Market seen firm

Key benchmark indices are headed for a positive start on firm global cues. Stock specific action is likely to set the tone of the market as a slew of corporate results from frontline companies will unveil their results during the day. Also inflation data for the week ended 10 January 2009 will be watched closely.

In a move that may boost stock markets, market regulator Sebi on Wednesday, 21 January 2009, asked promoters of listed companies to disclose if they have pledged shares with lenders, while saying it has had no luck in determining the real size of the Satyam Computer fraud. The regulator's announcement on disclosure of pledged shares comes in the wake of the Satyam scam, wherein promoter Ramalinga Raju had pledged nearly all his shares, whose prices he had inflated by falsifying profits.

The details of disclosure should be made in two stages that is event-based and periodical, which will be notified shortly after amending the relevant regulations and listing agreements, Sebi chairman C B Bhave said after the board meeting.

On the flip side, the Planning Commission deputy chairman, Mr Montek Singh Ahluwalia yesterday, 21 January 2009 told the industry not to expect any more stimulus packages from government during this financial year ending March 2009. He said that enough has been done for the industry.

The government has already announced two stimulus packages to give a boost to the economy, reeling under the impact of the global slowdown. The government and the Reserve Bank were working in close coordination on steps to stimulate the economy, he noted.

Back home, Reliance Industries, Bharti Airtel, Ranbaxy Laboratories, Reliance Power, Kotak Mahindra Bank, Cipla, Bank of India, Idea Cellular, Bharat Forge, declare their December 2008 quarterly results today, 22 January 2009. Meanwhile, aggregate results of 339 companies showed 17.70% fall in net profit on a 23.50% increase in net sales in Q3 December 2008 over Q3 December 2007.

The street was anticipating poor Q3 December 2008 earnings from Indian Inc on high input costs, the credit crunch and high interest rates, coupled with the burden of piled-up inventories.

Foreign brokerage Morgan Stanley in its research report dated 5 January 2009 said earnings of 30 BSE Sensex firms are set for their first quarterly drop in Q3 December 2008, since the data was first made available in 1999. It estimates the BSE Sensex earnings to drop 0.2% year-on-year basis compared with a growth of 5.5% and 20% in the September 2008 and June 2008 quarters, respectively.

Asian markets opened soft today, 22 January 2009, as china's GDP grew at slowest pace in 7 years and Japan's export plunged most since 1980. China's Shanghai Composite was up 0.73% or 14.49 points at 1,999.46, Hong Kong's Hang Seng rose 1.37% or 172.72 points at 12,756.35, Singapore's Straits Times advanced 0.77% or 13.14 points at 1,717.66, and South Korea's Seoul Composite gained 0.94% or 10.4 points at 1,114.01. However, Japan's Nikkei was down 0.15% or 12.03 points at 7,889.61.

US stocks jumped on Wednesday, 21 January 2009 after a surprisingly healthy earnings report from IBM fueled optimism that technology profits may fare better than other sectors during the recession. The Dow Jones Industrial Average climbed 279.01 points, or 3.51%, to end at 8,228.10, the S&P 500 Index gained 35.02 points, or 4.35%, to finish at 840.24 and the Nasdaq Composite Index rose 66.21 points, or 4.60%, to close at 1,507.07.

Back home, a sell-off in late trade dragged key benchmark indices lower on Wednesday, 21 January 2009, in what was a global equities rout. Fresh worries the global banking crisis may last longer than expected rattled bourses across the globe. The BSE 30-share Sensex lost 321.38 points, or 3.53%, to 8,779.17 and the S&P CNX Nifty fell 90.45 points, or 3.23%, to 2,706.15.

Foreign institutional investors (FIIs) are in selling mode after an inflow of Rs 1319.10 crore in December 2008. Their outflow in January 2009 totaled Rs 2,936.60 crore (till 20 January 2009).

According to provisional data on NSE, FIIs were net sellers worth Rs 786.62 crore while mutual funds bought shares worth Rs 282.73 crore on Wednesday, 21 January 2009,