Dawn 0f 13th Jan09
Rupee falls , 10Y 41 BP in 1 day on no aution, Govt Support again Satyam jumps 44% , Infosys, IIP 2.4, Credit declines for 5 fornights
Global Rout, Non Fe Melts , Oil Slips , Cannon declares loss, optimism wanes.
Investors demand refunds from realty, Tata Tele sell stake for working capital , IDBI home finance for sale
RUPEE
Ø INR extended its fall in afternoon trade on Monday as USD demand from some corporates and a sharp fall in the local share market weighed. INR opened at 48.83 vs a close of 48.74/75 . The IIP data did not have much impact on the INR. India’s industrial output rose 2.4 % in November, while a Reuters poll estimated a 1 % decline.
BONDS
Ø Yields should be ranged on Tuesday in the absence of fresh cues after yields plunged in the previous day as the government did not announce auction for this week. 10Y ended at 5.79 %, 41 basis points below Friday’s close of 6.20 %. It touched an intraday low of 5.72 %. Three states will sell 55.95 billion INRs of bonds on Tuesday, and the RBI will auction 90 billion INRs of treasury bills on Wednesday. The government’s indicative calendar showed it was scheduled to borrow 100 billion INRs of federal bonds between Jan. 12 and 16.
STOCKS
Ø Bellwether Infosys will set the trend for Indian shares on Tuesday, as it unveils quarterly earnings and gives its guidance before trading begins. Shares fell 3.15 % to their lowest close in more than five weeks on Monday as investors braced for tough quarterly earnings, but scandal-scarred Satyam jumped 44 % on hopes a government-appointed board will rescue the company. Traders said the broader market was also weighed down by concerns about tighter regulations and more negative disclosures by companies.
CALL
Ø Fell on Monday on lower demand for funds in the second week of the fortnight and lower-than-expected credit growth. Call rates ended at 4.00/4.20 %, down from Friday’s close of 4.20/4.30 %. It closed at the same level in an illiquid market on Saturday. “Almost all banks are comfortable with liquidity because credit has not picked up as expected.” Growth in bank loans on year has slowed for five consecutive fortnights, data from the RBI showed. Banks parked 288.60 billion INRs with the RBI at its reverse repo auctions of the day, while they did not borrow any funds through the repos, showing cash is surplus in the system.
GLOBAL
Ø DJIA 8,474.05 -125.13 Nikkei 8,456.48 -380.32 FTSE 4,426.19 -22.35 HSeng14,033.80 +62.80 US10Y 2.311 -0.087 EUR 1.3326 Yen 89.42 Gold 827.00 Crude 37.75
Ø U.S. stocks tumbled on Monday in the worst two-day slide in more than a month as investors worried about the outlook for embattled bank Citigroup and expectations mounted for dismal fourth-quarter earnings.
Ø FTSE fell for the fourth session in a row on Monday, as weakness in heavyweight commodity stocks eclipsed gains in banks.
Ø Nikkei average slid 4.3 % on Tuesday after earlier hitting its lowest point in a month, with Sony Corp tumbling on news of an operating loss and camera maker Canon Inc dropping on discouraging remarks about sales by its chairman.
Ø USD rose on Monday to a one-month high against the euro, which came under pressure on expectations the ECB will cut interest rates this week and after S&P warned it could cut its ratings for Spain.
Ø Gold dropped 4 % to a one-month low on Monday, dragging the other precious metals lower as oil fell and the euro extended losses against the USD, while physical demand was seen softening.
Ø Copper lost as much as 6 % to reverse earlier gains on Monday after a source said China’s State Reserves Bureau (SRB) could have suspended planned copper purchases and rising stockpiles increased worries about demand.
Ø Oil settled down nearly 8 % on Monday, dragged below $38 by the growing impact of the economic recession on global energy consumption.
INDIA FRONT PAGE
Ø Kingfisher Airlines has begun hedging 10-15% of its jet fuel requirements for the remaining part of this fiscal to help protect margins.
Ø Real estate firms such as DLF, Unitech , Omaxe and Parsvnath Developers are under pressure from buyers and investors, looking to exit projects yet to take off, for refunds.
Ø Tata Capital Ltd, Religare Enterprises Ltd and Dewan Housing Finance Ltd have bid to buy IDBI Homefinance, the mortgage arm of IDBI Bank
Ø Tata Communications Ltd has sought permission to sell its stake in Tata Teleservices to NTT-DoCoMo for 4.3 billion INRs to meet a working capital shortfall from DoT
[...] capital” (non-working capital) into working capital, and rescue ailing enterprises . Dawn 0f 13th Jan09 Investors demand refunds from realty, Tata Tele sell stake for working capital , IDBI home finance [...]