1. India-GlobalMarketSummary 16-9-2013
• Market gave away initial strong gains after data released by the government today
showed that inflation based on wholesale price index (WPI) accelerated in August
2013, firming expectations that the central bank may again hold off cutting interest
rates at its monetary policy review on Friday, 20 September 2013. Sensex closed a
tad higher. Nifty edged lower to hit over one-week low. Stock prices were volatile.
The market breadth, indicating the overall health of the market, was negative.
Sensex advanced 0.05% to settle at 19,742.47 and Nifty shed 0.17% to 5,840.55.
From the 30-share Sensex pack, 18 stocks declined and rest of them rose.
• On the macro front, the annual rate of inflation, based on the monthly wholesale
price index (WPI), accelerated to 6.1% in August 2013 from 5.79% in July
2013, firming expectations that the central bank may again hold off cutting interest
rates at its monetary policy review on Friday, 20 September 2013. A surge in
primary food articles inflation to 18.2% in August 2013 from 11.9% in July 2013
mainly contributed to increase in inflation in August 2013. Core inflation or non-
food manufacturing inflation eased to 1.97% in August 2013 from 2.33% in July
2013, the latest data showed. Meanwhile, the government revised the rate of WPI
inflation for June 2013 to 5.16%, from 4.86% reported earlier.

2. • Build up inflation rate in the financial year so far was 3.91% compared to a build up rate of 4.35% in
the corresponding period of the previous year. The government announced the WPI data during
trading hours today, 16 September 2013
• WPI inflation had eased to the Reserve Bank of India's comfort zone of 5% in April and May. But
inflation rebounded following a rise in food prices due to crop damage after heavy rainfall this
year, and increases in prices of fuel to compensate for higher import costs due to a sharp fall in the
rupee.
• At its upcoming mid-quarter monetary policy review on Friday, 20 September 2013, the Reserve
Bank of India will have to decide whether to give in to industry demands and lower interest rates in
order to boost slowing economic growth, or leave interest rates unchanged for the third straight
policy review as it guards against risks of a fresh rise in inflationary pressures.
• The Securities and Exchange Board of India (Sebi) said on Friday that FIIs/QFIs shall hereafter be
permitted to invest in government debt without purchasing debt limits till the overall investment
reaches 90%.
• Shares of pharma major Ranbaxy Laboratories tumbled a staggering over 30% in a single trading
session after the US Food and Drug Administration issued an import alert against company's Mohali
plant. Shares of most private banks rose. IT stocks declined as the rupee surged against the dollar.
Index heavyweight and cigarette maker ITC gained. Another index heavyweight Reliance Industries
(RIL) declined. Shares of two out of three PSU OMCs rose after raising petrol price. HPCL, BPCL
move higher after raising petrol price
• In the foreign exchange market, the rupee surged against the dollar. The partially convertible rupee
was hovering at 62.81, stronger than its close of 63.49/50 on Friday, 13 September 2013.

3. • HDFC Bank rose 2.13% after said that it has completed the acquisition of additional 42.75 lakh
equity shares of its subsidiary HDFC Securities (HSL) from an existing shareholder. With this
acquisition the total shareholding of HDFC Bank in HSL has increased from 62.06% to 89.88% of
the paid-up capital of HSL.
• HCL Infosystems jumped 9.37% and HCL Technologies lost 5.04% on reports that HCL Infosystems
is working towards the goal of merging its system integration and services business with HCL
Technologies.
• Cadila Healthcare rose 0.83% after the company said during market hours that it launched a diabetes
drug in India. Cadila Healthcare said that three months after announcing its breakthrough in
research, the Zydus Group has launched Lipaglyn, a novel drug targeted at bridging an unmet
healthcare need for treating Diabetic Dyslipidemia and Hypertriglyceridemia in Type II diabetes, not
controlled by statins alone
• L&T rose 1.60% after the company said that L&T Construction won new orders worth Rs 1793
crore across various business segments in July, August and September 2013.
• Steel Strips Wheels jumped 3.11% after the company said it bagged an export order from Ring Tech
Company.
• Ranbaxy Laboratories slumped 23.85% after the US Food and Drug Administration issued an import
alert against company's Mohali plant in Punjab on Friday, 13 September 2013
• Man Industries (India) surged 5.44% after the firm said that its board at a meeting held on 15
September 2013, approved a scheme of arrangement involving its saw pipes business & real estate
and infrastructure business
• ARSS Infrastructure Projects was locked at 20% upper circuit after the company said it has received
a new work order of World Bank Projects in Odisha for Rs 147.53 crore.
• McNally Bharat Engineering Company rose 6.5% after the company said its wholly owned
subsidiary viz. MBE Coal & Mineral Technology has received an order worth Rs 51.75 crore for
works relating to Coal Washery & Crashing Plant.

4. Global news
• European stocks edged higher on Monday after former Treasury Secretary Lawrence
Summers dropped out of the running for the top Federal Reserve job. Asian stocks
rose on Monday, 16 September 2013, after Lawrence Summers withdrew from
consideration to be the next Federal Reserve chairman, paving the way for Janet
Yellen, who some investors say may favor a slower reduction in US stimulus. Trading
in US index futures indicated that the Dow could jump 167 points at the opening bell
on Monday, 16 September 2013.
• US retail sales, a closely watched benchmark of economic health, rose just 0.2% in
August. The consumer sentiment reading in September issued by Thomson Reuters
and the University of Michigan was 76.8, down from the 82.1 reading in August.
• Summers withdrew his nomination to lead the Fed, before a two-day policy meeting
starting tomorrow, 17 September 2013. Summers, 58, was one of three names that US
President Barack Obama had mentioned as possible replacements for
Bernanke, whose term as Fed chairman ends on 31 January 2014. Janet Yellen, 67, the
current Fed vice chairman, was also on Obama's candidate list along with Donald
Kohn, 70, a former Fed vice chairman, the president said earlier. The exit of
Summers, who faced wide opposition in the Fed race, could clear the path for Yellen.
Yellen is seen as one who would favor a slower pace of tapering on Fed bond
purchases.
• The US and Russia announced a deal on Saturday, 14 September 2013, for Syria to
destroy its chemical-weapons stockpile by the middle of 2014. The agreement halted
preparation for a possible US attack on Syrian government targets in retaliation for the
apparent use of chemical agents on civilians last month

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