Indian Rupee on Tuesday crossed the 47 mark at the foreign exchange market due to the plunge in the global stock markets and strengthening of the US dollar.
Yesterday Rupee was closed at 46.91/92.
Sensex and Nifty also in the red due to weak global cues even after an encouraging GDP report.
At 12:23 Sensex down 184 points and Nifty down 58 points
Mukesh Ambani controlled India’s leading company Reliance Industries Limited (RIL) entered hospitality sector by purchasing 14.1% share in hotel group EIH for 217.5 million US dollars.
EIH, which runs the luxury Oberoi and Trident chain of hotels is a the most admired company in the hospitality sector in India which manages 32 hotels.
EIH shares surged on both BSE and NSE after the stake sale.
As per the latest report from Government of India, Indian Economy grew at 8.8% in April-June Quarter against 6 percent in the same period last year.
Manufacturing posts 12.4% growth, Industry at 10.3 percent, Service sector at 9.7%, Construction Sector 7.5% and Mining at 8.9%.
Pantaloon Retail (India) Limited, is a leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai, the company operates over 16 million square feet of retail space, has over 1000 stores across 73 cities in India and employs over 30,000 people.
Pantaloon Retail (India) Ltd posted net profit of Rs 179.56 crore for the year ended on June 30, 2010, a 27.7% increase in net profit compared to 140.58 crore last year.
But Total income for the period declined to Rs 5934.37 crore from Rs 6341.7 crore same period last year.
Pantaloon Retail Audited Financial Results for the year ended June 30, 2010
After the results Pantaloon Retail India shares surged 1.51% in National Stock Exchange and trading at Rs 481, up 7.20 from yesterday close price.
Weak global cues and worries about US economic recovery fueled another sell of in Indian markets which dragged Sensex to below 18,000 levels ahead of crucial US GDP data.
Even the US GDP data is not encouraging as US economy grew only 1.6 percent in the last quarter compared to 3.7 in the first quarter.
Realty and banking stocks lost ground followed by IT, teck, consumer durable and power except oil & gas.
BSE Sensex lost 227.94 points or 1.25% at 17,998.41. NSE Nifty lost 69.20 points or 1.26% and closed at 5,408.70
Top Losers : DLF (-3.63%), Hero Honda (-3.46%), Axis Bank (-3.42%), HCL Tech (-3.36%) and PNB (-3.31%).
Top Gainers : GAIL (3.46%), ONGC (1.95%), Tata Steel (1.42%), BPCL (1.20%) and Sterlite Industries (0.40%)
In April-June 2010 period US Growth Domestic Product (GDP) grew only at 1.6% compared to last month initial estimate of 2.4 percent. But it is slightly better because analysts were expecting only 1.4%.
But it is clear that US economy has lost the momentum in recovery as in the first quarter of 2010 (Jan-Mar) GDP growth was 3.7 percent.
In the past four successive quarters US economy posted positive gains but the trend is weakening now.
The recovery from the worst economic downturn since the Great Depression was mainly fueled by the $862 billion government stimulus package.
Now this slow economic growth is a major political challenge for Obama administration as it is election time again.
Indian markets ended volatile session in the red as traders squared positions ahead of August series F&O expiry.
Bombay Stock Exchange’s Sensex ended at 18167.13, down 144.46 points or 0.79 per cent. National Stock Exchange’s Nifty closed at 5456.15, down 48.95 points or 0.89 per cent.
Most of the Asian markets also closed in red – Nikkei closed with 149 points loss and Hang Seng closed with .11% loss.
European markets also trading in negative. FTSE down .6% and DAX down .3% due to renewed concerns about the double dip recession and weakening of the current economic recovery.
US Stocks declined again on Tuesday after a disappointing report from Housing Sector.
The National Association of Realtors said sales of previously occupied homes plunged in July to an annual rate of 3.83 million against economists estimate of 4.7 million, a 27 percent drop from last month to a lowest level in 15 years.
The Dow Jones industrial average lost 134 points (1.32%) Tuesday and closed at 10,040. Nasdaq plunged 1.66% or 35.87 points and closed at 2123.
This indicates that possibility of a double dip recession is still strong. Also some economist strongly believe that it is something more than a recession as it follows the trend of the Great Depression pattern.
Today morning Asian stocks also opened in the red – Nikkei 225 trading at 8905, down 1% and Hang Seng at 20,578, down 0.39%. Indian Markets also expected to trade in the narrow range because of weak global cues.
The Reserve Bank of India (RBI) today raised key interest rates by 25 basis points, as expected, tightening policy for the second month in a row as inflation heads towards double digits.
