Market drifts lower in volatile trade

Volatility ruled the roost as weak global markets and concerns about the US banking sector pulled the domestic bourses lower. Nevertheless, lower inflation and improved industrial production numbers ensured that the fall in share prices was not steep.

FII outflow in January 2009 totaled Rs 1174.20 crore (till 14 January 2009). FIIs had pulled out a massive Rs 52,998.70 crore in calendar year 2008, as against an inflow of a huge Rs 71,486.50 crore in calendar year 2007.

The BSE 30-share Sensex fell 82.88 points or 0.88% to 9,323.59 in the week ended 16 January 2009. The S&P CNX Nifty fell 44.55 points or 1.55% at 2828.45 in the week.

The BSE Mid-Cap index fell 93.96 points or 3.01% to 3,026.83 and the BSE Small-Cap index fell 142.83 points or 4.02% to 3,412.77 in the week.

The barometer index BSE Sensex is 11883.18 points or 56.03% below its all-time high of 21,206.77 struck on 10 January 2008.

Key benchmark indices, remained in negative zone throughout the day, extending losses for the third straight day on 12 January 2009 led by sustained selling in index pivotals. Concerns about corporate governance standards at Indian firms and weak global markets dampened investor sentiment offsetting an improved industrial production data. The BSE 30-share Sensex lost 296.42 points or 3.15% to 9,110.05. The S&P CNX Nifty lost 99.90 points or 3.48% at 2,773.10.

Key benchmark indices extended losses for the fourth day in a row 13 January 2009. Fall in index heavyweight Reliance Industries (RIL), telecom stocks and private sector banking pivotals offset rally in IT stocks on the back of stronger-than-expected Q3 December 2008 results by IT bellwether Infosys Technologies. The BSE 30-share Sensex slipped 38.69 points or 0.42% to 9,071.36. The S&P CNX Nifty fell 28.15 points or 1.02%, at 2744.95. Weak global markets weighed on the domestic bourses.

Key benchmark indices snapped four-day declining trend on 14 January 2009 led by frenzied buying in index heavyweight Reliance Industries (RIL) and IT pivotals. Strong buying momentum was seen in stocks of Anil Dhirubhai Ambani Group (ADAG) and Mukesh Ambani group in late trade on speculation the two warring Ambani brothers will reach out-of-court settlement over supply of gas from Reliance Industries (RIL)'s KG basin. However, RIL denied rumours of out-of-court settlement. The BSE 30-share Sensex surged 299.13 points or 3.30% at 9370.49. The S&P CNX Nifty gained 90.35 points or 3.29% at 2835.30.

Weak global equities and a deepening banking crisis in the United States pulled the domestic bourses lower in choppy trade on 15 January 2009. The BSE 30-share Sensex lost 323.75 points or 3.45% at 9,046.74. The S&P CNX Nifty lost 98.60 points or 3.48% at 2,736.70.

Index heavyweight Reliance Industries (RIL) led a rally on the bourses on 16 January 2009, triggered by the US government rescue of the largest US bank by assets, Bank of America. Optimism that the US government will act to prevent the year-long recession from deepening also aided the surge on the domestic bourses. The BSE 30-share Sensex gained 276.85 points or 3.06% to 9,323.59. The S&P CNX Nifty advanced 91.75 points or 3.35% to settle at 2828.45.

India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) spurted 5.85% after the company during trading hours on Thursday (15 January 2009), said its unit Reliance Petroleum (RPL) will start fuel exports from its new refinery this month. RPL, last month, commissioned its 5,80,000-barrels-per-day only for exports refinery at Jamnagar in Gujarat. RPL fell 0.75%

India's second largest private sector bank by net profit HDFC Bank shed 7.48, after the bank's gross net performing assets (NPA) rose 120.47% to Rs 1911.41 crore as at 31 December 2008 from Rs 866.97 crore as on 31 December 2007.

TCS, India's largest software services exporter by sales, fell 6.10%. on posting a lower-than-expected rise in net profit in Q3 December 2008. Tata Consultancy Services (TCS)'s standalone net profit as per Indian GAAP rose 3.31% to Rs 1,211.89 crore on 3.07% rise in sales to Rs 5,875.48 crore in Q3 December 2008 over Q2 September 2007. The TCS management said currency volatility had hit the growth of its revenue in Q3 December 2008.

The company reported a foreign exchange loss of Rs 250 crore, of which Rs 45 crore was a mark-to-market loss and the rest were hedging losses. TCS said that it added 41 new clients in Q3 December 2008 and hired 11,773 new employees.

India's fourth largest software services exporter Satyam Computer Services rose 2.52% after a member of the newly-nominated board, Deepak Parekh, said after trading hours on Thursday that Satyam had Rs 1700 crore in receivables and might not need financial help if payments arrived on time. The stock had plunged about a third on Thursday after the government said it was not considering a bailout package.

Meanwhile UK-based investment bank Lazard Asset Management sold over 1.13 crore shares of Satyam in a bulk deal on the Bombay Stock Exchange at Rs 21.71 per share on Thursday, 15 January 2009. On the same day, Lazard sold 2.44 crore shares at Rs 21.74 a piece on the National Stock Exchange. Overall, the firm has sold 5.3% out of the 7.34% it holds in Satyam.

India's fifth largest software firm by sales HCL Technologies gained 7.24% ahead of its Q2 December 2008 results on 23 January 2009.

Software firm Rolta India slumped 23.28% amid rumours that creditors with whom promoters had pledged their stake have resorted to fire sales in the open market. Rolta's chairman K K Singhm however, denied rumours that creditor had sold shares pledged by the promoters.

India's second largest software services exporter by sales Infosys Technologies soared 6.12% after it posted a 14.59% rise in net profit to Rs 1641 crore in Q3 December 2008 over Q2 September 2008. The company announced the Q3 December 2008 results on 13 January 2009.

Car sales in India fell 7% to 82,105 units in December 2008 over December 2007, the fifth drop in six months as high borrowing costs, tight credit and a slowing economy weighed on demand. Sales of trucks and buses fell sharply by 58% to 17,920 units in December 2008 over December 2007.

India's infrastructure sector output grew 2.2% in November 2008 over November 2007, government data showed on Monday (12 January 2009). The figure was below 3.4% annual growth in October 2008 over October 2007. Output had risen an annual 5.1% in November 2007, and in the 2007/08 fiscal year it rose 5.6% from a year earlier. The infrastructure sector accounts for 26.68% of India's industrial output.

India's GSM telecom companies have added over 8.1 million mobile customers in December 2008 (excluding Reliance Telecom) maintaining the robust pace in the world's fastest-growing mobile market. According to the latest data released by Cellular Operators' Association of India (COAI), the total GSM subscriber base rose to 257.85 million, up from 249.35 million in November 2008, a sequential growth of about 3.25% in December 2008. Worldwide, GSM-led mobile technology is more popular than rival CDMA.