MAJOR SECTORAL GAINERS:
METAL:
11.50%
REALTY:
10.10%
BANKING:
6.90%
AUTO:
6.50%
OIL & GAS:
6.30%
PHARMA:
3.60%
PSU:
2.80%
FMCG:
2.70%
POWER:
2.40%
MAJOR GAINERS IN NIFTY:
R-COM:
6.47%
R-CAP:
6.10%
DLF:
5.65%
MAJOR LOSERS IN NIFTY:
IDFC:
-3.50%
HCL TECH: -3.40%
TATA POWER: -2.40%
Thanks,FII purchases during the week:
30/08/2011: 485.4
2/9/2011: 678.2
FII were net buyer of Rs 1067 crore during the week.
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
For further details contact us on the below mentioned numbersThe Government proposes to disinvest 10% stake in Rashtriya Ispat Nigam Ltd (RINL) through an initial public offering (IPO).
Setting the ball rolling for the IPO, the Department of Disinvestment in the Ministry of Finance has invited request for proposals (RFPs) from merchant bankers to engage book running lead managers to handle the issue.
The Government is considering divesting 10% paid-up equity capital comprising 48,89,846 shares of face value of Rs 1,000 each, out of its shareholding through a domestic IPO.
In order to make RINL shares more affordable to the investors, it is proposed that the Steel Ministry and the company would split the equity share of face value of Rs 1,000 each into share of face value of Rs 10 each before the disinvestment.
2nd largest producer
RINL is the second largest state-run steel producer and wholly-owned by the Government. RINL has a paid-up capital of Rs 7,827.32 crore as of March 31, 2011.
This comprises Rs 4,889.85 crore paid-up equity capital (4,88,98,462 shares of face value of Rs 1,000 each) and Rs 2,937.47 crore preference capital.
“As it is felt that the current level of RINL's capital (equity plus preference) base is high compared to its size, a capital restructuring exercise is being undertaken,” the RFP note of Finance Ministry said.
RINL has a production capacity of 2.9 million tonnes per annum and the company had 17,829 employees as of March 31. RINL registered a sales turnover of Rs 11,517 crore for 2010-11, an eight per cent growth over previous year. For 2011-12, the company is targeting a turnover of Rs 13,600 crore, according to the MoU with the Ministry of Steel.
The Government proposes to raise some Rs 40,000 crore through disinvestment in the current financial year. The Union Cabinet has recently approved 5% stake sale in Bharat Heavy Electricalsand 10% in National Building Construction Corporation. ONGC and SAIL are the other central PSUs that will see disinvestment in the current fiscal.
Source: www.moneycontrol.com
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
US employment growth ground to a halt in August, reviving recession fears and piling pressure on both President Barack Obama and the Federal Reserve to provide more stimulus to aid the frail economy.
Nonfarm payrolls were unchanged last month, the Labor Department said on Friday, as sagging confidence discouraged already skittish businesses from hiring.
It was the first time in nearly a year the economy had failed to create jobs, but economists cautioned against viewing the data as a recession signal, in part because employment was dampened by 45,000 striking workers at Verizon Communications.
Those workers have since returned to work and will be counted as on the payroll in September.
"The economy is struggling against stiff headwinds, which appear to have intensified in recent months," said Millan Mulraine, senior macro strategist at TD Securities in New York. "While it has clearly not fallen off the cliff, there is little to suggest it is anywhere close to regaining its momentum."
Investors fled riskier assets, sending Wall Street stocks tumbling, and sought refuge in US Treasury debt and gold. Economists had expected nonfarm employment to rise 75,000 last month.
The unemployment rate, however, held at 9.1% as a survey of households found both job growth and, for the first time in a year, an expanding labor force.
With the jobless rate stuck above 9% and confidence collapsing, President Barack Obama faces pressure to come up with ways to spur job creation. The health of the labour market could determine whether he wins re-election next year.
Obama will lay out a new jobs plan in a speech to the nation on Thursday, and White House advisers said the jobs data underscored a need for action.
"He will be very specific about what we can do that can have a meaningful impact on job growth in the economy right away," Gene Sperling, a top economic adviser to Obama, told Reuters Insider.
The Republican speaker of the House of Representatives, John Boehner, said it was time for cooperation "to end the uncertainty facing families and small businesses, and create a better environment for long-term economic growth."
Republicans have wrangled with Obama and other Democrats over almost every policy issue and their last spat in July over raising the nation's debt limit fueled a big stock mark slump that hit consumer and business confidence.
EYES ON THE FED
The jobs data could also strengthen the hand of officials at the U.S. Federal Reserve who wanted to do more to help the sputtering economy in August. The economy needs to generate about 150,000 jobs each month just to keep the unemployment rate steady over time.
The Fed, which next meets on Sept. 20-21, cut overnight interest rates to near zero in December 2008 and it has bought USD 2.3 trillion in securities to inject cash into the economy.
Despite simmering underlying inflation pressures, most economists expect the US central bank to launch a third round of government bond buying to put downward pressure on longer-term interest rates, partly because the federal government appears intent on belt-tightening.
"Even the inflation hawks have to be concerned by this report," said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pennsylvania. "With fiscal policy at all levels of government restraining growth, the Fed is the only game in town."
While employment was held back by the Verizon strike, the impact was offset somewhat as 23,000 public employees in Minnesota returned to work after a partial government shutdown.
Without the strike, private payrolls would have increased by 62,000 in August, instead of a paltry 17,000.
Still, the overall tenor of the report was decidedly weak.
Employers created a combined 58,000 fewer jobs in June and July than previously thought, and the length of the average workweek fell 0.1 hour to 34.2 hours, the fewest since January.
In addition, average hourly earnings dropped three cents and government employment fell by 17,000.
Despite massive cash injections by both the government and the Fed, sustainable job growth has eluded the economy.
"The entire recovery has been a recovery in name only. The Achilles heel of the recovery has always been the lack of job creation," said John Ryding, chief economist at RDQ Economics in New York.
About 43 percent of the 14 million Americans unemployed in August has been out of work for at least six months. The jobless rate would have been 16.2 percent if people who want to work but have given up looking for jobs and those working only part time because of economic reasons were counted.
Although hiring cooled, fairly steady readings on claims for jobless benefits, relatively strong consumer spending, continued demand for manufactured goods and increases in industrial production offer hope the economy will avoid recession.
Analysts say the economy should pick up steam from here, although they warn the recovery is so weak that any fresh shock could send it tumbling. In the first half of the year, the economy expanded at less than a 1% annual rate.
Source: www.moneycontrol.com
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
The US equity markets ended sharply lower on Friday on the back of disappointing jobs report, which renewed fears of recession.
The Dow Jones Industrial Average fell 253.31 points or 2.20%, to close at 11,240.26 led by fall in all 30 stocks. The Nasdaq Composite dropped 65.71 points or 2.58%, to end at 2,480.33 and the Standard & Poor's 500 Index lost 30.45 points or 2.53%, to close at 1,173.97.
The fall was led by sell-off in financial stocks. Bank of America tumbled 8.3% yesterday; it crashed more than 45% in 2011. JP Morgan Chase and Goldman Sachs lost 4.6% each.
Hewlett-Packard plunged over 5%; in this year - it lost over 40%.
The unemployment rate was remained at 9.1%. The disappointing August non-farm payrolls report was bad for the first time since September 2010.
The US Labor Department said employers added no new jobs in August, compared with a downwardly revised increase of 85,000 jobs in July. Analysts polled by Reuters had predicted non-farm payrolls to grow by 75,000.
"There are a lot of confidence issues in the marketplace, the jobs number only made things worse," said Sal Arnuk, co-manager of trading at Themis Trading in Chatham, New Jersey.
Recession fears pushed gold futures up nearly USD 50, to around USD 1,874 an ounce on Friday. However, crude-oil futures slid USD 2.90 to USD 86.03 a barrel on the NYMEX.
Source: www.moneycontrol.com
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
