Archive for July, 2012
In a minor cabinet reshuffle on Tuesday, Home Minister P Chidambaram is moved to the Finance Ministry, which was being handled by Prime Minister Manmohan Singh. Current Power Minister Sushil Kumar Shinde will take over as the new Home Minister. Corporate Affairs Minister Veerappa Moily has been given the additional responsibility of the Power Ministry.
Shinde is also expected to be made the Leader of the House in Lok Sabha.
The Prime Minister had taken charge of the Finance Ministry was after Pranab Mukherjee resigned from the post ahead of the Presidential election.
A complete reshuffle is further expected after the monsoon session of Parliament in September.
UBS said on Tuesday net profit shrank to 425 million Swiss francs from 1.0 billion francs a year ago, hit by a slump in trading and a 349 million franc loss on the glitch-ridden market debut of Facebook in May.
The Swiss bank said it would take appropriate action against the stock exchange Nasdaq for what it called “gross mishandling” of the Facebook offering.
UBS was cautious in its outlook, saying it would continue to explore avenues to improve efficiency, without detailing further measures. The bank, which employed 63,520 staff at the end of June, is currently cutting roughly 3,500 jobs.
As in the first quarter, UBS highlighted that the euro zone debt crisis, the economic outlook globally and the US “fiscal cliff” of potential steep tax increases and spending cuts were likely to hit its business.
“Failure to make progress on these key issues, accentuated by the reduction in market activity levels typically seen in the third quarter, would make further improvements in prevailing market conditions unlikely and would thus generate headwinds for revenue growth, net interest margins and net new money,” UBS said in a statement.
The earnings represent a sharp miss of analyst expectations, which averaged 1.141 billion francs in a Reuters poll.
UBS said it was nevertheless confident it would continue to gather net new assets, which totalled 9.5 billion francs in UBS’s flagship private banking arm for the wealthy.
UBS, the first bank to say last March it had been subpoenaed in a probe into how banks attempted to manipulate the London interbank offered rate, or Libor, added it was appropriately provisioned for all litigation.
President Barack Obama warned on Monday the U.S. economy would face continuing “headwinds” over the next few months, with Europe’s debt crisis still posing a challenge, but predicted the euro zone and its currency would remain intact.
“I don’t think ultimately that the Europeans will let the euro unravel but they are going to have to take some decisive steps,” Obama said at a campaign fundraiser in New York.
“I am spending an enormous amount of time trying to work with them, and (Treasury Secretary) Tim Geithner is trying to work with them,” he said. “The sooner they take some decisive action, the better off we’re going to be.”
Obama’s re-election bid is threatened by high U.S. unemployment and a stumbling economy, which has felt shockwaves from Europe’s debt troubles.
“Right now, the economy is still rough enough for enough people that this is going to be a close election,” Obama said. Polls show him in a dead heat with Republican challenger Mitt Romney ahead of the November 6 election.
U.S. economic growth slowed in the second quarter to a 1.5 percent annual rate, the weakest pace in a year, the Commerce Department said on Friday.
“We’re going to have some continued headwinds over the next several months,” Obama said. “Europe is still a challenge.”
Cabinet reshuffle likely this weekend, P Chidambaram will be made the Finance Minister and the current Power Minister Sushil Kumar Shinde, is likely to take over as the new Home Minister, sources said on Tuesday.
Shinde is also likely to be made the UPA Leader in Lok Sabha. Another major reshuffle is further expected after the monsoon session of Parliament in September.
The post of the Finance Minister was left empty after Pranab Mukherjee resigned from the post ahead of the Presidential election.
While Prime Minister Manmohan Singh handled the office temporarily, it was said P Chidambaram was a favourite for the post.
Chidambaram has held the Finance Ministry twice. Chidambaram’s appointment as the head of the Group of Ministers (GoM) on telecom is also an indication that government is willing to take on the opposition.
Sources add that this is the only change being contemplated for now.
Shinde is likely to become the Leader of the Lok Sabha. In the recent past, some Congress members had written to UPA Chairperson Sonia Gandhi requesting that Congress General Secretary Rahul Gandhi be made the Leader of the Lok Sabha.
Prime Minister Manmohan Singh had also indicated a Cabinet reshuffle in June when the UPA nominated Pranab Mukherjee for the President’s post, but he was silent on the timing then.
“I think that’s a legitimate expectation,” he had told the accompanying media delegation to the G20 and Rio+20 summits to Mexico and Brazil, when asked if he wished to reshuffle his Cabinet.
“You will get to know about it when it takes place,” he had said, when also queried if more parties were set to formally join the United Progressive Alliance in the near future.
The Reserve Bank of India (RBI) in its April-June quarter monetary policy on Tuesday left the key policy rate unchanged. However, it has cut the statuitory liquidity ratio (SLR) to 23% from 24% earlier.
Now, the repo rate or the rate at which banks borrow from RBI remained at 8% while the reverse repo rate at which, the banks lend to RBI at 7%.
SLR is the percentage of total deposits that lenders need to invest in the government bonds. The reduction is aimed at ensuring free flow of credit growth through enough liquidity in the system.
Cash Reserve Ratio or CRR is the portion of total deposits that banks are required to keep with the central bank also remained unchanged.
“Keeping in view the slowdown in growth, the Reserve Bank frontloaded the policy rate reduction in April with a cut of 50 basis points. Subsequent developments suggested that even as growth moderated, inflation remained sticky.
Keeping in view the heightening risks to inflation, the Reserve Bank decided to pause in the Mid-Quarter Review (MQR) of June 2012, even in the face of slowing growth,” D Subbarao, the governor of RBI said in the first quarter policy statement.
After a gap of nearly three years, RBI had last cut policy rates by 50 bps in annual monetary policy announced on April 17.
NIFTY FUTURE closed 5217
Yesterday Nifty Future rallied almost 2% but volume is low
Our all Resistance level crossed 5180 & 5210.
In Resistance level we gave Sell call and my stop-loss just 18 points
Booked Loss 18 points in yesterday
But no problem Thousands of exit happen in this market condition
Today’s Nifty Future Resistance 5225, if trade above the level & Volume, will see non-stop rally
Upto 5260 & 5285 level…… Very hurdle level around 5285….. Thereafter ???
Today’s support level 5210, if trade below the level after RBI Policy, will see non-stop slide
Upto 5180 ( Hurdle level )…… Thereafter 5135 & 5100…….
Better trade after RBI Policy………….
More live market update to our clients only
Live Market update on Twitter add our id flying calls
Updated : 09.02am / 31st July
Banknifty Future : 10472
Today’s Banknifty Future facing Resistance 10535 if trade above the level &
Volume also….. next resistance 10620 & 10720 level
Today’s support 10380 if trade below the level & 15 mins if stays below the level
10300 & 10210 next support level…..
Better trade after RBI Policy
More update during market hrs to my clients
Updated : 08.57am / 31st July
Yesterday & Today same call
ITC Looking very HOT
Strong Resistance 260, Once if break the level
Catch it !!! All round buying will see
Target 265 & 269 Thereafter 280 shortly
HDFCBANK trades near Resistance level
Resis @ 594, If cross over the level decent move will be expected
Will test 600 & 605 level…..
All Pharma Stocks looks good sign
Like DRREDDY, CIPLA, SUNPHARMA, GLENMARK
Above Ready to Rock…. But if cross the level
Which level ??? Clients special call !!!
WIPRO past 20 trading days slide almost 100 rupees ( 420 to 325 )
Now taken support at lower level ?? Can buy for Positional target ???
What is support ?? up side target ???
Join us !!
Updated : 08.33am / 31st July
Amid deteriorating global financial conditions, the Reserve Bank today warned that both the equity markets as well the battered rupee are likely to be more under pressure going forward.
“On the domestic front, falling corporate earnings at a time when corporate positions are already leveraged, could keep equity markets under pressure,” the RBI said in a report on Macroeconomic and Monetary Developments, released on the eve of the monetary policy announcement.
It pointed out that global uncertainty continues to exert pressure on the rupee. “While currency pressures have currently abated, uncertainty remains ahead with the global risk aversion being high and the external sector weakening,” the central bank said.
The rupee is currently hovering at 55.60 to the dollar, which is around 10% fall from its April level, and around 25% since last August on the back of higher fiscal and current account deficits coupled with global uncertainty.
The RBI said stressed financial condition is likely to continue worldwide due to certain developments like the Libor scandal, money laundering cases by some leading global banks. Referring to the ongoing eurozone crisis, the report said the longevity of Greece in the European Union and Spanish banking problem pose risks to the financial stability of this region in particular and global financial markets in general.
It noted that subdued growth in advanced economies and concerns in the eurozone area have resulted in negative FII inflows to emerging economies. However, the Central bank remains optimistic about positive inflows from FIIs in the second quarter.
About overall liquidity situation in the economy, the RBI said liquidity situation has improved in the first quarter, as reflected in easing call rates and G-Sec yields. The yield on the benchmark 10-year treasury bill, which was 8.57% in April, has now fallen to around 8.12%.
The RBI, however, said deposit rates remain sticky, a reflection of higher costs of funds and inflation.