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Indian stock market morning report by Keynote Capitals (October 10, 2008, Friday, 7.00 a.m. GMT) 10 October 2008 Source: www.keynoteindia.net
- The rupee fell to an all-time low of 49.10 per dollar this morning, as the spreading global financial crisis hurt sentiment in Asian stock markets, leading to concerns of a large outflow of foreign funds from India. The previous low was 49.07 in May 2002. - The Government of India has ruled out FDI in general retail. Department of Industrial Policy and Promotion has however proposed FDI of up to 51% in multi-brand retail. - The Government of India aims to make India a power equipment manufacturing hub on back of the reliable technology of BHEL-Siemens, L&T-Mitsubishi, Toshiba-JSW and Bharat Forge-Alstom entering power equipment manufacturing in India. - Railways will raise freight charges by about 6% on iron ore. - ONGC finalizing its deal to buy Russia’s Imperial Energy for $2.6bn. - India’s commercial banks have stopped lending to state-owned oil refiners owing to the industry-wide liquidity crunch and the high debt these companies have accumulated because of selling petroleum products below production cost. - Shipping Corporation of India (SCI) plans to invest about Rs1,600Cr to buy four capsize ships having carrying capacity of about 1,00,000 tonnes. - Elecon Engineering, a manufacturer of material handling equipment, has bagged a Rs52Cr order. US markets overnight The US markets ended down 7.3%, its lowest level in over 5 years, even as interest rates were cut globally. The Fed led a coordinated round of global official benchmark rate cut, easing by a half-point to 1.5%, as did ECB, Bank of England, Swiss, Canadian and Swedish banks. The Bush administration announcing it was considering taking ownership stakes in a number of the nation's banks led to the fall. Wells Fargo placed a $12bn bid which would wrest Wachovia from Citigroup. IBM said that its 3Q earnings would total $2.05 per share, which is above analyst expectations. Oil futures were below $85 / barrel, down nearly 12% year-to-date. That has OPEC calling for an emergency meeting on November 18. It is presumed that OPEC will agree to cut production. Views on markets today The Nikkei today reported its biggest one-day drop in over two decades, as investors hit the panic button. The Nikkei tumbled as much as 11.4% in the initial trading session touching a low of 8,115, which is the lowest since May 2003. Infosys declared Q2FY09 results today, which are slightly above expectations. We may see some momentum in the IT stocks today, with the rupee touching a new low of Rs49.10 per USD this morning. Indian markets witnessed a short recovery on Wednesday. However, considering today's broad-based fall in Asian markets, we expect sharp weakness in the initial trading session. |
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