The markets remained volatile and are trading in the red on account of alternate bouts of buying and selling activity in the previous two hours of trade. Stocks from the power construction and engineering sectors are leading the pack of losers while stocks from energy, software and aluminium sectors are trading firm on the bourses. The overall decline to advance ratio is poised at 1.5:1 on the BSE.
The BSE Sensex and NSE Nifty are trading lower currently, down by almost 80 points and 20 points respectively. The BSE Midcap and Smallcap indices are trading lower by 0.3% and 0.2% respectively. The rupee is trading at 48.68 to the dollar.
Tata Steel plans to cut down steel production at its European subsidiary Corus by around 20% over the next three months. The company has decided to cut the production in order to mitigate the effects of the slowdown in near-term demand of steel, which is due to the global financial crisis. This move by the company may lead to cut backs in over supply of steel, thus helping it to maintain prices and reducing its inventory costs. The stock is trading lower by 1% alongside its peer SAIL (down 2%).
Satyam Computers announced its 2QFY09 results this morning. The company has grown its topline by 7.6% QoQ during 2QFY09 on account of higher volume growth of 4%. The operating margins declined by 1% QoQ during 2QFY09. Net profits grew by 6% QoQ during the second quarter of the fiscal. The management has revised estimates of FY09 revenue growth upward under Indian GAAP to the range of 33% and 35.4% and EPS is expected to grow in the range of 33% to 35%.
The company has been able to control its attrition rate during the quarter and the same fell to 12.3% from 12.6% in the previous quarter. While the stock of Satyam is trading higher by 3% its peer Infosys is trading higher by 1%.