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Once again this day also proved as a jittery for Indices and closed in negative for fourth consecutive day in row. Dispite of negative closing in US last night and weak Asian opening and trading market opened flat to negative on better than expected good number from tech bellwether Infosys Tech. But it also not helped the market to remain and close in postive zone, It fell below the psychological mark of 9,000 due to lack of cues in the noon trades and closed the session mildly on the lower side amid extreme volatility. Benchmark indices ended with marginal losses after seeing series of gyrations on either side. Gains led by IT pivotals on the back of stronger-than-expected Q3 December 2008 Infosys results were offset by fall in index heavyweight Reliance Industries (RIL). A fall in the European markets was another reason that kept the Indian markets slightly on the negative side during the second half.
The Sensex ended the day with a loss of 38.69 points, or 0.42% at 9,071.36 after touching a high of 9,261.00 and a low of 8,992.92. The broad-based NSE Nifty fell 28.15 points, or 1.02% at 2,744.95 after hitting a high of 2,802.60 and a low of 2,720.80. BSE Midcap and Smallcap index declined 1.43% and 1.51% respectively.
Crude & Currencies
The contracts for NYMEX crude sharply hitted on this slowdown and trading $39/barrel mark on NYMEX .
On expectation of money outflows by FII amid Satyam wovs India's Currency INR soften more in comparision to Dollar. On Tuesday arnd 7.00 PM it closed at 49.14 mark against dollar.
RESULT
Tech bellwether Infosys announced Q3 results, where net profit and revenues showed a growth of 14.6% and 6.8% respectively as against expectation of 7% and 5.5%. The company however lowered its full-year guidance due to expected currency fluctuation. The stock gained 6.4% in todays trade.
The strong growth in Infosys' Q3 net profit was mainly due to the depreciation of the rupee against the dollar. The growth in net profit was way above market expectations. The company's revenue rose 6.8% to Rs 5786 crore in Q3 December 2008 over Q2 September 2008. The revenue growth also surpassed market expectations. ( To read the Full story on Infosys Result CLick here )
Sectoral
It was a mixed day for sectroal indices, BSE IT ( up by 96.64 points or 4.71% at 2,147.69 ) and BSE Tech ( up by 14.84 points or 0.85% at 1,759.20 ) index was up while Oil & Gas ( down 1.78% or 99.69 points at 5,488.64 ) and Bankex index ( down 60.53 points or 1.17%, to close at 5,126.25 )was down. On SEXSEX Infosys ( + 6.36%) and Wipro (+ 6.05%) gained mostly and tops the index & become top gainers among sensex stocks, while R Com ( - 6.74%) and HDFC ( - 4.21 %) were down the most an slides the index most.
Tech Update : The BSE IT Index gained 96.64 points or 4.71% at 2,147.69. Infosys' strong-than-expected Q3 results and a weaker rupee lifted other IT pivotals. India's third largest software services exporter in terms of sales, Wipro recovered sharply from early low to end with 7.32% surge to Rs 244. It was the top gainer from the Sensex pack. The stock had slumped to low of Rs 200 in early trade. Wipro unveils its Q3 December 2008 earnings on 21 January 2009.
The stock had plunged 9.3% on Monday, 12 January 2009 after the company said during market hours it was barred from bidding for contracts from the World Bank until 2011 after it offered employees of the institution shares in its initial public offering. The announcement sent Wipro's ADR tumbling 10.37% on Monday, 12 January 2009.
India's largest software services exporter by sales TCS, too, rebounded from early low of Rs 488 and settled 2.98% higher at Rs 527. TCS unveils its Q3 December 2008 results on 15 January 2009.
However India's fourth largest software services exporter by sales Satyam Computer Services slumped 8.28% to Rs 31.55 as a quick-fix solutions is unlikely to rescue the firm hit by an estimated Rs 7,000 crore accounting fraud. The stock came off the session's high of Rs 37. Govt of India is expected to give Rs 2000 cr loan to satyam to save their employes, but it is not a easy work for them as there is new report coming out every time. RoC estimated that Rs 1000 cr is to be funded to satyam for their Day - day function in US. A unexpected move was come when PWC auditor of Satyam said to police that it itself verified the Rs 3300 fixed deposit. It put a question mark on Ex chief of satyam Ramalinga Raju confession.
The government-appointed directors on Monday, 12 January 2009 took charge of Satyam and announced that they would appoint a new auditing firm within 48 hours to re-state the accounts. Also, they would immediately begin searching for a new chief executive officer and a chief financial officer.
The government has reportedly offered to throw a financial lifeline to tottering Satyam Computer Services to help it pay salaries to some 53,000 employees and run its operations. The government will consider all aspects, including giving financial support, once it receives firm proposals from the newly-constituted board, Commerce and Industry Minister Kamal Nath said on Monday, 12 January 2009.
Oil & Gas : Oil & Gas Index underperformed other indices, down 1.78% or 99.69 points at 5,488.64. India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) lost 1.20% to Rs 1086.10. The stock swung in a wide range of Rs 1085 and Rs 1145 in choppy trade. The Centre will file an affidavit today, 13 January 2009 before the Bombay High Court on the sale of gas from the Krishna-Godavari basin. As per reports, the Centre is likely to state that the price of $4.2 per million British thermal unit (mBtu) will be applicable to all buyers irrespective of whether they are government-owned or private entities.
The Centre's submission could be crucial for National Thermal Power Corporation (NTPC), which is also locked in a dispute with RIL over the purchase of gas from the KG basin. RIL had earlier agreed to supply 12 million metric standard cubic meters per day of gas to NTPC at $2.34 per mBtu for 17 years.
India's top state-run oil exploration firm by market capitalisation Oil and Natural Gas corporation (ONGC) fell 2.92% to Rs 633.90 and India's top private sector oil exploration firm by market capitalisation Cairn India slipped 7.27% to Rs 152.95, as crude oil prices slumped on Monday, 12 January 2009.
Telecom : Telecom pivotals slipped on reports India's much awaited 3G spectrum license auction has been postponed yet again. India's second largest telecom services provider by sales Reliance Communication (RCom), slumped 6.42% to Rs 168.30 and was the top loser from the Sensex pack. India's largest telecom services provider by sales Bharti Airtel lost 2.82% to Rs 607
Bankex : Bankex fell 60.53 points or 1.17%, to close at 5,126.25. Private sector banking stocks declined on worries of rising bad loans in a slowing economy. India's largest private sector bank by net profit ICICI Bank fell 2.51% to Rs 427 after its ADR fell 7.31% on Monday, 12 January 2009. India's second largest private sector bank by net profit HDFC Bank shed 1.65% to Rs 987.65 after its ADR slipped 5.04% on Monday, 12 January 2009.
However India's biggest bank in terms of total assets and branch network, State Bank of India rose 1.40% to Rs 1173. The stock slipped 4.86% after the bank's Chairman O.P. Bhatt during trading hours yesterday, 12 January 2009, said the bank has an exposure of about Rs 500 crore to firms with the Maytas tag. Maytas Infra and Maytas Properties are owned by the family of Satyam's Raju. Bhatt said that the exposure was fully collateralised with no problem as of now. He said the bank was reviewing the exposure.
World Markets
Asian Markets : The region opened lower after a negaive closing in US market in Monday. All major indices of region slipped and closed in red. Asian stocks declined today, led by commodity producers. Jiangxi Copper fell more than 7% in Hong Kong. Inpex Corp. declined almost 8%. Japan Nikkei 225 index slipped 422.89 points and closed at 8,413.91. Hong Kong's benchmark index Hang Seng slipped -302.95 points and closed at 13,668.05 . Indian benchmark index SENSEX outperformed the region.
European Markets : The Euro range followed the trend of the US and asian market opening and closing pattern. All the indices of range slipped and closed in red. Euro, manufacturing hub and most expanded by GDP Germany index DAX ended at 4,614.98 slipping 104.64 points on closing basis. France CAC 40 index closed at 3,170.01 down 76.11 points. London based FTSE 100 index slipped 81.70 points and closed at 4,344.49 .
India`s second largest software services exporter, Infosys Technologies disclosed a substantial rise in its consolidated net profit for the third quarter ended December 2008. During the quarter, the profit of the company rose 33.31% to Rs 16,410 million from Rs 12,310 million in the corresponding quarter, in the previous year.
Total Income has grown by 31.54% to Rs 58,260 million for the quarter ended Dec.31, 2008 from Rs 44,290 million for the quarter ended Dec.31, 2007.
Standalone net profit
Infosys Technologies disclosed a substantial rise in standalone net profit for the quarter ended December 2008. During the quarter, the profit of the company rose 34.74% to Rs 15,980 million from Rs 11,860 million in the same quarter previous year.
Net sales for the quarter rose 35.76% to Rs 54,290 million, while total income for the quarter rose 31.94% to Rs 54,770 million, when compared with the prior year period. The company reported earnings of Rs 27.92 a share during the quarter, registering 34.42% growth over prior year period.
Highlights
Consolidated results for the quarter ended Dec. 31, 2008
- Third quarter revenues at USD 1,171 million, up 8% from the corresponding quarter last fiscal; in constant currency 14.6%.
- Earnings per American depositary share* (ADS) increased to USD 0.58 from USD 0.55 in the corresponding quarter last fiscal; year on year (YoY) growth was 5.5%.
- 30 new clients were added during the quarter by Infosys and its subsidiaries
- Gross addition of 5,997 employees (net 2,772) for the quarter by Infosys and its subsidiaries.
- 103,078 employees as on December 31, 2008 for Infosys and its subsidiaries
*The tax provision for quarters ended Dec. 31, 2008 and Dec. 31, 2007 includes a net tax reversal of USD 12 million and USD 13 million respectively. Excluding this reversal, the earnings per share for the quarters ended Dec. 31, 2008 and December 31, 2007 would have been USD 0.56 and USD 0.53 respectively, resulting in a YOY growth of 5.7%.
CEO`s comment:
``In a challenging environment, our focus is on creating value for clients, running an optimized business, and evolving our business model that will allow us to emerge stronger when the global economy starts recovering,``said S. Gopalakrishnan, CEO and managing director.
Business outlook
The company's outlook (consolidated) for the quarter ending Mar. 31, 2009 and for the fiscal year ending Mar. 31, 2009, under international financial reporting standards (IFRS), is as follows:
Outlook under IFRS
Quarter ending Mar. 31, 2009
Consolidated revenues are expected to be in the range of USD 1,128 million and USD 1,170 million; YoY decline of 1.2% to growth of 2.5%; in constant currency, growth of 4.7% – 8.6%.
Consolidated earnings per American Depositary Share are expected to be USD 0.55; same as last year.
Fiscal year ending Mar. 31, 2009
Consolidated revenues are expected to be in the range of USD 4.67 billion and USD 4.71 billion; YoY growth of 11.8% – 12.8%; in constant currency 15.6% – 17.6%.
Consolidated earnings per American depositary share (ADS) are expected to be USD 2.23; YoY growth of 9.9%.
COO`s comment:
``On a constant currency basis, pricing declined by 1.8% during the quarter,``said S.D. Shibulal, chief operating officer (COO). ``We are comfortable with the current pricing environment and believe that the pricing could get impacted if the situation worsens further.``
CFO`s comment:
``Our robust and flexible operating and financial models position us well in the current uncertain economic environment,``said V. Balakrishnan, chief financial officer. ``Our operating margins during the quarter increased primarily due to depreciation of rupee which was to some extent offset by the depreciation of other major currencies against the USD.``
This News is been taken from myiris.com . for more Information on India Earning Click here
Trade Performance for 13-01-2009
- Buy DLF @ 207 sl 204 tgt 211 - Exited at tgt. Made profit of Rs. 4/share. If traded with 150 shares, then profit of Rs. 600/trade.
- Swing Call - RNRL update Exited at 53. Made profit of Rs. 3.50/share. If traded with 500 shares, then profit of Rs. 1750/trade.
- Buy IB REALEST @ 110.25 sl 108 tgt 114 - Exited at 112.30 . Made profit of Rs. 2.05/trade. If traded with 150 shares, then profit of Rs. 308/trade.
- Short REL INFRA @ 495 sl 499 tgt 490 / 485 - Exited at tgt1. Made profit of Rs. 5/share. If traded with 100 shares, then profit of Rs. 500/trade.
- Buy Nifty Future @ 2782 sl 2767 tg 2810 - SL triggred. Loss of 15 points on Nifty Future. If traded with 1 lot , then loss of Rs. 750/trade.
- Buy Nifty Future @ 2753 sl 2737 tgt 2772/ 2792 - Exited at tgt1. Gained 19 points on Nifty Future. If traded with 1 lot , then profit of Rs. 950/lot/trade.
- Short HDIL @ 104.30 sl 107 tgt 101 - Exited at 101.70 . Made profit of Rs. 2.60/share. If traded with 250 shares, then profit of Rs. 650/trade.
Profit : DLF - Rs. 600/trade , RNRL ( SWING ) - Rs. 1750/trade , IB REALEST - Rs. 308/trade , Short REL INFRA - Rs. 500/trade , Nifty Future - Rs. 950/trade , Short HDIL - Rs 650/trade.
Loss : Nifty Future - Rs. 750/trade
Approx Profit : Rs. 4008/trade.
Links to This Week Performance Report ( 12-01-2009 to 16-01-2009)
Trade Performance for 12-01-2009 || Profit Rs. 1700/-
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