Us Markets falls 2 percent after consumer data

Stocks dropped 2 percent on Tuesday after data showed U.S. consumer confidence fell steeply in June on worries about the labor market.

The Dow Jones industrial average .DJI dropped 217.28 points, or 2.14 percent, to 9,921.24. The Standard & Poor's 500 Index .SPX fell 24.94 points, or 2.32 percent, to 1,049.63. The Nasdaq Composite Index .IXIC slid 63.75 points, or 2.87 percent, to 2,156.90.

The S&P 500 fell below its 2010 closing low of 1,050.47, leaving support near 1,040, its intraday low so far this year.

The CBOE volatility index .VIX, a gauge of investor anxiety, shot up more than 16 percent to a session high of 33.82.

MMTC declared 1:1 bonus and 10:1 stock split

Board of Directors of the MMTC Ltd has recommended a Dividend @ 90% on the paid up equity capital of the Company for the Financial Year 2009-10. The board has also approved split of each equity share of face value Rs. 10/- each into 10 equity shares of face value Re. 1/- each. The sub-division is to be effective and simultaneous with the allotment of Bonus Shares.

The Company has declared Audited results for the Year ended March 31, 2010. It has posted a net profit of Rs 2162.40 million for the year ended March 31, 2010 as compared to Rs 1402.20 million for the year ended March 31, 2009. Total Income has increased from Rs 368738.10 million for the year ended March 31, 2009 to Rs 452138.90 million for the year ended March 31, 2010.

MMTC Ltd is quoting at CMP of Rs 32,035.00. The stock has made an intraday high of Rs 33,400.00 and low of 30,700.00 at NSE. Total traded quantity at NSE for MMTC Ltd at 15.16 IST is 14,671.

Established in 1963, MMTC, one of the two highest foreign exchange earner for India, is a leading international trading company with a turnover of over US$ 7 billion. It is the largest international trading company of India and the first Public Sector Enterprise to be accorded the status of "five star export house" by Govt of India for long standing contribution to exports. MMTC is the largest non-oil importer in India.

EGOM approves market-linked Fuel Pricing

The Empowered Group of Ministers (EGoM) has decided to raise petrol and diesel prices. The govt. has approved market-driven increase in fuel prices, thus freeing petrol price from government control.

But there is still uncertainty if this is complete or partial de-regulation.

Impact:

Markets recovered some losses as the news came in. Sensex cut losses by 40 points, and is curently at 17,610.

The PSU OMCs HPCL (up 5.48% ), BPCL (up 4.5% ) and IOC (up 4.1%) rose.

This move will reduce the subsidy burden on the exchequer, thereby reducing fiscal deficit. The government had set the fiscal deficit forecast for FY11 at 5.5% of GDP.

But higher fuel prices will only add to the steepening inflation, strengthening the case for the RBI to hike key policy rates before its 27^th July’10 policy meet.

Crude oil weakens

Crude oil weakens further as investors sold crude again on worries that Eurozone crisis will curb economic recovery. It digested the positive news from Germany. Germany’ confidence index rose. Now the market reconsidered that the China’s RMB measures may not benefit commodities and so profit booking after yesterday’s rally also took place to some extent.

Fitch Ratings announced that it cut BNP Paribas’ rating to AA- stating that bank’s asset quality is deteriorated. This indicates that Europe is not yet out of woods.

Nikkei slips below 10,000 mark on weak US data

Japan’s Nikkei fell below 10,000 mark today after Wall Street closed lower with all three major indices finishing more than one per cent lower on weak housing data. Japan’s Nikkei is currently trading down by1.67% or 168.44 points at 9945.43.

Investor’s sentiment were sluggish on fresh recurring doubts over the strength of the economic recovery in the world's largest economy and one of Japan's largest trading partners.

The shares that had climbed on the hopes that the Yuan flexibility decision would boost Chinese purchasing power like shippers and machinery shares lost ground today.  

Nippon Yusen slid 3.9% to 343 yen and fellow shipper Mitsui O.S.K. Lines lost 2.9% to 640 yen. Hitachi Construction fell 2% to 1,827 yen.

US stocks trade in narrow range at open

Fresh concerns about Europe's sovereign debt crisis are keeping the US stock market in check.

Stocks are trading in a narrow range Tuesday after Fitch Ratings cut its view on BNP Paribas, one of Europe's largest banks, and ahead of the start of the Federal Reserve's two-day rate-setting committee meeting.

The downgrade of BNP Paribas renews worries that Europe's debt problems will slow a global recovery and lead to another round of losses at banks.

The Fed is expected to keep rates at historic lows as a domestic recovery remains slow.

The Dow Jones industrial average is up 9.52, or 0.1 percent, at 10,452.15. The Standard & Poor's 500 index is up 1.11, or 0.1 percent, at 1,114.31, while the Nasdaq composite index is up 9.09, or 0.4 percent, at 2,298.18.