GLOBAL MARKETS UPDATE

Global Markets Update for April 1, 2011:

                                                                                                                                                                                                                 

   US Chicago Purchasing Managers Index slipped to 70.6 in March from its 22-year high of 71.2 in February, but remained above market consensus of 69.9. The decline was driven by decreases in the production, new orders and supplier delivery time indices.

   Portugal reported a budget deficit of 8.6% of GDP last year, missing a government target of 7.3% and causing a jump in borrowing costs that increases the risk of a bailout.

   Irish regulators instructed four banks to raise EUR 24 bn in additional capital following stress tests on the nation’s lenders. The four banks are Allied Irish Bank 9Plc ) Bank of Ireland Plc, while Irish Life & Permanent Plc and EBS Building Society.

  Japan's  large manufacturers grew more confident about the economic outlook before the nation was hit by a record earthquake, a central bank survey showed today. The quarterly Tankan index of sentiment among big manufacturers climbed to 6 in March from 5 in December last year.

  China's manufacturing growth accelerated for the first time in four months, as the PMI rose to 53.4 in March from 52.2 in February, but was lower than the median forecast of 54.

  India recorded a current account deficit of USD 9.7 bn in Q3 FY11 compared to USD 16.8 bn in the previous quarter.

   Yesterday Indian stock markets opened firm tracking cues from Asia. The indices remained strong for a major part of the day but pared gains towards the end on the back of profit booking. IT and FMCG sectors led the upward movement. The Sensex rose 0.80% to close at 19,445.22 and the Nifty gained 0.80% to close at 5,833.75.

  Overnight, US stocks remained volatile and swung between gains and losses at the end of the biggest first-quarter rally in 13-years.

  Today, Asian stocks declined for the first time in three days as exporters dropped after one of the Fed officials hinted at the need for interest rates to rise. The Indian equity benchmarks opened flat taking cues from its Asian peers. While bank and IT stocks were lagging behind in early morning trade, commodity stocks provided some support.