RBI surprises market with 50 bps rate cut; CRR unchanged

RBI Policy: Repo Rate cut 50 bps to 8.00% with immediate effect
Reverse Repo rate adjusts 50 bps lower to 7%


RBI Policy: Cash Reserve Ratio unchanged at 4.75%

17-04-2012

FII & DII ACTIVITY
FII & DII activity on 16-04-2012 – FII net sellers in index future to the amount of Rs 333.58 cr , in index options net sellers to the amount of Rs 219.76 Cr, in stock futures net buyers to the amount of Rs 101.86 Cr & in stock options net sellers to the amount of Rs 0.18 Cr. Overall FIIs were net sellers by Rs 451.66 Cr.


Capital Market Segment – FII trading activity net sellers  of Rs 509.43 Cr & DII trading activity net buyers of Rs 218.23 Cr.




 DATA ALERT FROM OVERSEAS
• JAPAN REVISED INDUSTRIAL PRODUCTION for Feb.
• JAPAN CONSUMER CONFIDENCE SURVEY for Mar.
• GERMANY ZEW INDICATOR OF ECONOMIC SENTIMENT for Apr.
• EU HARMONISED CPI for Mar.
• US ICSC-GOLDMAN SACHS CHAIN STORE SALES INDEX for wk to Apr 14.
• US HOUSING STARTS AND BUILDING PERMITS for Mar.


• US JOHNSON REDBOOK RETAIL SALES INDEX for wk to Apr 14.
• US INDUSTRIAL PRODUCTION for Mar.
• US CRUDE OIL STOCKS in week to Apr 6.
• US GASOLINE STOCKS in week to Apr 6.
• US DISTILLATE STOCKS in week to Apr 6.
• US REFINERY USAGE in week to Apr 6.


MARKET NEWS


• Crisil Jan-Mar standalone net profit 53.85 cr vs 44.75 cr rupees (YoY).
• Mindtree Jan-Mar consolidated net profit 68.9 cr vs 32.0 cr rupees (YoY).


•AVIATION: Air India's staff unions have sought a meeting with aviation minister Ajit Singh to express concerns over hiving off of the company's engineering and ground-handling departments into separate companies.
• ENERGY: Coal secretary has convened a meeting of private coal mining companies and COAL INDIA to identify projects that can be outsourced to private mining companies.
• RETAIL: Maharashtra government has notified farmers can sell fresh produce to consumers directly, rather than through agriculture produce marketing committees.
• TELECOM: Telecom Regulatory Authority of India has released recommendations on telecom licence guidelines that suggest three levels of unified licences-- national level, service-area level and district level.


•STEEL AUTHORITY OF INDIA: Government is mulling demands of a consortium led by the company for state funding of a $10.8 bln investment plan in Afghanistan to set up steel and power plants, iron ore mining, and development of associated infrastructure.
• TILAKNAGAR INDUSTRIES: The company's Shrirampur unit has received from the Maharashtra government 'mega project' status, which gives it tax and electricity duty sops.
• SMS PHARMA: Has won a case against Hyderabad-based NATCO PHARMA, following which the latter will have to pay over 275 mln rupees to the former.


HINDUSTAN UNILEVER: Has leased its erstwhile headquarters in south Mumbai to HOUSING DEVELOPMENT FINANCE CORP at 1.1 bln rupees for a three-year period.
• HOTEL LEELAVENTURE: As part of a debt recast plan, promoters will put in 1.5 bln rupees into the company through a preferential allotment of shares.
• INDIAN OIL CORP: Has signed agreements with 20 banks to avail five-year loans worth $250 mln.
• IVRCL: Fund House Merrill Lynch Capital Markets has bought 2.12 mln shares of the company for 150 mln rupees through the open market.
• MAGMA FINCORP: Has got R2 approval from insurance regulator for insurance joint venture.


ARO GRANITE INDUSTRIES: To pay dividend of 1 rupee a share.
• BHARTI AIRTEL: Income Tax Department has issued fresh notices to the company for non-payment of tax deducted at source dues for its overseas operations.
• Has signed an information technology outsourcing deal with Avaya Inc that covers all 20 countries where it has mobile telephony services.
• CLUTCH AUTO: Work at Faridabad unit of the company has stopped due to workers' strike.
• COAL INDIA: Has got board approval for signing 20-year fuel supply agreements with power companies, including a clause that penalises the world's largest coal producer for falling short on its commitment.
• ESSAR OIL: Plans to raise 63 bln rupees debt to pay off its sales tax dues to the Gujarat government as part of a corporate debt recast plan.