1. India-GlobalMarket Summary 26-06-2012
• Market traded with high volatility and ended with small gains. Speculation of the
new Finance Minister and the likely pace of reforms with Pranab Mukherjee
stepping down as the country's Finance Minister today triggered volatility on the
bourses. European shares were slightly lower. The market breadth turned positive
from negative in late trade. Expiry of near month derivative contract on 28 June
2012 also added high volatility to the market. Sensex up by 0.36% to 16943.48
and Nifty up by 0.12% to 5120.80. Among the 30-share Sensex pack, 20 advanced
while the rest of them declined.
• The government said that the withholding tax would be liberalized as announced
in the 2012-13 Budget. In Budget 2012-13, Finance Minister Pranab Mukherjee
had proposed to reduce the rate of withholding tax on interest payments on
external commercial borrowing (ECBs) from 20% to 5% for three years, for
certain stressed infrastructure sectors.
• Media reports suggest that Prime Minister Manmohan Singh is likely to handle the
finance portfolio until a cabinet reshuffle which he is expected to announce in
September 2012.
• Shares of gas distribution firms gained. Software pivotals were mixed. Interest rate
sensitive banking stocks were mixed. Capital goods pivotals saw divergent trend.
FMCG major Hindustan Unilever declined on profit booking. Private sector steel
major Tata Steel fell on euro-zone debt worries. Private sector aluminium major
Hindalco Industries gained ahead of its consolidated results for the year ended 31
March 2012 tomorrow, 27 June 2012.

2. • Rupee was largely flat in opening trade on Tuesday tracking overall caution in risk assets, with
investors still disappointed about the lack of bold measures to prop up the currency.
• CRISIL expects that India’s revenue growth may become weak in the last six quarters due to
moderate demand in the current quarter
• Coca-Cola decided to invest $5 billion on various activities including setting up of new bottling
plants in India before 2020 to enhance its operations in India.
• India’s GDP growth forecast has been cut by Nomura from 6.7% to 5.8% for the fiscal year ending
March2013, and to 6.6% in 2013-14 against previous forecast of 6.9%.
• Kansai Nerolac Paints rose, with the stock extending 3-day 4.01% gain triggered by the company's
announcement that it is in the process of acquiring 68% stake in Nepalese paint major -- Nepal
Shalimar
• India’s tea exports for the first quarter of current calendar year declined by 4% to 43.84 million kg
due to drop in outbound shipments of the brew from South India
• BHEL secured a contract for the electro-mechanical equipment package for a 1,020 megawatts
(MW) hydroelectric project in Bhutan. The contract is valued at Rs 950 crore.
• SpiceJet rose on report the company is in discussions with two West Asian airlines, Etihad Airways
and Qatar Airways, for a minority stake sale.
• Manappuram Finance jumped more than 9%, extending recent gains after latest disclosure by the
company showed that private equity firm Baring India raised stake in the company
• Hatsun Agro Product declined in the market, with the stock extending Monday's 1.22% fall triggered
by equity dilution worries after the board approved rights issue on equity shares amounting to a
maximum of Rs 50 crore.
• Reliance Power had commissioned the first of the two units of its 600 megawatts Butibori thermal
power project near Nagpur in Maharashtra
• Private sector steel major Tata Steel fell 0.66% on euro-zone debt worries as more signs of distress
in the region's financial system emerged on Monday, 25 June 2012. European operations constitute
about 65% of Tata Steel's sales.

3. Global news
• European shares edged lower on Tuesday, erasing gains made earlier in the day, weighed
by concerns over the debt outlook for Spain. Most Asian markets declined on Tuesday,
26 June 2012, as investors remained skeptical that the European leaders' summit later
this week will produce any substantial measures to solve the region's debt crisis. US
stocks declined on Monday as investors saw little reason to be optimistic about a
European Union summit which is due later this week.
• Spain saw short-term borrowing costs jump sharply Tuesday as it auctioned 3.08 billion
euros of three- and six-month bills. The Treasury sold 1.6 billion euros of three-month
bills at an average yield of 2.36%, up sharply from 0.85% in a May auction. Meanwhile,
Italy sold nearly 3 billion euros of 2014 zero-coupon debt, with the yield rising to 4.7%
versus 4.04% in a May sale
• Consumer confidence in Germany unexpectedly edged up going into July on improving
income expectations. The forward-looking consumer sentiment indicator rose to 5.8
heading into July from 5.7 in June, bolstered by a jump in income expectations to 40.1
from 32.0. Germany is Europe's biggest economy.
• Ahead of the European Union summit, more signs of distress in the region's financial
system emerged on Monday, when Cyprus joined the ranks of European countries
seeking financial aid, Spain formally asked for help for its banking system and Moody's
Investor Service downgraded 28 Spanish banks by one to four notches.
• Moody's Investors Services lowered its long-term ratings on 28 Spanish banks,
reflecting the agency's view that Madrid's ability to provide support to the local banking
system has declined.

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