Dawn of 10th August 09
INR may gain on FII fall on $ strength, Yields to fall as Gov. says cancelled auction not to be included in this week , 10Y sees 7.13% , Rain plays spoil sport stocks melt.
US lost 247,000 jobs in July best month since Aug 08: $ RISES ON GOOD NEWS??? , S&P, FTSE, Nikkei all see 10M Highs. Gold retreats as ECB limits gold sales but inflation hedge may add shine.
PFRDA No limit , launch on 1st Dec, RBI to be the regulator for Housing Finance Companies, Retailers Together we swim.
INR
INR @ 47.78 ; expected to gain on Monday from a one-week low hit in the previous session as a rally in Asian shares may raise hopes of FII inflows . Trading volumes were low in the previous two sessions due to a planned strike on Thursday & Friday by state-run bank employees & some private sector bank unions. SGX Nifty in Singapore was up 2.1 %. 1M NDF at 47.93/48.03 .
BONDS
Yields are expected to drop on Monday as the Gov. said it would go ahead with only the scheduled debt sale this week, allaying investor concerns of an attempt to accommodate last week’s cancelled bond auction. 10Y closed at 7.03 % on Friday, down from the previous close of 7.08 %. It fell as much as much as 16 BP in intraday trading to 6.97 % from the day’s high of 7.13 % after the RBI rejected all bids at a bond auction. U.S. Treasuries prices fell on Friday after data showed U.S. jobs losses slowed in July, brightening the economic outlook.
STOCK
Indian shares slid 2.3 % on Friday, extending losses for the week to 3.25 %, as shaky overseas markets, concerns about pricey stocks & below-normal monsoon rains sapped investor confidence. Markets across Asia & Europe were muted as investors awaited a key U.S. jobs report & as worries mounted stocks were getting ahead of fundamentals after a recent rally. Forecasts of weak rains in the next five days & inadequate water in Indian reservoirs have raised the risk to the country’s cane & soybean crops, & could potentially hit crucial rural demand & & slow down a nascent economic revival. On OVERSEAS cues the markets are set to rise.
CALL
Rates remained little moved on Friday, helped by surplus funds with banks though a strike by bank employees hurt volumes for a second straight day. 3D Call ended at 3.25/30 %, scarcely moved from its previous close of 3.20/25. Banks parked 1.20 trillion with the RBI. 1D CBLO at 3%.
GLOBAL MARKET
DJIA 9,370.07 +113.81 Nikkei 10,559.99 +147.90 FTSE 4,731.56 +41.03 HSeng 20,877.79 -502.42 US10Y 3.856 EUR 1.4185 Yen 97.55 Gold 956.00 Crude 70.80
* U.S. stocks rallied on Friday, pushing the S&P 500 to a 10-month high as the July jobs report was less bleak than feared & underpinned hopes the economy was on track for recovery.
* FTSE hit a 10-month closing high on Friday after U.S. employers shed far fewer jobs than expected, driving fresh optimism that the economy may be on the path to recovery.
* Nikkei stock average hit a 10-month high on Monday after better-than-expected Japanese & U.S. data underpinned hopes that both economies are on the mend, with exporters also gaining on a weaker yen.
* $ vaulted higher on Friday as data showed the pace of U.S. job losses slowed last month, adding to recent evidence that the health of the world’s largest economy is starting to improve.
* Gold futures ended lower in choppy trade Friday as the $ rallied on optimistic U.S. jobs data & the market digested news that ECB extended an agreement limiting gold sales. But gold could soon reverse its losses if global monetary easing prompts investors to buy more gold as a hedge against inflation.
* Copper prices reversed earlier losses & extended gains into the close on Friday, after stronger-than-expected employment data in the United States sparked renewed optimism.
* Oil fell from six-week highs on Friday, pressured by gains in the $ following the release of better-than-expected U.S. job-loss numbers. U.S. employers cut 247,000 jobs in July, far less than expected & the least in any month since last August, according to a Gov. report, adding to optimism that the world’s largest economy was turning around.
INDIA FRONT PAGE
* Top retailers including Future Group, Aditya Birla Retail, Spencer’s & Reliance Retail have formed a coalition to align their sourcing operations & share private labels, logistics, warehouses & hiring details on a transactional payment basis, to help cut operational costs & improve margins.
* Amid growing concern over the financial health of airlines, the top three carriers of the country Air India, Kingfisher & Jet Airways are planning to convert most of their domestic flights into no-frills services.
* Edelweiss Capital is in talks with Japanese insurance group Tokio Marine Holdings for a possible joint venture in life insurance.
* RBI has suggested it handle the regulation, licensing & supervision of housing companies, as a rider for offloading its stake in the National Housing Bank.
* The federal petroleum ministry has approved a three-month credit period from oil marketing companies to the cash-strapped national carrier Air India for payment of its aviation turbine fuel (ATF) dues. Currently Air India has a two-month credit period.
* The Pension Fund Regulatory & Development Authority has decided not to fix any minimum limit on investments by individuals to a scheme of the new pension system in which the subscription money can be withdrawn at any time. The new scheme will be launched on Dec.1.
