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Archive for November, 2008

Stocks seen subdued as terror revisits Mumbai; GDP data eyed

Posted by Manish Agrawal on Friday, 28 November, 2008

MUMBAI: Stock markets will resume trade on Friday after Mumbai was under siege of terrorist attacks. However, the sentiment will remain jittery after the dramatic turn of events that unfolded in the last 35 hours. 

Market regulator SEBI has asked stockexchanges to be ready to begin trading on Friday but will take a final call on resumption just before the starting time. Also, F&O contracts for the November series will expire today. 

In an attack aimed at destabilising India’s financial centre, more than 10 terrorists stormed Mumbai’s Taj Mahal Palace and Towers Hotel in Colaba and Hotel Trident at Nariman Point and started firing indiscriminately. The terrorists also took hostages at the two hotels including foreigners. Fierce firing is still on at a Jewish residential building Nariman House. 

According to reports, the terror strikes left over 100 people have been killed and over 300 injured. More than 10 police officers died in the ensuing encounter with terrorists including top officials Hemant Karkare, Chief of the Anti-Terrorist Squad and encounter specialist Vijay Salaskar. The army and navy moved in to carry out flush-out operations at the two hotels. Throughout the day, explosions and gunfire were heard as commandos tried to free hostages trapped by the militants. 

Global cues, however, are supportive. Asian markets edged higher, spurred by gains in commodity stocks, on hopes that government steps to pull the global economy out of recession will boost demand for raw materials. The Nikkei was up 0.5 per cent, Hang Seng added 1.98 per cent and S&P/ASX climbed 2.71 per cent. US markets were shut for Thanksgiving holiday. 

Meanwhile, inflation fell to a six-month low, providing more room to the central bank to cut interest rates to spur flagging economic growth. Inflation edged lower to 8.84 percent for the week ended November 15 from 8.90 the previous week. 

GDP data for the July-September quarter is also expected Friday. The economy probably grew an annual 7.3 percent in the July-September quarter — its slowest pace in nearly four years. 

On Wednesday, Indian stock markets ended sharply higher as traders covered short positions in private sector banks and oil&gas stocks. The market opened on a firm note but turned choppy and gave away all the gains in the early half due to lack of conviction and ahead of November F&O expiry Thursday. Traders chose to remain on the sidelines also due to lack of direction. 

Bombay Stock Exchange’s Sensex closed at 9,026.72, up 331.19 points or 3.81 per cent. The index touched an intra-day high of 9061.72 and low of 8658.53. National Stock Exchange’s Nifty ended at 2752.25, up 98.25 points or 3.7 per cent. The 50-share index hit a high of 2762.60 and low of 2643.35. 

Source: The Economictimes.com

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MARKET INSIGHT

Posted by Manish Agrawal on Wednesday, 26 November, 2008

Yesterday the market opened up and then we saw a profit booking

session set in to close negative. Nifty opened at 2708.90 levels making

an intraday high of 2790.70 and a low of 2638.20 then finally closing at

2654. We had witnessed selling pressure in most of the counters along

with profit booking especially in the day when the markets moved down.

Intraday or short term calls should be followed with very strict stop loss.

In the stocks & indices the bulls were trapped as the market closed down.

The candle stick pattern so formed in Nifty is a bearish candle stick.

On the buy side we saw upwards movement in stocks like KSK,

EDUCOMP, SESAGOA, KS OIL,ORCHID CHIM, GVKPOWER,

DABUR, TATA TEA, UNITED SPIRITS, KFA, PATNI, CHAMBAL FERT,

ANDHRA BANK AND ABIRLANUVO to name a few.

On the sell side we saw fall in stocks mentioned here DCHL, BEML,

IBREALEST, SUZLON, TVS MOTOR, BRFL, BAJAJ HOLDING, FSL,

VOLTAS, M&M, AMBUJA CEMENT, HCL TECH AND SBI to name a

few.

The Nifty has a support at the 2600 followed by 2540. The resistance

levels to watch would be 2750 followed by 2850.

The support levels for the Sensex are at 8500 followed by 8310. The

resistance levels to watch would be 9035 followed by 9375.

SOURCE: ANAND RATHI SEC LTD.

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Sun to cut up to 6,000 workers, 18% of staff

Posted by Yogesh on Friday, 14 November, 2008

SAN FRANCISCO: Sun Microsystems Inc says it will cut up to 6,000 of its workers, or 18 percent of its
Jobs Crisis time: Keep staff motivated global staff.

Sun also says its software chief, Rich Green, has resigned.

The company has fallen into a deep slump as sales of its high-end servers have collapsed.

The Santa Clara, Calif.-based company said Friday the job cuts will include between 5,000 and 6,000 employees over the next year.

The company added that it expects to incur total charges in the range of $500 to $600 million over the next twelve months.

It says the cuts will save $700 million to $800 million annually and it expects to begin realizing cost savings in Q3.

Sun says about $375 to $450 million of charges will be incurred within its current fiscal year 2009 and restructuring plan is aimed at reducing costs by about $700 to $800 million anually. Source The Economic Times

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Cooling prices bring inflation to single digit

Posted by Yogesh on Friday, 14 November, 2008

NEW DELHI: The inflation rate fell sharply to a near six-month low of 8.98% for the week ended November 1, a drop of almost 4% from its August peak.

The financial markets feel that the softening inflation will enable RBI to cut repo and reverse repo rates to create more liquidity in a slowing economy. This is the biggest decline in inflation in the past 18 years.

The decline, helped by a steep drop in prices of some petroleum products and metals, will provide a welcome relief to the central government reeling under a raft of bad news on the economic front from falling exports and a drop in tax collections. Politically, this could help the government ahead of key state elections later this month. Read the rest of this entry »

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Jet Airways denies report on Temasek talks

Posted by Yogesh on Wednesday, 12 November, 2008

MUMBAI, Nov 12 (Reuters) – Jet Airways, India’s largest private carrier, on Wednesday denied a newspaper report it would sell a 10 percent stake to Singapore state investor Temasek Holdings for 2.5 billion rupees ($50 million).

“With regard to this particular news item, we wish to clarify that it is not correct,” Jet said in a statement to the stock exchange.

The Economic Times, citing unnamed sources, reported on Wednesday the airline was in advanced negotiations to sell the stake to Temasek. Read the rest of this entry »

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Luxury cars, mobile phones buck slowing trend in India

Posted by Yogesh on Wednesday, 12 November, 2008

MUMBAI (Reuters) – Have money, will buy Mercedes and mobile phone.

That seems to be the mantra in India, where sales of luxury cars and mobile subscriptions are bucking the overall trend of lower consumer demand and slowing economic growth.

India’s benchmark stock market is down more than half in 2008, industrial production has fallen and analysts expect economic growth could slow to below 7 percent in the year to March 2009 from 9 percent or higher in the past three years. Read the rest of this entry »

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DoCoMo enters Indian market with $2.7 bln Tata deal

Posted by Yogesh on Wednesday, 12 November, 2008

TOKYO/NEW DELHI (Reuters) – NTT DoCoMo Inc will pay $2.7 billion for a 26 percent stake in Indian telecom Tata Teleservices, giving Japan’s top mobile operator a foothold in the world’s fastest-growing major mobile market.

DoCoMo’s deal with India’s No. 6 mobile operator follows a $350 million investment in Bangladesh’s No.3 cellphone carrier, as it speeds up its expansion beyond a mature home market, and adds to the record $63 billion of overseas acquisitions by Japanese firms this year.

But as DoCoMo expands, salt-to-software conglomerate Tata Group — the parent of unlisted Tata Teleservices and the flagbearer for corporate India’s recent overseas expansion — has put its plans for acquisitions on hold due to the global credit crisis. Read the rest of this entry »

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HPCL says buys first Reliance crude cargo

Posted by Yogesh on Tuesday, 11 November, 2008

NEW DELHI, Nov 11 (Reuters) – India’s state-run Hindustan Petroleum Corp has bought the first 450,000 barrel crude cargo from Reliance Industries’ east coast block in a spot deal, HPCL’s director of refineries said on Tuesday.

“We have been indicated that the first cargo will reach at our Vizag refinery between November 17-20,” M.A. Tankiwala told Reuters.

Tankiwala refused to give price details as the agreement is yet to be signed by the heads of the two firms, but sources at both companies said a deal had been agreed at a discount of $5.34 a barrel to Nigerian grade Bonny Light.

Reliance owns 90 percent of the D-6 block in the hydrocarbon-rich Krishna Godavari basin, while Canada’s Niko Resources NKO.T has the rest.

Reliance began producing oil from the block in mid-September and aims to produce gas from early next year.

HPCL runs a 110,000-bpd refinery in Mumbai and a 150,000 bpd plant at Vizag on the east coast.Source Reuters

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India adds record 7.7 mln GSM mobile users in Oct

Posted by Yogesh on Tuesday, 11 November, 2008

NEW DELHI, Nov 11 (Reuters) – India added a record 7.7 million mobile users in October to its GSM-based networks, an industry body said, as operators maintained rapid expansion despite signs of a slowing economy.

Total GSM mobile users at the end of October numbered 241.4 million, up 3.3 percent from 233.7 million in September, data from the Cellular Operators’ Association of India (COAI), which represents nine telecoms firms, showed on Tuesday.

The October user additions do not include signings by No. 2 operator Reliance Communications. Reliance, which predominantly uses CDMA technology but has some GSM customers, had 56.1 million total wireless users at end-September.

The company releases its monthly additions separately.

Top operator Bharti Airtel added 2.72 million new users in October, taking its total base to 80.2 million, while Vodafone -controlled Vodafone Essar added its highest ever number of new users — 2.1 million — to take its base to 56.7 million.

No. 4 operator Bharat Sanchar Nigam Ltd added 669,551 new users to have a base of 39.8 million users, while fifth-ranked Idea Cellular signed up 1.2 million users in October to have a total of 31.6 million.

India is the world’s fastest growing market for mobile phone services and the second-largest market for such services after China. Other than the GSM-based telecom users, it also has a substantial number of users using CDMA technology.

Asia’s third-largest economy is feeling the effects of global financial turmoil and policy makers are gradually ratcheting down their growth expectations. Many now say economic expansion is likely to slow to 7 percent in the year to March 2009, from 9 percent in the previous year.

But analysts and officials from Bharti Airtel and Reliance Communications have said demand for telecoms should hold up even if overall economic growth slows. Source Reuters

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India rejigs spectrum fees for 2G and 3G services

Posted by Yogesh on Tuesday, 11 November, 2008

NEW DELHI, Nov 11 (Reuters) – Foreign telecoms firms not currently operating in India but looking to enter the world’s fastest-growing market as a third-generation (3G) services operator will have to pay more each year for spectrum.

India’s telecoms commission, the apex government body for the sector, has also decided to increase the annual fee for 2G radio spectrum by 1 percentage point across all bandwidths from January next year.

Such a move could hit firms like Bharti Airtel and Vodafone -controlled Vodafone Essar.

The government had earlier said operators winning 3G radio spectrum in a global auction due in January would have to pay 1 percent of their revenue as the annual fee. Read the rest of this entry »

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