India Markets Tuesday Outlook: 5th Consecutive Close in the Red

by: Equitymaster November 18, 2008 | about stocks: EPI / IFN / IIF    

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In the final hours of trade, markets failed to recover and closed the day lower by 4% as compared to the yesterday’s close. While select stocks from the consumer durable and energy sectors garnered investors' interest, selling pressure was seen in stocks from the metal, power, pharma and software sectors. On the global front, the Asian indices closed weak and the European indices are witnessing negative trend.

The BSE Sensex closed 343 points lower, while the NSE Nifty closed lower by 116 points. The BSE Midcap and Smallcap indices closed in the green, up by 2% and 3% respectively. The rupee was trading at 49.72 to the dollar.

Taking cues from its global peers, Indian benchmark indices opened in the negative territory. Markets languished in the red throughout the day. However, bouts of buying and selling activity were witnessed during the day. Growing fear of prolonged recession and political uncertainty weighed heavy over indices, and markets closed well below the dotted line. The overall market breadth was negative with losers outnumbering gainers by a ratio of 2.6 to 1 on the NSE. Wipro (down 8%) and NTPC (down 7%) led the pack of losers on the BSE today.

TCS has announced the starting of operations at its new global delivery center at Tianjin, China. It would have a 300 seat delivery center and is TCS’s fourth global delivery center in China after Beijing, Shanghai and Hangzhou. The Tianjin center will seek to support local business opportunities as well as BPO opportunities for the Japanese, US and European market. The Tianjin delivery center is in line with the company’s intention of strengthening its global network delivery model which includes large delivery centers in India, Latin America, North America, Europe to provide service to its customers. While TCS closed 7% lower, its peers Infosys and Satyam ended 5% and 4% lower respectively.

As per a leading business daily, DLF is planning to put a number of hotel and housing projects on hold. The company has also deferred some of its projects due to poor demand in hotels, residential and commercial space. The company has made this move in wake of lower demand and liquidity crisis. These moves show poor revenue visibility going forward. It would also affect the profitability of the company. DLF ended 3% lower.

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This article has 1 comment:

  •  
    Dec 03 03:07 AM
    Bombay Stock Exchange and National Stock Exchange was closed on Thursday after the attacks, which killed 101 people and brought the security forces into two luxury hotels in south Mumbai.

    Aaron Lee Smith, MD of Superfund Financial mentions a rally coming soon but downside risks are there and eventually stocks are a dangerous place to be in.

    www.youtube.com/watch?...
    Reply | Link to Comment
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