May Were 5,840 Units, Up 17% On Year, Jaguar Sales At 1,304 Units, Down 9% On Year Land Rover At 4,536 Units, Up 28% On Year.

Data Alert
* Eu Services Purchasing Managers' Index For May; 1330 Ist
* Uk Cips/Markit Services Purchasing Managers' Index For May; 1400 Ist
* Uk Narrow Money And Reserve Balances Data For May; 1400 Ist
* Eu Producer Price Index For Apr; 1430 Ist
* Eu Gdp Second Estimate For Jan-Mar; 1430 Ist
* Us Mba Mortgage Applications Survey For Week Ended May 30; 1630 Ist
* Us Adp National Employment Report For May; 1745 Ist
* Us Revised Productivity And Costs Data In Jan-Mar; 1800 Ist
* Us International Trade Data For Apr; 1800 Ist
* Us Services Purchasing Managers' Index For May; 1830 Ist
* Us Online Help Wanted Index For May; 1930 Ist
* Us Ism Non-Manufacturing Report On Business For May; 1930 Ist

Conferences
* Capital Markets: Sebi Chairman Sinha, Additional Secretary In The Ministry Of Finance Krishnan, Edelweiss Financial Services Ceo Shah, Jm Financial Chairman Kampani To Speak At Confederation Of Indian Industry Capital Markets Summit. 0930 Ist, Mumbai.
* Healthcare Meet: Health Secretary Verma To Speak At Conference On Changing Dimensions Of Healthcare In India. 1000 Ist, New Delhi.
* Agri Conference: National Academy Of Agricultural Sciences' President Ayyappan To Hold A Press Conference. 1230 Ist, New Delhi.
* Assocham Summit: Health Secretary Verma To Be Present At Assocham National Summit On Ict In Healthcare.1000 Ist, New Delhi.

Markets
Call: Seen Opening Near Repo Rate On As Liquidity Remains Comfortable In Banking System. 1-Day Call: 8.00-8.05% Vs 8.20-8.25% Tue.
Bonds: May Open Weak Wed. Prices To Recover Later Due To Upbeat Market Sentiment. 10-Year Yield: 8.55-8.65% Vs 8.60% Tuesday.
Rupee: Seen Steady-To-Tad Down. May Weaken Intraday On Dollar Demand From Cos, Importers. Shares Eyed. Range: 59.15-59.65/$1 Vs 59.3550/$1 Tue.
Stocks: Likely To Open Flat To Marginally Up; Trade Seen Rangebound. Nifty Range 7350-7450; Tuesday-End 7415.85, Up 53.35 Points.

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What's Happening, and Where, on Jun 3

MOMENTUM TO CONTINUE ON SUSTAINED FIIS BUYING.

         We expect Indian markets to open on positive note on the back of stable set of global cues. Sustained buying by FIIs is providing comfort to the markets. Yesterday they bought Rs 234 crs in cash market, Rs 318 crs in index futures and Rs 24 crs in stock futures. Short covering in 7200/7300 calls also triggered the rally. Today market will focus on RBI policy (due today at 11.am) which is expected to be largely status quo as RBI Gov would like to wait for budget next month and retail inflation in the backdrop of El Nino looming.

MOVERS & SHAKERS

        Reliance Capital: Shares of insurance companies were on buyers’ radar as the finance ministry is considering to hike FDI in insurance sector without voting rights. According to media sources, the ministry may increase FDI limit in insurance sector to 49% from current 26%.Stocks like Reliance Capital (up 11.19% to Rs 685.25), Max India (up 11.02% to Rs 293.70) and Bajaj Finserv ( up 2.63% to Rs 875.30) gained strongly on Monday, hoping for a hike in FDI limit. 

Larsen and Turbro: Shares in Larsen and Turbro (L&T) gained 6.23% at 1,645.40 on reporting robust Q4 numbers post market hours on Friday.The country’s largest engineering and construction company, has won back the Street’s confidence, with its robust execution and diversification into other regions. For the past few quarters, even though it has shown it can drive growth in a difficult environment without compromising on profitability, the Street has remained sceptical.L&T reported 69% growth in net profit for the quarter ended March on the back of improved operational performance, higher sales and an exceptional income of Rs 484 crore from dilution of its stake in L&T Finance. Net profit on a standalone basis stood at Rs 2,723 crore in the fourth quarter against Rs 1,609 crore in the same period last year.

DATA ALERT

   > UK NATIONWIDE HOUSE PRICE INDEX for May; 1130 IST

  > EU EUROZONE MANUFACTURING PMI for May; 1330 IST

  > UK CIPS/MARKIT CONSTRUCTION PURCHASING MANAGERS' INDEX for May; 1400 IST

  > EU UNEMPLOYMENT DATA for Apr; 1400 IST

  > EU EURO AREA INFLATION FLASH ESTIMATE for May; 1430 IST

  > US ICSC-GOLDMAN SACHS CHAIN STORE SALES INDEX for wk to May 31; 1715 IST

  > US JOHNSON REDBOOK RETAIL SALES INDEX for week ended May 31; 1825 IST

  > US ISM-NY REPORT ON BUSINESS for May; 1915 IST

  > US MANUFACTURERS' SHIPMENTS, INVENTORIES AND ORDERS DATA for Apr; 1930 IST

  > US IBD/TIPP ECONOMIC OPTIMISM INDEX in Jun; 1930 IST.

RBI COUNTER

* DAILY LAF TENDERS: One set of 1-day reverse repo (at 7.00%) and 1-day repo

  (at 8.00%). Bids for repo tender may be submitted between 0930 IST and

  1030 IST, and reverse repo between 1900 IST and 1930 IST.

MARKETS

Call  : Seen opening above repo rate on likely demand from banks early in session to meet reserve needs. 1-day call: 8.10% vs 7.05-7.10% Mon.

Bonds : Seen slightly down Tue ahead of RBI's policy review. Value buys to support. 10-year yield: 8.60-8.70% vs 8.66% Monday.

Rupee : May open steady before RBI policy. To take cues from policy statement, local shares. Range: 58.90-59.40/$1 Tue vs 59.1525/$1 Mon.

Stocks: Seen opening up; RBI's monetary policy to lend direction. Nifty range 7300-7450; Monday-end 7362.50, up 132.55 points.

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MARKETS TO CONSOLIDATE WITH POSITIVE BIAS.

           We expect Indian markets on positive note on expectation of revival on economy with the new NDA Govt. led by PM Narinder Modi. The Indian economy grew by 4.7% in 2013-14 the second successive year of sub-5% growth—data released on Friday after market hours showed. However, this will not have any significant effect on markets being discounted. On short term, eye will be on RBI's monetary policy review (due tomorrow) and the result of the monthly surveys on India's manufacturing and services sector for May 2014. Monthly Auto sales numbers will also start trickling in. On further cues, FIIs numbers on Friday were positive as they bought massive Rs 2978 crs in cash markets (even after excluding Kotak Mahindra's block deal of Rs 2200 crs, they were positive to the tune of Rs 778 crs).

MOVERS & SHAKERS
YES Bank: Shares of YES Bank were up 3.56% to Rs 569.45 on Friday as it launched Qualified Institutions Placement (QIP) to raise USD 500 million (Rs 5000 crore). The QIP is priced at Rs 550 per share.

Voltas : Shares in Voltas gained 3.75% to Rs 186.70 after the operating profits for the quarter ended March 31, 2014 was significantly higher by 58% at Rs 123 crores as compared to Rs 78 crores for the corresponding period previous year.

J&K Bank: Shares in J&K Bank crashed 18.42% to Rs 1501.35 on Friday on media reports indicating that the bank has undisclosed amount of Rs 2500 crore as stressed loan.―In its latest balance sheet, three loans amounting to Rs 1100 crore -which by regulatory and prudential norms are non-performing assets (NPAs) - have not been classified and declared so by the Bank.

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Friday, May 30 - Morning brief for the stock market:

GLOBAL STOCK MARKETS

* US: US indices rose on Thursday and the S&P 500 index hit a record high yet again, as better-than-expected weekly jobless claims offset data that showed a contraction in economic growth in the first quarter.

* ASIA: Most Asian indices rose tracking overnight gains in US equities.

STOCKS

* ADITYA BIRLA NUVO: Has resumed production at the ammonia/urea plant at Jagdishpur in Uttar Pradesh from May 24.

* ASHOKA BUILDCON: Is the lowest bidder for 2.92-bln-rupee power project.

* BHARAT HEAVY ELECTRICALS: Net profit in Jan-Mar declined 43% on year to 18.45 bln rupees. Net sales also fell 21.7% on year to 147.55 bln rupees.

* BHARTI AIRTEL: May have to pay 4 bln rupees, a migration fee and a bank guarantee of one-time spectrum fee, for merging Airtel Broadband Services, that holds 4G spectrum, with self.

* BALMER LAWRIE & CO: Has posted 41.25% on year rise in net profit at 709.8 mln rupees. Net sales up 4% to 6.49 bln rupees.

* CIPLA: Jan-Mar consolidated net profit fell 5.71% on year to 2.61 bln rupees. Net sales rose 26.72% to 24.29 bln rupees.

* COLGATE-PALMOLIVE INDIA: Launched a toothpaste variant under its Colgate brand called Maximum Cavity Protection.

* CROMPTON GREAVES: Posted Jan-Mar consolidated net profit of 638.2 mln rupees, up 152.5% on year. Net sales rose 11.2% on year to 37.66 bln rupees.

* DISH TV INDIA: Morgan Stanley Mauritius sold 7.02 mln shares, or 0.66% stake in company at 51.1 rupees per share.

* DLF: Has posted consolidated Jan-Mar net profit of 2.2 bln rupees against 41.9 mln loss year ago and income from operations of 19.7 bln rupees against 22.2 bln rupees year ago.

DATA ALERT

  > JAPAN AUTO PRODUCTION, EXPORT FIGURE for April. 0930 IST

  > JAPAN PRELIMINARY REPORT ON PETROLEUM for April. 1000 IST

  > JAPAN HOUSING STARTS for April. 1030 IST

  > GERMANY RETAIL TRADE for April. 1130 IST

  > EU EUROCOIN INDICATOR for April. 1300 IST

  > ITALY PROVISIONAL CPI for May. 1330 IST

  > US PERSONAL INCOME AND OUTLAYS for April. 1800 IST

  > CANADA GDP for Jan-Mar, Mar. 1800 IST

  > US ISM-CHICAGO BUSINESS SURVEY for May. 1715 IST

FROM INDIA

  > CPI FOR INDUSTRIAL WORKERS FOR APRIL, by Labour Bureau.

  > GOVERNMENT FINANCES FOR FY14, APR, by CGA.

  > CORE SECTOR GROWTH FOR APRIL, by commerce ministry.

  > GDP ESTIMATE FOR JAN-MAR AND 2013-14, by CSO.

RBI COUNTER

* DAILY LAF TENDERS: One set of 3-day reverse repo (at 7.00%) and two sets of 3-day repo (at 8.00%). Bids for the first repo tender may be submitted between 0930 IST and 1030 IST, and reverse repo and second repo between 1900 IST and 1930 IST.

* TERM REPO: One set of 14-day variable rate term repo for 600 bln rupees. Bids for term repo tender may be submitted between 1100-1130 IST.

* GILT AUCTIONS: RBI to auction 40 bln rupees of 8.35%, 2022 bond, 70 bln rupees of a new 14-year, 2028 bond, 20 bln rupees of 9.20%, 2030 bond, and 30 bln rupees of 9.23%, 2043 bond worth.

MARKETS

Call  : Seen opening above RBI repo rate on demand from banks to cover weekend needs. 3-day call: 8.20% vs 8.70-8.75% 1-day Thu.

Bonds : Seen up on hope of aggressive bidding at sale of new 14-year paper: 8.65-8.72% Thursday vs 8.67% Wednesday.

Rupee : May open steady. May move with downward bias on importers' dlr buys. GDP data eyed. Range: 58.50-59.30/$1 vs 59.02/$1 Thu.

Stocks: Seen consolidating further; Jan-Mar earnings eyed. Nifty range 7180-7300; Thursday-end 7235.65, down 94.00 points.

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NIFTY TRADING ABOVE 7400 MAY LEAD TO SHORT COVERING.

      Indian markets are expected to open on positive note on favorable domestic & international cues. U.S. stocks gained for a third day on Friday and Asian markets today are also trading mostly in green. The market may remain volatile this week as traders roll over positions in the F&O segment from the near month May 2014 series to June 2014 series. The near month May 2014 derivatives contract expire on Thursday, 29 May 2014. After BJP led NDA landslide victory in the recently concluded Lok Sabha election, investors are expecting measures from the incoming government to revive the Indian
economy. There are expectations that Narendra Modi will be in a position to replicate the economic success he enjoyed in Gujarat state when he takes over as the country's Prime Minister.

MOVERS & SHAKERS
Ashok Leyland : Shares in Ashok Leyland zoomed 13.67%, hitting 4.5-year high at Rs 32.85 per share on Friday Friday on the back of March quarter earnings. It reported a net loss of Rs13 crore, adjusted for exceptional gain on account of sale of non core assets, which is much-lower-than expectations.

Jain Irrigation : Shares of Jain Irrigation surged 10.58 % hitting 25-month high at Rs 122.30 per share on Friday. Investors are lapping up the midcap stock as its March quarter net profit jumped 39 % to Rs 75.34 crore, driven by higher sales.

JK Lakshmi Cement: Shares in JK Lakshmi Cement jumped 3.28 % on Friday as it reported strong revenue growth (21 %) in March quarter, on the back of higher volumes while margins expanded 470 basis points sequentially at 17.3 %.

RBI COUNTER
DAILY LAF TENDERS: One set of 1-day reverse repo (at 7.00%) and 1-day repo (at 8.00%). Bids for repo tender may be submitted between 0930 IST and 1030 IST, and reverse repo between 1900 IST and 1930 IST.

MARKETS
Call  : Seen opening higher at 8.10-8.20% Mon on likely demand for funds from banks. 1-day call: 7.90-8.20% vs 6.00% two-day call Sat.

Bonds : Seen steady on Mon due to improved appetite for gilts from FIIs. 10-year bond yield: 8.59-8.68% vs 8.64% Fri.

Rupee : Seen opening largely unch Mon. Importers' dollar buys may weigh. Global cues, shares eyed. Range: 58.25-58.85/$1 vs 58.52/$1 Fri.

Stocks: Seen opening marginally higher tracking firm global cues. Nifty range 7300-7420; Friday-end 7367.10, up 90.70 points.

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MARKETS TO CaONSOLIDATE IN 7350 - 7200 RANGE. MAY-21

      We expect Indian markets to open on flat to positive note despite FIIs cash data yesterday was not so encouraging.FIIs yesterday sold Rs 104 crs in cash markets and Rs 1014 crs in stock futures. However, they bought Rs 552 crs in index futures. Global cues are muted though we are not so much focused on them as domestic developments are on radar. U.S. shares declined for the first time in three sessions with the Dow Jones Industrial Average closing at its lowest level in almost a month. European shares closed slightly down on Tuesday, as investors remained cautious regarding stock valuations, the
possibility of policy action from the ECB, and upcoming elections. Asian stocks are also trading lower. Sensex marginally up by 14 points to close at 24377. However, BSE mid-cap and small cap Indices surged 2% and 3% respectively. Tech stocks bounced back after the fall of last few sessions. Metal,
Realty and Telecom stocks witnessed smart rally.

INDICATORS (previous session)

* NSE provisional net buy/(sale) in bln rupees, May 20: FII (1.05), DII (6.57)

* Institutional net buy/(sale) in bln rupees, May 19: FIIs 14.19

* FII NSE futures net buy/(sale) in bln rupee, May 20: index 6.52, shr (10.13)

* Sensex 24376.88, up 13.83 points; Nifty 7275.50, up 11.95 points

* Crude: $102.44/bbl; Rupee: 58.63/$1; Gold: $1,294.30/ounce; 10-yr yld: 8.8545%

OUTLOOK

* Share indices are seen starting the session on a subdued note. Profit booking at higher levels is likely to keep gains in check.

GLOBAL STOCK MARKETS

* The US indices ended nearly 1% lower on Tuesday, on losses in shares of retail companies and profit-taking in small-cap players.

* Most Asian indices were down today, ahead of a policy decision by the Bank of Japan and weak cues from US equities.

DATA ALERT

* UK MORTGAGE LENDING in Apr. 1400 IST

* UK RETAIL SALES in Apr. 1400 IST

* US MBA MORTGAGE APPLICATIONS in week to May 16. 1630 IST

* EUROZONE FCCI Consumer Confidence in May. 1930 IST

* US EIA PETROLEUM STOCKS in week to May 16. 2000 IST

MARKETS

Call  : Seen opening around RBI's repo rate as liquidity remains comfortable. 1-day call: 8.05-8.10% vs 7.50-7.75% Tue.

Bonds : Seen steady due to lack of strong cues. To move in a tight band intraday. 10-year bond yield: 8.82-8.90% vs 8.85% Tue.

Rupee : Seen opening steady-to-slightly down. Likely dollar buys by importers seen weighing. Local shrs eyed. Range: 58.40-58.90/$1 vs 58.63/$1 Tue.

Stocks: Seen opening flat-to-marginally up; profit sales likely. Nifty range 7150-7350; Tuesday-end 7275.50, up 11.95 points.

MOVERS & SHAKERS

Tata Communications: Shares in Tata Communications rallied 9.35% to Rs 333.30 after the company said it has sealed a deal to sell its 67.3% stake in Neotel, its South African unit, for seven billion rand (Rs3,950 crore) to Vodacom, a subsidiary of British telecom company Vodafone.

Jubilant FoodWorks: Shares in Jubilant FoodWorks closed lower by 2.96% at Rs 1,156 after reporting a 23.7% year-on-year decline in net profit at Rs 24.95 crore for the fourth quarter ended March 31 2014 , due to higher raw material and employee costs. The country’s largest food service company and the master franchise for Domino's Pizza had posted a profit of Rs 32.71 crore in the same quarter a year ago.

Bank of Baroda: Shares in Bank of Baroda Ltd fall 3.17 percent to Rs 938.45 after index provider MSCI said it will delete the stock from its MSCI global standard indexes, effective June 2. The index provider did not specify the reasons behind the deletion, which was announced on its website on Monday. Bank of Baroda has gained 48.1 percent so far in 2014 compared to a 15.8 percent return by the NSE index in the same period.

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What's Happening, and Where, on May 20

DATA ALERT

*  JAPAN ALL-INDUSTRY INDEX for Mar. 1000 IST

*  JAPAN BUSINESS CONDITIONS INDEXES in Mar. 1030 IST

*  JAPAN MACHINE TOOL ORDERS in Apr. 1100 IST

* GERMANY PRODUCER PRICE INDEX for Apr. 1130 IST

* ITALY INDUSTRIAL TURNOVER, ORDERS in Mar. 1330 IST

* UK CONSUMER PRICE INDEX INFLATION in Apr. 1400 IST

* UK HOUSE PRICE INDEX in Mar. 1400 IST

* US ICSC-GOLDMAN SACHS CHAIN STORE SALES in week to May 17. 1715 IST

* US JOHNSON REDBOOK RETAIL SALES INDEX in week to May 17. 1825 IST

RBI COUNTER

* DAILY LAF TENDERS: One set of 1-day reverse repo (at 7.00%) and 1-day repo(at 8.00%). Bids for repo tender may be submitted between 0930 IST and 1030 IST, and reverse repo between 1900 IST and 1930 IST.

MARKETS

Call  : Seen opening around 8.30% on likely demand from banks early in session to meet mandatory reserve needs. 1-day call: 8.30% vs 7.00-7.05% Mon.

Bonds : Seen opening firm on value buying. Lack of positive cues may limit appetite. 10-yr yld: 8.80-8.87% vs 8.86% Mon.

Rupee : Seen steady-to-tad up on positive mkt sentiment post NDA victory. To track share indices intraday. Range: 58.20-58.80/$1 vs 58.59/$1 Monday.

Stocks: Positive momentum to continue; some profit booking likely. Nifty range 7200-7400; Monday-end 7263.55, up 60.55 points.

INDICATORS (previous session)

* NSE provisional net buy/(sale) in bln rupees, May 19: FII 13.50, DII (3.48)

* FII NSE futures net buy/(sale) in bln rupee, May 19: index 5.81, shr (11.56)

* Sensex 24363.05, up 241.31 points; Nifty 7263.55, up 60.55 points

* Crude: $102.61/bbl; Rupee: 58.59/$1; Gold: $1,292.60/ounce; 10-yr yld: 8.8627%

OUTLOOK

* Share indices are seen opening marginally up on positive cues from overseas markets. However, profit booking may kick in later.

GLOBAL STOCK MARKETS

* US: In a thinly-traded session, gains in shares of internet and small-cap companies helped indices end marginally up on Monday.

* Most Asian indices were marginally up today tracking the positive close on Wall Street overnight.

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