What's Happening, and Where, on Jun 10

DATA ALERT
* from OVERSEAS
> JAPAN PRELIMINARY MACHINE TOOL ORDERS in May. 1130 IST
> GERMANY MANUFACTURING TURNOVER in Apr. 1130 IST
> FRANCE INDUSTRIAL PRODUCTION INDEX for Apr. 1215 IST
> ITALY INDUSTRIAL PRODUCTION in Apr. 1330 IST
> UK MONTHLY INDUSTRIAL PRODUCTION in Apr. 1400 IST
> ITALY GDP for Jan-Mar. 1430 IST
> FRANCE OECD COMPOSITE LEADING INDICATORS for Apr. 1530 IST
> US ICSC-GOLDMAN SACHS CHAIN STORE SALES in week to Jun 7. 1715 IST
> US JOHNSON REDBOOK RETAIL SALES INDEX for week to Jun 7. 1825 IST
> US WHOLESALE TRADE in Apr. 1930 IST

From INDIA
> SOCIETY OF INDIAN AUTOMOBILE MANUFACTURERS TO DETAIL AUTOMOBILE SALES for May. 1030 IST, Delhi.

CONFERENCES
* REFORM MEET: Finance Ministry Principal Economic Adviser Patnaik to speak at a panel discussion on reform agenda. 0945 IST, New Delhi.
* MINE REVIVAL: CII meet on Revival of Mining Industry. Mines Secy Pujari to be present. 1000 IST, New Delhi.

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.
* STATE DEVELOPMENT LOAN AUCTION: RBI to hold auction of bonds of eight states--Assam, Goa, Maharashtra, Manipur, Mizoram, Punjab, Rajasthan and Tamil Nadu--worth 41.30 bln rupees.

MARKETS Call : Seen opening above repo rate on likely strong demand from banks to meet reserve needs. 1-day call: 8.10-8.30% vs 8.00% Monday.
Bonds : Seen in a thin band. Traders to avoid big buys on lack of cues. 10-year yield: 8.51-8.57% vs 8.55% Monday.
Rupee : May open steady to tad up. RBI's dollar purchases likely to check gains. May track local shares. Range: 58.95-59.60/$1 Tue vs 59.20/$1 Monday.
Stocks: Seen testing record highs amid positive cues from overseas markets. Nifty range 7600-7700; Monday-end 7654.60, up 71.20 points.

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What's Happening, and Where, on Jun 9.

INDICATORS

* NSE provisional net buy/(sale) in bln rupees, Jun 6: FII 12.83, DII (3.15)

* FII NSE futures net buy/(sale) in bln rupee, Jun 6: index (4.21), shr 6.07

* Sensex 25396.46, up 376.95 points; Nifty 7583.40, up 109.30 points

* Crude: $102.66/bbl; Rupee: 59.18/$1; Gold: $1,252.30/ounce; 10-yr yld: 8.5130%


BUSINESS AND ECONOMY

INDIA-RELATED

* Honda may hire 1,000 in India by end of fiscal.

* Facebook COO's first India visit to focus on SMEs, developers.

* GoAir looks to increase capacity by 21% in FY15.

* DIPP wants more restrictions in pharma sector, seeks FIPB nod for FIIs.

* Vodafone says it is facing tax liability of over 270 bln rupees in India.


FROM OVERSEAS

* Credit Suisse set to make 60 mln sterling gains from Alibaba IPO.

* Wall Street 'fear gauge' hits 7-year low.




SPORTS

* Rafa Nadal secures his ninth French Open title at Roland Garros.

* West Bengal Football Academy inaugurated.

* Ricciardo gives Red Bull first F1 win with victory over Rosberg in Canada.




OF INTEREST

* Soon, 'neurotic' robots that think like humans.

* Dinosaur-era flying reptiles were extremely social.


DATA ALERT from OVERSEAS

> JAPAN CONSUMER CONFIDENCE SURVEY for May. 1030 IST

> CANADA HOUSING STARTS for May. 1745 IST

> US INDUSTRY FINANCIAL REPORT for Jan-Mar. 1930 IST

> US EMPLOYMENT TRENDS INDEX for May. 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 near RBI repo rate as liquidity remains comfortable in banking system. 1-day call: 8.00-8.50% vs 8.10-8.50 2-day Sat.

Bonds : Seen steady due to strong appetite from traders. 10-year yield: 8.48-8.60% vs 8.51% Friday. Rupee : Seen moving in the range of 58.9000-59.9000 a dollar against Friday's close at 59.1800 dollar. Stocks: Seen opening marginally up tracking positive overseas markets. Nifty range 7500-7630; Friday-end 7583.40, up 109.30 points.




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What's Happening, and Where, on Jun 6.

INDICATORS 

* NSE provisional net buy/(sale) in bln rupees, Jun 5: FII 13.69, DII (4.26)

* FII NSE futures net buy/(sale) in bln rupee, Jun 5: index (8.89), shr 8.65

* Sensex 25019.51, up 213.68 points; Nifty 7474.10, up 71.85 points

* Crude: $102.48/bbl; Rupee: 59.33/$1; Gold: $1,253.3/ounce; 10-yr yld: 8.5265%

STOCKS

* CAIRN INDIA: BHARAT PETROLEUM CORP AND HINDUSTAN PETROLEUM CORP have shown

interest in buying crude oil from the company.

* FINANCIAL TECHNOLOGIES: The Forward Markets Commission has directed the board

of arm National Spot Exchange to accelerate the process of recovering money from defaulters.

* HERO MOTOCORP: Likely to save 10 bln rupees in 2014-15 with its ongoing margin transformation programme, and the amortised payments to Honda coming to an end in June.

* INFOSYS: Prasad Thrikutam, senior vice-president and global head of strategic sales, marketing and alliances, has resigned.

* MARUTI SUZUKI: Is setting up a new engine production line at its Gurgaon plant with a capacity of 150,000 units a year for its new series of self-developed diesel engines.

* NMDC: Produced 4.94 mln tn of iron ore in May, almost flat compared with 4.90 mln tn in the same month last year.

DATA ALERT

  > JAPAN PRELIMINARY RELEASE OF INDEX OF BUSINESS CONDITION for Apr; 1030 IST

  > UK TRADE DATA for Apr; 1400 IST

  > BANK OF ENGLAND EXTERNAL BUSINESS STATISTICS for Jan-Mar; 1400 IST

  > US EMPLOYMENT REPORT for May; 1800 IST

RBI COUNTER

* DAILY LAF TENDERS: One set of 3-day reverse repo (at 7.00%) and 3-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.

* TERM REPO TENDER: One set of 28-day variable rate special term repo for 200 bln rupees. Bids for term repo tender may be submitted between 1430 IST and 1500 IST.

* GILT AUCTIONS: RBI to auction 40 bln rupees of new 6-year bond, 70 bln rupees of 8.83%, 2023 bond, 20 bln rupees of 8.32%, 2032 bond and 30 bln rupees of 8.30%, 2042 bond.

MARKETS

Call : Seen opening near RBI repo rate as liquidity remains comfortable in banking system. 3-day call: 7.50-8.15% vs 8.30-8.35% 1-day Thu.

Bonds : Seen up on Fri on expectation of strong demand at the auction. 10-year yield: 8.50-8.58% vs 8.52% Thu.

Rupee: To take global cues post ECB rate cut, disappointing weekly US jobs data. Range: 58.90-59.90/$1 Fri vs 58.33/$1 Thu.

Stocks: Set to rise further backed by global markets trend. Nifty range 7400-7550; Thursday-end 7474.10, up 71.85 points.

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What's Happening, and Where, on Jun 5

INDICATORS

* NSE provisional net buy/(sale) in bln rupees, Jun 4: FII 1.93, DII (1.92)

* Institutional net buy/(sale) in bln rupees, Jun 3: MF 0.64

* FII NSE futures net buy/(sale) in bln rupee, Jun 4: index (6.45), shr 7.89

* Sensex 24805.83, down 52.76 points; Nifty 7402.25, down 13.60 points

* Crude: $102.40/bbl; Rupee: 59.33/$1; Gold: $1,244.3/ounce; 10-yr yld: 8.5876%

GOVT BEAT

* Finance Minister Jaitley to hold pre-budget consultations with farm sector representatives. 0930 IST, New Delhi.

* Minister of State with Independent Charge for Textiles Gangwar to be chief guest at the

National Institute of Fashion Technology. 1600 IST, New Delhi.

* Finance Minister Jaitley to hold pre-budget consultations with social sector representatives. 1700 IST, New Delhi.

DATA ALERT

  > JAPAN IMPORTED VEHICLE SALES DATA for May; 0730 IST

  > UK HALIFAX HOUSE PRICE INDEX for May; 1230 IST

  > UK MONTHLY CAR REGISTRATIONS DATA for May; 1330 IST

  > EU RETAIL PURCHASING MANAGERS' INDEX for May; 1340 IST

  > EU RETAIL TRADE DATA for Apr; 1430 IST

  > BANK OF ENGLAND INTEREST RATE DECISION; 1630 IST

  > US CHALLENGER JOB-CUT REPORT for May; 1700 IST

  > EUROPEAN CENTRAL BANK INTEREST RATE ANNOUNCEMENT; 1715 IST

  > US WEEKLY EXPORT SALES DATA; 1800 IST

  > US UNEMPLOYMENT INSURANCE CLAIMS REPORT for week ended May 31; 1800 IST

  > US CONSUMER COMFORT INDEX; 1915 IST

  > US DJ-BTMU BUSINESS BAROMETER for week ended May 24; 1930 IST

  > US EIA NATURAL GAS STORAGE REPORT for week ended May 30; 2000 IST

  > US ICSC CHAIN STORE SALES TRENDS DATA for May; 2130 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.

* SPECIAL TERM REPO: One set of 28-day variable rate special term repo for 200 bln rupees.

MARKETS

Call: Seen opening around RBI's repo rate as liquidity in the banking system remains comfortable. 1-day call: 8.05% vs 8.30-8.35% Wed.

Bonds: Seen steady Thu. Traders may stay on sidelines before auction Fri. 10-year yield: 8.55-8.65% vs 8.59% Wed.

Rupee: May open up as dollar down post disappointing US jobs data. Share indices to lend cues intraday. Range: 58.90-59.60/$1 Thu vs 59.33/$1 Wed.

Stocks: Seen opening flat. Trade likely to be rangebound. Nifty range 7350-7450; Wednesday-end 7402.25, down 13.60 points.

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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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