Indian Markets Tuesday Wrap-Up: Weak India, Mixed Asia

While the Indian markets managed to curb a part of their losses during the final hour of trade, they still ended the day well below the dotted line. The BSE-Sensex closed with losses of around 80 points, while the NSE-Nifty closed lower by 20 points. Stocks from the mid-cap space ended the day in the red. However, small-cap stocks remained in the limelight, as they ended the day on a firm note. Sector-wise, stocks from the auto and power ended the day in the green. However stocks from the IT and banking space led the pack of losers. Most other Asian markets closed on a mixed note. The European indices are currently trading weak. Rupee was trading at 51.47 against the US dollar at the time of writing.

Large cap auto stocks ended the day on a firm note led by Tata Motors and Maruti. As per a leading business daily, Tata Motors’ subsidiary Jaguar Land Rover (JLR) plans to source auto components from Indian vendors going forward. As such, the team of executives from JLR is expected to visit factories of suppliers in the next few weeks to initially conduct audits of the quality and production systems. On account of low cost and high quality products of Indian auto components manufacturers, the management is looking at reducing JLR’s costs. It may be noted that Tata Motors had indicated that sourcing components and low-cost engineering and design services were two of the long term benefits gained from acquiring JLR. This is a positive move for Tata Motors as it will help JLR to turn around faster.

Large cap software stocks ended the day on a weak note led by TCS and Infosys (INFY). As per a leading business daily, post the unraveling of the fraud, Satyam (SAY) has lost nearly 46 major customers. While some clients have cancelled their plans, the others have shifted business to the company’s peer group. The reason behind the same has been on account of its unstable operations and uncertain future. The latest client to join the list was Abu Dhabi Bank which moved to 3iInfotech. Other major clients who have entered this list include Applied Materials (AMAT), Kansas State Bank, Telstra (TLS), Emerson (EMR), Nissan (NSANY), State Farm Insurance and Sony (SNE), amongst others. While the new management has been making efforts to restore confidence among the clients, the outlook remains uncertain.

As per a leading business daily, output from India’s special economic zones (SEZs) is growing at a faster rate than the country’s average exports. According to the commerce secretary, facilities at the existing SEZs are likely to record a 40% YoY increase in exports this fiscal as compared to the country’s export growth rate of 10% YoY. In addition, he believes that in FY10, SEZ exports will further grow by 55% YoY.

After witnessing a three month slump post October, foreign direct investments (FDIs) in India have grown by 55% YoY in the month of January 2009. According to data available on the ministry's website, FDI inflows stood at US$ 2.7 bn in January as compared to US$ 1.8 bn in January 2008. In addition, inflows for the period between April 2008 and January 2009 grew by 65% YoY over the corresponding period in the previous year. The ministry expects the total inflows to stand at US$ 35 bn during FY09.

Comments

[staples - w...:]

How is GNBT and Oral-Lyn doing over there?

I think I dated a girl with that name once. Sorry wasn't intended but too funny to pass up

Staples-weebs

Mar 23 01:17 AM