Weak global cues may trigger lower start

Key benchmark indices are braced for a subdued start on weak global cues. However losses may be capped on better than expected Q3 results from India's most valuable company Reliance Industries (RIL).

After market hours on Thursday, 22 January 2009, RIL reported a 9.81% fall in net profit to Rs 3501 crore on a 7.47% slide in total income to Rs 32226 crore in Q3 December 2008 over Q3 December 2007.

HCL Technologies, Canara Bank, Punj Lloyd, Concor, will declare their December 2008 quarterly results today, 23 January 2009. Meanwhile, aggregate results of 450 companies showed 28.80% fall in net profit on a 18.60% 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 stocks fell today, 23 January 2009, led by technology companies and commodity producers, after Sony Corp forecast its first annual loss in 14 years and economists predicted China's economy will slow further. China's Shanghai Composite was down 0.77% or 15.50 points at 1,989.45, Hong Kong's Hang Seng slipped 0.75% or 95.04 points at 12,562.95, Japan's Nikkei plunged 2.84% or 228.40 points at 7,823.34, Singapore's Straits Times fell 0.64% or 10.99 points at 1,697.78 and South Korea's Seoul Composite shed 1.85% or 20.6 points at 1,095.63.

US stocks fell on Thursday, 22january 2009, weighed down by Microsoft's proposed job cuts and disappointing earnings, while economic data showed further deterioration in the labor and housing markets.

The Dow Jones Industrial Average fell 105.30 points, or 1.28 per cent, to end at 8,122.80, the Standard & Poor's 500 Index slid 12.74 points, or 1.52 percent, to finish at 827.50. The Nasdaq Composite Index declined 41.58 points, or2.76 percent, to close unofficially at 1,465.49.

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 3698.90 crore (till 21 January 2009).

According to provisional data on NSE, FIIs were net sellers worth Rs 304.45 crore while mutual funds bought shares worth Rs 3.96 crore on Thursday, 22 January 2009.