Cut in growth forecasts for the US and Japan by IMF rattles markets: Global Market View

The US markets closed mixed on Monday while the Asian pack was down in early trade on Tuesday

While the Indian bourses are closed today on account of a local holiday, here is a brief view of the global markets. Wall Street closed mixed on Monday nervousness ahead of the quarterly numbers of Alcoa marking the beginning of the earnings season. Markets in Asia were lower in early trade on Tuesday on concerns about the pace of the economic recovery as the International Monetary Fund (IMF) on Monday cut growth forecasts for the US and Japan, which is still being rattled by aftershocks after the devastating earthquake of early March.

The market opened in the red on Monday, tracking a downward trend in the Asian markets and speculation that the country's industrial output data, which was to be released later in the day, would be lower-than-expected on rising costs. The Sensex, which lost 140 points on Friday, was 68 points down at the opening and the Nifty fell 37 points to 5,805.

Weak Index of Industrial Production (IIP) numbers for February, announced before noon, resulted in a quick fall and the market remained range-bound thereafter. Under selling pressure from institutional investors, the market touched the low-point of the day towards the fag end of the session. The Sensex fell to 19,243 and the Nifty touched 5,778 at the intra-day lows. The market closed a tad above those levels with the Sensex at 19,263, down 189 points from Friday's close and the Nifty down 56 points at 5,786. The advance-decline ratio on the National Stock Exchange was 445:959.

Markets in the US settled mixed on Monday ahead of the quarterly numbers of metals major Alcoa. Post market close, Alcoa’s first quarter profit beat analysts’ expectations and said its outlook for the rest of 2011 and beyond remains positive. However, the aluminium maker’s revenue missed forecasts and the stock fell 3.6% in post-market trade.

Crude prices declined as the IMF lowered its growth forecasts for the US, though the multilateral lending agency stated that higher energy costs will slow the economic recovery. US light, sweet crude fell $2.87 to settle at $109.92, pulling back after reaching an early $113.46 peak, the highest intraday price since September 2008.

Brent crude for May fell $2.67 to close at $123.62 a barrel, falling to a low of $123.50 in post-settlement trading, after reaching a 32-month peak of $127.02.

The Dow added 1.06 points (0.01%) at 12,381.11. The S&P 500 shed 3.71 points (0.28%) at 1,324.46 and the Nasdaq was down 8.91 points (0.32%) at 2,771.51.

 Markets in Asia were lower in early trade on Tuesday on concerns about the nuclear fall-out in the quake-damaged nuclear reactors in northern Japan. The Japanese government raised the severity of its nuclear crisis at the Fukushima Daiichi nuclear plant to a level 7 from 5, putting it on par with the Chernobyl nuclear disaster in 1986. The rating reflects the initial severity of the crisis not the current situation which has seen radiation levels drop dramatically. Meanwhile, the IMF downgraded its outlook for Japan following disruption in the nation’s manufacturing sector and worries about the pace of the recovery.

The Bank of Korea kept interest rates unchanged on concerns about the economic situation in the region. The country’s central bank kept the benchmark seven-day repurchase rate at 3% after increasing it by a quarter of percentage point each in January and March.

The Shanghai Composite fell 0.27%, the Hang Seng tanked 1.44%, the Jakarta Composite and the KLSE Composite declined 0.67% each, the Nikkei 225 tumbled 1.60%, the Straits Times was down 0.97%, the Seoul Composite fell by 1.26% and the Taiwan Weighted declined 1.55%.

Back home, the Central Bureau of Investigation (CBI), probing into the Adarsh housing society scam, on Monday informed the Bombay High Court that it has approached Income Tax authorities in connection with Rs23 lakh unaccounted cash recovered from the residence of former deputy secretary in Maharashtra government and an accused in the case, PV Deshmukh.

During searches, the investigating agency had recovered incriminating documents and Rs23 lakh in cash from Mr Deshmukh's residence in neighbouring Thane district.

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MCA increases employees pay disclosure limit to Rs60 lakh per annum from Rs24 lakh

Companies who are paying Rs5 lakh and above per month to an employee would have to mention the employee’s name in the director's report, says Ministry of Corporate Affairs

The Ministry of Corporate Affairs (MCA) has increased the limits for the purpose of disclosure of particulars of employees in the director's report to Rs60 lakh per year, or Rs5 lakh per month, from Rs24 lakh per annum, or Rs2 lakh per month.

The MCA, in a notification issued on 31 March 2011, said this would also cover government companies. The companies would have to provide statement showing the name of every specified employee in their Board report, if the employee has earned more than Rs60 lakh through the year, or Rs5 lakh or more per month, if he was employed for less than 12 months of the financial year.

The ministry, under a notification issued on 6th April, also increased the payment remuneration limit to relatives or partners of the directors of the company given under Rule 3 of the Director's Relative (Office or Place of Profit) Rules 2003, to Rs2.5 lakh per month from Rs50,000 per month. However, the companies would have to obtain prior permission through a special resolution and approval from the Union government.

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COMMENTS

amandeep singh

6 years ago

i have mca degree can i get job .and how may annual income will provide annual income

Share prices on a slow decline: Monday Closing Report

The Sensex may go down to 18,700 and the Nifty to 5,600. Also, watch if the indices trade above their previous day's high for a reversal

The market opened in the red, tracking a downward trend in the Asian markets and speculation that the country's industrial output data, which was to be released later in the day, would be lower-than-expected on rising costs. The Sensex, which lost 140 points on Friday, was 68 points down at the opening and the Nifty fell 37 points to 5,805. Auto, banking, realty and IT sectors witnessed selling pressure, dragging the market further southwards.

Weak Index of Industrial Production (IIP) numbers for February, announced before noon, resulted in a quick fall and the market remained range-bound thereafter. Under selling pressure from institutional investors, the market touched the low-point of the day towards the fag end of the session. The Sensex fell to 19,243 and the Nifty touched 5,778 at the intra-day lows. The market closed a tad above those levels with the Sensex at 19,263, down 189 points from Friday's close and the Nifty down 56 points at 5,786. The advance-decline ratio on the National Stock Exchange was 445:959.

With the market closed on Tuesday and again on Thursday on local holidays, investors will be cautious this week.

Among the broader indices, the BSE Mid-cap index was down 0.70% and the BSE Small-cap index declined 0.71%.

All but two sectoral gauges ended in the red today. BSE Realty (down 2.52%), BSE Auto (down 2.15%), BSE Consumer Durables (down 1.89%), BSE Oil & Gas (down 1.59%) and BSE Capital Goods (down 1.07%) were the top losers. BSE Healthcare (up 0.05%) and BSE Fast Moving Consumer Goods (up 0.02%) were the gainers.

On the Sensex, DLF (down 3.51%), Jindal Steel (down 3.01%), Jaiprakash Associates (down 2.96%), Tata Motors (down 2.84%) and HDFC (down 2.69%) were the top losers. On the other hand, Reliance Infrastructure (up 0.84), Cipla (up 0.63%) and ITC (up 0.46%) were noteworthy gainers.

Pinning his hopes on a smart recovery in farm output, Planning Commission deputy chairman Montek Singh Ahluwalia today said the country would clock over 8.5% economic expansion in 2010-11 despite a moderation in industrial growth. Industrial output in February rose slower-than-expected at 3.6% in February from a year earlier, while the Index of Industrial Production (IIP) has grew by 7.8% during April 2010-February 2011, compared to 10% in the previous corresponding period.

Concerns about high energy costs derailing the economic recovery in the region took a toll of Asian markets today. Japan's Nikkei 225 fell 0.5% as the nation's machinery orders dropped for the first time in three months in February. While the Shanghai Composite closed lower, shares of exploration companies surged on higher oil prices.

The Shanghai Composite fell 0.25%, the Hang Seng declined 0.38%, the KLSE Composite tanked 0.87%, the Straits Times contracted 0.84%, the Seoul Composite dipped 0.26% and the Taiwan Weighted ended 0.16% lower. Bucking the trend, the Jakarta Composite gained 0.11%.

Back home, foreign institutional investors were net buyers of stocks worth Rs384.85 crore on Friday. On the other hand, domestic institutional investors were net sellers of equities worth Rs128.40 crore on the day.

Punj Lloyd (down 2.49%) has informed the stock exchanges that its group company Sembawang Engineers and Constructors Pte Ltd, one of the leading engineering, procurement and construction companies in Singapore, has through its subsidiary Sembawang Development signed an agreement to acquire a 50% stake in a thermal coal mine company in central Kalimantan, Indonesia. The mining company holds a coal IUP license and currently has estimated resources of 134 million tonnes and potential reserves calculated at 57 million tonnes.

Coal India (CIL) (up 0.52%) has been conferred the coveted Maharatna status, giving the world's largest coal producer greater autonomy for taking investment decisions. The status will enable CIL to pursue its acquisition plans in South Africa, Indonesia, Australia and the US more aggressively.

In a move towards allowing large-scale private sector participation in the defence sector, leading power utility Tata Power Company (up 0.35%) has been awarded the contract to modernise the Airfield Infrastructure of the Indian Air Force (IAF) for an undisclosed amount.

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