market update july2011

8/4/2019 Market Update July2011

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MCX Stock Exchange Limited

Number of Members 743

Turnover (`in crs)

Average daily 19,443

Total 408,313

Volume (in lots)

Average daily 4,208,972

Total 88,388,424

Market share (%) 38.43

Exchange Statistics

In this Issue.

Global Market Connect

Currency Movements

Global Indices

First Quarter Review 2011-12

Exchange Corner

Regulatory Updates

MCX-SX Circulars

Data CornerIndia

Economic Calendar

Economic News

2

3

4

5

6

8

9

10

11

13

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2/15

Market Update July 2011 2 | P a g e

Top ^

CRB Index has risen by 1.59% from a closing

value of 336 on July 01, 2011 to a closing value of

342 on July 29, 2011.

Dow Jones Index has fallen by 3.49% from a

closing value of 12582.77 on July 01, 2011 to a

closing value of 12143.24 on July 29, 2011.

Gold has risen by 9.54% from a closing value of

$1484.50 on July 01, 2011 to a closing value of

$1626.14 on July 29, 2011.

Crude Oil has risen by 0.80% from a closing

value of 94.94 on July 01, 2011 to a closing value

of 95.70 on July 29, 2011.

Global Market Connect

US Dollar Index fell by 0.81%

from a closing value of 74.349 on

July 01, 2011 to a closing value of

73.745 on July 29, 2011.


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US Dollar index has weakened during July 2011

Weightage

to the Index

Month- July 2011Percentage

change

Dollar

Strength/weak

Previous Month

(June 2011)

Dollar Strength

/WeaknessJuly 01,

Close

July 31,

Close

Euro 57.6% 1.4522 1.4395 -0.87 Strength Weak

Japanese Yen 13.6% 80.83 76.73 -5.07 Weak WeakPound Sterling 11.9% 1.6074 1.6418 2.14 Weak StrengthCanadian Dollar 9.1% 0.9585 0.9551 -0.35 Weak WeakSwedish Krona 4.2% 6.2650 6.2656 0.01 Strength StrengthSwiss Franc 3.6% 0.8476 0.7852 -7.36 Weak Weak

EURO has depreciated by 0.87% against Dollar

from a closing value of $1.4522 on July 01, 2011to a closing value of $1.4395 on July 29, 2011.

The British pound has appreciated by 2.14%

against the Dollar from a closing value of $1.6074on July 01, 2011 to a closing value of $1.6418 on

July 29, 2011.

The Japanese Yen has appreciated by 5.07%

against the Dollar from a closing value of 80.83

Yen on July 01, 2011 to a closing value of 76.73

Yen on July 29, 2011.

The US Dollar weakened the most against Japanese Yen, depreciating about 5.07%. However the Dollar index

strengthened the most against Euro, appreciating about 0.87%.

Top ^

Currency Movements


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NIKKEI has fallen by 0.36% from a closing value

of 9868 on July 01, 2011 to a closing value of

9833 on July 29, 2011.

NASDAQ has risen by 0.06% from a closing

value of 2361 on July 01, 2011 to a closing value

of 2362 on July 29, 2011.

HANGSENG has fallen by 1.45% from a closingvalue of 22770 on July 04, 2011 to a closing value

of 22440 on July 29, 2011.

Global Indices

SENSEX has fallen by 3.01% from a closing

value of 18762 on July 01, 2011 to a closing

value of 18197 on July 29, 2011.

Top ^


5/15


On the global front, the sovereign debt problems that have beset the euro area over the past year now threaten larger

economies in the region. There is heightened anxiety about whether the euro area will be able to agree on aneconomically viable, fiscally sustainable and politically feasible solution to the vexing sovereign debt problem. In this

regard, the agreement reached by the euro zone leaders in their meeting on July 21, 2011 is a positive development. In

the US, concerns over a sovereign default loom over financial markets, with potentially disruptive consequences for

global capital flows. Despite sluggish economic activity, inflationary pressures also emerged in advanced economies

under the impact of high commodity prices. In striking contrast to advanced economies, emerging market economies

(EMEs) are generally dealing with rising inflation, caused by a combination of elevated commodity prices and robust

domestic demand.

From the perspective of India's macroeconomic policy imperatives, a critical consideration is the effect that global

conditions will have on commodity prices. After the May 3 Policy Statement, the prices of many commodities,

including that of crude oil, showed signs of softening, reflecting weakening demand in advanced economies.

However, one quarter later, the downtrend has not yet proved to be very strong. Prices are generally still high

compared with last year. Turning to the domestic economy, output expanded by 8.5% during 2010-11. The index of

industrial production (IIP) suggested that earlier signals of a growth deceleration in the second half of last year were

exaggerated. In fact, the growth momentum remained strong throughout last year.

Inflation continues to be the dominant macroeconomic concern. The headline WPI inflation rate for the first quarter

of this fiscal year remained stubbornly close to double digits and inflationary pressures continued to be broad-based.

Non-food manufactured product inflation ruled above 7% in the first quarter suggesting that producers, operating at

high levels of capacity utilisation, are able to pass on rising commodity input prices and wage costs to consumers. As

stated in the First Quarter Review of Monetary Policy 2011-12 released on July 26, 2011, the baseline projection for

WPI inflation for March 2012, as indicated in the May 3 policy statement, was 6.0% with an upward bias. However

keeping in view the domestic demand-supply balance, global trends in commodity prices and the likely demand

scenario, we have revised the baseline projection for WPI inflation for March 2012 upward to 7%.

Risks to the indicative projections of growth and inflation for 2011-12 are:

Uncertainty about the future path of global commodity prices, especially oil Uncertainty about capital flows from the perspective of financing the current account deficit Risks to food inflation stemming from the monsoon performance, higher minimum support prices and

inadequate supply response pertaining to protein-rich items

Significant upside risks to the projected fiscal deficit for 2011-12 as fiscal deficit has been a key source ofdemand pressures.

Based on an assessment of the current macroeconomic situation, following has been affected:

Increase the policy repo rate under the liquidity adjustment facility (LAF) by 50 basis points. The repo ratewill move up from 7.5% to 8.0%.

Consequently, the reverse repo rate under the LAF, determined with a spread of 100 basis point below therepo rate, automatically adjusts to 7%. Similarly, the Marginal Standing Facility (MSF) rate, determined with

a spread of 100 bps above the repo rate, stands recalibrated at 9.0%.

Top ^

Macroeconomic & Monetary Developments: First Quarter Review 2011-12


6/15


The Rupee depreciated against the GBP, with the

close price of GBPINR for July 2011 moving from`71.7050 to `72.3400 during the period,

experiencing an high of `72.5575 and a low of

`70.9475.

The Rupee depreciated against the JPY, with the

close price of JPYINR for July 2011 moving from

`55.4250 to `57.1975 during the period,


`54.6550.

The Rupee appreciated against the Dollar, with

the close price of USDINR for July 2011 movingfrom `44.7700 to `44.4325 during the period,


`44.1900.

The Rupee appreciated against the EURO, with

the close price of EURINR for July 2011 moving

from `64.7925 to `63.3200 during the period,


`62.4125.

During July 2011, the market share of the Exchange stood at 38.43% in the Currency Futures market. The

average traded daily turnover in MCX-SX was`19443.52 crores with average daily contracts of 4,208,972.

Top ^

Exchange Corner


7/15

Market Update July 2011 7 | P a g e Back ^

Market share across all Currency Futures

Daily Contract-wise distribution of Turnover

In USDINR, the trading depth is seen across contracts other than 1 st month with the percentage

turnover ranging between 2.59% to 20.48%.

In the other currency pairs i.e EURINR, GBPINR and JPYINR, it is observed that trading is seen

beyond 1st month expiry period.

Exchange Corner


8/15


Top ^

Allocation of Government debt long term limits toFIIs

Ref No: CIR/IMD/FIIC/11/2011 dated July 29, 2011

atwww.sebi.gov.in

First Quarter Review of Monetary Policy 2011-12:

Press Statement by Dr. D. Subbarao, Governor.

Press Release: 2011-2012/133 dated July 26, 2011

Macroeconomic and Monetary Developments:

First Quarter Review 2011-12

Press Release: 2011-2012/129 dated July 25, 2011 atwww.rbi.org.in

Establishment of Connectivity with both

depositories NSDL and CDSL Companies eligible

for shifting from Trade for Trade Settlement (TFTS)

to normal Rolling Settlement

Ref No: CIR/MRD/DP/ 10 /2011 dated July 18, 2011

atwww.sebi.gov.in

Regularisation of Liaison Offices / Branch Offices

of foreign entities established in India during the

pre-FEMA regime

Press Release: 2011-2012/86 dated July 15, 2011 at

www.rbi.org.in

Clarification regarding admission of Limited

Liability Partnerships as members of Stock

Exchanges.

Ref No: CIR/MIRSD/12/2011 dated July 11, 2011 at

www.sebi.gov.in

RBI Releases Draft Guidelines on Equity

Investments by scheduled commercial banks insubsidiaries and other companies


www.rbi.org.in

It has been decided that the Stock Exchanges may

allow modifications of client codes of non-institutional

trades only to rectify a genuine error in entry of client

code at the time of placing / modifying the related

order.

Modification of Client Codes of Non-institutional

Trades Executed on Stock Exchanges (All

Segments)

Ref No: CIR/DNPD/6/2011 dated July 05, 2011 at

www.sebi.gov.in

Facilitating Rupee Trade Hedging Facilities for

Non-resident Entities


www.rbi.org.in

Issued guidelines allowing non-resident importers and

exporters to hedge their currency risk in respect of

exports from and imports to India, invoiced in Indian

Rupees, with AD Category I banks in India. The guidelines have been finalised in consultation with the

Foreign Exchange Dealers Association of India (FEDAI)

and market participants.

Regulatory Updates
http://www.sebi.gov.in/http://www.sebi.gov.in/http://www.sebi.gov.in/http://www.sebi.gov.in/http://www.sebi.gov.in/http://www.sebi.gov.in/http://www.sebi.gov.in/http://www.sebi.gov.in/


9/15


Top ^

Settlement Schedule for August 2011Ref No: MCX-SX/C&S/601/2011dated July 12, 2011

List of Government of India Securities, Treasury Bills, Equity Shares and

Exchange Traded Funds accepted as Collaterals.Ref No: MCX-SX/C&S/595/2011 dated July 01, 2011

Modification of Client Codes of Non-Institutional TradesRef No: MCX-SX/ID/613/2011 dated July 29, 2011

Change of Expiry TimingRef No: MCX-SX/TRD/610/2011 dated July 22, 2011

Revision in maximum compensation limit to single investor from Investor

Protection FundRef No: MCX-SX/LEGAL/607/2011 dated July 20, 2011

FATF public statement dated June 24, 2011 against FATF identified

jurisdictions that have strategic AML/CFT deficiencies.Ref No: MCX-SX/ID/603/2011 dated July 15, 2011

Self Clearing Member in Currency Derivatives SegmentRef No: MCX-SX/C&S/602/2011 dated July 14, 2011

Smart Order Routing (SOR) List of System AuditorsRef No: MCX-SX/CTCL/612/2011 dated July 29, 2011

Review of Internet Based Trading (IBT) and Securities Trading using

Wireless TechnologyRef No: MCX-SX/CTCL/596/2011 dated July 05, 2011

RSA Hardware Tokens for Internet TradingRef No: MCX-SX/IT/594/2011 dated July 01, 2011

MCX-SX Circulars

Regular Updates

Market Regulation

Technology


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Market Update July 2011 10 | P a g e Top ^

Economic DataDate Event Percentage

Change

Exports -

June 2011

May 2011

US $29.21bn

US $25.94bn

12.61%

Imports -

June 2011

May 2011

US $36.87bn

US $40.90bn

-9.85%

International reserves as on July 22, 2011 US$316.80bnPolicy Rates

Bank Rate 6.00%

Repo Rate 8.00%Reverse Repo Rate 7.00%

Lending/Deposit Rates

Base Rate 9.25% - 10.25%

Savings Bank Rate 4.00%

Deposit Rate 8.25% - 9.10%

Economic Calendar August 2011Monday Tuesday Wednesday Thursday Friday

1 2 3 4 5Foreign merchandise

trade Exports/Imports

FX reserve

8 9 10 11 12

OECD composite

leading indicator for

India

FX reserve

IIP

15 16 17 18 19

WPI Inflation FX reserve

CPI Agricultural/Rural

Labourers

22 23 24 25 26

Output of Crude

oil/ Refinery/

Natural gas

IIP Core

FX reserve

29 30 31

GDP

CPI-Industrial

Workers

Data Corner - India


11/15


Top ^

August - 2011

Monday Tuesday Wednesday Thursday Friday1 2 3 4 5

EMU: PMI Mfg Index

EMU: Unemployment

Rate

US: ISM Mfg Index

EMU: PPI EMU: Retail Sales

US: ISM Non-Mfg

Index

JP: BoJ

Announcement

GB: BOE

Announcement

EMU:ECB

Announcement

GB: Producer Price

Index

US: Employment

Situation

CA: Ivey Purchasing

Managers' Index

8 9 10 11 12

GB: Industrial

Production

US: FOMC Meeting

JP: Tertiary Index

US: Trade Balance EMU: Industrial

Prodn

US: Retail Sales

15 16 17 18 19

EMU: GDP

CA: Mfg Sales

US: Housing Starts

US: Import and

Export Prices

US: Industrial Prodn

EMU:HICP

US: Producer Price

Index

US: Consumer

Price Index

CA: CPI

22 23 24 25 26

CA: Retail Sales US: Durable Goods

Orders

JP: CPI

US: GDP

29 30 31

JP: Unemployment

Rate

CA:IPPI

US: FOMC Minutes

JP: Industrial Prodn

EMU: Unemployment

Rate

CA: Monthly GDP

Economic Calendar


12/15


Back ^

September - 2011Monday Tuesday Wednesday Thursday Friday

1 2

EMU:PMI Mfg

Index

US:ISM Mfg Index

EMU:PPI

US: Employment Situatn

5 6 7 8 9

EMU: Retail Sales JP: BoJ

Announcement

EMU: GDP

US: ISM Non-MfgIndex

CA: BoC

Announcement

US: Beige Book

GB: BOE

Announcement

EMU: ECBAnnouncement

CA: Merchandise

Trade

UK: Trade Balance

12 13 14 15 16

US: Import and

Export Prices

EMU: Industrial

Prodn

US: Producer Price

Index

US: Retail Sales

EMU:HICP

CA: Mfg Sales

US: Consumer

Price Index

US: Industrial

Prodn

US: Industrial Production

19 20 21 22 23

US: Housing

Starts

US: FOMC Meeting

CA: CPI

CA: Retail Sales

26 27 28 29 30

US: Durable Goods CA: IPPI

US: GDP

JP: Unemployment Rate

JP: CPI

JP: Industrial Production

EMU: Unemployment

Rate

CA: Monthly GDP

Economic Calendar


13/15


Top ^

Economic News July 2011


14/15

Market Update July 2011 14 | P a g e Back ^

Economic News July 2011


15/15


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1st floor, 7/43, D-2,

Tilak Nagar, Near SBI,

Kanpur- 208002.

Mr. Sanjeev Kumar

Tel: +91 0512 2533079

Mobile: +91 99354 84871Ludhiana

501, LSE Building,

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Ludhiana 141001

Mr. Pritpal Singh

Tel: +91-161-3206 872

Mobile: +91 98884 06364

New Delhi

501-505, 5th Floor,World Trade Centre,

Babar Lane, C.P.

New Delhi -110001

Mr. K S Mahesh

Tel: +91 11- 43003000

Mobile: +91 96541 25166

Offices

Disclaimer: This is a newsletter for academic information. It is not intended to be used as trading advice by anybody and should not in any wa

be treated as a recommendation to trade. This information contained in this newsletter does not constitute or form part of and should not b

construed as, any offer for purchase or sale of any foreign currency or their derivatives. While the information in the newsletter has bee

compiled from sources believed to be reliable and in good faith, readers may note that the contents thereof including text, graphics, links o

other items are provided without warranties of any kind. MCX Stock Exchange Ltd (MCX-SX) expressly disclaims any warranty as to th

accuracy, correctness, reliability, timeliness, merchantability or fitness for any particular purpose, of this newsletter. MCX-SX shall also not b

liable for any damage or loss of any kind, howsoever caused as a result (direct or indirect) of the use of the information or data in thi

newsletter.Any alteration, transmission, photocopied distribution in part or in whole or reproduction of any form of this newsletter or any parthereof without prior consent of MCX-SX is prohibited. Top ^

www.rbi.org.in; www.sebi.gov.in; www.commerce.nic.in;

www.mospi.gov.in; www.tickerplantindia.com; www.finmin.nic.in;

www.bls.gov; www.reuters.com; www.cmegroup.com;

www.worldbank.org.in;

Sources
mailto:[email protected]://www.mcx-sx.com/http://www.mcx-sx.com/http://www.bls.gov/http://www.bls.gov/http://www.mcx-sx.com/mailto:[email protected]

market update july2011

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