Sunday, January 18, 2009

Indian stock markets to track quarterly earnings

MUMBAI: Indian markets will track trends emerging from India’s corporate quarterly earning season in the coming week, dealers said. So far, the third-quarter earnings data has been mixed. Earlier in the week, Nasdaq-listed Infosys reported net profit grew by 33 percent to 16.41 billion rupees ($338 million) in the three months to December but gave a cautious full-year guidance. On Thursday, India’s largest software exporter TCS reported a lower-than-expected quarterly profit rise of 1.57 percent to 13.52 billion rupees ($276 million), hit by the global economic slowdown. Focus will also remain on the fraud-hit IT outsourcing giant Satyam as its new board seeks to chart the company’s recovery. For the week to January 16, the benchmark 30-share Sensex index fell 0.88 percent or 82.88 points to 9,406.47. Earlier this month, India eased foreign borrowing for real estate and certain other companies and allowed additional liquidity for non-banking financial firms to boost growth. The package also allowed state administrations to borrow up to 300 billion rupees ($6.2 billion) to meet extra expenditures and fund infrastructure projects. For the year 2008, overseas funds sold Indian stocks worth $13.13 billion for the year compared with a net investment of over 17 billion dollars in 2007.