Wall Street rallies on M&A blitz and homebuilder data

Global markets are strongly positive and Nifty is expected to open high with most of the sectors expected to perform well. New highs can be made today and Pharma, FMCG, Power, Infra and select midcaps are expected to perform well.

Today’s Headlines

1) Wall Street rallies on M&A blitz and homebuilder data
2) Asian markets gain; Nikkei, Straits Times rise
3) FinMin to give in-principle approval for UTI MF IPO soon
4) FDI in automobile sector drops 85% in April-May this year
5) Bankers tighten noose on Bhushan Steel; appoint auditors
6) ONGC divestment by end-August; govt to hire bankers
7) BSE revises equity transaction charges
8) Planning Comm can be replaced by Productivity Comm

Read detail analysis report here:- http://www.rrfinance.com/reserch/MorningBell/Eq_MorningBell.pdf

Debt Market Key Headlines   

1) Foreign institutional investors (FIIs) have poured a record amount of money into the Indian debt market with year-to-date inflows of $13.7 billion, higher than inflows of around $12.04 billion into the equity market. There is a lot of demand for Indian bonds from foreign investors because yields are quite attractive for carry trade and the rupee has also been stable.
2) Indian 10 year yields have remained elevated at around 8.8%, more attractive than the yields on the 10-year US treasury bonds at around 2.5%, even after factoring in a possible depreciation of the rupee.

Read detail analysis Report here: - http://www.rrfinance.com/reserch/MorningBell/Db_MorningBell.pdf

India’s rupee erased gains on speculation..

1) ECB President Mario Draghi reduced the deposit rate to minus 0.10 percent from zero, making the institution the world’s first major central bank to use a negative rate. Policy makers also lowered the benchmark rate to 0.15 percent from 0.25 percent.

2) The euro has weakened 3.1 percent since touching a 2 1/2-year high on May 8 before Draghi sent it tumbling by saying that the Governing Council would be “comfortable” to act in June.

3) India’s rupee erased gains on speculation the central bank intervened to rein in an advance that’s made the currency the best performing in Asia this year after Pakistan’s rupee. 

Debt Market Key Headlines

1) The finance ministry is reportedly examining mergers of the country's state-run banks to create stronger financial institutions. True, Indian banks do not have large enough balance sheets to meet the needs of large rapidly globalizing companies. Small public sector banks could gain economies of scale by merging

2) Also, the global financial crisis in the aftermath of the collapse of Lehman Bros has shown that no country needs a bank that is too big to fail. Small banks, theoretically, do not pose systemic risks and can be allowed to sink.

Read detail analysis report here: -  http://www.rrfinance.com/Reserch/ResearchHome.aspx

Inflation eased in February and authorities forecast economic growth!

The India’s rupee completed its biggest quarterly advance since September 2012 as foreign investor’s boosted purchases of the nation’s assets on optimism a new government will hasten an economic recovery. Inflation eased in February and authorities forecast economic growth will pick up from a decade-low and deficits will shrink in the fiscal year ending March 31. Foreign funds have pumped $9.3 billion into Indian shares and bond this year. The rupee gained 3.2 percent since Dec. 31 to 59.89 per dollar in Mumbai, prices from local banks compiled by Bloomberg show.

The currency rose 0.7 percent today and touched 59.6850, the strongest since July 30. It has rebounded 15 percent from a record low in August. Consumer-price inflation eased to a two-year low in February and wholesale-price gains slowed to the least in nine months, official data show. The current-account deficit will be kept below $40 billion this fiscal year, compared with a record $88 billion in the previous 12 months, and the budget deficit will narrow to 4.6 percent of gross domestic product from 4.9 percent, according to Finance Minister.

Read detail analysis report here: - http://www.quora.com/Rahul-Prasad-12/Posts/Inflation-eased-in-February-and-authorities-forecast-economic-growth