1. India-GlobalMarketSummary 1-10-2013
• Market edged higher on the first trading day of October 2013 as the rupee nudged higher
against the dollar after data released by the Reserve Bank of India showed a lower-than-
expected current account deficit in Q1 June 2013. Gains in Asian and European stocks aided
upmove on the domestic bourses. The market breadth, indicating the overall health of the
market, was positive. Bond prices rose after the Reserve Bank of India (RBI) on Monday, 30
September 2013, said will infuse Rs 10000 crore into the banking system through open-market
operations next week to ease liquidity constraints. The stock market remains closed tomorrow
on account of Mahatma Gandhi Jayanti. Sensex rose 0.71% to settle at 19,517.15 and Nifty
advanced 0.78% to 5,780.05. Among the 30-share Sensex pack, 16 stocks rose and rest of
them fell. Indian stocks snapped two-day losing streak today.
• Factory activity in India shrank for a second month in September, albeit not as sharply as in
August, on a dearth of new orders which pushed firms to cut staff, a survey showed on
Tuesday. The HSBC Manufacturing PMI, compiled by Markit, rose to 49.6 in September from
48.5 in August, but remaining below the watershed 50 mark that separates growth from
contraction. The new orders sub-index rose to 49.6 last month from 47.5 in August.
• India's current account deficit (CAD) widened to $21.8 billion or 4.9% of GDP in Q1 June
2013 from $16.9 billion or 4% of GDP in Q1 June 2012, data released by the Reserve Bank of
India (RBI) after trading hours on Monday, 30 September 2013, showed. The CAD was $18.1
billion in Q4 March 2013. The RBI said that the year-on-year rise in CAD in Q1 June 2013
was due to a rise in imports and some decline in merchandise exports. Merchandise trade
deficit (balance of payments basis) widened to $50.5 billion in Q1 June 2013 from $43.8
billion in Q1 June 2012. The trade deficit, coupled with a slow recovery in net invisibles
(income and services), led to widening of CAD on year-on-year basis in Q1 June 2013, the
RBI said. On balance of payments (BoP) basis, there was a slight drawdown in foreign
exchange reserves of $0.3 billion in Q1 June 2013 as against an accretion of $0.5 billion in Q1
June 2012.

2. • Bond prices rose after the Reserve Bank of India (RBI) on Monday, 30 September 2013, said will infuse Rs 10000 crore into the banking system
through open-market operations next week to ease liquidity constraints. The yield on the federal benchmark paper 7.16% GS 2023 was hovering at
8.7365%, lower than its close of 8.7658% on Monday, 30 September 2013. Bond yield and bond prices are inversely related.
• Based on the current assessment of prevailing and evolving market conditions, the RBI will purchase government securities for an aggregate amount
of Rs 10000 crore on 7 October 2013, the RBI said in a press release on Monday, 30 September 2013.
• The government's fiscal deficit for the April-August period has reached about three-fourths of its target for the year ending March, data released after
trading hours on Monday, 30 September 2013, showed. By the end of August, the gap between the government's revenue and expenses has reached
74.6% of its target for the fiscal year, according to data released on Monday. Expenses during the first five months were about 40% of the aim for the
year, while revenue was way short at 23% of the target. The government aims to limit the deficit within 4.8% of gross domestic product, compared
with 4.9% last year.
• The combined output of the eight core infrastructure sectors rose 3.7% in August 2013, supported by strong growth in coal and cement production and
electricity generation, data released by the government after trading hours on Monday, 30 September 2013, showed. It was the highest growth in core
sector output in seven months.
• Capital goods pivotals and bank stocks gained on renewed buying. Realty stocks also edged higher on renewed buying. JSW Steel rose after the
company announced its plan to set up a second steel processing center in Pune (Maharashtra) with its JV partner Marubeni Itochu Steel Inc.
Tokyo, (MISI). Shares of state-run oil marketing companies (PSU OMCs) fell after announcing revision in fuel prices on Monday. Metal stocks
declined as official Chinese factory gauge rose less than economists forecast in September. Steel stocks rose.
• Tata Communications surged after Vodacom and the shareholders of Neotel announced that they have entered into exclusive discussions regarding a
potential acquisition of 100% of the shares of Neotel by Vodacom SA. Tata Communications has a strategic investment in Neotel.
• India received 6% higher rainfall than normal in the 2013 monsoon season ended on September 30, the Indian Meteorological Department (IMD) said
on Tuesday, strengthening prospects of a bumper farm output that could boost farmers' earnings. Monsoon rains are vital for 55% of the country's
farmlands that lack irrigation facilities, and can make the difference between India being an exporter or importer of staples such as rice and sugar.
• Bharat Heavy Electricals rose 3.35%, with the stock recovering on bargain hunting after 2-day 8.67% slide.
• Maruti Suzuki India rose 3.07% after the company said its total sales rose 11.7% to 1.04 lakh units in September 2013 over September 2012.
• Allcargo Logistics lost 2.81%, with the stock sliding on profit booking after recent rally triggered by the company acquiring 100% stake in US-based
logistics company, Econocaribe Consolidators.
• Atul Auto surged 5.97% after the company said its total sales rose 23.43% to 3,366 units in September 2013 over September 2012.
• Apollo Tyres fell 2.48% after US-based Cooper Tire & Rubber Company said its shareholders approved its sale to Apollo Tyres.
• Hindustan Unilever fell 1.94% after parent company Unilever warned that emerging markets slowdown has accelerated.
• Glenmark Pharmaceuticals rose 1.08%, with the stock extending Monday's 1.54% gains triggered by the company's US subsidiary securing approval
from USFDA for a generic version of Locoid Lipocream
• Mahindra & Mahindra rose 0.64% after the company said its total auto sales rose 14% to 43,289 units in September 2013 over August 2013.
• TVS Motor Company jumped 5.71% after the company said its total sales rose 16% to 1.97 lakh units in September 2013 over September 2012
• JSW Steel rose 1.45% after the company said it will set up a second steel processing centre in India with Tokyo-based Marubeni Itochu Steel Inc
• Mahindra & Mahindra rose 0.48% after the company said its total tractor sales jumped 33% to 26,637 units in September 2013 over September 2012

3. Global news
• European stocks were mostly higher on Tuesday, 1 October 2013, with data showing the euro-zone
manufacturing sector expanded for a third month in September. Asian stocks rose on Tuesday, 1 October
2013, as a report showed confidence among large Japanese manufacturers increased. Trading in US index
futures indicated that the Dow could gain 56 points at the opening bell on Tuesday, 1 October 2013. US stocks
closed lower on Monday with just hours to go before a midnight deadline to avert a federal government
shutdown.
• The final manufacturing purchasing managers' index came in at 51.1, unchanged from a preliminary reading.
• Euro-area unemployment unexpectedly retreated from a record, as the currency bloc's economic recovery gained
momentum. The jobless rate fell to a revised 12 percent in July from a record 12.1 percent a month earlier, and
held at that level in August, the European Union's statistics office in Luxembourg said today.
• A Chinese factory gauge rose less than economists forecast in September, signaling limits on the nation's
rebound from a two-quarter economic slowdown. The Purchasing Managers' Index was at 51.1, the National
Bureau of Statistics and China Federation of Logistics and Purchasing said today in Beijing. That compares with
51 in August.
• The Bank of Japan's quarterly Tankan index for big manufacturers rose to 12 in September, the highest since
2007, from 4 in June.
• The Reserve Bank of Australia kept official interest rates at a record low 2.5% for the second month in a row on
Tuesday, saying that the impact of its earlier cuts were still filtering through the economy.
• The US government began a partial shutdown on Tuesday for the first time in 17 years after lawmakers could
not break a political stalemate that sparked new questions about the ability of a deeply divided Congress to
perform its most basic functions. Some US government offices and national parks will be shuttered, but
spending for essential functions related to national security and public safety will continue, including pay for US
military troops.
• There are also fears that the conflict could spill over into the more crucial dispute over raising the federal
government's borrowing authority. A failure to raise the $16.7 trillion debt ceiling would force the country to
default on its obligations, dealing a potentially painful blow to the economy and sending shockwaves around
global markets.
• The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 29-30 October 2013. On 18
September 2013, the Fed surprised economists and investors with its decision to delay scaling back its stimulus
amid concerns about the strength of the economic recovery

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