Sensex ends in negative; M&M plummets 7.93%

The Sensex ended in the negative terrain led by banking, metal and consumer goods stocks. Sustained selling was seen across board.

Equities opened on a flat note with negative bias tracking global cues. The 30-share index, BSE Sensex opened with a loss of 9.69 points, at 8,804.15 on Friday. After few minutes of trading, Sensex moved up into the postive to trade on a flat note touching a high of 8,858.84 amid volatility. Later the index fell back into the negative and slipped further on intense selling witnessed in frontliners touching a low of 8,631.60. Banking, realty and metal sectors were the major draggers.

BSE Midcap and Smallcap index declined 1.56% and 1.50% respectively.

Among the sectoral indices, BSE Bankex tumbled 4.16%, Metal plunged 3.35%, Consumer goods shed 2.87% and Realty declined 2.45%.

Asian stocks declined after losses at Sony Corp. and Samsung Electronics Co. showed the global recession is eroding the profits.

The Sensex ended the day with a loss of 139.49 points, or 1.58% at 8,674.35 after touching a high of 8,858.84 and a low of 8,631.60. The broad-based NSE Nifty fell 35.25 points, or 1.30% at 2,678.55 after hitting a high of 2,765.55 and a low of 2,661.65.

Biggest gainers in the 30-share index were Tata Motors (1.81%), Reliance Industries (1.78%), Ranbaxy Laboratories (0.75%), and NTPC (0.28%).

On the other hand, Mahindra & Mahindra (7.93%), Tata Steel (7.17%), Jaiprakash Associates (6.95%), Reliance Communications (4.50%), State Bank Of India (4.34%), and ICICI Bank (3.71%) were the major losers in the Sensex.

Overall market breadth was extremely negative. Out of the total 2,501 stocks traded at BSE, 808 advanced, 1,600 declined while 93 remained unchanged.

Results :

JK Tyre and Industries, swung to loss for the quarter ended December 2008 on account of severe impact in the demand due to the unprecedented global economic slowdown affecting the automobile sector in no small measure.

Zee News, primarily a media company registered a rise of 18.40% in the consolidated net profit in the quarter ended December 2008.

Union Bank of India, one of the largest public sector banks reported a phenomenal rise in standalone net profit for the quarter ended December 2008 due to rise in interest income.

Edelweiss Capital, a diversified Indian financial services company registered a fall of 17.13% in the consolidated net profit in the quarter ended December 2008


Indices Trend
Sensex Nifty
Period Value % Change Value % Change
1 Week 9,046.74 (4.12) 2,736.70 (2.12)
1 Month 9,686.75 (10.45) 2,968.65 (9.77)
3 Months 8,701.07 (0.31) 2,584.00 3.66
6 Months 14,274.94 (39.23) 4,311.85 (37.88)
1 Year 18,152.78 (52.21) 5,274.10 (49.21)


Thanks to www.myiris.com

Infotech Enterprises allots equity shares

The committee of Infotech Enterprises has allotted 27,24,000 equity shares of Rs 5 each at a premium of Rs 355 per share toGA Global Investments, upon exercise of the option to convert 27,24,000 compulsorily convertible preference shares into a equal number of equity shares.

The company made this announcement after nthe tradig hours on 09 December 2008.

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Market crash: Tips to cut losses

THE market's blows are only getting harder.

The bad news is that the worst may not be over yet. Amidst all this turbulence, only one thing can save you: The right advice.

Here’s how you can limit the damage, straight from wealth's experts.

Scenario 1: I invested in the markets for the short term; what should I do now?
Right now, the markets are driven by global sentiment. And, financial planner Arvind Rao reckons that it may take up to the fourth quarter of 2009 for the global market to pull up. On the domestic front too, things may look brighter only in the third or fourth quarter of 2009. "This is mainly because of the huge input costs and high interest rates as of now, " he says.

In such a scenario, you have 2 options:
Option 1: If you are hard pressed for money, you have no choice but to withdraw.

PV Subramanyam, financial domain trainer, says, “If you need money soon, say in a year or two, it is better to sell now even if that means booking losses. There’s no way of predicting how the markets would behave.”

Option 2: Sandeep Shanbhag, investment expert and Director, Wonderland Consultants, says, “If you initially invested for the short term but can weather the storm, then wait, provided you have fundamentally good stocks. However, if you need funds, then exit as early as possible and treat this as a mistake not to be repeated.”

Caution: Do not play the markets on a short term basis simply because of the looming uncertainty.

Read more...... www.Moneycontrol.com

Satyam cuts FY09 rev guidance due to forex fluctuation

Satyam Computer has announced its Q2 FY09 numbers. The company has reported a growth of 6.05% in net profit of Rs 580.85 crore as against Rs 547.70 crore, QoQ. Revenues were up by 7.6% at Rs 2819.29 crore versus Rs 2620.83 crore. Satyam has met its second quarter guidance; revenues went up by 2.3% to USD 652 million while guidance was USD 645 – 651.9 million. EPS stood at $0.39 per share, wherein also the company met its guidance.Rupee guidance changed only for rupee move from 43- 47 per dollar.

Satyam has cut its FY09 revenue dollar guidance to USD 2.55-2.59 billion versus USD 2.65-2.69 billion. Ramalinga Raju said that 3% was due to cross currency movement and 2% on account of reduction in volumes that he expects.

The Satyam Management including Ramalinga Raju, Founder and Chairman, Ram Mynampati, President, CHB and Srinivas Vadlamani, CFO spoke in an exclusive interview with CNBC-TV18.

The management said that the company’s dollar guidance was impacted 3% due to cross currency and 2% due to business conditions. It expects a 100-150 bps expansion in margins, which has helped in enhancing the dollar EPS guidance. It added that there had been some reduction in licences in ERP and said it was premature to quantify medium term prospects. The gross employee additions guidance of the company has been scaled down to 10000 from 14000-15000.

The management informed CNBC-TV18 that the company’s legal dispute with Upaid was status-quo and said that the hearing was slated for next year. It feels that it is too early to quantify the impact of the BFSI consolidation in the US.


Ramalinga Raju feels the near-term environment remains challenging. He added that forex fluctuations have impacted their US GAAP revenues by 3%. He does not see a dramatic slowdown and added that clients were circumspect over the 2009 budgets.

Here is a verbatim transcript of the exclusive interview with the Satyam Management on CNBC-TV18. Also watch the accompanying video.

Q: Could you start by explaining your dollar guidance, the revenue guidance- why has that been lowered? How much of it is because of cross currency issues and how much of it is because of the tough environment that you see around you?

Raju: It is a combination of factors. We have enhanced our guidance at the consolidated numbers at rupee level from 34% to about 35.4%.

At the dollar level we have reduced our revenue guidance from 26% to 21% at the upper end of the guidance. About 3% of that can be explained by the cross currency movement and 2% on account of reduction in volumes that we expect.

So under the current circumstances we believe we have done well for the quarter and we feel this is number that we are able to give confidently.


Read more......... http://www.moneycontrol.com/

RBI cuts CRR by 150 bps

In an anticipated move, the Reserve Bank of India, or RBI, has cut the cash reserve ratio, or CRR, by 150 basis points to 7.5% with effect from tomorrow in a bid to infuse liquidity into the markets.

On October 6, the RBI had cut the CRR by 50 bps to 8.5%. Today's 150-bps cut includes October 11's cut. The cut will inject liquidity into the system to the tune of Rs 60,000 crore.

Nilesh Shah of Envision Capital said, “The CRR cut is definitely a positive move, which is going to soothe some liquidity fears. The stock market also needs liquidity and this (the rate cut) will help to some extent. Whether this is going to help us beyond a day or beyond an intra-day basis is something that remains to be seen.”

“Directionally, the CRR cut is a positive move that helps the banking system, helps the overall economy and will probably help the market in short-term or intra-day,” Shah added.

The announcement came close on the heels of a sharp fall of over 1,000 points on the Sensex on Friday morning amid cues from falling global markets. Soon after the announcement, the Sensex recovered a bit, before falling again later.

Udayan Mukherjee, Managing Editor, CNBC-TV18, said, “The announcement will get gobbled up, or maybe prompt or induce a bit of short covering with the market going up.”

Mukherjee said that it was a welcome move but added he didn’t see it affecting the stock market substantially. “Of course, it aids the money market and injects a bit of liquidity to the system — 150 bps is a fairly meaningful chunk of money coming in,” he said, adding that from a stock-market perspective, the cut would produce some kind of positive sentiment for a short while, "but the problems of the stock market are different."

Finance Minister P Chidambaram also issued a statement on the CRR cut and welcomed the RBI's decision.

source: http://www.moneycontrol.com