HINDALCO Industries Ltd

CMP: Rs.125 (It is near its 5 2-week low price)

52-week High/Low: 224.64/Rs.111.25

Short Term Target: Rs.160

The Four Primary Triggers: 

(i) It is an industry leader in aliminium and copper and hence is able to absord any slowdown in the sector, with better management. It has a low cost business model, superior product mix, a balanced and de-risked portfolio and has operational excellence. Company’s Copper production, both in India and Australia, has been impressive. Furthermore, the expansion of the Company’s Pinda mill in Brazil and global de-bottle-necking projects designed to increase capacity, have been growth propellers. The Hirakud Flat Rolled Products project is expected to get operation by Q1FY13. Almost all of the Company’s Greenfield projects are on course. Of these projects, two aluminum smelters and one large alumina refinery viz. Mahan Aluminium, Aditya Aluminium and Utkal Alumina are in advance stage of execution with a capital outlay of US $ 5 billion. When these projects, along with those which are currently on the drawing board, are commissioned, Hindalco Industries Ltd would be a 1.7 million ton aluminum company with a 6 million ton alumina refining capacity. Thus in all probability, the company is all set for a quantum growth leap, going forward--it hopes to become a 65 billion dollar Group by 2015. The company gets around 75% of its business from the Aluminium segment. Q3FY12, results reflect a strong performance in the Aluminium Business in India and at Novelis. The previously announced rolling mill expansion in Brazil and the recently announced expansion in Korea as well as strategic automotive expansion in North America are key focus areas in the near term to capitalize on future growth and solidify its position as the leading player in the global FRP industry. Over the next year, Novelis expects continued strong demand in its key product segment. Moreover any buoyancy in the Power Sector in India, will be positive for the companies like Hindalco Industries Ltd.

(ii) China, the world's largest importer and consumer of base metals, is seen re-exporting its copper stocks from the bonded warehouses at the Shanghai Futures Exchange, to ease LME backwardation. "Backwardation, is a sign of bullishness--it means that the spot market is tight with high demand and restricted supply. This hints at a bullish trend in base metals for the rest of the day. Also, in case of Aluminium, China continues to be the driving force behind the demand growth, growing at ~ 15-20% and contributing to over 35% of global aluminium demand. Moreover, India's domestic demand continued to be robust on the back of strong industrial growth, expected in the coming months, post cut in the repo rates. Strong growth in the end user segments such as automobiles, Industrial and infrastructure; and thrust on power sector growth, is expected to propel the future  the aluminium demand. The aluminium prices are expected to remain buoyant even as inventory levels  are highs. This is because of the tightness in the physical market, with most inventories tied up at various ware houses under financing deals.

(iii) Eurozone crisis is easing and this is giving strength to the Euro against the Dollar. This trend is expected to push dollar-denominated commodities such as base metals higher in the global market. The Global economy is continuing to recover after the unprecedented sharp fall in FY09. Strong demand from both emerging markets and developed markets on the back of increased Industrial activity is expected to fuel the demand for commodities in the coming days---the emerging markets will continue to be the torchbearer of this growth. In India inflationary pressures have receded to some extent, while fall in the crude oil prices off late has also ebbed some of concerns of rising fiscal deficit. Now with the RBI going all out for a cut in the Repo rate,  it is expected that the the domestic environment will more or less be on the path of recovery. With a strong recovery in the US and EU the demand momentum is expected to remain strong for the Aluminium and Copper segments.

(iv) Alcoa Inc, the biggest US aluminum producer reported better than expected quarterly profit and reaffirmed global demand for aluminum to grow 7% in 2012. This augurs well for aluminium related companies like Hindalco Industries Ltd.  Aluminium demand in India has been very strong in the recent past growing at almost 14% CAGR. Unlike the western world the primary demand driver for aluminium in India has been power sector which accounts for almost 48% demand. With government’s stated committed spending towards achieving 70,000 MW generation target, the spend on power infrastructure will be huge. As far as the other aluminium consuming sectors are concerned with growing urbanization the demand growth has picked up from packaging, automobile, construction (increased usage) electronics (cell phone, laptop bodies) etc.. The per capita consumption at ~1.2 kg is still abysmally low as compared with even China ~10 Kg and the western world~ 15-18 Kg. This offers significant potential demand upside. The Global demand outlook for FRP (Flat rolled products) is extremely bullish with rising demand from beverage cans; especially in the emerging markets, consumer electronics and automobile segment (with increased emphasis on weight reduction). Novelis is the global leader in this segment. The global refined copper demand is expected to increase by around 7% in CY2012.  Moreover, it is expected that the long term demand for copper will continue to be strong on the back of infrastructural demand from India, China and moderate demand growth from the western world. China will continue to have lion’s share in the incremental growth and is expected to account for over 60% of incremental growth over next 5 years, thus accounting for around 44% of 2015 global estimated demand of ~ 24 Million tonnes.  The long term fundamentals are strong and the copper consumption is expected to increase with renewed thrust on power sector reforms and urban housing. The copper consumption in India is relatively low. The per capita copper consumption stands at around 1.2 Kg as compared to 7Kgs in the US or even 3.6 Kgs in China and hence the growth potential is enormous.

The Company: Hindalco Industries Ltd is an industry leader in aluminium and copper. Hindalco Industries Limited, the metals flagship company of the Aditya Birla Group is the world's largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia. Its copper smelter is the world’s largest custom smelter at a single location.
The acquisition of Novelis Inc. in 2007 positioned Hindalco Industries Ltd, among the top five aluminium majors worldwide and the largest vertically integrated aluminium company in India. Today it is a metal powerhouse with high-end rolling capabilities and a global footprint in 13 countries. It is a part of the Fortune 500 league.
Its aluminium units across the globe encompass the entire gamut of operations, from bauxite mining, alumina refining and aluminium smelting to downstream rolling, extrusions, foils, along with captive power plants and coal mines. 

Its copper unit, Birla Copper, produces copper cathodes, continuous cast copper rods and other by-products, such as gold, silver and DAP fertilisers.
Its units are ISO 9001:2000, ISO 14001:2004 and OHSAS 18001 certified. Several units have gone a step further with an integrated management system (IMS), combining ISO 9001, ISO 14001 and OHSAS 18001 into one business excellence model. It was accorded the Star Trading House status in India. Hindalco's aluminium metal is accepted for delivery under the High Grade Aluminium Contract on the London Metal Exchange (LME). Its copper quality standards are also internationally recognised and registered on the LME with Grade A accreditation.
Hindalco's major products include standard and speciality grade aluminas and hydrates, aluminium ingots, billets, wire rods, flat rolled products, extrusions and foil. The integrated facility at Renukoot houses an alumina refinery and an aluminium smelter, along with facilities for the production of semi-fabricated products, namely, redraw rods, flat rolled products and extrusions. The plant is backed by a co-generation power unit and a 742 MW captive power plant at Renusagar to ensure the continuous supply of power for smelter and other operations.

Its copper unit, Birla Copper upholds its reputation for quality copper cathodes and continuous cast copper rods. Birla Copper, Hindalco’s copper unit, is located at Dahej in Gujarat, India. The unit has the unique distinction of being the largest single-location copper smelter in the world. The smelter uses state-of-the-art technology and has a capacity of 500,000 tpa.
Birla Copper also produces precious metals, fertilisers and sulphuric and phosphoric acid. The unit has captive power plants for continuous power generation and a captive jetty to facilitate logistics and transportation.
Birla Copper upholds its longstanding reputation for quality copper cathodes and continuous cast copper rods by assuring its management processes meet the highest standards. It has acquired certifications such as ISO-9001:2000 (Quality Management Systems), ISO-14001:2004 (Environmental Management System) and OHSAS-18001:2007 (Occupational Health and Safety Management Systems).
Mines:
Hindalco acquired two Australian copper mines, Nifty and Mt. Gordon, in 2003. The Birla Nifty copper mine consists of an underground mine, heap leach pads and a solvent extraction and electrowinning (SXEW) processing plant, which produces copper cathode.
Both Nifty and Mt. Gordon have a long-term life of mine off-take agreement with Hindalco for supply of copper concentrate to the copper smelter at Dahej.   
Expansion: 
(i) Brownfield Expansions: 

• Hirakud Smelter Expansion: The Smelter expansion at Hirakud from 155 KTPA to 161 KTPA was completed in Q4 FY11. A further expansion from 161 KTPA to 213 KTPA, along with a 100 MW Captive Power Plant [CPP] will be completed in early 2012. 
• The next phase of expansion of the Smelter from the proposed 213 KTPA to 360 KTPA, with a corresponding increase in CPP capacity from 467.5 MW to 967.5 MW is under evaluation. The environmental clearance for this is already in place.
• Hirakud Flat Rolled Products [FRP] Project: This project is underway for the transfer of all key equipment for FRP production from Novelis plant at Rogerstone, UK to Hirakud. In addition, orders have also been placed for related and balancing equipment. This will enable the Company to produce a wide range of superior engineering products, including can-body stock, for the local and export markets. The project is slated for completion in Q1FY13. Around 2,000 people are working at the site on civil and structural jobs. 
• Belgaum Special Alumina: The Specials Plant expansion from 189 KTPA to 301 KTPA, with a coal based co-generation power plant. Natural gas adaptation for its rotary kilns is being evaluated.
• Novelis - South America: Pinda is the largest aluminium rolling and recycling facility in South America in terms of shipments and the only facility in South America capable of producing can-body and end-stock. Pinda recycles primarily used aluminium beverage cans and is engaged in tolling recycled metal for its customers. In response to the growing demand for the company’s products in South America, a plan to invest nearly USD 300 million to expand the aluminium rolling operations in Pinda was announced earlier. This expansion will increase the plant’s capacity by more than 50% to approximately 600 Kt of aluminium sheet per year. The project is expected to come on stream by late 2012.
• Novelis - Asia:  In May 2011, Novelis announced plans to invest approximately USD 400 million to expand the aluminium rolling and recycling operations in South Korea, in response to the growing demand in Asia and the Middle East. The rolling expansion, which will include investments in both hot rolling and cold rolling operations, will increase aluminium sheet capacity in Asia to 1,000 Kt annually. As a response to the projected market growth in the region, this move is designed to rapidly bring to market, high quality aluminium rolling capacity, aligned with the projected needs of a growing customer base. The new capacity is expected to be commissioned in financial year 2013. The expansion will increase Novelis’ aluminium sheet capacity in Asia by more than 50% and will also include the construction of a state-of-the-art recycling centre for used aluminium beverage cans and a casting operation.

(ii) Greenfield Projects: Greenfield Projects have made significant progress during the fiscal FY12.

• Utkal Alumina International Ltd (UAIL): The construction of the alumina refinery, along with a 90 MW captive co-generation plant is in progress at UAIL, a 100% subsidiary of the Company. The output from UAIL would be sufficient to feed alumina to the Mahan and the Aditya Smelters. Contractors have mobilised more than 9,000 people at the site. The erection of major equipment like boilers, evaporators and turbines has begun. The project performance review of some of the contracts indicates slippage in performance of certain contractors, mainly in the area of civil work. In order to avoid further slippage, some of the non-performing contractors have been suitably replaced with new contractors, who have better performance track record. Internal accruals and free cash flows are adequate to meet the probable overruns which are being estimated. Despite these overruns, the project capital cost continues to be favourably benchmarked with the capital cost of other comparable global projects. The operating cost of this project will continue to be in the lowest cost quartile of the global cost of production and will continue to be
  value accretive.
• Mahan Aluminium Project: This 359 KTPA Aluminium Smelter, along with 900 MW CPP, is coming up in Bargwan, Madhya Pradesh. Contractors have mobilised about 16,000 people at the site. Engineering for the project is complete and major equipment for both the Smelter and the CPP have started arriving at the site. Civil foundation, fabrication and erection of structures have progressed substantially at both the Smelter and the CPP.
  The coal requirement for the CPP will be primarily met from Mahan Coal Block, being developed by Mahan Coal Limited (MCL), a joint venture between the Company and Essar Power Limited. Mahan Coal Block was included under the category of ‘No Go’ area. An Empowered Group of Ministers has been set up to resolve all environment and forest issues for coal mines under “No Go” areas. The Company is in the process of finalising the arrangements for mining to fast-track the development of the mines, once the final forest clearance is received. As an interim measure, the Company has applied to the Ministry of Coal for temporary supply of coal (tapering linkage) to the Mahan CPP, until the Company’s own mines commence operating at full capacity.
• The Aditya Aluminium project: A 359 ktpa, Aluminium smelter along with a 900 MW captive power plant, identical to the Mahan Project, is coming up in Orissa. The project has received stage 2 forest clearance in January 2011 and the construction work has started. Now the project is slated for completion in 2013.
• The Aditya Refinery Project: A 1.5 Million TPA Alumina Refinery along with a 90 MW cogen plant, replica of the Utkal Alumina refinery is coming up in Orissa. The preliminary cost estimate is in the order of magnitude is Rs. 6,000 Crores without financing cost. It is planned for commissioning in FY14.
• The Jharkhand Aluminium project: A 359 ktpa, Aluminium smelter along with a 900 MW captive power plant is coming up in Sonahatu, Jharkhand. The land acquisition process has already begun. The process for
  obtaining environmental clearance has begun. For this project the Tubed coal mine has been allotted to the project jointly with Tata Power. These projects will significantly enhance the scale of operations of the company and will further improve the cost competitiveness of the company firmly establishing it as one of the lowest cost global alumina and aluminium producers.

Buy Hindalco Industries Ltd: Sudarshan Sukhani

Now another chartist: Sudarshan Sukhani has also given a buy on Hindalco Industries Ltd after Prakash Gaba, according to www.moneycontrol.com.

Sudarshan Sukhani of s2analytics.com told CNBC-TV18, " Hindalco Industries  inspite of the bad news was moving in a trading range and it is actually suggesting that it is willing to go higher, cross that boundary and actually begin an uptrend. I don’t know how that will happen if the Nifty decides to go down. Hindalco independently looks quite attractive as a buy." 

HINDALCO'S operations around the world:

• Novelis is headquartered in Atlanta, Georgia and operates 25 manufacturing facilities in nine countries on four continents, with nearly 11,000 employees. Novelis is the world’s largest rolled aluminum producer in terms of volume shipped, and the largest purchaser of aluminum as well. 
• Aditya Birla Minerals is based in Perth, West Australia, and conducts its activities at the Birla Nifty Copper Operation in the Great Sandy Desert, WA and the Mt Gordon Copper Operation located in the Mt Isa Block in Queensland. 
• Hindalco-Almex operates a first-of-its-kind facility in India, which is exclusively devoted to high-performance aluminium alloys. HAAL is located at Shendra, Aurangabad in western India, around 350 km from Mumbai.

At 10:47 hrs Hindalco Industries was quoting at Rs 156.80, up Rs 1.95, or 1.26 percent. It has touched an intraday high of Rs 157.60 and an intraday low of Rs 154.60.

Hindalco Industries Ltd: Buy

CMP: Rs.89.85

Courtesy: Quandl.com

Stock of India’s Hindalco Industries Ltd has experienced a correction of around 6% over the last two trading sessions on the National Stock Exchange of India. Some experts say the slide in the Aditya Birla Group subsidiary is due to a similar dip in the price of primary aluminium on the LME.

However, here are few of the positive points based on which you can buy the share of Hindalco Industries Ltd, for a short term target of Rs.97:

(i)  The sector has experienced a rise in demand of 6%, Chinese speculators appear to be responsible for most of the demand.

(ii) According to  Abhishek Poddar of Kotak Securities Ltd: "A large chunk of inventories is held by traders, banks or is locked in financial deals. Any rise in the interest rates will increase the cost of carry and lead to sharp unwinding" — a material risk to aluminium prices. However, the interest rate is on a downward trajectory in India and the in the US too, the Fed appears to be treading this path very carefully. On Friday, Labor Department figures showing that U.S. job growth slowed in April kept alive the bet on riskier markets. The data gave the Federal Reserve little reason to raise interest rates soon, economists said - -a move that could withdraw any further support to the USD.

“I was like ‘phew,’ ” said Paresh Upadhyaya, director of currency strategy at Pioneer Investments, after the weaker-than-expected jobs numbers were announced on Friday. “I breathed a sigh of relief that this risk rally will continue.”

Mr. Upadhyaya, whose firm manages $249 billion, has shut down his bullish positions on the dollar in recent months in favor of emerging-market currencies, including the Indian rupee, Russian ruble and Argentine peso.

(iii) Base metals edged higher in Tuesday morning LME trading, pausing after Monday’s correction lower. Better-than-expected Chinese data helped prices to consolidate. The Chinese CPI rose 2.3%  year-on-year in April, in line with consensus and unchanged from last month, while its PPI fell by a less-than-expected 3.4% compared with -4.3% in March. China's April consumer inflation and producer price data painted a mixed picture of deflationary pressures in the world's second largest economy.

Expectations of further monetary policy easing had already been dented by strong March China data, but economists are divided over whether that was just a blip or a more sustainable trend.
"I think monetary policy will be kept steady with structural easing - targeted easing for some sectors," said Nie Wen, economist at Hwabao Trust in Shanghai.

“[Metals] are clearly finding support from the less steep decline in producer prices in China in April. One role in this is likely played by the fact that the dampening effect of commodity prices is gradually moving away from the year-on-year comparison,” Commerzbank noted.

(iv) Hindalco Ltd has no plans for adding capacity in the near future, and the current facilities are running at 85% of the existing capacity. At present, Hindalco’s stock is trading at seven times EV/EBIDTA (enterprise value to earnings before interest depreciation and tax). Historically, most metals and mining companies, both in India and worldwide, trade at between five and six times EV/EBIDTA--which means CMP of Hindalco Industries Ltd is on the boundary line. So any uptick in the Q4FY16 result (on 28 May, 2016), could give a sudden push in the share price. 

(v) The powerful rallies that have lifted stocks, crude oil and emerging markets for the past three months have one important thing in common—the falling dollar. A  stronger U.S. currency, makes dollar-denominated commodities more expensive for non-U.S. firms.

Morgan Stanley’s Global Risk Demand Index, which measures risk appetite by analyzing moves in markets such as stocks, commodities, and emerging markets, is moving nearly in the opposite direction of dollar strength. The correlation reached negative 86% in early April.

A large negative correlation means risky assets tend to fall when the dollar gains and rise when the dollar falls. As of May 5, the correlation was minus-76%.

The Fed began the year with plans to raise interest rates four times after boosting rates by a quarter of a percentage point in December. But in March, Fed Chairwoman Janet Yellen signaled that the central bank was in no hurry to raise interest rates, citing slower global growth.

Federal-funds futures, used by investors and traders to place bets on central-bank policy, showed Friday that the odds for a rate increase at the Fed’s June meeting were 13%, while the chances of a rate increase at the December meeting were 61%, according to CME 

(vi) Global oil demand is catching up with supply and the market should see a “rebalancing” in the second half of the year as cheaper crude has forced some production to close, Qatar’s Energy Minister Mohammad Al Sada said.

The rate of production shutdowns is accelerating and global demand is increasing, especially for products such as gasoline, Al Sada said in an e-mailed statement on Tuesday. “This trend is likely to increase further from next month due to the onset of the summer driving season,” the minister said.

The Organization of Petroleum Exporting Countries will review the current oil market and the outlook for supply and demand at its next meeting on June 2, Al Sada, who is also OPEC president, said in the statement. 

Oil prices rose Tuesday on expectations that supply outages from Canada to Nigeria would help to alleviate the global glut of crude.

Light, sweet crude for June delivery settled up $1.22, or 2.8%, to $44.66 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, rose $1.89, or 4.3%, to $45.52 a barrel on ICE Futures Europe.

Oil-production outages in some regions are helping reduce crude output, boosting expectations that the global glut of crude that has battered prices since mid-2014 could be shrinking. 

Meanwhile, the US Energy Information Administration (EIA) has revised its earlier crude oil price forecast, originally issued in April, but now expected to be around $40.52 per barrel, up $6 from its April estimates of only $34.73 per barrel for the average price of crude in 2016.

"Improving economic data, growing supply disruptions, and falling U.S. crude oil production and rig counts contributed to the price increase," the EIA said in its Short-Term Energy Outlook report released recently.

Oil has rebounded after slumping to a 12-year low in January on signs the global glut is easing as U.S. output decreases. Production outside OPEC will drop the most since 1992 as the U.S. shale oil boom falters, the International Energy Agency said in April.

You can see from the chart above, that even after correction the Aluminium prices are still substantially higher, than the bottom formed at the end of 2015. At the end of last week, aluminium prices were 5% higher than the average for the previous 26 weeks.

Therefore, unless the scrip of Hindalco Industries Ltd breaks down below Rs.89.30 on closing basis, the traders can take short term BUY POSITIONS (above Rs.91.20 buy more), for targets of Rs.97-103. 

HINDALCO Industries Ltd: Clear Upmove Expected

Kindly Click on the Chart to Expand

An industry leader in aluminium and copper, Hindalco Industries Limited, the metals flagship company of the Aditya Birla Group is the world's largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia. Its copper smelter is the world’s largest custom smelter at a single location. Its integrated facility at Renukoot houses an alumina refinery and an aluminium smelter, along with facilities for the production of semi-fabricated products, namely, redraw rods, flat rolled products and extrusions. The plant is backed by a co-generation power unit and a 742 MW captive power plant at Renusagar to ensure the continuous supply of power for smelter and other operations.

Its copper unit, Birla Copper, produces copper cathodes, continuous cast copper rods and other by-products, such as gold, silver, and sulphuric and phosphoric acids and DAP fertilisers.
Hindalco acquired two Australian copper mines, Nifty and Mt. Gordon, in 2003. Both Nifty and Mt. Gordon have a long-term life of mine off-take agreement with Hindalco for supply of copper concentrate to the copper smelter at Dahej. 

A strong buy is recommended in the counter at Rs.103-103.50, for a target of Rs.113-115, SL--Rs.98.

Nifty at 6-1/2-week closing low after a small decline

A small decline pushed the barometer index, BSE Sensex, to 6-week closing low and the 50-unit S&P CNX Nifty to 6-1/2-week closing low. The market edged lower after hawkish comments on inflation from Reserve Bank of India Governor D. Subbarao. The market breadth was negative. The Sensex shed 24.20 points or 0.12%, up close to 44 points from the day's low and off about 83 points from the day's high. Index heavyweight Reliance Industries (RIL) edged higher. Index heavyweight and cigarette maker ITC edged lower. Tata Power Company shrugged off weak Q3 results. ONGC fell ahead of its Q3 results today, 11 February 2013.

The Sensex has lost 544.43 points or 2.72% during the past eight trading sessions from a recent high of 20,005 on 30 January 2013. The Sensex has gained 33.86 points or 0.17% so far in calendar 2013 so far (till 11 February 2013). From a 52-week high of 20,203.66 on 29 January 2013, the Sensex has declined 743.09 points or 3.68%. From a 52-week low of 15,748.98 on 4 June 2012, the Sensex has surged 3,711.59 points or 23.57%.

Coming back to today's trade, capital goods stocks edged lower. Realty and pharma stocks rose on renewed buying. Some PSU shares surged after strong investor response to the divestment of government's 9.5% stake in NTPC last week. Banking and auto shares were mixed.

The market slipped into the red after opening higher amid initial volatility. Intraday volatility continued as key benchmark indices alternately swung between gains and losses in morning trade. Volatility continued as key benchmark indices trimmed losses after hitting fresh intraday low in mid-morning trade. The 50-unit S&P CNX Nifty hit 6-1/2-week low. Key benchmark indices alternately swung between gains and losses near the flat line in early afternoon trade. Key benchmark indices hovered in positive zone in mid-afternoon trade, with index heavyweight Reliance Industries (RIL) extending intraday gains. The market once again slipped into the red in late trade.

The BSE Sensex shed 24.20 points or 0.12% to settle at 19,460.57, its lowest closing level since 31 December 2012. The index fell 67.83 points at the day's low of 19,416.94 in mid-morning trade. The index rose 58.67 points at the day's high of 19,543.44 in early trade.

The S&P CNX Nifty fell 5.65 points or 0.10% to 5,897.85, its lowest closing level since 27 December 2012. The index hit low of 5,879.10 in intraday trade. The index hit a high of 5,924.15 in intraday trade.

The BSE Mid-Cap index fell 0.18% and the BSE Small-Cap index fell 0.31%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1,607 shares declined and 1,322 shares rose. A total of 127 shares were unchanged.

The total turnover on the BSE amounted to Rs 2138 crore, lower than Rs 2510 crore on Friday, 8 February 2013.

Among the 30-share Sensex pack, 16 stocks fell while the rest of them rose.

Index heavyweight Reliance Industries (RIL) rose 0.78% to Rs 870.90. The stock hit high of Rs 873.90 and low of Rs 861. The stock had hit 52-week high of Rs 954.80 in intraday trade on 21 January 2013. RIL on 29 January 2013 raised $800 million via perpetual bonds carrying interest rate of 5.875%. The company will use the proceeds to fund its ongoing capital expenditure in the infrastructure sector. The transaction was about 4 times over-subscribed with an order book of close to $3 billion from high quality investor accounts, RIL said on 29 January 2013. The transaction witnessed participation from more than 160 accounts from Asia, Europe and the United States, RIL said.

Index heavyweight and cigarette maker ITC fell 0.85% to Rs 299.10. The stock hit high of Rs 303.05 and low of Rs 296.75. The stock had hit record high of Rs 310.75 in intraday trade on 4 February 2013. ITC on 18 January 2013 said its net profit rose 20.62% to Rs 2051.85 crore on 22.41% growth in total income to Rs 8041.90 crore in Q3 December 2012 over Q3 December 2011.

The Ministry of Health and Family Welfare in October 2012 notified new pictorial health warnings to be depicted on tobacco product packs which will come into effect from 1 April 2013. The Ministry of Health and Family Welfare said in a statement on 22 October 2012 that three sets of warnings each have been notified for smoking as well as smokeless forms of tobacco product packages. The well-designed health warnings and messages are part of a range of measures to communicate health risks due to tobacco use. Pictorial health warnings communicate health risks in a visible way, provoke a greater emotional response and increase the motivation of tobacco users to quit and to decrease their tobacco consumption, the ministry's statement said. Graphic warning labels have a greater impact than text-only labels and can be recognized by low-literacy audiences and children, the statement added.

ONGC fell 1.77% to Rs 307.90 ahead of its Q3 results today, 11 February 2013.

Oil India rose 0.87% to Rs 537.30. The company today, 11 February 2013, denied media reports that it is likely to acquire Videocon Industries' stake in Mozambique's Rovuma Basin asset.

Shares of Videocon Industries fell 1.12% to Rs 198.50.

Capital goods stocks edged lower. AIA Engineering (down 3.74%), BEML (down 3.49%), ALSTOM India (down 1.66%), Larsen & Toubro (down 1.41%), Bhel (down 0.67%), Siemens (down 0.66%), Pipavav Defence & Offshore Engineering Company (down 0.64%), Suzlon Energy (down 0.6%), Thermax (down 0.39%), Alstom T&D India (down 0.27%) and Lakshmi Machine Works (down 0.07%), edged lower.

Voltas rose 0.21% to Rs 95.70. The company after market hours today, 11 February 2013, reported a consolidated net profit of Rs 76.81 crore in Q3 December 2012 as against a net loss of Rs 115.41 crore in Q3 December 2011. Total income fell 0.35% to Rs 1176.84 crore in Q3 December 2012 over Q3 December 2011.

Some PSU shares surged after strong investor response to the divestment of government's 9.5% stake in NTPC last week. MMTC (up 20%), State Trading Corporation of India (up 20%), Hindustan Copper (up 9.83%), Dredging Corporation of India (up 10.94%), Neyveli Lignite Corporation (up 0.25%), and Engineers India (up 1.06%), edged higher.

Tata Power Company rose 0.46%. The company today, 11 February 2013, reported consolidated net loss of Rs 328.92 crore for Q3 December 2012, as against net profit of Rs 297.95 crore in Q3 December 2011. Total income rose 27.18% at Rs 9050.33 crore in Q3 December 2012 over Q3 December 2011. The company announced Q3 results during trading hours today, 11 February 2013.

Tata Power said the bottom line was adversely impacted by an impairment provision of Rs 600 crore in Coastal Gujarat Power (CGPL) which is a 100% subsidiary of the company which is developing the Mundra ultra mega power project (UMPP) in Gujarat. With this impairment, the equity of CGPL has eroded substantially and the company is eagerly awaiting CERC's decision on PPA tariff revision for Mundra UMPP to address long term sustainability, Tata Power said. Tata Power also said that falling coal prices leading to lower rate realization from Indonesian coal companies also adversely impacted the company's bottom line in Q3 December 2012. Tata Power also said that there was a deferred stripping cost of Rs 577.32 crore and reversal of Rs 310 crore of forex losses during the corresponding previous year period i.e. Q3 December 2011.

Tata Power's operating profit jumped 91% at Rs 1267.39 crore in Q3 December 2012 over Q3 December 2011, mainly due to higher contribution from Mumbai operations, Mundra, Maithon and Delhi distribution. Tata Power's profit before finance cost, tax and exceptional items rose 14% to Rs 1278.41 crore in Q3 December 2012 over Q3 December 2011.

Tata Power attributed growth in revenue to growth to additional revenue generated from Mundra, Maithon and higher fuel cost of Mumbai Operation and power purchase costs of Tata Power Delhi Distribution (TPDDL).

Subsequent to winning the bid for Distribution Franchisee (DF) of Jamshedpur Circle, a Special Purpose Company (SPC) --TP Power Distribution -- has been formed and executed the Distribution Franchisee Agreement (DFA) with Jharkhand State Electricity Board (JSEB), Tata Power said.

With regard to Kalinganagar, Orissa 3x67.5 MW (Gas based) +3x150 MW (Coal + gas based) project, Tata Power said that the civil construction work and engineering has commenced and order for major equipments has been placed for the gas based units. Structural erection for Unit-1 Boiler and preparatory works for lifting Boiler Drum are in progress. Structural erection for Boiler Unit has been commenced.

Coming to international projects, Cennergi has been announced as a preferred bidder for the two wind projects of 234 MW -- Amakhala 139 MW and Tsitsikamma 95 MW projects -- and is working towards achieving financial closure by March 2013, Tata Power said. As regards the 114 MW Dagachhu Project which is being developed in partnership with The Royal Government of Bhutan (RGoB), more than 75% concreting at the Intake-Weir and 85% concreting for the Desilting Chamber is completed, Tata Power said. As regards the 240 MW Geothermal Project in Indonesia, Tata Power said that the land acquisition for the project is progressing well. PPA finalization is under process and is taking more time than anticipated, Tata Power said.

Tata Power has signed a long term coal supply agreement with PT Antang Gunung Meratus, Indonesia, a 100% subsidiary of the Indonesian company PT Baramulti Sukses Sarana (BSSR). Tata Power has also acquired 26% stake in BSSR.

Realty stocks gained on renewed buying. Oberoi Realty (up 3.79%), Sobha Developers (up 2.22%), HDIL (up 1.54%), Parsvnath Developers (up 1.52%), Indiabulls Real Estate (up 1.50%), Godrej Properties (up 1.26%) and Phoenix Mills (up 0.92%), edged higher.

Realty major DLF rose 1.23% to Rs 271.45. The stock had hit 52-week high of Rs 279.40 in intraday trade on 31 January 2013. DLF on 31 January 2013 said it has entered into definitive business transfer agreement with BLP Vayu (Project 1), a subsidiary of Bharat Light & Power, for transferring of its undertaking comprising of 150 megawatt capacity wind turbines situated at Kutch, Gujarat by way of slump-sale for a lump sum consideration of Rs 282.30 crore. The transaction is expected to be consummated on receipt of requisite regulatory approvals. The transaction is in line with the DLF's objective of divesting its non core assets.

Pharma stocks rose on renewed buying. Cipla (up 3.47%), Dr Reddy's Laboratories (up 2.45%), Strides Arcolab (up 1.11%), Divi's Laboratories (up 0.49%) and Wockhardt (up 0.06%), edged higher.

Sun Pharmaceutical Industries rose 0.53% to Rs 748. Sun Pharma and Taro Pharmaceutical Industries after market hours on Friday, 8 February 2013, announced that they have mutually agreed to terminate their merger agreement, announced in August 2012, pursuant to which all shareholders of Taro (other than Sun Pharma and its affiliates) would have received a cash payment of $39.50 per share upon the closing of the merger. Each of Sun Pharma and Taro (at the direction of the Special Committee) agreed that terminating the merger agreement was in the best interest of the respective companies and shareholders, a joint press release from the two companies said.

Sun Pharmaceutical Industries' consolidated net profit jumped 31.9% to Rs 881.30 crore on 33% growth in net sales to Rs 2852.01 crore in Q3 December 2012 over Q3 December 2011. The company announced the results during trading hours on Friday, 8 February 2013.

Cadila Healthcare slumped 7.12%, with the stock extending Friday's 3.02% losses triggered by weak Q3 results. The company's consolidated net profit declined 31% to Rs 102.91 crore on 15.4% growth in net sales to Rs 1561.02 crore in Q3 December 2012 over Q3 December 2011. The company announced Q3 results during market hours Friday, 8 February 2013.

HCL Technologies declined 1.98% to Rs 657.60. The company during market hours today, 11 February 2013, announced that Saint Gobain, worldwide leader in construction markets has expanded its IT infrastructure engagement with the company to include transformational data center services in Europe. The initial phase provided a roadmap to cover the migration servers and other data centre components that are spread across multiple locations. HCL is transforming Saint-Gobain's computing landscape from its current state to a world-class environment using proprietary cutting-edge technologies and frameworks. The engagement leverages HCL's award winning MTaaS platform for Enterprise Service Management and Monitoring to deliver proven operational benefits and business value.

HCL will support several European entities of Saint-Gobain during the course of this engagement. The company has also successfully commissioned new data centers in Paris, which are being used for delivering shared data center services to these entities across Europe, HCL said in a statement.

Most auto stocks declined. Mahindra & Mahindra (M&M) fell 0.31%, with the stock reversing initial gains. M&M and BAE Systems on Saturday, 9 February 2013, said they have jointly agreed that M&M will acquire BAE Systems' 26% shareholding in Defence Land Systems India (DLSI), a joint venture (JV) between M&M and BAE Systems. Since the establishment of DLSI in 2009 as a 74:26 JV between M&M and BAE Systems, there has been significant evolution in the Indian Land Systems market, a joint press release from M&M and BAE Systems said. Developments in both the industry environment and in customer procurement frameworks and acquisition strategies have led the shareholders to conduct a strategic review of the DLSI business, the statement said.

Following that review, it has been jointly agreed that M&M will acquire BAE Systems' 26% stake in DLSI, the joint statement read. This decision is a reflection of the shareholders' belief that they can best meet emerging customer requirements and address the opportunities in this dynamic market with a flexible, tailored approach that was not easily facilitated by the structure of the existing JV entity, the statement said. This decision will enable both companies to consider each opportunity on a case by case basis, including continuing to explore opportunities for co-operating on specific defence projects, the statement added.

Brigadier (Retd.) Khutub Hai, Chairman and Managing Director, Mahindra Defence Systems said: In keeping with the Indian defence acquisition scenario and current market considerations, the managements of M&M and BAE Systems have decided that M&M's 100% subsidiary Mahindra Defence Systems will acquire BAE Systems' 26% shareholding in DLSI joint venture. This is a strategic decision and will enable both the companies to approach opportunities individually and to offer customized solutions to meet the needs of the Indian defence land systems domain. We have had a fruitful association with BAE Systems and look forward to working with them in the future on a case by case basis keeping in view the strengths and capabilities that each of us brings to the specific project or opportunity.

Dean McCumiskey, Managing Director and Chief Executive, India, BAE Systems said: India is a key international market for BAE Systems. The country's ambitious plans for modernization and expansion of the armed forces and focus on developing self-reliance in defence present considerable opportunities for us. Building domestic capabilities in partnership with Indian companies will remain a cornerstone of our strategy in India. We look forward to opportunities to collaborate with M&M and others to enhance the role of the private sector in the defence industry.

Both M&M and BAE Systems are committed to continue building indigenous capability in the Indian defence sector and in establishing leadership positions in the industry, the statement said.

India's largest car maker by sales Maruti Suzuki India fell 1.64% to Rs 1562.20 on profit booking. The stock had hit 52-week high of Rs 1,637.60 in intraday trade on 6 February 2013. Maruti Suzuki India on 1 February 2013 its total sales fell 1.1% to 1.14 lakh units in January 2013 over January 2012. Domestic sales rose 2% to 1.03 lakh units in January 2013 over January 2012. Exports declined 22.3% to 11,179 units in January 2013 over January 2012.

India's largest motorcycle maker by sales, Hero MotoCorp, fell 0.53%. The company's total sales rose 7% to 5.57 lakh units in January 2013 over January 2012.

Ashok Leyland (down 1.05%) and Eicher Motors (down 0.51%), edged lower.

India's largest commercial vehicle maker by sales Tata Motors rose 2.08%. The company on 1 February 2013 said its total sales (including exports) of Tata commercial and passenger vehicles in January 2013 were 61,660 vehicles. The company's sales from exports totaled 3,880 vehicles in January 2013. The company's domestic sales of Tata commercial and passenger vehicles for January 2013 were 57,780 units. The company's sales of commercial vehicles in January 2013 in the domestic market were 42,571 units. LCV sales were 33,849 units, while M&HCV sales stood at 8,722 units. Sales of passenger vehicles for January 2013 were at 15,209 units.

Bajaj Auto rose 0.21%. The company's total sales rose 3% to 3.47 lakh units in January 2013 over January 2012. Motorcycle sales rose 2% to 3.01 lakh units in January 2013 over January 2012. Sales of commercial vehicles rose 7% to 46,263 units in January 2013 over January 2012. Total exports rose 10% to 1.28 lakh units in January 2013 over January 2012. The company announced the monthly sales data on 2 February 2013.

Escorts (up 1.13%) and TVS Motor Company (up 1.12%), edged higher.

Metal stocks were mixed. Jindal Steel & Power declined 1.87% ahead of its Q3 results tomorrow, 12 February 2013.

Among other metal stocks, Sail (down 2.29%), Hindustan Zinc (down 0.57%), JSW Steel (down 0.47%), Tata Steel (down 0.39%) and NMDC (down 0.24%), edged lower.

Sterlite Industries (up 2.42%), Sesa Goa (up 1.27%), Nalco (up 0.75%) and Bhushan Steel (up 0.02%), edged higher.

Hindalco Industries rose 2.51% ahead of Q3 results of the company's US unit Novelis Inc. tomorrow, 12 February 2013. Hindalco Industries' net profit declined 3.76% to Rs 434 crore on 3.38% growth in revenue from operations to Rs 6872 crore in Q3 December 2012 over Q3 December 2011. Earnings before interest, taxation, depreciation and amortization (EBITDA) declined 18.37% to Rs 582 crore in Q3 December 2012 over Q3 December 2011. The company announced Q3 results during trading hours on Friday, 8 February 2013.

The results were strong on sequential basis. Net profit jumped 21% to Rs 434 crore on 11% growth in revenue from operations to Rs 6872 crore in Q3 December 2012 over Q2 September 2012. EBITDA rose 13% to Rs 582 crore in Q3 December 2012 over Q2 September 2012

Hindalco attributed sequential revenue growth to higher volumes. Non-operational income surged to Rs 318 crore in Q3 December 2012 from Rs 132 crore in Q2 September 2012 due to enhanced average treasury along with income of non-recurring nature, Hindalco Industries said in a statement. Finance costs galloped 503.57% to Rs 169 crore in Q3 December 2012 from Rs 132 crore in Q2 September 2012 due to higher average borrowings during the quarter, Hindalco Industries said.

The company drew $100 million finance from Export Development Canada for its Mahan Aluminium Project. This is part of the overall financial closure for the project, Hindalco said in a statement.

On the status of its Greenfield projects, Hindalco said that the Mahan Aluminium , Hirakud FRP and Utkal Alumina projects are in the final stages of implementation and are expected to be ready for trail runs very shortly. With regard to future business outlook, Hindalco said that with the expansion projects going on-stream in the near-term, the company is well poised to take its business to the next level.

Apollo Hospitals Enterprise clocked a highest turnover of Rs 531.93 crore on BSE. State Bank of India (Rs 64.28 crore), MMTC (Rs 43.53 crore), ICICI Bank (Rs 38.90 crore) and Axis Bank (Rs 31.85 crore), were the other turnover toppers on BSE in that order.

Birla Cotsyn (India) reported highest volumes of 1.07 crore shares on BSE. Suzlon Energy (91.85 lakh shares), Cals Refineries (68.65 lakh shares), Apollo Hospitals Enterprise (64.08 shares) and NHPC (27.26 lakh shares), were the other volume toppers on BSE in that order.

PSU disinvestment and reduction of promoter stake to meet the Securities & Exchange Board of India (Sebi) mandated minimum public shareholding of 25% for private companies and 10% for state-run firms will result in supply of equity in the market over the next few months. The government has set target of Rs 30000 crore from PSU divestment for the fiscal year ending 31 March 2013. Meanwhile, as per the Sebi mandated minimum public shareholding rule, private-sector companies must cut founders' stake to adhere to the rules by 13 June 2013, while the deadline for state-run firms is 13 August 2013.

The focus on the stock market is currently on Q3 December 2012 results. Jindal Steel & Power unveils Q3 results tomorrow, 12 February 2013. Hindalco Industries' US unit Novelis Inc. will report its Q3 results on the same day. Tata Steel, Coal India and BPCL unveil Q3 results on 13 February 2013. Tata Motors, DLF, State Bank of India, GAIL (India) and Dr. Reddy's Laboratories unveil Q3 results on 14 February 2013. Ranbaxy Laboratories unveils Q4 December 2012 results on 26 February 2013.

Reserve Bank of India Governor D. Subbarao today, 11 February 2013, said that inflation has come off, but is still high at over 7%. India is financing its current-account deficit with volatile foreign fund inflows into the capital markets rather than foreign direct investment, which is a matter of concern, Mr. Subbarao said at an event in Mumbai.

The Central Statistics Office (CSO) will unveil data on industrial production for December 2012 tomorrow, 12 February 2013. Industrial production is seen rising 1.3% in December 2012, according to the median estimates of a poll of economists carried out by Capital Market. Industrial production declined 0.1% in November 2012.

The CSO will unveil data on inflation based on the combined consumer price index for urban and rural India for January 2013 on Tuesday, 12 February 2013. Inflation based on the combined consumer price index for urban and rural India edged up to 10.56% in December 2012 from 9.9% in November 2012.

The CSO will unveil data on inflation based on the wholesale price index (WPI) for January 2013 on Thursday, 14 February 2013. The rate of growth of WPI inflation is expected to ease at 7.1% in January 2013 from 7.18% in December 2012, according to the median estimates of a poll of economists carried out by Capital Market.

Once the results season concludes on Thursday, 14 February 2013, investors' focus will shift to expectations from Union Budget 2013-14 to be presented to the Parliament on 28 February 2013. Investors will focus on changes, if any, in excise duty and service tax in the Budget. It remains to be seen if the government announces measures to revive weak investment growth. It also remains to be seen if the government announces more economic reforms. A key figure to watch out is the divestment target for 2013-14. It remains to be seen if the Budget contains a clear roadmap for the implementation of Goods and Services Tax (GST). There has been some debate over taxing the super-rich. It remains to be seen if the Budget provides a clear roadmap to cap the government's subsidy bill. It also remains to be seen if there are measures to increase agriculture production to rein in food inflation.

The Budget Session of the Parliament will commence on 21 February 2013 and is likely to conclude on 10 May 2013. In order to enable the Standing Committees to consider the Demands for Grants of Ministries/Departments and prepare their Reports, the two Houses will adjourn for recess on 22 March 2013 to meet again on 22 April 2013.

Economic affairs secretary Arvind Mayaram on Saturday, 9 February 2013, said that the fiscal deficit for the current financial year ending 31 March 2013 will not exceed the projected 5.3% of the country's gross domestic product. He said that the government will stick to its fiscal deficit aim and its borrowing plan. Finance Minister, P. Chidambaram on Saturday, 9 February 2013, said he it confident of a 5.5% growth rate in the economy for this year. In the second half of this fiscal year, there are indications of green shoots in the economy, he said, adding it is imperative for the country to achieve a growth rate of 8%.

The Central Statistics Office (CSO) on Thursday, 7 February 2013, said that the growth in India's GDP during 2012-13 is estimated at 5%, the lowest in a decade and significantly lower than the growth rate of 6.2% in 2011-12. The dimmer forecast is due to continued weakness in manufacturing and farm output growth, data from the ministry of statistics and implementation showed.

The Ministry of Finance on Friday, 8 February 2013, said that since the GDP growth is turning around, it is likely that the CSO's advance estimate of 5% GDP growth for 2012-13 will be revised upwards and the final estimate will be closer to the finance ministry's estimate of a growth rate of 5.5% or slightly more. Early sign of an upturn in the economy are evident in the year on year growth in Union Excise Duty of 16% and of 33% increase in service tax in April-December 2012.

The Purchasing Manager's Index (manufacturing) has started moving up since October 2012. This has been accompanied by a seasonally adjusted stabilization of the index of industrial production since October 2012, the finance ministry said in a statement. The finance ministry also said that lower interest rates will help support growth.

The Ministry of Finance in its initial reaction to the CSO's advance estimate had said on Thursday, 7 February 2018, that the finance ministry is keeping a watch on the situation adding that it has taken and will continue to take appropriate measures to revive growth.

The Ministry of Finance on 14 January 2013 said that the government has decided to defer the implementation of the General Anti Avoidance Rules or GAAR by two years until 1 April 2016 and that it has accepted major recommendations of the Parthasarathi Shome Committee on GAAR with some modifications. The provisions of GAAR will apply to only those foreign institutional investors (FIIs) who seek to take advantage of the double taxation avoidance treaties India has with different countries. The rules won't apply to the non-resident individual investors who put money with the FIIs. Any investments made before 30 August 2010 won't be examined under GAAR. Finance Minister Mr. Chidambaram said that the GAAR provisions strike a balance between the government's need for revenue generation and investors' interests.

Commerce, Industry and Textiles Minister Mr. Anand Sharma on 9 January 2013 said that the Joint Working Group on Indo-Mauritius Double Taxation Avoidance Convention (DTAC), which is scheduled to meet in February 2013, would be able to take the deliberations forward.

The Reserve Bank of India (RBI) on 29 January 2013 announced a 25 basis points reduction in its key policy rate viz. the repo rate to 7.75% from 8% after a monetary policy review. The central bank also announced a reduction of 25 basis points in the cash reserve ratio (CRR) to 4% from 4.25% effective the fortnight beginning 9 February 2013. As a result of the reduction in the CRR, around Rs 18000 crore of primary liquidity will be injected into the banking system, RBI said.

Keeping in view the expected moderation in non-food manufactured products inflation, domestic supply-demand balances and global trends in commodity prices, the baseline WPI inflation projection for March 2013 has been revised downwards from 7.5% set out in the SQR Second Quarter Review (SQR) of Monetary Policy in October 2012 to 6.8%, RBI said. The central bank has also lowered the baseline projection of GDP growth for 2012-13 to 5.5% from 5.8% given in the SQR.

With headline inflation likely to have peaked and non-food manufactured products inflation declining steadily over the last few months, there is an increasing likelihood of inflation remaining range-bound around current levels going into 2013-14, the Reserve Bank of India (RBI) said. This provides space, albeit limited, for monetary policy to give greater emphasis to growth risks, the central bank said in its policy guidance. This policy guidance will, however, be conditioned by the evolving growth-inflation dynamic and the management of risks from twin deficits viz. the current account deficit and fiscal deficit, RBI said. The next mid-quarter review of Monetary Policy for 2012-13 will be announced on 19 March 2013.

The central bank signaled that there is less room for aggressive policy rate cuts amid any negative surprise emanating from inflation and the twin deficits.

The year-on-year inflation measured by monthly consumer price index for industrial (CPI-IW) accelerated to 11.17% in December 2012, from 9.55% in November 2012, data released by the Ministry of Labour & Employment on 31 January 2013 showed. Within CPI-IW, the food inflation surged to 13.53% in December 2012 from 10.85% in November 2012.

Finance Minister Mr. P. Chidambaram on 31 January 2013 reiterated the commitment of the government for observing the path of fiscal consolidation and imposition of fiscal targets and policies that will make necessary fiscal correction needed for the economy and take the economy back to the path of higher growth. Chidambaram highlighted the efforts being made to turn the economy around and create a more investor-friendly climate. Chidambaram said that to encourage foreign flows into India and offer reassurance on the positive investment climate, he had recently held discussions with a cross section of international investors at Singapore, Hongkong, London and Frankfurt last month and hoped to get positive results. He was speaking at the Sixth Meeting of the Financial Stability and Development Council.

The finance ministry in October 2012 announced a five-year plan to cut fiscal deficit. The deficit target is 5.3% of gross domestic product for the current fiscal year through March, 4.8% in the next fiscal year, and 3% by the end of the year through March 2017.

The government on 17 January 2013 allowed PSU OMCs to increase diesel prices by a small margin from time to time, a decision aimed at reducing the government's oil subsidy burden and fiscal deficit and improving the government's finances. Oil Minister Veerappa Moily said after a meeting of the Union Cabinet that there was an earlier proposal to deregulate diesel prices, and in pursuance of that, oil companies have been authorised to make price corrections from time to time. Finance Minister P. Chidambaram on 17 January 2013 said the government will factor in the reduction in subsidies and its impact on the deficit once the retailers say how much they intend to increase prices by.

The government on 17 January 2013 also said it has increased the limit of subsidized cooking-gas cylinders to nine per year a family from six now. Mr. Moily said that the raising of the cap will cost the government about an additional Rs 10000 crore a year.

Bahujan Samaj Party (BSP) chief Mayawati slammed the UPA government for its decision to deregulate diesel prices and said that it would affect prices and hit common man badly. She, however, ruled out the possibility of withdrawing BSP's support to the government, saying she did not want to destabilise it as the general election is not too far. BSP provides outside support to the Congress led UPA government which has already been reduced to a minority government after Trinamool Congress withdrew support to the government in September last year.

European stocks edged higher on Monday, 11 February 2013. Key benchmark indices in France, Germany and UK rose by 0.18% to 0.48%.

In Asia, stock markets in Hong Kong, mainland China, Taiwan, Singapore, South Korea and Malaysia were all closed on Monday, 11 February 2013, for the Lunar New Year, while Japan was shut for National Foundation Day. Indonesia's Jakarta Composite was up 0.27%.

Mainland Chinese bourses are closed the whole of this week, and the Hong Kong market from Monday, 11 February 2013 through Wednesday, 13 February 2013, for Lunar New Year holidays. Chinese New Year is the longest and most important celebration in the Chinese calendar. Stock markets in Taiwan, Singapore, South Korea and Malaysia were all closed Monday for the Lunar New Year, while Japan was shut for National Foundation Day.

Trading in US index futures indicated that the Dow could gain 29 points at the opening bell on Monday, 11 February 2013. US stocks edged higher on Friday, 8 February 2013, following the release of better-than-expected trade data. Data showing stronger international trade in China and Germany, and a report indicating the US trade deficit had narrowed in December, pointed to improving global growth prospects.

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WINNING STROKES: THINK DIFFERENT

Today my recommended Vijay Shanthi Builders Ltd at around Rs.16.5 made new 52-week high as it touched Rs.29.80. The company came out with good set of numbers for the Q3FY12. 
Today my recommended IFCI Ltd touched Rs. 41.15. I  have asking all to accumulate this stock and Rolta Ltd since the last few months. Both have touched my 2nd targets of Rs.41 and Rs.92, respectively--however, they are still to move ahead in the coming days.

Chart of TVS Motors Ltd

My recommended Jai Balaji Industries Ltd hit another buyer freeze. The scrip was recommended around Rs.38.90. The bounce in the commodity prices, following the recent US action is expected to have positive effect on the price of the scrip.

Those who have bought TVS Motors Ltd today should continue to hold the scrip with a price target of Rs.62-65. The company came out with decent set of numbers for the Q3FY12. 
Today I recommended IRB Infrastructure Ltd at around Rs.169-170, T--Rs.178-192, SL--Rs.166.5. For more you can visit my blog: www.sumanspeaksplus.blogspot.com. 

Key benchmark indices eked out small gains as world stocks rose after the Greek government over the weekend approved unpopular austerity measures needed to secure a second bailout. The barometer index, BSE Sensex, rose 24.15 points or 0.14%, off 76.80 points from the day's high and up 106.95 points from the day's low. The market breadth was positive. Nine of 13 sectoral indices on BSE logged gains. Index heavyweight Reliance Industries (RIL) edged higher on reports that the company has signed a pact with France's Dassault Aviation for partnering in the defence and homeland security sector in India.
The Sensex has jumped 579.29 points or 3.36% in February 2012 so far. The barometer index has surged 2317.92 points or 14.99% in calendar 2012 so far. From a 52-week low of 15,135.86 on 20 December 2011, the Sensex has risen 2,636.98 points or 17.42%. From a 52-week high of 19,811.14 on 6 April 2011, the Sensex has lost 2,038.30 points or 10.28%.
Coming back to today's trade, State Bank of India (SBI) dropped in volatile trade as the bank's bad loans rose in Q3 December 2011. Sun Pharmaceutical Industries and Coal India advanced after reporting strong Q3 results. Realty major DLF turned positive, reversing initial slide triggered by poor Q3 results. Most auto stocks gained on fresh buying. IT stocks edged lower. Airline, tyre and fertilizer stocks rose on fresh buying.
The market reversed initial gains triggered by higher Asian shares. A bout of volatility was witnessed as key benchmark indices once again slipped into the red after regaining strength to hit fresh intraday highs in early trade. Intraday volatility continued as key benchmark indices once again slipped into the red after moving into positive zone from negative zone in mid-morning trade. The Sensex hit a fresh intraday low in early afternoon trade. The market pared losses in afternoon trade. The market moved into positive zone in mid-afternoon trade. The market pared gains after hitting fresh intraday high in late trade.
The BSE Sensex advanced 24.15 points or 0.14% to settle at 17,772.84, its highest closing level since 9 February 2012. The index jumped 100.95 points at the day's high of 17,849.64 in late trade. The index fell 82.80 points at the day's low of 17,665.89 in early afternoon trade.
The S&P CNX Nifty advanced 8.60 points or 0.16% to settle at 5,390.20, its highest closing level since 9 February 2012. Nifty hit a high of 5,421.05 and low of 5,351.40 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,531 shares advanced and 1,412 shares declined. A total of 103 shares were unchanged.
The BSE Mid-Cap index rose 0.46% and the BSE Small-Cap index rose 0.18%. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 3097 crore, lower than Friday's (10 February 2012) Rs 3632.95 crore.
Among the 30-member Sensex pack, 19 gained while the rest declined.
Index heavyweight Reliance Industries (RIL) rose 0.69% to Rs 848, off day's high of Rs 857.80. The stock rose on reports that the company has signed a pact with France's Dassault Aviation for partnering in the defence and homeland security sector in India. India is the world's largest arms importer with plans to spend $100 billion on weapons over the next decade.
RIL said market hours on Friday, 10 February 2012, that one of the crude trains at Jamnagar complex has been shut down on 10 February 2012 for undertaking planned maintenance and inspection activities. This opportunity is being taken for replacement of catalyst and implementation of productivity improvement measures in some of the secondary processing units. The shutdown is expected to be completed in the first week of March 2012. Rest of the Jamnagar complex continues to operate as normal, RIL said.
India's largest oil exploration firm by market capitalization ONGC fell 0.34%. The government reportedly plans to put its derailed disinvestment drive back on track this week with a likely 5% stake sale in ONGC to raise Rs 12000 crore through an auction on the stock exchanges. An empowered group of ministers (EGoM) is scheduled to meet this week to decide the price band and methodology of ONGC's share sale, reports added.
Oil India declined 0.99%. The company's board recommended a liberal 3:2 bonus at the time of announcing Q3 December 2011 results on Saturday, 11 February 2012. The company's net profit rose 11.7% to Rs 1013.98 crore on 4.51% growth in net sales to Rs 2496.29 crore in Q3 December 2011 over Q3 December 2010.
Bank stocks were mixed. India's largest commercial bank by net profit and branch network State Bank of India (SBI) lost 2.19% to Rs 2,125 in volatile trade after unveiling Q3 results during market hours today, 13 February 2012. The stock hit a high of Rs 2,181 and a low of Rs 2,097. The bank's net profit rose 15.38% to Rs 3263.04 crore on 20.46% growth in total income to Rs 29787.37 crore in Q3 December 2011 over Q3 December 2010. SBI's provisioning for non-performing assets jumped 84.16% to Rs 3006.12 crore in Q3 December 2011 over Q3 December 2010.
The bank's ratio of net non-performing assets rose to 2.22% as on 31 December 2011 from 2.04% as on 30 September 2011 and 1.61% as on 31 December 2010. The ratio of gross non-performing assets rose to 4.61% as on 31 December 2011 from 4.19% as on 30 September 2011 and 3.17% as on 31 December 2010.
On a consolidated basis, SBI posted 16.37% growth in net profit to Rs 4318.08 crore on 16.74% rise in total income to Rs 43155.95 crore in Q3 December 2011 over Q3 December 2010.
India's largest private sector bank by branch network ICICI Bank rose 0.40%.
India's second largest bank by net profit HDFC Bank gained 0.83% to Rs 520.50. The stock had hit a record high of Rs 525.70 on Friday, 10 February 2012.
Rising bad loans of Indian banks don't raise any immediate concerns, but the central bank will still meet the representatives of the lenders to discuss the issue, a deputy governor of the Reserve Bank of India said on Monday, 13 February 2012. The sectors that are putting stress on banks and the issues are well known, K.C. Chakrabarty told reporters on the sidelines of a conference. The central bank will meet bank representatives either later this month of early March, he added.
Aditya Birla Nuvo shed 2.33%. The company reported 8.2% fall in consolidated net profit to Rs 252.39 crore on 25% increase in total income to Rs 5765.46 crore in Q3 December 2011 over Q3 December 2010. The company said the net profit was affected primarily due to higher depreciation and interest costs relating to 3G investments in the telecom business. The result was announced on Saturday, 11 February 2012.
Commenting on the results, Dr. Rakesh Jain, Managing Director, Aditya Birla Nuvo said, Aditya Birla Nuvo continues to post strong earnings despite the difficult macro-economic environment. While some of the businesses did get affected due to sector specific challenges, other businesses supported the overall earnings growth of the company. This reflects the strength of its conglomerate model.
Mr. Sushil Agarwal, Whole-Time Director and CFO, Aditya Birla Nuvo said, Amidst challenging market conditions, Aditya Birla Nuvo has strengthened its positioning in the financial services, telecom and fashion and lifestyle businesses.
India's largest pharma company by market capitalization Sun Pharmaceutical Industries advanced 1.79% to Rs 551. During market hours today, the company reported 90.86% growth in consolidated net profit to Rs 668.30 crore on 37% growth in net sales/income from operations to Rs 2145 crore in Q3 December 2011 over Q3 December 2010.
Coal India rose 1.33%. During market hours today, 13 February 2012, the company reported 53.75% growth in net profit to Rs 4037.76 crore on 20.98% growth in net sales to Rs 15349.28 crore in Q3 December 2011 over Q3 December 2010.
India's largest private sector aluminium maker by sales Hindalco Industries rose 1.99%, halting two-day 4.88% slide triggered by weak Q3 results. The company announced during market hours on Thursday that net profit fell 1.95% to Rs 451 crore on 11% growth in net sales and operating revenue to Rs 6647 crore in Q3 December 2011 over Q3 December 2010. Hindalco said that volatile LME prices and foreign exchange fluctuations along with spiraling energy cost are posting a major challenge for the company in the short term context. Hindalco said its portfolio of LME neutral copper smelting operation and its integrated aluminium operation is providing the strategic balance in the volatile commodity cycle.
Hindalco said capacity expansions under implementation will enable the company to grow at a rapid pace and consolidate its leadership even further. The company said its focus continues to be on timely completion of the projects and successful ramp-up of production.
Hindalco Industries also said that the board of directors of the company has approved the issuance of up to 15 crore warrants to promoters/promoter group companies on preferential allotment basis, entitling the holder(s) of each warrant to apply for and obtain allotment of one equity share against such warrant.
Sail lost 3.27%. During market hours today, 13 February 2012, the company reported 42.92% slide in net profit to Rs 632.12 crore on 4.93% fall in net sales to Rs 10593.84 crore in Q3 December 2011 over Q3 December 2010.
IT stocks edged lower. India's third largest software services exporter by revenues Wipro fell 2.66% to Rs 436.20 and was the top loser from the Sensex pack. India's second largest software services exporter by revenue Infosys declined 0.10%.
India's largest software services exporter by revenue TCS shed 0.37%. TCS said on Wednesday, 8 February 2012, that it has formed a new joint venture (JV) with Mitsubishi Corporation for the Japanese market. Nippon TCS Solution Center will offer a full service suite of IT, BPO and infrastructure services to Japanese corporations. TCS Japan will have 60% stake with Mitsubishi Corporation holding 40% stake in JV. The new joint venture will also establish a near-shore delivery center in Japan.
The main industry body -- the National Association of Software and Services Companies (Nasscom) last week said that the pace of revenue growth of the sector will likely moderate next fiscal year amid continued global economic uncertainty. Exports from the IT sector may grow 11%-14% in the year that starts on 1 April 2012 to $76 billion-$78 billion, compared with an estimated $68.7 billion this fiscal year, an increase of about 16%, Nasscom said. The body said it will review its export forecasts in October 2012.
With its large English-speaking and relatively cheap workforce, India remains a preferred outsourcing destination for companies in developed markets. India's share in global outsourcing was 58% in 2011, up from 55% in 2010, Nasscom said.
HCL Technologies fell 0.39%. The company during trading hours today, 13 February 2012 said Statoil has selected the company for providing strategic infrastructure management services. The company will also open a delivery centre in Stavanger, Norway to service Statoil, in line with its model of Glocal Centers of Excellence. HCL will deliver services across 36 countries handling the end to end monitoring and management of Statoil.s entire IT infrastructure across all global locations including offshore production sites. The engagement includes managing Compute, Storage, Database and Telecom (network & security) environments along with desktop support, the company said.
Most auto stocks gained on fresh buying. India's largest commercial vehicle maker by sales Tata Motors rose 0.74% to Rs 259. The stock had hit a 52-week high of Rs 261.80 in intraday trade on Friday, 10 February 2012. The company has reportedly raised prices of most of its passenger vehicle models to offset higher input costs. The company has raised prices of all vehicle models except for the Nano small car and the Aria multipurpose vehicle by between Rs 7,000 and Rs 12,000. Tata Motors makes and sells the Indica hatchback, the Indigo sedan, the Safari sport-utility vehicle and the Sumo utility vehicle.
India's largest utility vehicles maker Mahindra & Mahindra (M&M) rose 1.45%. India's largest car maker by sales Maruti Suzuki India fell 1.66%.
Shares of two-wheeler makers gained on fresh buying. India's largest motorcycle maker by sales Hero MotoCorp advanced 2.45% to Rs 2018 and was the top gainer from the Sensex pack. The company reported 11.5% growth in sales to 5.20 lakh units in January 2012 over January 2011. The company announced the monthly sales data early this month.

Bajaj Auto gained 0.49%. The company early this month said its total vehicle sales rose 8% to 3.37 lakh units in January 2012 over January 2011.
Private sector power generation major Tata Power Company lost 2.57% after the company reported a sharp fall in net profit in Q3 December 2011 after market hours on Friday, 10 February 2012. On a consolidated basis, the company reported 40.6% fall in net profit to Rs 262.67 crore on 50.6% growth in net sales to Rs 6645.87 crore in Q3 December 2011 over Q3 December 2010.
Commenting on the company's performance, Anil Sardana, Managing Director, Tata Power, said: Our strong financial and operational performance for the quarter is driven by all our business divisions. All Tata Power operations and subsidiaries have done well this quarter as compared to the corresponding period last year. Our key projects under implementation are progressing well. We have successfully synchronized India's first 800 MW sized super critical Unit 1 of our 4,000 MW Mundra Ultra Mega Power (UMPP) Project; commissioned Unit 1 of 1,050 MW Maithon Power Project and also synchronized our 25 MW solar plant at Mithapur, one of the largest in the country. Our growth opportunities continue to be on course. We are also looking forward to a sustainable solution for Mundra UMPP.
India's largest realty firm by land bank DLF rose 0.56% to Rs 232, off sharply from day's low of Rs 218.80. The company reported weak Q3 results after market hours on Friday, 10 February 2012. On a consolidated basis, DLF reported 44.5% fall in net profit to Rs 258.35 crore on 18% fall in net sales to Rs 2034.37 crore in Q3 December 2011 over Q3 December 2010.
DLF said it has progressed well with its non-core divestment program with two major transactions viz. sale of Noida IT park and Pune special economic zone (SEZ) completed during the quarter. However, the company's core operations continued to face some headwinds in Q3 December 2011 due to both domestic and global macro-economic conditions. DLF said that with macro environment continuing to remain unfavorable with high interest rates, commodity and labour cost inflation, the company's strategy shall require patience and caution to execute. Given these uncertainties, the company expects longer than anticipated time for its initiatives to take fruition, DLF said.
DLF said that while the company continues to remain fully committed and focused to its strategy of launching plotted land developments, premium housing, and divestment of non-core assets and reduction of debt, it believes that due to the current macro environment, it may take a few more quarters for the company to regain full momentum.
Airline stocks rose on fresh buying. SpiceJet (up 1.43%), Jet Airways (India) (up 2.38%), and Kingfisher Airlines (up 0.75%), edged higher. A government panel had recently recommended up to 49% foreign direct investment by foreign airlines and direct import of jet fuel by airlines. Currently, India allows up to 49% FDI in domestic airlines through the automatic route while NRIs can invest up to 100%. Foreign airlines are, however, barred from investing in domestic airlines.
Tyre stocks rose across the board as auto companies reported good sales for January 2012. Goodyear India (up 2.05%), JK Tyre & Industries (up 1.14%), Apollo Tyres (up 3.57%), MRF (up 0.69%) and CEAT (up 5.69%), edged higher.
Fertiliser shares gained on reports the Fertiliser Ministry has requested the Petroleum Ministry to allocate 24.2 million standard cubic meter per day of gas from 2015-16 fiscal to facilitate setting up of new plants and capacity expansion.National Fertilizers (up 10%), Rashtriya Chemicals and Fertilizers (up 6.8%), Deepak Fertilisers and Petrochemicals Corporation (up 4.18%), Chambal Fertlisers and Chemicals (up 4.38%), Zuari Industries (up 4.98%), Gujarat State Fertilizers Company (up 2.32%) and Tata Chemicals (up 1.42%), edged higher.
The request made by the Fertiliser Ministry will be taken up by the Empowered Group of Ministers (EGoM) on gas. About 80% of the country's urea production is gas-based. The EGoM was earlier scheduled to meet tomorrow, 14 February 2012 to consider changes in the natural gas allocation policy, but the meeting has been postponed and is likely to take place by the end of this month, reports added.
Gitanjali Gems jumped 5.75%. The board of Gitanjali Gems will meet on Tuesday, 14 February 2012, to consider Q3 December 2011 results.
Reliance Infrastructure rose 5.13%. The board of Reliance Infrastructure will meet on Tuesday, 14 February 2012, to consider Q3 December 2011 results.
Pantaloon Retail (India) lost 6.94% after the company reported consolidated net loss of Rs 7.96 crore in Q2 December 2011, compared with net profit of Rs 12.40 crore in Q2 December 2010. Net sales rose 3.7% to Rs 3174.80 crore in Q2 December 2011 over Q2 December 2010. The company announced the results after trading hours on Friday, 10 February 2012.
Pantaloon Retail (India)'s board of directors, at a meeting held on Friday, 10 February 2012, formed a Review Committee with a mandate to consider various options for realignment and divestments, with specific objective to ensure unlocking of shareholder's value, achieve substantial reduction in debt and create consolidation of value chain in retail business. The Review Committee is required to submit proposals at various stages of execution to the board for speedy consideration and implementation, Pantaloon said in a statement.
Reliance Communications (RCom) lost 0.43% after reporting weak Q3 results after trading hours on Friday, 10 February 2012. Consolidated net profit declined 61.3% to Rs 186 crore on 1.8% fall in net sales to Rs 4737 crore in Q3 December 2011 over Q3 December 2010.
RCom said its Q3 EBITDA (earnings before interest, taxation, depreciation and amortization) margin at 31.9% was amongst the highest in the industry. RCom generated operational cash flow (EBITDA) of Rs 1611 crore in Q3 December 2011. Post payment of 3G auction fees and with peak capex behind, this is the first full year of positive free cash flow (FCF) for the company and this trend will continue in the succeeding year, RCom said.
RCom said it has tied up refinancing for maturity value of its outstanding foreign currency convertible bonds (FCCBs) of $1.182 billion. The refinancing is being funded by ICBC, CDB, and EXIM and other banks. RCom said it will benefit from extended loan maturity of 7 years and attractive interest cost of about 5%. The loan proceeds will be used for refinancing the entire redemption amount of FCCBs which are due for redemption on 1 March 2012, RCom said.
Britannia Industries jumped 4.88% after net profit jumped 44.8% to Rs 54.07 crore on 15.4% growth in net sales to Rs 1247.41 crore in Q3 December 2011 over Q3 December 2010. The company announced the results after market hours on Friday, 10 February 2012.
Commenting on the 3rd quarter results, Ms. Vinita Bali, Managing Director, Britannia Industries said, This quarter again we have generated profitable growth, driven by a healthy blend of volume, mix, price and operational efficiencies. There is a 130 basis points improvement in profit from operations and our focus continues to be on commercializing consumption opportunities both in the bakery & dairy businesses.
Britannia has launched a range of savory products—NutriChoice Multigrain Thins, NutriChoice Multigrain Roasty and 50-50 Snackuits, which provide healthy snacking options, the company said in a statement.
Panacea Biotec lost 6.23% after the company reported net loss of Rs 71.72 crore for Q3 December 2011, compared with net profit of Rs 42.60 crore in Q3 December 2010. Net turnover fell 46.14% to Rs 153 crore in Q3 December 2011 over Q3 December 2010. The company announced the results after trading hours on Friday, 10 February 2012.
Bharati Shipyard tumbled 7.07% after net profit fell 93% to Rs 1.62 crore on 15.5% decline in net sales to Rs 324.96 crore in Q3 December 2011 over Q3 December 2010. The company announced the results after trading hours on Friday, 10 February 2012.
Suzlon Energy fell 7.32% after the company reported consolidated net loss of Rs 286.46 crore for Q3 December 2011, higher than net loss of Rs 253.57 crore in Q3 December 2010. Net sales rose 12.5% to Rs 4985.79 crore in Q3 December 2011 over Q3 December 2010. The result was announced on Saturday, 11 February 2012.
Reliance Power rose 1.61%. During market hours today, 13 February 2012, the company reported 42% growth in consolidated net profit to Rs 204 crore on 90% surge in total income to Rs 674 crore in Q3 December 2011 over Q3 December 2010. The company said its operating revenue jumped 82% to Rs 457 crore in Q3 December 2011 over Q3 December 2010.
Sun TV Network fell 6.49% after reporting 25.5% fall in net profit to Rs 167.88 crore on 28.9% fall in net sales to Rs 425.11 crore in Q3 December 2011 over Q3 December 2010. The company announced the results after trading hours on Friday, 10 February 2012.
SBI was the top traded counter on the BSE with turnover of Rs 150.41 crore followed by Tata Steel (Rs 86.52 crore), Adani Enterprises (Rs 75.85 crore), Reliance Capital (Rs 69.51 crore), and ICICI Bank (Rs 68.33 crore).
Foreign institutional investors (FIIs) bought shares worth a net Rs 196.12 crore on Friday, 10 February 2012, as per provisional data from the stock exchanges. FIIs have bought shares worth a net Rs 8088.79 crore in first eight trading sessions this month, as per provisional data from the stock exchanges. The inflow early this month comes on the top of heavy purchases last month. FIIs bought shares worth a net Rs 10357.70 crore in January 2012, as per data from Securities & Exchange Board of India (Sebi).
Tata Motors, Reliance Infrastructure, Jaiprakash Associates, Videocon Industries, Essar Oil and Shipping Corporation of India unveil Q3 results tomorrow, 14 February 2012. Ranbaxy Laboratories and ABB unveil Q4 December 2011 results on 23 February 2012.
On the macro front, the government unveils monthly inflation data for January 2012 tomorrow, 14 February 2012. Headline inflation is seen falling further in January 2012. Inflation based on the wholesale price index is seen rising 6.7% in January 2012, as per the median estimate of a poll of economists carried out by Capital Market. Inflation based on the wholesale price index cooled off to two-year low of 7.47% in December 2011, from to 9.11% in November 2011. The Reserve Bank of India's mid-quarter review of Monetary Policy 2011-12 is scheduled on 15 March 2012.
Industrial production rose a slower-than-expected 1.8% in December 2011, government data showed on Friday, 10 February 2011. The growth in December 2011 was sharply lower than 5.9% growth in November 2011. Manufacturing output, which constitutes about 76% of industrial production, rose 1.8% from a year earlier, the statistics office said.
India's January exports rose 10.1% to $25.4 billion while imports rose 20.3% to $40.1 billion, leaving a trade deficit of $14.7 billion, Trade Secretary Rahul Khullar said on Thursday, 9 February 2012. India's exports reached $242.8 billion between April and January, Khullar said, citing provisional data.
The Indian economy is estimated to grow 6.9% in the current fiscal year through March 2012 (FY 2012), sharply slower than the 8.4% expansion reported last year, according to a government forecast released on Tuesday, 7 February 2012. The new expectation is due to weaker growth in manufacturing and farm output, data from the ministry of statistics and implementation showed. The government expects manufacturing output to grow 3.9% this fiscal year compared with a 7.6% increase a year earlier. Farm output is expected to rise 2.5%, compared with 7% last year. In December 2011, the government had cut its growth projection for FY 2012 to between 7.25% and 7.75% from an initial forecast of 9%.
Finance Minister Pranab Mukherjee will present the annual budget for 2012/13 on 16 March 2012, while the railways budget will be presented on 14 March 2012. The budget session of parliament will start on 12 March 2012, Pawan Kumar Bansal, minister of parliament affairs, said recently. The government will present on March 15 the Economic Survey for 2011/12, a document on the state of economy prepared by the economic division in the ministry of finance. The annual budget is usually presented on the last working day of February. However, the budget has been delayed this time due to the ongoing assembly polls. Polling for assembly elections in five states concludes in early March 2012.
European markets rose on Monday, 13 February 2012, as investors got their first chance to react to news that Greece's parliament approved the austerity measures needed for a second European bailout. Key benchmark indices in UK, Germany and France were up by between 0.49% to 0.98%.
Euro-area finance ministers will convene in Brussels on Wednesday, 15 February 2012, in an extraordinary meeting that was set after they declined in a special session on 9 February 2012 to ratify the 130 billion-euro ($172 billion) package for Greece.
Rating agency Standard & Poor's (S&P) downgraded 34 of 37 Italian banks on Friday, 10 February 2012, citing a reduced ability to roll over their wholesale debt and expected weak profitability. The move follows S&P's downgrade of Italy's sovereign rating last month to BBB+, part of a mass downgrade of nine euro zone countries. S&P said weak profitability and increased cost of capital could lead Italian banks to write down a large part of the goodwill they booked during a wave of industry consolidation over the past decade.
Asian markets were trading firm on Monday, 13 February 2012, as the Greek Parliament passed austerity measures required to secure fresh aid funds and avert an impending default. Key benchmark indices in Singapore, Hong Kong, Indonesia, Japan, Taiwan and South Korea were up by between 0.50% to 1.27%. China's Shanghai Composite shed 0.01%.
Japan's economy shrank a bigger-than-expected 0.6% in October-December, hurt by slowing global growth, Thai floods and a strong yen, casting doubt about expectations that growth will resume this quarter as Europe's debt crisis clouds the outlook.
Trading in US index futures indicated that the Dow could gain 72 points at the opening bell on Monday, 13 February 2012. US stocks edged lower on Friday, 10 February 2012, on tumult over the Greek bailout, disappointing readings on the US economy and a downgrade of nearly three dozen Italian banks. The Dow Jones Industrial Average fell 89.23 points, or 0.69%, at 12801.23. The Standard & Poor's 500-stock index lost 9.31 points, or 0.69%, to 1342.64, and the Nasdaq Composite index lost 23.35 points, or 0.8%, to 2903.88.

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