Tuesday 22 November 2011
Globals Indian markets
Indian markets continued losing streak for eight straight days, down -2.6 percent yesterday, to their lowest close in more than six weeks as global markets tumbled on as negative news flows continued to hurt investor sentiments.
Asian, European and US stock futures, all registered steep losses, after investors worried that the crisis is not limited to Euro-zone and may spread to US and China. News reports that the US congressional committee assigned to draft a plan for cutting $1.2tn from the nation's deficit over 10 years is expected to announce that it has failed along with Moody's warned France that it may change its "stable" outlook on the rating to "negative" in the coming months and sharply weaker rupee led the global market fall. All sectoral indices closed on negative with metal, bank, real estate and power stocks were major losers. Metal stocks hurt most on sell as commodity prices all over the world fall sharply. Gold and crude oil were down 1% and 1.9%, respectively. India's miners and metal companies followed the weakness in the global mining stocks. Bharti Airtel fell 2.3 percent after the federal police searched its office along with that of Vodafone's Indian unit over the weekend, seek details on spectrum allocation by the government to operators between 2001 and 2002. Rural Electrification Corp, a lender to TNEB, gained -2% on media reports that Tamil Nadu Electricity Board (TNEB) has sought the power regulator's approval to increase tariffs by 38%.
Market breadth was weak at -0.4x as investors sold large cap stocks. FIIs sold equities worth Rs.7.43bn while domestic institutions bought equities of Rs.5.95bn.
Asian stocks traded off their worst levels Tuesday, as investors appeared to temporarily look past the debt worries that have recently gripped markets to pick up shares in selected firms.We expect a weak start for the Indian markets tracking the global cues. However, a bounce back is possible as Asian markets are off their day's lows.
Economic and Corporate Developments
According to research firm Gartner, Indian companies are expected to continue investing in IT infrastructure despite global economic challenges and the country's IT spending is projected to grow 9.1% to $79.8bn in 2012 against an IT spending of $73.1bn in 2011.
Amid sustained fall in rupee's value, the Plan panel attributed the decline to volatility in the global currency market, but expressed the hope that the Indian currency would stabilize soon.Atlanta received in principle approval from the state government to set up a $2bn (Rs.10,412Cr) theme park in Surat.
Infosys plans to expand in Northern region. The company hired 5700 employees at its Chandigarh facility.Infosys said further deterioration of economic conditions in US and Europe could hit the domestic IT sector, though at present the impact was not as bad as it was in 2008.
Reliance Broadcast Network tied up with the US based wrestling show producer Lucha Libre for content sharing and is eying more partners for such tie-ups for its TV channels in India.
US markets
U.S. stocks sank Monday, pulling the Dow Jones Industrial Average into negative territory for 2011, as the lack of progress by American lawmakers in reaching a deficit-cutting agreement magnified worry that Europe’s debt crisis would spur a global downturn.After falling as much as 342 points, the Dow Jones Industrial Average finished at 11,547.31, losing 248.85 points, or 2.1%. The S&P 500 Index fell 22.67 points, or 1.9%, to 1,192.98. The Nasdaq Composite Index declined 49.36 points, or 1.9%, to 2,523.14.
Asian, European and US stock futures, all registered steep losses, after investors worried that the crisis is not limited to Euro-zone and may spread to US and China. News reports that the US congressional committee assigned to draft a plan for cutting $1.2tn from the nation's deficit over 10 years is expected to announce that it has failed along with Moody's warned France that it may change its "stable" outlook on the rating to "negative" in the coming months and sharply weaker rupee led the global market fall. All sectoral indices closed on negative with metal, bank, real estate and power stocks were major losers. Metal stocks hurt most on sell as commodity prices all over the world fall sharply. Gold and crude oil were down 1% and 1.9%, respectively. India's miners and metal companies followed the weakness in the global mining stocks. Bharti Airtel fell 2.3 percent after the federal police searched its office along with that of Vodafone's Indian unit over the weekend, seek details on spectrum allocation by the government to operators between 2001 and 2002. Rural Electrification Corp, a lender to TNEB, gained -2% on media reports that Tamil Nadu Electricity Board (TNEB) has sought the power regulator's approval to increase tariffs by 38%.
Market breadth was weak at -0.4x as investors sold large cap stocks. FIIs sold equities worth Rs.7.43bn while domestic institutions bought equities of Rs.5.95bn.
Asian stocks traded off their worst levels Tuesday, as investors appeared to temporarily look past the debt worries that have recently gripped markets to pick up shares in selected firms.We expect a weak start for the Indian markets tracking the global cues. However, a bounce back is possible as Asian markets are off their day's lows.
Economic and Corporate Developments
According to research firm Gartner, Indian companies are expected to continue investing in IT infrastructure despite global economic challenges and the country's IT spending is projected to grow 9.1% to $79.8bn in 2012 against an IT spending of $73.1bn in 2011.
Amid sustained fall in rupee's value, the Plan panel attributed the decline to volatility in the global currency market, but expressed the hope that the Indian currency would stabilize soon.Atlanta received in principle approval from the state government to set up a $2bn (Rs.10,412Cr) theme park in Surat.
Infosys plans to expand in Northern region. The company hired 5700 employees at its Chandigarh facility.Infosys said further deterioration of economic conditions in US and Europe could hit the domestic IT sector, though at present the impact was not as bad as it was in 2008.
Reliance Broadcast Network tied up with the US based wrestling show producer Lucha Libre for content sharing and is eying more partners for such tie-ups for its TV channels in India.
US markets
U.S. stocks sank Monday, pulling the Dow Jones Industrial Average into negative territory for 2011, as the lack of progress by American lawmakers in reaching a deficit-cutting agreement magnified worry that Europe’s debt crisis would spur a global downturn.After falling as much as 342 points, the Dow Jones Industrial Average finished at 11,547.31, losing 248.85 points, or 2.1%. The S&P 500 Index fell 22.67 points, or 1.9%, to 1,192.98. The Nasdaq Composite Index declined 49.36 points, or 1.9%, to 2,523.14.
