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Indian stock market morning report by Keynote Capitals (October 8, 2008, Wednesday, 7.00 a.m. GMT) 8 October 2008 Source: www.keynoteindia.net
- The rupee fell towards a six-year low early this morning at 48.28 per USD, its lowest since December 2, 2002. - Tata Motors shifting the Nano plant to Gujarat may help lift sentiment for the stock. - IVRCL Infrastructures & Projects has received a Rs499Cr contract for irrigation work from the Andhra Pradesh government, expected to be completed in 48 months. - Bharti Airtel will launch Direct-To-Home (DTH) services on October 9. - New York firm Recap Partners is acquiring BPO company HOV Services and its units in Beijing and Hong Kong, for Rs950Cr. - Opto Circuits (India) has dropped its $100mn European acquisition plans as the valuation of the acquiree company was perceived to be expensive and unjustifiable. - Strides Arcolab has received USFDA approval for its Oral Dosage Form Facility at Bangalore. US markets overnight The US markets ended down 5.1%, at its worst level, a new five-year low on weak outlook from Bank of America (which fell 26% on disappointing 3Q results) and cautious comments from the Fed Chairman Ben Bernanke overshadowing the Fed’s plan to improve liquidity in short-term corporate borrowing. Bernanke said economic activity is likely to be subdued through this year and into 2009 and the financial market turmoil may extend the period of weak economic performance. All 10 economic sectors posted a loss, with financial sector posting a decline of 11.5%. Views on markets today Asian markets continued to see a sell-off this morning too, following the steep fall in overnight US markets and worries that Toyota Motor results will disappoint the markets. The Nikkei reported its 4 year low and trading below 10,000 points, while the Hang Seng has seen a decline of almost 6%. Exporters and financial stocks witnessed a major drop in the Japanese markets. Back home, Indian markets witnessed high volatility yesterday. Even the RBI and Sebi's announcements could not curb the bearish sentiment. Today, we expect the Indian markets to mirror the fall in US and Asian markets, with huge volatility led by telecom news and European markets. The UK government is expected to declare a bail-out package of $79bn for Royal Bank of Scotland (RBS) Group and Barclays, which may affect the Indian markets in the latter part of the trading session today. We expect telecom stocks to remain in focus as the ARPUs per month for Q1FY09 saw a steep decline of 9.5% from Rs264 to Rs239. Tata Motors could see some momentum due to the clarity on the Nano car project. |
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