News U Can Use

4
th
May ,2012
The Week that was
28
th
April to 4
th
May
Indian Economy
IMF in its Asia-Pacific Regional Economic Outlook pointed out that domestic factors have
also played a role in India's growth slowdown over the second half of 2011 and asked for also played a role in India s growth slowdown over the second half of 2011 and asked for
renewed efforts to revive flagging growth.
India's key infrastructure industries growth fell sharply to 2.0% in March after rising to a
seven-month high of 6.8% in February.
I di t f ll 5 7% t $28 7b i M h f th i d li hil Indias exports fell 5.7% to $28.7bn in March from the same period a year earlier, while
imports rose 24.3% to $42.6bn in March, resulting in a trade deficit of $13.9bn.
Indias public debt rose by 5.4% to Rs.35.98 lakh cr in Q4 FY 2012 as compared to
Rs.34.13 lakh cr in Q3 FY 2012.
India's annual inflation rate based on CPI for Industrial Workers rose to 8.65% in March from
7.57% in February.
Indias HSBC's Business Activity Index rose to 52.8 in April from 52.3 in March, while
services Purchasing Managers Index rose to 52 8 in April from 52 3 in March services Purchasing Managers Index rose to 52.8 in April, from 52.3 in March.
Indias HSBC Manufacturing Purchasing Managers' Index (PMI) rose to 54.9 in April from
54.7 in March.
Prime Minister's Economic Advisory Council (PMEAC) Chairman said that actions such as
f f l i ill b t k t th " i t ti " t b b idi d i t i reforms on fuel prices will be taken at the "appropriate time" to curb subsidies and maintain
fiscal deficit at the budgeted level of 5.1% in 2012-13.
Source: Crisil Weekly Market Update
Indian Economy
According to the data by the Export Promotion Council for EOUs and SEZs (EPCES),
exports from special economic zones (SEZs) grew by 15% year-on-year to Rs 3 6 lakh cr in exports from special economic zones (SEZs) grew by 15% year on year to Rs 3.6 lakh cr in
2011-12.
Indias forex reserves rose by $758 mn to $295.36 bn as of week ended April 27.
Source: Crisil Weekly Market Update
Indian Debt Market
The G-Sec yields continued to remain high during the week on negative sentiments and no The G Sec yields continued to remain high during the week on negative sentiments and no
positive feelers from RBI. The benchmark 10-year security 8.79% GOI 2021 ended the week
at 8.62%, as against 8.65% last week.
Liquidity in the system was tight with current week being the first half of reporting fortnight
The net average LAF (Liquidity Adjustment Facility) was negative at around Rs 1 02 700 cr The net average LAF (Liquidity Adjustment Facility) was negative at around Rs 1,02,700 cr
as against around negative Rs 1,13,400 cr during the previous week. Overnight call was in
the range of 7.80%- 8.65%.
RBI conducted auction in four securities (Rs. 16,000 cr) - namely 8.19% GS 2020 (Rs. 4000
) 9 15% GS 2024 (R 8000 ) 8 97% GS 2030 (R 3000 ) d 8 83% GS 2041 (R cr), 9.15% GS 2024 (Rs. 8000 cr), 8.97% GS 2030 (Rs. 3000 cr) and 8.83% GS 2041 (Rs.
3000 cr) with cut-off yield of 8.54%, 8.72%, 8.92% and 8.99% respectively.
In T-bill auction, RBI auctioned 91 day T-bill (Rs. 10,000 cr) and 182 day T-bill (Rs. 5000 cr)
with cut-off yield of 8.44% (Previous : 8.39%) and 8.31% (Previous : 8.17%) respectively.
Next week, the RBI will conduct 91 day T-bill (Rs. 9000 cr) and 182 day T-bill (Rs. 5000 cr)
on May 9, 2012.
Next week, the RBI will conduct 10 year SDLs (Rs. 5150 cr) for 5 states on May 8, 2012.
I di C diti M k t Indian Commodities Market
Crude oil prices fell in the week amid volatility, with prices rising earlier after growth in the
US and Chinese manufacturing signalled more demand for energy products while further US and Chinese manufacturing signalled more demand for energy products, while further
rise in prices was capped after the US government said worker productivity fell sharply in
the first quarter of the year; prices ended at $102.54 a barrel on the NYMEX on May 3 as
compared to $104.55 a barrel on April 26.
Crude oil prices rose 38 cents to $104 93 a barrel on the NYMEX Crude oil prices rose 38 cents to $104.93 a barrel on the NYMEX.
Crude oil prices fell 6 cents to settle at $104.87 a barrel on the NYMEX
Crude oil prices rose $1.29 to settle at $106.16 a barrel on the NYMEX after growth in the
US and Chinese manufacturing signalled more demand for energy products.
Crude oil prices fell 94 cents to settle at $105.22 a barrel on the NYMEX on concerns about
a weakening European economy and disappointing job growth in the US.
Crude oil prices fell $2.68 to settle at $102.54 a barrel on the NYMEX after the US
government said worker productivity fell sharply in the first quarter of the year government said worker productivity fell sharply in the first quarter of the year.
US crude oil inventories rose 2.8mn barrels to 375.9mn barrels for the week ended April 27.
Government removes the cap on sugar exports and places it under the open general licence
category like wheat and rice.
FMC introduces a staggered deliveries option for sellers 15 days prior to expiry in certain
agri commodities, including oil seeds, chana and pepper.
Source: Crisil Weekly Market Update
I di C diti M k t Indian Commodities Market
NCDEX cuts penalty on delivery defaults to traders in price sensitive commodities effective
for contracts expiring in May for contracts expiring in May.
International Grains Council lowers its estimate of global wheat output in 2012-13 to 676 mn
tn from 681 mn tn forecast earlier this month as unfavourable weather conditions are likely
to hurt its output in the European Union region.
G j t t d id t t M t h b id i d di tl f it Gujarat government decides not to procure Monsanto hybrid maize seeds directly for its
Project Sunshine for farmers in tribal areas following criticism by some farmer organisations
about the quality of seeds.
Source: Crisil Weekly Market Update
I di G t Indian Government
Minister of State for Finance said that India is considering a review of the Double Taxation
Avoidance Treaty with Mauritius to raise revenues. y
Government says that the country's power sector requires Rs 13.72 lakh crore in funding for
the 12th Five-Year Plan (2012-17).
Government to infuse about Rs 30,000 cr in cash-strapped Air India over the next nine
years as part of a turn-around plan for the state-run airline years as part of a turn-around plan for the state-run airline.
Government imposes a penalty of about Rs.6600cr on RIL for the steep fall in gas output
from the KG-D 6 block.
Finance Ministry directs all banks to pay vendors through online fund transfers.
Government and RBI are working on changing rules to give corporates more leeway in
repaying foreign currency convertible bonds.
Economic Affairs Secretary termed the proposed General Anti-Avoidance Rule (GAAR) as
"prospective" and "not retrospective", and said that the onus of proving tax under the p ospec e a d o e ospec e , a d sa d a e o us o p o g a u de e
provision would rest with the Indian authorities.
Government to take up the proposal to allow foreign carriers to buy up to 49% equity stake
in domestic airlines only after the current Budget session of Parliament
Central Board of Direct Taxes set up a panel to advise the board on international taxation Central Board of Direct Taxes set up a panel to advise the board on international taxation
and transfer pricing.
Source: Crisil Weekly Market Update
I di G t Indian Government
Finance Ministry asks NABARD to provide financial assistance to about 400 small urban
cooperative banks (UCBs) to create infrastructure for core banking solutions (CBS). p ( ) g ( )
Government gives powers to the Empowered Group of Ministers for the auction of telecom
spectrum in the 2G band.
India decides to bilaterally voice concerns over Argentinas recent import restrictions,
instead of joining the US and European Union that have taken the country to the WTO instead of joining the US and European Union that have taken the country to the WTO.
Cabinet Committee on Economic Affairs approves a Rs. 400cr National Monsoon Mission
programme to improve the skills of monsoon rainfall forecasts.
Rajasthan government scraps tenders worth Rs.12000cr bagged by BHEL a year ago for
two thermal power projects in the state.
The Department of Posts plans to set up 1000 ATMs across the country.
Labour Minister says EPFO's interest rate for its over 50mn subscribers for this fiscal could
be higher than 8.25% provided during 2011-12. be g e a 8 5% p o ded du g 0
Power ministry to allow producers to raise tariffs if fuel costs of new projects rise, and will
not oppose a hike in domestic gas prices.
Oil Ministry rejects public sector oil companies' plan to acquire Asian Development Bank's
stake in Petronet LNG so as to keep the nation's largest liquefied natural gas (LNG) stake in Petronet LNG so as to keep the nation s largest liquefied natural gas (LNG)
importer a private firm.
Source: Crisil Weekly Market Update
R l t U d t i I di Regulatory Updates in India
RBI releases guidelines on implementation of Basel III capital regulations in India; guidelines
would become effective from Jan 1, 2013 in a phased manner. p
RBI asks banks to set aside more risk capital and implement Basel 3 norms faster than its
global peers.
RBI relaxed the interest rate ceiling on foreign currency non-resident (FCNR) deposits of
banks with maturities of one year to less than three years to 200 bps above the Libor or banks with maturities of one year to less than three years to 200 bps above the Libor or
swap rate, from 125 bps now.
RBI says that there is a case for hiking FDI cap in insurance and some other sectors in view
of India's growing integration with the global economy, if local economic and political
scenario permits scenario permits.
RBI data shows that the growth in loans advanced to non-banking finance companies
almost halved to 26.3% in FY12 from 54.8% in the previous year.
RBI Deputy Governor says that the non-performing assets in the banking system are likely
to have peaked and the asset quality of banks is expected to improve hereafter.
RBI warns Indian companies against excessive reliance on overseas commercial borrowing.
RBI asks banks to allow intra-bank account portability in cases where full KYC (know your
customer) details of the concerned account have been ascertained customer) details of the concerned account have been ascertained.
Source: Crisil Weekly Market Update
R l U d i I di Regulatory Updates in India
RBI clears HSBCs deal to buy the Indian retail and commercial banking businesses of RBS.
RBI approves Subexs restructuring proposal of its outstanding FCCBs involving a RBI approves Subex s restructuring proposal of its outstanding FCCBs involving a
combination of debt and equity.
RBI data shows that Indian companies borrowed $3.8bn through External Commercial
Borrowings in March, higher than $2.6bn raised in the previous month.
SEBI decentralises the process of filing offer documents with effect from May 14.
SEBI is set to put in place a new and detailed mechanism for its 'consent' procedure - an
out-of-court-like settlement through which it settles cases of suspected irregularities by listed
companies and various market entities. p
IRDA decides to allow companies to sell single-premium policies after threatening to halt
them recently citing high risk.
IRDA launches an exclusive website for consumer education on insurance products.
IRDA l th t li f Abi I S i Ltd d t i l ti IRDA cancels the corporate agency license of Abira Insurance Services Ltd due to violation
of rules mentioned by the regulator.
TDSAT quashes the additional penalty of Rs.38cr imposed on Sistema Shyam Teleservices
by the DoT for allegedly delaying network rollout in nine telecom circles.
DoT rejects TRAIs demand that powers to issue licences to telecom companies be
entrusted to it.
Source: Crisil Weekly Market Update
R l U d i I di Regulatory Updates in India
DoT asks TRAI to clarify recommendations on 2G spectrum auction.
DoT says it can complete the spectrum sale process well within the August 31 deadline DoT says it can complete the spectrum sale process well within the August 31 deadline
given by the Supreme Court.
TRAI data shows that telecom operators added 8mn mobile subscribers in March.
TRAI authorises Multi System Operators to determine carriage fee.
Competition Commission of India approves the proposed merger of Mahindra Satyam and
other companies with Tech Mahindra.
Competition Commission of India approves the proposal of HSBC to acquire retail and
commercial assets of RBS NV and wealth management business of RBS Financial Services commercial assets of RBS NV and wealth management business of RBS Financial Services
in India.
The Income Tax Department serves a Rs.9000cr tax notice on LIC.
Source: Crisil Weekly Market Update
I t ti l M k t International Markets
Food price index of Food and Agriculture Organisation fell 1.4% month on month to 214
points in April, significantly lower from the record 235 points a year ago. po s p , s g ca y o e o e eco d 35 po s a yea ago
US GDP grew at a 2.2% annual rate in Q1 2012 as per advance estimates, moderating from
Q4 2011 growth rate of 3%.
US Institute for Supply Management said that its index of national factory activity rose to
54 8 in April from 53 4 in March 54.8 in April from 53.4 in March.
US consumer spending rose by 0.3% in March after a 0.9% increase in February while the
income increased by 0.4% in march, which was an improvement from the 0.2% gain in
February.
US ADP National Employment Report showed that private-sector employment increased by
119,000 from March to April on a seasonally adjusted basis.
US factory order fell 1.5% in March, the steepest decline since March 2009, following 1.1%
rise in the February. y
US nonfarm productivity fell at a 0.5% annual rate in Q1 2012 following an upward revised
1.2% rise in the Q4 2011while labour costs were up 2.1% in Q1 2012 compared with the
3.1% rise in Q4 2011.
US ISM services sector index in April drops to 53 5% from 56% in March to mark the worst US ISM services sector index in April drops to 53.5% from 56% in March to mark the worst
reading since November.
US unemployment claims decline by 27,000 to 365,000 as of week ended April 28.
Source: Crisil Weekly Market Update
I t ti l M k t International Markets
US construction spending edged up 0.1% to an annual rate of $808.07bn, after a revised
1.4% drop in February.
US auto sales rose 2.3% in April over last year to a seasonally adjusted annualized rate of
sales of 14.42mn vehicles.
US Employment Cost Index rose 0.4% in Q1 2012, down from a 0.5% advance during the
Q4 2011. Q4 2011.
University of Michigans consumer sentiment index rose to 76.4 in April from 76.2 last
month.
Chicago Purchasing Managers index fell to 56.2 in April from 62.2 in March.
US Dallas Fed Manufacturing index fell to 5.6 in April from 11.1 in March.
European Central Bank (ECB) keeps its interest rate unchanged at 1%.
Eurozone annual PPI increased by 3.3% in March, following 3.6% growth in February,
Eurozone Manufacturing Purchasing Managers' Index (PMI) dropped to 45 9 in April from Eurozone Manufacturing Purchasing Managers Index (PMI) dropped to 45.9 in April from
47.7 in March.
Eurozone unemployment rate hit a record high level in March, jumping to 10.9% for the first
time in 15 years, as compared with 10.8% in February.
Eurozone's consumer price index eased to 2.6% in April compared with 2.7% in March.
Bank of England says that net lending to consumers rose 1.4 bn pounds in March,
compared with a rise of 1.3 bn a month earlier.
Source: Crisil Weekly Market Update
I t ti l M k t International Markets
UK GfK consumer confidence index for April came in at -31 points, unchanged on the
previous month.
UK Markit/CIPS Manufacturing Purchasing Managers Index fell to 50.5 in April from a
downwardly revised 51.9 in March.
UK services PMI declines to 53.3 in April from the 55.3 in March.
Bank of England Governor says that Britain's economy may recover slowly in 2012 after a Bank of England Governor says that Britain s economy may recover slowly in 2012 after a
weak start.
UK PMI Construction decreased to 55.8 points in April, from 56.7 points in March.
Spains GDP contracted 0.3% quarter-on-quarter in Q1 2012, following a 0.3% fall in Q4
2011 2011.
S&P downgrades the ratings of 16 Spanish banks.
S&P upgrades Greeces credit rating from selective default to CCC and gives it a stable
outlook after the country recently completed a massive debt write down with private y y p p
creditors.
Asian Development Bank (ADB) says that financial crisis in Europe could escalate and along
with slow recovery in the US, but Asian nations must continue long term structural reforms
while insulating the region against the troubles. while insulating the region against the troubles.
China signs trade and investment contracts worth $15bn with Russia.
Chinas official Purchasing Managers Index rose to 53.3 in April from 53.1 in March.
Source: Crisil Weekly Market Update
International Markets International Markets
China offers South Sudan $8bn in development funds for road, hydropower, infrastructure
and agriculture projects.
Chinas HSBC Purchasing Managers Index improved to 49 3 in April from 48 3 in March China s HSBC Purchasing Managers Index improved to 49.3 in April from 48.3 in March.
China's non-manufacturing PMI fell to 56.1 in April from 58 in March.
Singapores jobless rate rose slightly to 2.1% in March, compared with a 2% rate in
December 2011.
Facebook Inc plans to raise about $10.6bn through its IPO.
China Eastern Airlines to buy 20 Boeing B777-300ER aircraft from Boeing Co at $5.94bn.
Energy Transfer Partners to buy Sunoco in a $5.3bn deal.
M di l d i k H l i I t b di ti t t k G P b I f b t Medical device maker Hologic Inc. to buy diagnostic test maker Gen-Probe Inc. for about
$3.72bn.
AIG reports a Q1 net income of $3.2bn as compared to a net income of $1.3bn in the same
period last year.
Temasek Holdings raises $2.48bn by selling portions of stakes it holds in Bank of China and
China Construction Bank via placements.
Japan's Mitsui & Co and Mitsubishi Corp to jointly buy a 14.7% stake in an Australian LNG
project from Woodside Petroleum for $2 bn project from Woodside Petroleum for $2 bn.
Novartis AG's Sandoz division to buy dermatology product maker Fougera Pharmaceuticals
for $1.53bn in cash.
Source: Crisil Weekly Market Update
Gl b l E iti Global Equities
Indices May 4 Apr 27 Change
%
Change
DJIA 13206.59* 13228.31 -21.72 -0.16
Nasdaq Composite 3024.30* 3069.20 -44.90 -1.46
Nikkei 225 (Japan) 9380.25^ 9520.89 -140.64 -1.48 ( p )
Straits Times (Singapore) 2990.59 2981.58 9.01 0.30
Hang Seng (Hong Kong) 21086.00 20741.45 344.55 1.66
FTSE 100 (London) 5766 55* 5777 10 -10 55 -0 18 FTSE 100 (London) 5766.55 5777.10 10.55 0.18
10.0
11.0
12.0
Rebased to 10 Dow Jones Nasdaq FTSE
Nikkei Straits Times Heng Seng
6.0
7.0
8.0
9.0
-
1
1
-
1
1
-
1
1
-
1
1
1
1
-
1
1
-
1
1
-
1
1
1
2
1
2
1
2
1
2
1
2


0
4
-
M
a
y
-
0
4
-
J
u
n
-
0
4
-
J
u
l
-
0
4
-
A
u
g
-
0
4
-
S
e
p
-
0
4
-
O
c
t
-
0
4
-
N
o
v
-
0
4
-
D
e
c
-
0
4
-
J
a
n
-
0
4
-
F
e
b
-
0
4
-
M
a
r
-
0
4
-
A
p
r
-
0
4
-
M
a
y
-
Source: Crisil Weekly Market Update
Gl b l E iti Global Equities
Key global indices were mixed in the week ended May 3/4 with Hong Kongs Hang Seng
index gaining the most, up 1.7%, while Japans Nikkei index fell the most, down 1.5%. g g p p
Wall Street stocks ended lower in the week on renewed worries about the fragility of
Europe's finances and intermittent disappointing domestic economic reports and weak
corporate earnings. Losses were however reduced following some strong domestic
economic pointers including manufacturing data. economic pointers including manufacturing data.
Britains FTSE index fell 0.2% in the week on tracking disappointing US private sector job
report, and rising concerns about the euro zone. The benchmark had started strongly
following upbeat US corporate earnings and manufacturing data.
Japans Nikkei fell 1 5% in the holiday curtailed week primarily on tracking disappointing US Japan s Nikkei fell 1.5% in the holiday curtailed week primarily on tracking disappointing US
GDP figures and renewed concerns about Spanish banks after S&P's cut the ratings of 11
Spanish lending institutions.
Hong Kongs Hang Seng index gained 1.7% in the week primarily on the back of upbeat
f i d i h Chi d US manufacturing data in the China and US.
Gains were however capped amid rising concerns about the European economy and after
Chinese developers stocks fell after industry heavyweight China Vanke Co Ltd, posted a
monthly sales decline.
Singapores Straits Times index rose 0.3% in the week mainly due to strong manufacturing
data from China and US.
Source: Crisil Weekly Market Update
Gl b l D bt Global Debt
US treasury prices rose during the week ended May 3 due to weakness in European
manufacturing and slower private-sector hiring in the US which fueled expectations of a g p g p
global slowdown and boosted demand for low-risk investments.
The yield on 10 year benchmark bond fell marginally to 1.92% on May 3 from 1.96% on
April 26.
The slower-than-expected U S economic growth in the first quarter also supported the safe The slower-than-expected U.S. economic growth in the first quarter also supported the safe
haven appetite for government securities.
Sentiments for bonds were also boosted on worries about Spains economy slipping into
recession and it might need a rescue as Greece and Ireland did.
f S f Further gains were however capped after U.S. manufacturing sector unexpectedly grew at
its strongest pace in 10 months; casting doubts over the stimulus from the Federal
Reserve.
Losses were also witnessed after U.S. claims for jobless benefits fell 27,000 to a seasonally
adjusted 365,000 in the week ended April 28, the biggest weekly drop in claims since early
May last year
On weekly holding front, foreign central banks investment in US Treasuries and agency
debt at the Federal Reserve rose in the week ended May 2. y
Treasuries held by overseas central banks at the Fed Treasury debt rose by $9.908 billion
to stand at $2.782 trillion.
Source: Crisil Weekly Market Update
Global Debt
Holdings of securities issued or guaranteed by Fannie Mae and Freddie Mac
l f ll b $2 153 billi t t d t $715 billi also fell by $2.153 billion to stand at $715 billion.
The resultant combined holdings of Treasuries and agency securities by foreign
central banks at the Fed rose $7.755 billion to stand at $3.497 trillion.
4.00
US 10-Year Govt Bond Yield
2.00
3.00
1.00
a
y
-
1
1
u
n
-
1
1
J
u
l
-
1
1
u
g
-
1
1
e
p
-
1
1
O
c
t
-
1
1
o
v
-
1
1
e
c
-
1
1
a
n
-
1
2
e
b
-
1
2
M
a
r
-
1
2
A
p
r
-
1
2
a
y
-
1
2
3
-
M
3
-
J
u
3
-
J
3
-
A
u
3
-
S
3
-
O
3
-
N
3
-
D
3
-
J
a
3
-
F
e
3
-
M
3
-
A
3
-
M
a
Source: Crisil Weekly Market Update
USA USA
Wall Street stocks ended lower in the week, with the Dow Jones falling 0.2% and Nasdaq
ending 1.5% lower. g
Markets started on a positive note buoyed by stronger-than-expected earnings from
Amazon.com and Expedia Inc, outweighing even a weak reading on first-quarter US
economic growth
US GDP grew at a 2 2% annual rate in Q1 2012 as per advance estimates moderating US GDP grew at a 2.2% annual rate in Q1 2012 as per advance estimates, moderating
from Q4 2011 growth rate of 3%.
Sentiments were boosted further, with the Dow Jones touching its highest level in more
than four years, after robust US manufacturing data eased worries about a slowdown in the
economic recovery economic recovery.
US Institute for Supply Management said that its index of national factory activity rose
to 54.8 in April from 53.4 in March.
Gains were however wiped off on news that Spain had entered another recession, thereby
renewing worries about the fragility of Europe's finances.
Intermittent disappointing economic reports and weak corporate earnings also weighed on
the markets.
US ADP National Employment Report showed that private-sector employment US ADP National Employment Report showed that private sector employment
increased by 119,000 from March to April on a seasonally adjusted basis.
Source: Crisil Weekly Market Update
USA USA
US consumer spending rose by a marginal 0.3% in March after a 0.9% increase in
February while the income increased by 0.4% in march, which was an improvement y y p
from the 0.2% gain in February.
US factory orders fell 1.5% in March, the steepest decline since March 2009, following
1.1% rise in the February.
US ISM services sector index in April dropped to 53 5% from 56% in March to mark US ISM services sector index in April dropped to 53.5% from 56% in March to mark
the worst reading since November.
Markets were also affected by news that Euro zone factory activity contracted again last
month, with the purchasing managers index falling to its lowest level since June 2009.
Among other indicators released in the week,
US nonfarm productivity fell at a 0.5% annual rate in Q1 2012 following an upward
revised 1.2% rise in the Q4 2011while labour costs were up 2.1% in Q1 2012
compared with the 3.1% rise in Q4 2011.
US construction spending edged up 0.1% to an annual rate of $808.07bn, after a
revised 1.4% drop in February.
US auto sales rose 2.3% in April over last year to a seasonally adjusted annualized
rate of sales of 14 42mn vehicles rate of sales of 14.42mn vehicles.
Source: Crisil Weekly Market Update
UK
Britains FTSE index ended 0.2% lower in the week primarily on tracking weak global cues.
The benchmark started strongly following upbeat US corporate earnings and consumer The benchmark started strongly following upbeat US corporate earnings and consumer
confidence data.
Market soared further after US reported stronger-than-expected US manufacturing data.
Sentiments were however dented on tracking disappointing US private sector job report and
f t i d t f th manufacturing data from the euro zone.
Market was also down after S&P cut Spains credit rating by two notches.
More losses were seen on the back of weak UK and US services sector data.
UK services PMI declined to 53 3 in April from the 55 3 in March UK services PMI declined to 53.3 in April from the 55.3 in March.
Among other developments and indicators in the week,
Bank of England Governor said that Britain's economy may recover slowly in 2012 after
a weak start.
Bank of England said that net lending to consumers rose 1.4 bn pounds in March,
compared with a rise of 1.3 bn a month earlier.
UK Markit/CIPS Manufacturing Purchasing Managers Index fell to 50.5 in April from a
downwardly revised 51.9 in March. y
Source: Crisil Weekly Market Update
ASIA ASIA
Singapores Straits Times index rose 0.3% in the week ended May 4 amid mixed global
sentiments. se e s
Market sentiments got support earlier from strong manufacturing data from China and US.
Gains were however trimmed on mirroring declines in other regional markets following some
intermittent disappointing data from the US and Europe.
A j i di t l d i th k Among major indicators released in the week,
Singapores jobless rate rose slightly to 2.1% in March, compared with a 2% rate in
December 2011.
Singapores Purchasing Managers' Index (PMI) for April was 49.7, lower from 50.2 in g p g g ( ) p ,
March.
Japans Nikkei dipped nearly 1.5% in the holiday curtailed week primarily on tracking
negative global cues and a firm yen.
The benchmark fell earlier following disappointing US GDP figures and renewed concerns The benchmark fell earlier following disappointing US GDP figures and renewed concerns
about Spain's banks after S&P's cut the ratings of 11 Spanish lending institutions.
Sentiments were also dull due to the Golden Week holiday later in the week.
Some weak domestic earnings also affected the market.
Further losses were however capped as the dollar strengthened against the yen after US
manufacturing activity figures came in better-than-expected.
Source: Crisil Weekly Market Update
ASIA ASIA
Hong Kongs Hang Seng index gained 1.7% in the week ended May 4 following positive
cues from US and China.
Market soared earlier on the back of upbeat manufacturing data in the China and US that
lifted optimism about the world's two biggest economies
Chinas official Purchasing Managers Index rose to 53.3 in April from 53.1 in March.
Chinas HSBC Purchasing Managers Index improved to 49 3 in April from 48 3 in Chinas HSBC Purchasing Managers Index improved to 49.3 in April from 48.3 in
March.
Gains were however restrained amid rising concerns about the European economy.
The benchmark retreated further due to weakness in Chinese developers after the biggest
player by sales, China Vanke Co Ltd, posted a monthly sales decline.
Meanwhile, China's non-manufacturing PMI fell to 56.1 in April from 58 in March.
Source: Crisil Weekly Market Update
Indian Futures and Options Market Review
Nifty Futures
The Nifty near month contract (expiry May 31) ended up with 11 point premium The Nifty near month contract (expiry May 31) ended up with 11 point premium
to the spot index on May 4, 2012.
Over the week ended May 4, the Nifty spot index fell nearly 2% on reports that
India may review its Double Taxation Avoidance Agreement with Mauritius.
The other Nifty future contracts, viz., June contract ended at 5116 points (down
111 points over the week) while the July contract ended at 5136 points (down
150 points over the week).
O ll Nift f t kl t di l f R 27 568 i i t f Overall, Nifty futures saw a weekly trading volume of Rs 27,568 cr arising out of
11 lakhs contracts with an open interest of 203 lakhs.
Source: Crisil Weekly Market Update
Indian Futures and Options Market Review Indian Futures and Options Market Review
1 88
1.90
5240
5280
I
n
d
e
x
Nifty Futures (Near Month Contract) Nifty Spot Open Interest cr (Near Month Contract)
1.82
1.84
1.86
1.88
5120
5160
5200
5240
O
p
e
n

I
n
t
e
r
e
s
t

C
r
N
i
f
t
y

F
u
t
u
r
e

/

S
p
o
t

Nifty Options
1.80 5080
2
7
-
A
p
r
-
1
2
2
8
-
A
p
r
-
1
2
3
0
-
A
p
r
-
1
2
2
-
M
a
y
-
1
2
3
-
M
a
y
-
1
2
4
-
M
a
y
-
1
2
Nifty 5300 call witnessed the highest open interest of 80 lakhs on May 4; it also witnessed the
highest increase in open interest of 24 lakhs over the week.
Nifty 5300 call also garnered the highest number of contracts over the week at around 12
lakhs.
For put options, Nifty 5000 put witnessed the highest open interest of 112 lakhs on May 4; it
also witnessed the highest increase in open interest of 29 lakhs over the week.
Nifty 5200 put garnered the highest number of contracts over the week at 10 lakhs.
Overall options saw 88 lakh contracts getting traded at a notional value of Rs 2 31 896 cr Overall, options saw 88 lakh contracts getting traded at a notional value of Rs 2,31,896 cr
during the week.
Source: Crisil Weekly Market Update
Indian Futures and Options Market Review
Stock Futures and Options
NSE witnessed 16 lakh contracts in stock futures valued at Rs 42,129 cr while stock options
saw volumes of 6 lakh contracts valued at Rs 15,057 cr during the week ended May 4, 2012.
NSE F&O Turnover
Overall turnover on NSE's derivatives segment stood at Rs 3.3 lakh cr (126 lakh contracts) in
the week ended May 4, 2012 vs., Rs 7.9 lakh cr (301 lakh contracts) in the previous week.
Week Ended
M 4 2012
Turnover
R C % t T t l
y , , ( ) p
Put Call ratio rose to 0.96 on May 4 from 0.67 on Apr 28.
May 4, 2012 Rs. Cr. % to Total
Index Futures 37,731 11.46
Index Options 234,259 71.17
Stock Futures 42,129 12.80
Stock Options 15,051 4.57
Total 329,170 100.00
Put Call Ratio 0.96 (May 4) 0.67 (Apr 28)
Source: Crisil Weekly Market Update
Indian Futures and Options Market Review
FII Segment
On May 3 (last available SEBI data), foreign institutional investors' open interest stood at Rs
57,150 cr (22 lakh contracts).
The details of FII derivatives trades for the period Apr 27 May 3, 2012 are as follows: -
Week Ended
May 3, 2012
Buy Sell Buy % Sell %
No. of
contracts
Amt in Rs
Cr
No. of
contracts
Amt in Rs
Cr
No. of
contracts Amt in Rs Cr
No. of
contracts
Amt in Rs
Cr
Index
Futures
134033 3486 130906 3354 9.49 9.46 9.58 9.42
Index
Options
1119377 29212 1067489 27899 79.23 79.29 78.11 78.32
Stock Stock
Futures
110550 2864 120950 3126 7.83 7.77 8.85 8.78
Stock
Options
48805 1279 47297 1242 3.45 3.47 3.46 3.49
Total 1412765 36841 34 1366642 35621 100 00 100 00 100 00 100 00 Total 1412765 36841.34 1366642 35621 100.00 100.00 100.00 100.00

Source: Crisil Weekly Market Update
The Week Ahead
07
th
May 11
th
May,2012
Indian Debt Market Outlook
This week, the G-Sec markets are expected to take cues from monthly industrial
production, G-Sec auction cut-offs, liquidity scenario, policy makers statements and global p , , q y , p y g
developments.
This week, the money market rates are expected to remain range-bound. Money market
inflows of around Rs. 14,300 cr are expected as against outflows of around Rs. 37,000 cr
during the week during the week.
Corporate bond market is expected to take cues from G-sec market and primary issuances.
Source: RBI,RMF Estimates
Indian Debt Markets Indian Debt Markets
The maturities of duration funds
Particulars 27-Apr-12 04-May-12 Change (bps)
10 year Gsec yield (%) 8.65 8.62 -0.03
(except for G-Sec fund and
Income fund) have decreased.
The maturities of G-Sec fund
have increased on account of
y y ( )
Scheme Maturity (years) Change
Reliance G-sec Fund 3.66 8.53 4.87
Reliance Income fund 4.31 4.62 0.31
Reliance Short Term
deployment in long maturity
asset.
The maturities of liquid schemes
have reduced during the week.
Fund 1.66 1.58 -0.08
Reliance Dynamic Bond
Fund 3.74 3.23 -0.51
Reliance Monthly Income
Plan (MIP) 3.68 3.31 -0.37
have reduced during the week.
Liquid Schemes Maturity (days) Change
Reliance Floating Rate
Fund Short Term Plan 310 291 -18.98
Reliance Money Manager
F d 81 6 4 Fund 81 76 -5.47
Reliance Liquidity Fund 49 43 -6.30
Reliance Medium Term
Fund 212 205 -6.45
Reliance Liquid Fund - Reliance Liquid Fund -
Treasury Plan 53 49 -4.26
Reliance Liquid Fund -
Cash Plan 42 39 -2.78
The Week Ahead The Week Ahead
Day Event
Monday, May 7 US Consumer Credit data, March
Euro-Zone Sentix Investor Confidence, May
UK RICS House Price Balance April UK RICS House Price Balance, April
Wednesday, May 9 US Wholesale Inventories, March
US Crude Oil Inventories, May 5
Japans Current Account Balance, March
Japans Leading Index, March
Th d M 10
US Trade Balance March
Thursday, May 10
US Trade Balance, March
US Treasury Budget, April
US Export / Import Prices, April
US Initial Jobless Claims, May 5
ECBs Monthly Report, May
Bank of England Rate Decision
B k f E l d A t P h T t M Bank of England Asset Purchase Target, May
UK NIESR GDP Estimate
UK Industrial Production, March
UK Visible Trade Balance, March
Chinas Trade Balance, April
Japans Eco Watchers Survey: Outlook, April
Friday, May 11
US Producer Price Index, April
University of Michigan Consumer Sentiment index, May
European Commissions Economic Growth Forecasts
UK Producer Price Index, Q1
Chinas Consumer Price Index, April
Chinas Producer Price Index, April
Source: Crisil Weekly Market Update
, p
Chinas Industrial Production, April
Chinas Retail Sales, April
Indias Index of Industrial Production, March
Indias Forex Reserves, week ended May 4
Information's provided here are meant for general reading purpose only and is not meant to Information's provided here are meant for general reading purpose only and is not meant to
serve as a professional guide for the readers. This document has been prepared on the
basis of publicly available information, internally developed data and other sources believed
to be reliable. The Sponsor, The Investment Manager, The Trustee or any of their respective
di t l ffili t t ti d t ibilit f directors, employees, affiliates or representatives do not assume any responsibility for, or
warrant the accuracy, completeness, adequacy and reliability of such information. Whilst no
action has been solicited based upon the information provided herein, due care has been
taken to ensure that the facts are accurate and opinions given fair and reasonable. This
information is not intended to be an offer or solicitation for the purchase or sale of any
financial product or instrument. Recipients of this information should rely on information/data
arising out of their own investigations. Readers are advised to seek independent
professional advice and arrive at an informed investment decision before making any p g y
investments. None of The Sponsor, The Investment Manager, The Trustee, their respective
directors, employees, affiliates or representatives shall be liable for any direct, indirect,
special, incidental, consequential, punitive or exemplary damages, including lost profits
arising in any way from the information contained in this material arising in any way from the information contained in this material.
Mutual Fund investments are subject to market risks, read all scheme
related documents carefully. y
Information's provided here are meant for general reading purpose only and is not meant to Information's provided here are meant for general reading purpose only and is not meant to
serve as a professional guide for the readers. This document has been prepared on the
basis of publicly available information, internally developed data and other sources believed
to be reliable. The Sponsor, The Investment Manager, The Trustee or any of their respective
di t l ffili t t ti d t ibilit f directors, employees, affiliates or representatives do not assume any responsibility for, or
warrant the accuracy, completeness, adequacy and reliability of such information. Whilst no
action has been solicited based upon the information provided herein, due care has been
taken to ensure that the facts are accurate and opinions given fair and reasonable. This
information is not intended to be an offer or solicitation for the purchase or sale of any
financial product or instrument. Recipients of this information should rely on information/data
arising out of their own investigations. Readers are advised to seek independent
professional advice and arrive at an informed investment decision before making any p g y
investments. None of The Sponsor, The Investment Manager, The Trustee, their respective
directors, employees, affiliates or representatives shall be liable for any direct, indirect,
special, incidental, consequential, punitive or exemplary damages, including lost profits
arising in any way from the information contained in this material arising in any way from the information contained in this material.
Mutual Fund investments are subject to market risks, read all scheme
related documents carefully. y
Thank you y