The market may extend Thursdayâ€(TM)s (4 December 2008) solid gains on expectations of a stimulus package from the government and the Reserve Bank of India (RBI). However, Indo-Pak tension after the major terror strikes in Mumbai last week, will cap the upside.
The BSE Sensex rose 5.5% on Thursday to its highest close in more than two weeks as expectations for an interest rate cut received a boost from slower-than-expected rise in inflation. As per the provisional data released by the stock exchanges, foreign funds bought shares worth a net Rs 307.14 crore and domestic funds purchases shares worth a net Rs 79.24 crore on Thursday.
As per the market buzz, the Reserve Bank of India (RBI) is expected to cut repo and reverse repo rates to the extent of 200 basis points and 125 basis points respectively on Saturday, 6 December 2008, in an attempt to shield the domestic economy from the global economic slowdown. Repo rate is the rate at which RBI lends to commercial banks and reverse repo rate is the rate at which RBI accepts deposits from banks.
Inflation based on the wholesale price index rose 8.4% in the year through 22 November 2008, lower than previous week's 8.84% rise, data released by the government on Thursday, showed. Inflation had surged into double digits in early June this year after an increase in state-set retail fuel prices, and peaked at 12.91% on, 2 August 2008, the highest reading since annual numbers in the current data series became available in April 1995.
Meanwhile, the Indian government is slated to announce a slew of measures on Saturday to pump prime the economy. The likely measures include a Rs 2000-crore export package, a further relaxation in external commercial borrowings norms and Rs 15,000-crore budgetary support for infrastructure.
The Indian government is reportedly considering various options including a strike on Pakistan to dismantle its terror bases in response to the recent Mumbai terror attacks. As a strike on Pakistan could lead to a full scale war between the two nuclear armed countries, India is maintaining a cautious approach and wants to gauge every possible ramification of its decision, reports suggest.
Tension between India and Pakistan have mounted after the Mumbai attacks. India has blamed Islamist militants based in Pakistan for the attacks.
Asian stocks were mostly in the green on Friday, 5 December 2008 following record rate cuts by central banks in Europe. But caution prevail ahead of what is expected to be dismal US employment data due later in the day.
Friday, December 5, 2008
Oil slips below $44, lowest in 4 years
Oil was steady below $44 on Friday, at its lowest in almost four years, with eyes turning to the psychologically important $40 level as a widening economic slowdown gnaws into oil demand.
Prices have lost nearly 20%, or almost $11, from their settlement a week ago following the release of weak US economic indicators, with lower retail sales and a 26-year high in jobless benefits rolls the latest to add pressure to prices.
US light crude for January delivery fell 4 cents to $43.63 a barrel, having lost more than 6% on Thursday to settle at $43.67, the lowest since 5 January, 2005.
London Brent crude dipped 8 cents to $42.20.
The number of US workers collecting jobless benefits hit a 26-year high last month, data showed on Thursday, and may head higher as a growing economic slump forces a broad range of firms to cut jobs.
US and European companies announced further job cuts, with US phone company AT&T Inc saying it would eliminate 12,000 jobs, while chemical maker DuPont Co planned to drop 2,500.
Leading US retailers also reported dismal November sales on Thursday. Totting up the results, the International Council of Shopping Centers said sales fell by a record 2.7% compared to the same period last year.
To try and ginger up their feeble economies, European central banks cut interest rates on Thursday.
Sweden’s central bank cut by a record 175 basis points, the European Central Bank cut by 75 points and the Bank of England cut by 100 points.
The price fall to nearly four-year lows has prompted Opec members to call for increasingly strong action when the Organization of the Petroleum Exporting Countries meets next, on 17 December in Algeria.
But analysts say another Opec cut, the third since September, would need to be drastic to provoke a price reaction.
Prices have lost nearly 20%, or almost $11, from their settlement a week ago following the release of weak US economic indicators, with lower retail sales and a 26-year high in jobless benefits rolls the latest to add pressure to prices.
US light crude for January delivery fell 4 cents to $43.63 a barrel, having lost more than 6% on Thursday to settle at $43.67, the lowest since 5 January, 2005.
London Brent crude dipped 8 cents to $42.20.
The number of US workers collecting jobless benefits hit a 26-year high last month, data showed on Thursday, and may head higher as a growing economic slump forces a broad range of firms to cut jobs.
US and European companies announced further job cuts, with US phone company AT&T Inc saying it would eliminate 12,000 jobs, while chemical maker DuPont Co planned to drop 2,500.
Leading US retailers also reported dismal November sales on Thursday. Totting up the results, the International Council of Shopping Centers said sales fell by a record 2.7% compared to the same period last year.
To try and ginger up their feeble economies, European central banks cut interest rates on Thursday.
Sweden’s central bank cut by a record 175 basis points, the European Central Bank cut by 75 points and the Bank of England cut by 100 points.
The price fall to nearly four-year lows has prompted Opec members to call for increasingly strong action when the Organization of the Petroleum Exporting Countries meets next, on 17 December in Algeria.
But analysts say another Opec cut, the third since September, would need to be drastic to provoke a price reaction.
Post Market Report:04/12/2008
Likely government measures to pump prime the economy, hopes of a
further cut in interest rates, firm European stocks and rebound in
US index futures boosted the domestic bourses today. The BSE
30-share Sensex jumped 482.32 points, or 5.51%, led by a surge in
realty, metal, banking shares and index heavyweight Reliance
Industries (RIL). The barometer index breached the psychological
9,000 mark. All the sectoral indices on BSE were in the green.
Bank shares were in demand on as falling inflation heightened
expectations for an interest rate cute by the Reserve Bank of India
(RBI). As per the market buzz, the Reserve Bank of India (RBI) is
expected to cut repo and reverse repo rates to the extent of 200
basis points and 125 basis points respectively at the weekend, in
an attempt to shield the domestic economy from the global economic
slowdown. Repo rate is the rate at which RBI lends to commercial
banks and reverse repo rate is the rate at which RBI accepts
deposits from banks.
Inflation based on the wholesale price index rose 8.4% in the year
through 22 November 2008, lower than previous week's 8.84% rise,
data released by the government at about 13:15 IST showed.
Inflation had surged into double digits in early June this year
after an increase in state-set retail fuel prices, and peaked at
12.91% on, 2 August 2008, the highest reading since annual numbers
in the current data series became available in April 1995.
Reserve Bank of India (RBI) governor D Subbarao today, 4 December
2008, said India remains vulnerable to global financial and
economic developments and a period of painful adjustment was
inevitable. The RBI governor said India's economic fundamentals
were strong. He added that the outlook for India was mixed and
there was evidence of activity slowing down.
Meanwhile, the Indian government is slated to announce a slew of
measures at the weekend to pump prime the economy. The likely
measures include a Rs 2000-crore export package, a further
relaxation in external commercial borrowings norms and Rs
15,000-crore budgetary support for infrastructure.
A bout of volatility was witnessed earlier in the day. Likely
government measures to pump prime the economy and hopes of further
rate cuts by the Reserve bank of India gave a positive start to the
domestic bourses. But the market soon slipped into the red due to
lower US index futures, concerns about the weakening global economy
and due to tension between Indian and Pakistan following last
week's terror attacks in Mumbai may cap the upside. The market
firmed up again in early trade. After the recovery, the market
pared gains before bouncing back again. Sensex swung 518.35 points
between the day's high and low.
European stocks reversed early losses to rally on Thursday, 4
December 2008, rising for the third session in a row as investors
hoped deep interest rate cuts would help soothe the global economic
slump. The key benchmark indices in France, Germany and UK were up
by between 0.54% to 2.62%.
The Bank of England slashed interest rates by a full percentage
point today to shore up Britain's crumbling economy and head off
the threat of deflation. The cut took rates to 2% their lowest
level since 1951. The central bank in Sweden slashed its key
interest rate by a record 175 basis points to 2% on Thursday, a
shock move to try and prevent the economy from sliding deeper into
recession.
At its policy meeting later in the day, the European Central Bank
(ECB) is expected to cut rates by at least 75 basis points.
Meanwhile, economic, corporate and industry data continues to be
weak in major economies. Japan said on Thursday, 4 December 2008,
it may be in a deeper recession than first thought, in the latest
signal that the global economic downturn is sparing few corners of
the world. Earlier, a corporate survey in Japan signaled the
country's economic performance in the third quarter may have been
even worse than first reported. Australia's vehicle sales slumped
in November 2008.
US data on Wednesday, 3 December 2008, showed large job losses by
US employers and a slumping service sector. The US economy is
already in recession for a year.
Swiss Bank Credit Suisse today, 4 December 2008, reported a net
loss of about 3 billion Swiss francs ($2.5 billion) in the two
months to end-November 2008 and cut another 5,300 jobs.
Trading in US index futures indicated the Dow could rise 23 points
at the opening bell. The US index futures bounced back from steep
losses earlier in the day.
Closer home, the Indian government is reportedly considering
various options including a strike on Pakistan to dismantle its
terror bases in response to the recent Mumbai terror attacks. As a
strike on Pakistan could lead to a full scale war between the two
nuclear armed countries, India is maintaining a cautious approach
and wants to gauge every possible ramification of its decision,
reports suggest.
Tension between India and Pakistan have mounted after the Mumbai
attacks. India has blamed Islamist militants based in Pakistan for
the attacks.
The BSE 30-share Sensex was up 482.32 points, or 5.51%, to
9,229.75. At the day's high of 9,245.06 hit in late trade, the
Sensex rose 497.63 points. The Sensex lost 20.72 points at the
day's low of 8,726,71 hit in early trade.
The S&P CNX Nifty was up 131.55 points, or 4.95%, to 2,788.
The market breadth, indicating the overall health of the market,
was strong. On BSE, 1,503 shares rose as compared with 668 that
declined. 60 shares remained unchanged.
The BSE clocked a turnover of Rs 3727 crore today, higher than Rs
2,955.08 crore on Wednesday, 3 December 2008.
Nifty December 2008 futures were at 2796, at a premium of 8 points
as compared to the spot closing of 2788. Turnover in NSE's futures
& options (F&O) segment rose to Rs 34,123.92 crore from Rs
33,606.23 crore on Wednesday, 3 December 2008.
The barometer index BSE Sensex is down 11,057.24 points or 54.5% in
the calendar year 2008 so far from its close of 20,286.99 on 31
December 2007. It is 11,977.02 points or 56.47% below its all-time
high of 21,206.77 struck on 10 January 2008.
The BSE Realty index (up 12.44% to 1,753.65), the BSE Metal index
(up 7.93% to 4,803.91), the BSE Capital Goods index (up 6.91% to
6,506.98), the BSE Oil & Gas index (up 5.86% to 5,682.68), the BSE
Power index (up 5.7% to 1,676.43), the BSE Bankex (up 5.64% to
4,803.37) outperformed the Sensex.
The BSE HealthCare index (up 0.92% to 2,849.12), the BSE Consumer
Durables index (up 1.21% to 1,734.53), the BSE IT index (up 2.69%
to 2,464.74), the BSE FMCG index (up 2.8% to 1,954.75), the BSE
Auto index (up 3.22% to 2,243.11), the BSE Teck index (up 3.32% to
1,982.39) and the BSE PSU index (up 3.71% to 4,667.57),
underperformed the Sensex.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) surged 8.4% to Rs 1,159.30 on
recent reports it intends to restart retailing of petrol and diesel
soon after margins on the two fuels turned positive.
Realty stocks rose on reports the government will next week unveil
measures for the realty sector, which may include incentives for
low-cost housing and lower loan rates. Indiabulls Real Estate, DLF,
Unitech rose by between 11.28% to 17.17%.
Metal stocks rebounded from earlier slide on recovery in metal
prices on the London Metal Exchange (LME). Tata Steel, Hindalco
Industries, Sterlite Industries, Steel Authority of India, National
aluminum Company rose by between 2.65% to 13.84%.
Banking stocks edged higher on rate cut hopes. India's largest
private sector bank by net profit ICICI Bank rose 8.75% as American
depository receipt (ADR) gained 5.64% on Wednesday, 3 December
2008. India's largest commercial bank State Bank of India (SBI)
jumped 6.55%. India's second largest private sector bank by net
profit HDFC Bank gained 3.52% as ADR rose 2.6% on Wednesday.
Shares of housing finance firms rose on likely sops for the realty
sector, which may include incentives for low-cost housing and lower
loan rates. India's top mortgage lender by market capitalisation
Housing Development Finance Corporation (HDFC) rose 6.76% and
India's second-biggest mortgage lender by market capitalisation LIC
Housing Finance rose 10.37%.
Infrastructure Development Finance Company jumped 14.29% after a
block deal of 17.01 lakh shares was executed on BSE at Rs 58.50 per
share.
Indian Overseas Bank rose 3.04% after a block deal of ten lakh
shares was executed on BSE at Rs 67 per share.
IT stocks shrugged off a stronger rupee after India's second
largest IT exporter by sales Infosys' chief executive S.
Gopalakrishnan today, 4 December 2008, said though the company has
seen delays in orders there is no change in its third quarter
December 2008 guidance. Infosys rose 3.12%, recovering from a 4.29%
fall in the previous trading session.
India's fourth largest IT exporter by sales Wipro gained 4.71% as
ADR rose 1.95%. India's third largest IT exporter by sales Satyam
Computer Services rose 1.04% as ADR gained 2.43% on Wednesday, 3
December 2008. India's largest IT exporter by sales Tata
Consultancy Services rose 2.82%.
The Indian rupee was stronger in afternoon trade on Thursday as
hefty gains in the domestic share market raised expectations of
fresh capital inflows while a drop in oil prices also eased
concerns of a widening trade deficit. The partially convertible
rupee was at 49.78/80 per dollar, stronger than its Wednesday's
close of 49.99/50.01. On Tuesday, the rupee had hit a record low of
50.65. A stronger rupee affects IT firms negatively as they earn
most of their revenues from exports.
Auto stocks rose on hopes lower interest rates will spur demand
which is mainly driven by finance and on possible measures by the
government to boost the commercial vehicles sector. Mahindra &
Mahindra, Maruti Suzuki India and Hero Honda Motors rose by between
0.56% to 4.74%.
India's largest commercial vehicle maker by sales Tata Motors up
13.29% on reports of possible excise duty cut on commercial
vehicles as a part of the government's package to boost the
economy.
Capital goods stocks rose on hopes government efforts to boost
economy will lift orders. Larsen & Toubro, Suzlon Energy, Bharat
Heavy Electricals, Crompton Greaves and Thermax rose by between
2.87% to 10.24%.
Power stocks rose on reports the likely government measures to
boost the economy may include special credit window for the power
sector. Tata Power Company, Reliance Infrastructure, Reliance
Power, Power Grid Corporation of India jumped by between 3.21% to
7.46%.
India's largest drug maker by sales Ranbaxy Laboratories rose 3.57%
on signing a pact with a US drug firm.
Orchid Chemicals & Pharmaceuticals rose 2.51% on receiving US
approval for a new drug.
Infrastructure stocks extended gains for the second day in a row on
hopes a likely government package to boost the economy will give
thrust to the infrastructure sector. Hindustan Construction
Company, Nagarjuna Construction Company, and IVRCL Infrastructure &
Projects rose by between 5.46% to 11.88%.
Marg was locked at 5% upper limit at Rs 34.45 at 12:54 IST on BSE,
on bagging a contract for developing an airport at Bijapur in
Karnataka.
PSU OMCs rose on fall in crude oil prices. BPCL, HPCL and Indian
Oil Corporation rose by between 0.66% to 1.28%. Crude oil fell for
a fifth day to the lowest in almost four years after a report
showed US fuel demand extended declines because of the country's
deepening economic slump. Crude oil for January 2008 delivery
dropped as much as $1.49, or 3.2%, to $45.30 a barrel on the New
York Mercantile Exchange. Lower oil prices will reduce
underrecoveries at the state-run oil firms on domestic sale of
petrol, diesel, LPG and kerosene at a controlled price.
Hindustan Oil Exploration Company rose 6.12% on bagging two oil and
gas blocks.
Consumer durables stocks rose on hopes further rate cuts by the
Reserve Bank of India would spur demand which is mainly driven by
finance. Videocon Indusries, Blue Star,Titan Industries, Lloyd
Electric and Rajesh Exports rose by between 1.52% to 3.56%.
Cement stocks rose on hopes likely government measures to boost the
infrastructure sector will spurt demand. ACC, Birla Corporation of
India, Ultratech Cement, Ambuja Cements and Grasim Industries rose
by between 1.13% to 6.6%.
Unitech clocked the highest volume of 3.19 crore shares on BSE.
Suzlon Energy (2.46 crore shares), GVK Power & Infrastructure (1.82
crore shares), Housing Development & Infrastructure (1.1 crore
shares) and Jaiprakash Associates (82.64 lakh shares) were the
other volume toppers in that order.
Reliance Industries clocked the highest turnover of Rs 404.61 crore
on BSE. State Bank of India (Rs 203.61 crore), Educomp Solutions
(Rs 178.33 crore), Reliance Infrastructure (Rs 153.18 crore) and
DLF (Rs 132.49 crore) were the other turnover toppers in that
order.
Haldyn Glass Gujarat spurted 8.51% on increase in the promoters'
stake in the company.
Nava Bharat Ventures jumped 20.28% on share buyback plan.
PVR galloped 4.88% on reports it plans to set up entertainment
centres across the country.
Chinese stocks rose after the government on Wednesday, 3 December
2008, announced measures whereby it will use financial policy to
support the economy. The Shanghai Composite was up 1.84%. But most
Asian shares weakened after earlier gains. Key benchmark indices in
South Korea, Hong Kong, Japan and Taiwan were down by between 0.58%
to 1.58%.
China will make use of required reserves as well as interest rates
and the exchange rate to ensure ample liquidity in the banking
system, the government said on Wednesday. The State Council,
China's cabinet, also approved measures aimed at stabilising the
domestic stock market, boosting bond issuance and increasing the
supply of credit.
further cut in interest rates, firm European stocks and rebound in
US index futures boosted the domestic bourses today. The BSE
30-share Sensex jumped 482.32 points, or 5.51%, led by a surge in
realty, metal, banking shares and index heavyweight Reliance
Industries (RIL). The barometer index breached the psychological
9,000 mark. All the sectoral indices on BSE were in the green.
Bank shares were in demand on as falling inflation heightened
expectations for an interest rate cute by the Reserve Bank of India
(RBI). As per the market buzz, the Reserve Bank of India (RBI) is
expected to cut repo and reverse repo rates to the extent of 200
basis points and 125 basis points respectively at the weekend, in
an attempt to shield the domestic economy from the global economic
slowdown. Repo rate is the rate at which RBI lends to commercial
banks and reverse repo rate is the rate at which RBI accepts
deposits from banks.
Inflation based on the wholesale price index rose 8.4% in the year
through 22 November 2008, lower than previous week's 8.84% rise,
data released by the government at about 13:15 IST showed.
Inflation had surged into double digits in early June this year
after an increase in state-set retail fuel prices, and peaked at
12.91% on, 2 August 2008, the highest reading since annual numbers
in the current data series became available in April 1995.
Reserve Bank of India (RBI) governor D Subbarao today, 4 December
2008, said India remains vulnerable to global financial and
economic developments and a period of painful adjustment was
inevitable. The RBI governor said India's economic fundamentals
were strong. He added that the outlook for India was mixed and
there was evidence of activity slowing down.
Meanwhile, the Indian government is slated to announce a slew of
measures at the weekend to pump prime the economy. The likely
measures include a Rs 2000-crore export package, a further
relaxation in external commercial borrowings norms and Rs
15,000-crore budgetary support for infrastructure.
A bout of volatility was witnessed earlier in the day. Likely
government measures to pump prime the economy and hopes of further
rate cuts by the Reserve bank of India gave a positive start to the
domestic bourses. But the market soon slipped into the red due to
lower US index futures, concerns about the weakening global economy
and due to tension between Indian and Pakistan following last
week's terror attacks in Mumbai may cap the upside. The market
firmed up again in early trade. After the recovery, the market
pared gains before bouncing back again. Sensex swung 518.35 points
between the day's high and low.
European stocks reversed early losses to rally on Thursday, 4
December 2008, rising for the third session in a row as investors
hoped deep interest rate cuts would help soothe the global economic
slump. The key benchmark indices in France, Germany and UK were up
by between 0.54% to 2.62%.
The Bank of England slashed interest rates by a full percentage
point today to shore up Britain's crumbling economy and head off
the threat of deflation. The cut took rates to 2% their lowest
level since 1951. The central bank in Sweden slashed its key
interest rate by a record 175 basis points to 2% on Thursday, a
shock move to try and prevent the economy from sliding deeper into
recession.
At its policy meeting later in the day, the European Central Bank
(ECB) is expected to cut rates by at least 75 basis points.
Meanwhile, economic, corporate and industry data continues to be
weak in major economies. Japan said on Thursday, 4 December 2008,
it may be in a deeper recession than first thought, in the latest
signal that the global economic downturn is sparing few corners of
the world. Earlier, a corporate survey in Japan signaled the
country's economic performance in the third quarter may have been
even worse than first reported. Australia's vehicle sales slumped
in November 2008.
US data on Wednesday, 3 December 2008, showed large job losses by
US employers and a slumping service sector. The US economy is
already in recession for a year.
Swiss Bank Credit Suisse today, 4 December 2008, reported a net
loss of about 3 billion Swiss francs ($2.5 billion) in the two
months to end-November 2008 and cut another 5,300 jobs.
Trading in US index futures indicated the Dow could rise 23 points
at the opening bell. The US index futures bounced back from steep
losses earlier in the day.
Closer home, the Indian government is reportedly considering
various options including a strike on Pakistan to dismantle its
terror bases in response to the recent Mumbai terror attacks. As a
strike on Pakistan could lead to a full scale war between the two
nuclear armed countries, India is maintaining a cautious approach
and wants to gauge every possible ramification of its decision,
reports suggest.
Tension between India and Pakistan have mounted after the Mumbai
attacks. India has blamed Islamist militants based in Pakistan for
the attacks.
The BSE 30-share Sensex was up 482.32 points, or 5.51%, to
9,229.75. At the day's high of 9,245.06 hit in late trade, the
Sensex rose 497.63 points. The Sensex lost 20.72 points at the
day's low of 8,726,71 hit in early trade.
The S&P CNX Nifty was up 131.55 points, or 4.95%, to 2,788.
The market breadth, indicating the overall health of the market,
was strong. On BSE, 1,503 shares rose as compared with 668 that
declined. 60 shares remained unchanged.
The BSE clocked a turnover of Rs 3727 crore today, higher than Rs
2,955.08 crore on Wednesday, 3 December 2008.
Nifty December 2008 futures were at 2796, at a premium of 8 points
as compared to the spot closing of 2788. Turnover in NSE's futures
& options (F&O) segment rose to Rs 34,123.92 crore from Rs
33,606.23 crore on Wednesday, 3 December 2008.
The barometer index BSE Sensex is down 11,057.24 points or 54.5% in
the calendar year 2008 so far from its close of 20,286.99 on 31
December 2007. It is 11,977.02 points or 56.47% below its all-time
high of 21,206.77 struck on 10 January 2008.
The BSE Realty index (up 12.44% to 1,753.65), the BSE Metal index
(up 7.93% to 4,803.91), the BSE Capital Goods index (up 6.91% to
6,506.98), the BSE Oil & Gas index (up 5.86% to 5,682.68), the BSE
Power index (up 5.7% to 1,676.43), the BSE Bankex (up 5.64% to
4,803.37) outperformed the Sensex.
The BSE HealthCare index (up 0.92% to 2,849.12), the BSE Consumer
Durables index (up 1.21% to 1,734.53), the BSE IT index (up 2.69%
to 2,464.74), the BSE FMCG index (up 2.8% to 1,954.75), the BSE
Auto index (up 3.22% to 2,243.11), the BSE Teck index (up 3.32% to
1,982.39) and the BSE PSU index (up 3.71% to 4,667.57),
underperformed the Sensex.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) surged 8.4% to Rs 1,159.30 on
recent reports it intends to restart retailing of petrol and diesel
soon after margins on the two fuels turned positive.
Realty stocks rose on reports the government will next week unveil
measures for the realty sector, which may include incentives for
low-cost housing and lower loan rates. Indiabulls Real Estate, DLF,
Unitech rose by between 11.28% to 17.17%.
Metal stocks rebounded from earlier slide on recovery in metal
prices on the London Metal Exchange (LME). Tata Steel, Hindalco
Industries, Sterlite Industries, Steel Authority of India, National
aluminum Company rose by between 2.65% to 13.84%.
Banking stocks edged higher on rate cut hopes. India's largest
private sector bank by net profit ICICI Bank rose 8.75% as American
depository receipt (ADR) gained 5.64% on Wednesday, 3 December
2008. India's largest commercial bank State Bank of India (SBI)
jumped 6.55%. India's second largest private sector bank by net
profit HDFC Bank gained 3.52% as ADR rose 2.6% on Wednesday.
Shares of housing finance firms rose on likely sops for the realty
sector, which may include incentives for low-cost housing and lower
loan rates. India's top mortgage lender by market capitalisation
Housing Development Finance Corporation (HDFC) rose 6.76% and
India's second-biggest mortgage lender by market capitalisation LIC
Housing Finance rose 10.37%.
Infrastructure Development Finance Company jumped 14.29% after a
block deal of 17.01 lakh shares was executed on BSE at Rs 58.50 per
share.
Indian Overseas Bank rose 3.04% after a block deal of ten lakh
shares was executed on BSE at Rs 67 per share.
IT stocks shrugged off a stronger rupee after India's second
largest IT exporter by sales Infosys' chief executive S.
Gopalakrishnan today, 4 December 2008, said though the company has
seen delays in orders there is no change in its third quarter
December 2008 guidance. Infosys rose 3.12%, recovering from a 4.29%
fall in the previous trading session.
India's fourth largest IT exporter by sales Wipro gained 4.71% as
ADR rose 1.95%. India's third largest IT exporter by sales Satyam
Computer Services rose 1.04% as ADR gained 2.43% on Wednesday, 3
December 2008. India's largest IT exporter by sales Tata
Consultancy Services rose 2.82%.
The Indian rupee was stronger in afternoon trade on Thursday as
hefty gains in the domestic share market raised expectations of
fresh capital inflows while a drop in oil prices also eased
concerns of a widening trade deficit. The partially convertible
rupee was at 49.78/80 per dollar, stronger than its Wednesday's
close of 49.99/50.01. On Tuesday, the rupee had hit a record low of
50.65. A stronger rupee affects IT firms negatively as they earn
most of their revenues from exports.
Auto stocks rose on hopes lower interest rates will spur demand
which is mainly driven by finance and on possible measures by the
government to boost the commercial vehicles sector. Mahindra &
Mahindra, Maruti Suzuki India and Hero Honda Motors rose by between
0.56% to 4.74%.
India's largest commercial vehicle maker by sales Tata Motors up
13.29% on reports of possible excise duty cut on commercial
vehicles as a part of the government's package to boost the
economy.
Capital goods stocks rose on hopes government efforts to boost
economy will lift orders. Larsen & Toubro, Suzlon Energy, Bharat
Heavy Electricals, Crompton Greaves and Thermax rose by between
2.87% to 10.24%.
Power stocks rose on reports the likely government measures to
boost the economy may include special credit window for the power
sector. Tata Power Company, Reliance Infrastructure, Reliance
Power, Power Grid Corporation of India jumped by between 3.21% to
7.46%.
India's largest drug maker by sales Ranbaxy Laboratories rose 3.57%
on signing a pact with a US drug firm.
Orchid Chemicals & Pharmaceuticals rose 2.51% on receiving US
approval for a new drug.
Infrastructure stocks extended gains for the second day in a row on
hopes a likely government package to boost the economy will give
thrust to the infrastructure sector. Hindustan Construction
Company, Nagarjuna Construction Company, and IVRCL Infrastructure &
Projects rose by between 5.46% to 11.88%.
Marg was locked at 5% upper limit at Rs 34.45 at 12:54 IST on BSE,
on bagging a contract for developing an airport at Bijapur in
Karnataka.
PSU OMCs rose on fall in crude oil prices. BPCL, HPCL and Indian
Oil Corporation rose by between 0.66% to 1.28%. Crude oil fell for
a fifth day to the lowest in almost four years after a report
showed US fuel demand extended declines because of the country's
deepening economic slump. Crude oil for January 2008 delivery
dropped as much as $1.49, or 3.2%, to $45.30 a barrel on the New
York Mercantile Exchange. Lower oil prices will reduce
underrecoveries at the state-run oil firms on domestic sale of
petrol, diesel, LPG and kerosene at a controlled price.
Hindustan Oil Exploration Company rose 6.12% on bagging two oil and
gas blocks.
Consumer durables stocks rose on hopes further rate cuts by the
Reserve Bank of India would spur demand which is mainly driven by
finance. Videocon Indusries, Blue Star,Titan Industries, Lloyd
Electric and Rajesh Exports rose by between 1.52% to 3.56%.
Cement stocks rose on hopes likely government measures to boost the
infrastructure sector will spurt demand. ACC, Birla Corporation of
India, Ultratech Cement, Ambuja Cements and Grasim Industries rose
by between 1.13% to 6.6%.
Unitech clocked the highest volume of 3.19 crore shares on BSE.
Suzlon Energy (2.46 crore shares), GVK Power & Infrastructure (1.82
crore shares), Housing Development & Infrastructure (1.1 crore
shares) and Jaiprakash Associates (82.64 lakh shares) were the
other volume toppers in that order.
Reliance Industries clocked the highest turnover of Rs 404.61 crore
on BSE. State Bank of India (Rs 203.61 crore), Educomp Solutions
(Rs 178.33 crore), Reliance Infrastructure (Rs 153.18 crore) and
DLF (Rs 132.49 crore) were the other turnover toppers in that
order.
Haldyn Glass Gujarat spurted 8.51% on increase in the promoters'
stake in the company.
Nava Bharat Ventures jumped 20.28% on share buyback plan.
PVR galloped 4.88% on reports it plans to set up entertainment
centres across the country.
Chinese stocks rose after the government on Wednesday, 3 December
2008, announced measures whereby it will use financial policy to
support the economy. The Shanghai Composite was up 1.84%. But most
Asian shares weakened after earlier gains. Key benchmark indices in
South Korea, Hong Kong, Japan and Taiwan were down by between 0.58%
to 1.58%.
China will make use of required reserves as well as interest rates
and the exchange rate to ensure ample liquidity in the banking
system, the government said on Wednesday. The State Council,
China's cabinet, also approved measures aimed at stabilising the
domestic stock market, boosting bond issuance and increasing the
supply of credit.
Thursday, December 4, 2008
Sensex regains 9k level on falling inflation
The benchmark Sensex regained the 9,000-point level on Thursday, 4 December, surging 400 points on renewed investor confidence after government data showed inflation much lower than expected at 8.4%.
India’s inflation hit a seven-month-low of 8.4% for week ended 22 November, against 8.84% the preceding week. Sliding inflation along with expected RBI rate cuts raised hopes of investors.
The Bombay Stock Exchange barometer surged 482.32 points to close at 9,229.75 with banking and realty sectors leading the rally. Unitech, the top gainer, rose 14.67% to Rs30.10.
The wide-based National Stock Exchange index Nifty rose 131.55 points at 2,788.
Tata group companies were important gainers in the day’s trading— Tata Motors surged 14.07% to Rs152, followed by Tata Communication (13.03%, Rs428) and Tata Steel (12.54%, Rs185.35).
Meanwhile Asian markets retreated from the opening gains as global economic fears grew among investors. Hang Seng and Nikkei fell by 1% at closing.
India’s inflation hit a seven-month-low of 8.4% for week ended 22 November, against 8.84% the preceding week. Sliding inflation along with expected RBI rate cuts raised hopes of investors.
The Bombay Stock Exchange barometer surged 482.32 points to close at 9,229.75 with banking and realty sectors leading the rally. Unitech, the top gainer, rose 14.67% to Rs30.10.
The wide-based National Stock Exchange index Nifty rose 131.55 points at 2,788.
Tata group companies were important gainers in the day’s trading— Tata Motors surged 14.07% to Rs152, followed by Tata Communication (13.03%, Rs428) and Tata Steel (12.54%, Rs185.35).
Meanwhile Asian markets retreated from the opening gains as global economic fears grew among investors. Hang Seng and Nikkei fell by 1% at closing.
Inflation slips further to 8.4% from 8.84%
India’s wholesale price index rose 8.4 % in the 12 months to 22 November, below the previous week’s annual rise of 8.84%, government data showed on Thursday.
The rate was also below a median forecast of 8.91% in a Reuters poll of analysts.
The annual inflation rate was 3.11% during the corresponding week of the previous year.
The wholesale price index is more closely watched than the consumer price index, which is published monthly, because it covers a higher number of products and is released weekly.
The rate was also below a median forecast of 8.91% in a Reuters poll of analysts.
The annual inflation rate was 3.11% during the corresponding week of the previous year.
The wholesale price index is more closely watched than the consumer price index, which is published monthly, because it covers a higher number of products and is released weekly.
Infosys pegs IT industry growth at 15% this year
New Delhi: The country’s second largest software exporter Infosys Technologies today said the domestic IT industry is likely to grow by 15% this year against 30% growth last year in the wake of global slowdown. “Last year the IT industry grew more than 30%, this year it is looking at somewhere in the region of 15%. So, it has slowed down,” Infosys CEO S Gopalakrishnan told reporters here on the sidelines of the CII conference.
IT industry association Nasscom has pegged the growth rate at 21% for this year due to the downturn in the world’s largest economy US, which contributes 60% of the total revenue.
“As per the estimates we are getting from industry bodies it looks like the sector will register a growth of 15% this year,” Gopalakrishnan added. However, he clarified that Infosys will stick to its revenue guidance for the third quarter and the fiscal. Infosys had earlier scaled down its dollar guidance (revenue projection in dollars) by about three percentage points for the full year to 13.1-15.2%.
Infosys has seen delays in orders but there was no change in its third quarter guidance, Gopalakrishnan added. On hiring plans, he added Infosys would hire 25,000 people this year, but there would be no fresh recruitments beyond that, except in specific skills. He further clarified that therewere no plans to cut headcount.
IT industry association Nasscom has pegged the growth rate at 21% for this year due to the downturn in the world’s largest economy US, which contributes 60% of the total revenue.
“As per the estimates we are getting from industry bodies it looks like the sector will register a growth of 15% this year,” Gopalakrishnan added. However, he clarified that Infosys will stick to its revenue guidance for the third quarter and the fiscal. Infosys had earlier scaled down its dollar guidance (revenue projection in dollars) by about three percentage points for the full year to 13.1-15.2%.
Infosys has seen delays in orders but there was no change in its third quarter guidance, Gopalakrishnan added. On hiring plans, he added Infosys would hire 25,000 people this year, but there would be no fresh recruitments beyond that, except in specific skills. He further clarified that therewere no plans to cut headcount.
EID Parry India Ltd Buy Back offer
Enam Securities Pvt Ltd (Manager to the Buy Back) On behalf of EID Parry India Ltd (Target Company) has issued this Public Announcement (PA) to the Equity Shareholders / Beneficial Owners of the Equity Shares of the Target Company pursuant to the Provision of Regulation 8(1) read with Regulation 15(c) and is in compliance with the Securities & Exchange Board of India (Buyback of Securities) Regulations, 1998 as amended and contains the disclosure as specified in schedule II to these Regulations.
The Buyback
The Company hereby announces the buyback (Buyback) of its fully paid-up Equity shares of the face value of Rs 2 each (Shares) from the existing owners of Shares of the Company other than the Promoter / persons who are in control of the company & Promoter Group (Promoters) from the open market through stock exchange using the electronic trading facilities of the Bombay Stock Exchange Ltd (BSE) and the National Stock Exchange of India Ltd (NSE) (together the Stock Exchanges), in accordance with the provisions of Section 77A, 77AA, 77B and all other applicable provisions, if any, of the Companies Act, 1956 (the Act) and the securities & Exchange Board of India (buyback of Securities) regulations 1998 (the Buyback Regulations) and the relevant provisions of the Memorandum of Association and clause 3 of the Articles of Association of the Company subject to approval/s as may be necessary, from time to time from statutory authorities including but not limited to securities and Exchange Board of India, Stock Exchanges, Reserve Bank of India etc, as required at a maximum price not exceeding Rs 160 per equity shares (Maximum Buyback Price) payable in cash, for an aggregate amount not exceeding Rs 4684 lakhs (rupees Forty-six crores eighty four lakhs only) (the maximum Buyback Size). The Buyback size represents 10% of the aggregate of the companys paid-up equity capital and eligible free reserves as on March 31, 2008 (the date of the latest standalone audited accounts as on the date of the resolution dated October 29, 2008 approving the Buyback by the Board of Directors of the Company) which is within the maximum permissible limit of 10% of the paid-up equity capital and eligible free reserves. The aggregate paid up equity share capital and eligible free reserves of the Company as at March 31, 2008 was Rs 46841 lakhs.
The maximum number of shares the Company can buyback, as per Section 77A of the Act, in any financial year shall not exceed twenty-five percent of the total paid-up equity capital of the Company in that financial year.
The actual number of equity shares to be bought back would depend upon the average price paid for the equity shares bought back and the amount deployed in the buyback in accordance with the resolution passed by the Board of Directors of the Company on October 29, 2008. The Company proposes to buy a minimum of 7,31,875 shares (Minimum Offer Shares).
The maximum Buyback price offers a premium of 1.19% and 1.63% over the closing prices on BSE and NSE respectively prevailing on October 29, 2008 i.e. the date of the Board meeting approving the Buyback. The Closing price of shares as on October 29, 2008 on BSE & NSE was Rs 158.10 & Rs 157.40 respectively.
Proposed Time Table
Board Meeting Approving Buyback - October 29, 2008
Date of Public Notice - October 31, 2008
Date of Opening of Buyback - December 15, 2008
Acceptance of Shares - Within 15 days of the relevant payout dates of the respective Stock Exchanges.
Extinguishment of Shares - Within 15 days of relevant payout dates
Last Date for the Buyback - October 28, 2009 (i.e. 12 months from the date of the resolution passed by the Board of Directors of the Company at its meeting held on October 29, 2008). However, the Board in its absolute discretion may decide to close the Buyback at an earlier date in the event Minimum Offer Shares have been purchased under the Buyback even if maximum Buyback size has not been reached, by giving appropriate notice of such date and completing all formalities in this regard as per relevant laws and Regulations. There would be a completion of all payment obligations in respect of Buy-back prior to the last date of Buy-back.
The Buyback
The Company hereby announces the buyback (Buyback) of its fully paid-up Equity shares of the face value of Rs 2 each (Shares) from the existing owners of Shares of the Company other than the Promoter / persons who are in control of the company & Promoter Group (Promoters) from the open market through stock exchange using the electronic trading facilities of the Bombay Stock Exchange Ltd (BSE) and the National Stock Exchange of India Ltd (NSE) (together the Stock Exchanges), in accordance with the provisions of Section 77A, 77AA, 77B and all other applicable provisions, if any, of the Companies Act, 1956 (the Act) and the securities & Exchange Board of India (buyback of Securities) regulations 1998 (the Buyback Regulations) and the relevant provisions of the Memorandum of Association and clause 3 of the Articles of Association of the Company subject to approval/s as may be necessary, from time to time from statutory authorities including but not limited to securities and Exchange Board of India, Stock Exchanges, Reserve Bank of India etc, as required at a maximum price not exceeding Rs 160 per equity shares (Maximum Buyback Price) payable in cash, for an aggregate amount not exceeding Rs 4684 lakhs (rupees Forty-six crores eighty four lakhs only) (the maximum Buyback Size). The Buyback size represents 10% of the aggregate of the companys paid-up equity capital and eligible free reserves as on March 31, 2008 (the date of the latest standalone audited accounts as on the date of the resolution dated October 29, 2008 approving the Buyback by the Board of Directors of the Company) which is within the maximum permissible limit of 10% of the paid-up equity capital and eligible free reserves. The aggregate paid up equity share capital and eligible free reserves of the Company as at March 31, 2008 was Rs 46841 lakhs.
The maximum number of shares the Company can buyback, as per Section 77A of the Act, in any financial year shall not exceed twenty-five percent of the total paid-up equity capital of the Company in that financial year.
The actual number of equity shares to be bought back would depend upon the average price paid for the equity shares bought back and the amount deployed in the buyback in accordance with the resolution passed by the Board of Directors of the Company on October 29, 2008. The Company proposes to buy a minimum of 7,31,875 shares (Minimum Offer Shares).
The maximum Buyback price offers a premium of 1.19% and 1.63% over the closing prices on BSE and NSE respectively prevailing on October 29, 2008 i.e. the date of the Board meeting approving the Buyback. The Closing price of shares as on October 29, 2008 on BSE & NSE was Rs 158.10 & Rs 157.40 respectively.
Proposed Time Table
Board Meeting Approving Buyback - October 29, 2008
Date of Public Notice - October 31, 2008
Date of Opening of Buyback - December 15, 2008
Acceptance of Shares - Within 15 days of the relevant payout dates of the respective Stock Exchanges.
Extinguishment of Shares - Within 15 days of relevant payout dates
Last Date for the Buyback - October 28, 2009 (i.e. 12 months from the date of the resolution passed by the Board of Directors of the Company at its meeting held on October 29, 2008). However, the Board in its absolute discretion may decide to close the Buyback at an earlier date in the event Minimum Offer Shares have been purchased under the Buyback even if maximum Buyback size has not been reached, by giving appropriate notice of such date and completing all formalities in this regard as per relevant laws and Regulations. There would be a completion of all payment obligations in respect of Buy-back prior to the last date of Buy-back.
Pre MArket 4th Dec 2008
The market may edge higher on positive cues from global markets and on likely government measures to pump prime the economy. However, Indo-Pak tension after the major terror strike in Mumbai last week will cap the upside.
Chinese stocks led gains in Asian stocks after China on Wednesday, 3 December 2008, announces measures whereby the financial policy would be harnessed to support the economy. The Shanghai Composite was up 3%. Other Asian share nudge higher on buying in defensive plays such as drug makers or domestic demand-driven plays. Key benchmark indices in Hong Kong, Singapore and South Korea were up by between 0.06% to 1.9%. But Japanâ€(TM)s Nikkei had slipped into the red in contrast to earlier gains.
China will make use of required reserves as well as interest rates and the exchange rate to ensure ample liquidity in the banking system, the government said on Wednesday. The State Council, China's cabinet, also approved measures aimed at stabilising the domestic stock market, boosting bond issuance and increasing the supply of credit.
Defensive stocks lifted Wall Street on Wednesday, 3 December 2008, in spite of new data -- including large job losses among US employers and a slumping service sector -- that failed to inspire confidence in a US economy already in recession for a year.
Other economies worldwide are faring no better. A corporate survey in Japan signaled the country's economic performance in the third quarter may have been even worse than first reported.
Closer home, the Indian government is slated to announce a slew of measures at the weekend to pump prime the economy. The likely measures include a Rs 2000-crore export package, a further relaxation in external commercial borrowings norms and Rs 15,000-crore budgetary support for infrastructure.
The Reserve Bank of India (RBI), meanwhile, is expected to cut repo and reverse repo rates to the extent of 200 basis points and 125 basis points respectively at the weekend.
Meanwhile, the Indian government is reportedly considering various options including a strike on Pakistan to dismantle its terror bases in response to the recent Mumbai terror attacks. As a strike on Pakistan could lead to a full scale war between the two nuclear armed countries, India is maintaining a cautious approach and wants to gauge every possible ramification of its decision, reports suggest.
Tension between India and Pakistan have mounted after the Mumbai attacks. India has blamed Islamist militants based in Pakistan for the attacks.
Chinese stocks led gains in Asian stocks after China on Wednesday, 3 December 2008, announces measures whereby the financial policy would be harnessed to support the economy. The Shanghai Composite was up 3%. Other Asian share nudge higher on buying in defensive plays such as drug makers or domestic demand-driven plays. Key benchmark indices in Hong Kong, Singapore and South Korea were up by between 0.06% to 1.9%. But Japanâ€(TM)s Nikkei had slipped into the red in contrast to earlier gains.
China will make use of required reserves as well as interest rates and the exchange rate to ensure ample liquidity in the banking system, the government said on Wednesday. The State Council, China's cabinet, also approved measures aimed at stabilising the domestic stock market, boosting bond issuance and increasing the supply of credit.
Defensive stocks lifted Wall Street on Wednesday, 3 December 2008, in spite of new data -- including large job losses among US employers and a slumping service sector -- that failed to inspire confidence in a US economy already in recession for a year.
Other economies worldwide are faring no better. A corporate survey in Japan signaled the country's economic performance in the third quarter may have been even worse than first reported.
Closer home, the Indian government is slated to announce a slew of measures at the weekend to pump prime the economy. The likely measures include a Rs 2000-crore export package, a further relaxation in external commercial borrowings norms and Rs 15,000-crore budgetary support for infrastructure.
The Reserve Bank of India (RBI), meanwhile, is expected to cut repo and reverse repo rates to the extent of 200 basis points and 125 basis points respectively at the weekend.
Meanwhile, the Indian government is reportedly considering various options including a strike on Pakistan to dismantle its terror bases in response to the recent Mumbai terror attacks. As a strike on Pakistan could lead to a full scale war between the two nuclear armed countries, India is maintaining a cautious approach and wants to gauge every possible ramification of its decision, reports suggest.
Tension between India and Pakistan have mounted after the Mumbai attacks. India has blamed Islamist militants based in Pakistan for the attacks.
Crude at $45.95/bbl
Crude oil prices was little changed on the back of an energy department report showing US refineries curbed operating rates as recession reduces fuel demand.
In after hours access trading, Nymex is at crude at 45.95/bbl.
In after hours access trading, Nymex is at crude at 45.95/bbl.
TCS reviewing capex plans: Ramadorai
Tata Consultancy Services Ltd (TCS) is in the process of reviewing its capital expenditure plans for the current year due to the global economic crisis.
Speaking to the media on the sidelines of the Internet Governance Forum 2008 here, the Chief Executive Officer and Managing Director of TCS, Mr S. Ramadorai, said, “We may shift the capex plans in terms of delays in technologies, strategy and infrastructure plans.”
He said the financial crisis was for real and it had impacted not just one country or company, but the entire world.
According to him, TCS was taking cost cutting measures in terms of productivity improvement, improving utilisation rates of its employees, power, and travel, apart from capex reduction.
“Last quarter, the utilisation rates were around 81 per cent, but now we hope to enhance it to between 82 and 83 per cent,” he said.
Asked if the company was reducing its exposure to the banking, financial services and insurance (BFSI) segment, which was the major revenue earner, and diversify into other areas, Mr Ramadorai said the company would not consciously bring down the BFSI business, but would focus on other technology segments was well.
The company was ready to accept business in the BFSI segment as it had long-term contracts with clients.
Mr Ramadorai replied in the negative when asked if TCS was issuing pink slips to its employees.
Earlier, while addressing the IGF meet, Mr Ramadorai, who is also chairing the Business Action to Support the
Information Society of the International Chamber of Commerce, said that lack of dependable electricity sources created access problems to Internet for many people in developing countries.
Speaking to the media on the sidelines of the Internet Governance Forum 2008 here, the Chief Executive Officer and Managing Director of TCS, Mr S. Ramadorai, said, “We may shift the capex plans in terms of delays in technologies, strategy and infrastructure plans.”
He said the financial crisis was for real and it had impacted not just one country or company, but the entire world.
According to him, TCS was taking cost cutting measures in terms of productivity improvement, improving utilisation rates of its employees, power, and travel, apart from capex reduction.
“Last quarter, the utilisation rates were around 81 per cent, but now we hope to enhance it to between 82 and 83 per cent,” he said.
Asked if the company was reducing its exposure to the banking, financial services and insurance (BFSI) segment, which was the major revenue earner, and diversify into other areas, Mr Ramadorai said the company would not consciously bring down the BFSI business, but would focus on other technology segments was well.
The company was ready to accept business in the BFSI segment as it had long-term contracts with clients.
Mr Ramadorai replied in the negative when asked if TCS was issuing pink slips to its employees.
Earlier, while addressing the IGF meet, Mr Ramadorai, who is also chairing the Business Action to Support the
Information Society of the International Chamber of Commerce, said that lack of dependable electricity sources created access problems to Internet for many people in developing countries.
Mkt likely to be rangebound
The market is likely to be range bound on lack of fresh triggers. The Sensex is likely to be ranged between 8000-9500. The low delivery volumes show that distressed selling by FIIs is over. Domestic MFs are sitting on cash on expectations of redemption pressure.
RBI to cut repo, reverse repo rates on Sat: Sources
The Reserve Bank of India (RBI) is likely to cut repo and reverse repo rates on Saturday. However, a CRR cut, sources added, is unlikely. External commercial borrowings (ECB) norms could be eased further too, they said, adding that the RBI is also likely to ask banks to cut deposit rates.
The government, sources said, is expected to announce a fiscal package for the housing, auto and export sectors. Sources added that while the export package would cost the government Rs 2000 crore, an additional budgetary support for the infrastructure could be to the tune of Rs 15,000 crore and there may be a special line of credit for non-banking financial companies, the housing and auto sectors.
Across the board, an excise duty reduction is likely on commercial vehicles, sources said. The government export target for FY09 is likely to be around USD 175 billion, they added.
Disclaimer: Not confirmed news.. only the info to the news agencies
The government, sources said, is expected to announce a fiscal package for the housing, auto and export sectors. Sources added that while the export package would cost the government Rs 2000 crore, an additional budgetary support for the infrastructure could be to the tune of Rs 15,000 crore and there may be a special line of credit for non-banking financial companies, the housing and auto sectors.
Across the board, an excise duty reduction is likely on commercial vehicles, sources said. The government export target for FY09 is likely to be around USD 175 billion, they added.
Disclaimer: Not confirmed news.. only the info to the news agencies
Asian markets trading higher; Shanghai up 2%
Asian markets were trading higher. China's Shanghai Composite rose 2.08% or 40.85 points at 2,006.27.
Hong Kong's Hang Seng gained 1.54% or 209 points at 13,797.66.
Japan's Nikkei advanced 0.62% or 49.34 points at 8,053.44.
Singapore's Straits Times was up 1.97% or 32.36 points at 1,672.93.
South Korea's Seoul Composite added 0.30% or 3.03 points at 1,025.70.
Taiwan's Taiwan Weighted was up 0.53% or 22.66 points at 4,329.92
Hong Kong's Hang Seng gained 1.54% or 209 points at 13,797.66.
Japan's Nikkei advanced 0.62% or 49.34 points at 8,053.44.
Singapore's Straits Times was up 1.97% or 32.36 points at 1,672.93.
South Korea's Seoul Composite added 0.30% or 3.03 points at 1,025.70.
Taiwan's Taiwan Weighted was up 0.53% or 22.66 points at 4,329.92
Monday, December 1, 2008
Pre Market Report 01/12/2008
The end of the operation to flush out terrorists on Saturday, 29 November 2008 and expectations of further cut in interest rates may lift the market which on Friday, 28 November 2008, shrugged off major terrorists attacks on Mumbai, Indiaâ€(TM)s financial capital late on Wednesday, 26 November 2008. There are expectations that the Reserve Bank of India (RBI) will cut rates further to shore up confidence battered by the global financial crisis and the series of attacks around the city.
With P Chidambaram set to take over as the new home minister, there is a perception that the RBI may gain more breathing space while making policies. There has been criticism in recent weeks that a series of policy measures were being driven by the finance ministry. But now with Prime Minister (PM) Dr Manmohan Singh, himself a former RBI governor, holding additional charge of the finance ministry, the prospects of the governor coming into his own are far greater.
The PM, the architect of early 1990s economic reforms, holding additional charge of the finance ministry will also be perceived as a positive sign for the stock markets in terms of ensuring continuity and signaling a pro-reform image even though just a few months are left as parliamentary elections must be held before May 2009.
Asian markets were mixed. Japan's Nikkei average fell 2% by midday as global recession fears prompted investors to book profits after last week's rally, with exporters such as Toyota Motor Corp slipping on a firmer yen.
Early results from the Black Friday weekend that marks the start of the Christmas shopping season in the United States showed that sales grew in shops and online, fuelled by repeat trips and deep discounts. But an early rush is unlikely to save what is shaping up to be a bleak sales season, reports suggest.
With P Chidambaram set to take over as the new home minister, there is a perception that the RBI may gain more breathing space while making policies. There has been criticism in recent weeks that a series of policy measures were being driven by the finance ministry. But now with Prime Minister (PM) Dr Manmohan Singh, himself a former RBI governor, holding additional charge of the finance ministry, the prospects of the governor coming into his own are far greater.
The PM, the architect of early 1990s economic reforms, holding additional charge of the finance ministry will also be perceived as a positive sign for the stock markets in terms of ensuring continuity and signaling a pro-reform image even though just a few months are left as parliamentary elections must be held before May 2009.
Asian markets were mixed. Japan's Nikkei average fell 2% by midday as global recession fears prompted investors to book profits after last week's rally, with exporters such as Toyota Motor Corp slipping on a firmer yen.
Early results from the Black Friday weekend that marks the start of the Christmas shopping season in the United States showed that sales grew in shops and online, fuelled by repeat trips and deep discounts. But an early rush is unlikely to save what is shaping up to be a bleak sales season, reports suggest.
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