The last big wave of selling is on the cards
The market witnessed a steep plunge, closing at a three-month low on the back of negative global cues. The Sensex plunged 509.40 points in intraday trade to go below the 16,000 level. It shut at 16,022.48, down 447.02 points (2.71%). The Nifty tanked 137.20 points (2.78%), to close at 4,806.75.
All Asian equity markets finished in negative terrain on Tuesday as worries over the European debt crisis erupted when the Bank of Spain stepped in to rescue CajaSur, a savings bank (which has $16.36 billion of outstanding loans), after the bank failed to finalise a merger. The seizure of CajaSur brings up further concerns over Spain’s creditworthiness.
The Shanghai Composite declined 50.79 points or 1.90% to 2,622.63; the Hang Seng dropped 682.26 points or 3.47% to 18,985.50; the Jakarta Composite fell 95.49 points or 3.66% to 2,514.12 and the KLSE Composite slipped 23.56 points or 1.85% to 1,250.13.
Similarly, the Nikkei 225 tumbled 298.51 points or 3.06% to 9,459.89; the Straits Times shed 72.68 points or 2.67% to 2,651.19; the Seoul Composite dipped 44.10 points or 2.75% to 1,560.83 and the Taiwan Weighted was down 236.36 points or 3.23% to 7,086.37.
US markets once again closed in the red overnight, led by a late sell-off. The major indices made a positive start, but as the day proceeded, worries over the European debt crisis and uncertainty about the US government’s financial overhaul plan made investors cautious and led the indices into the red. The Dow lost 126.82 points (1.24%), to 10,066.57. The S&P 500 fell 14.04 points (1.29%), to 1,073.65, and the Nasdaq closed lower by 15.49 points (0.69%), to 2,213.55.
Back home, petroleum minister Murli Deora hinted on Monday that prices of auto and cooking fuels might be hiked following an inter-ministerial meeting on 7th June amidst surging under-recoveries of the three public sector oil marketing companies—Indian Oil, HPCL and BPCL.
Cipla was the only one stock in the Sensex which managed to settle in the green while Sun Pharma and Siemens were the only stocks to end higher on the Nifty.
The major losers on the Sensex were Reliance Communications (RCom) down 6.32%, Hindalco Industries was down 5.43%, Tata Motors was down 4.66%, Sterlite Industries was down 4.49% and Tata Steel was down 4.45%.
The top losers on the Nifty were SAIL (down 6.09%), RCom (down 5.81%), Hindalco (down 5.63%), Jindal Steel (down 5.59%) and Ambuja Cements was down 5.58%.
All sectors on the BSE sectoral space ended in the red. The main losers were metal (down 5.10%), consumer durables (down 4.45%), capital goods (down 3.09%) and oil & gas (down 2.58%).
The wireless broadband access (BWA) spectrum auction kick-started on Monday. On the first day itself, the price for a pan-India spectrum rose by as much as 34.5% above the base price of Rs1,750 crore, to close at Rs2,354.53 crore.
A total of five clock rounds were completed on Monday with the government revenue touching Rs4,706.36 crore at the end of the day. If the payment from the publicly owned BSNL and MTNL is also included, the government revenue will surge further to Rs6,940 crore.
At the time of writing, the Dow was trading 210.40 points down at 9,856 and European markets were all down 2%-4%.
The retail investor category was subscribed 0.01 times while the FII category received zero bids
Standard Chartered Plc’s Indian depository receipts (IDR) issue, which hit the market today, has received a lacklustre response from foreign institutional investors (FIIs) and retail investors.
Retail investors bid for 7.22 lakh shares out of the total quota of 7.20 crore shares. The retail category was subscribed 0.01 times. Retail investors have been given a 5% discount in this issue. The Foreign Institutional Investor (FII) category received zero bids.
The Qualified Institutional Buyers (QIBs) category was subscribed 0.12 times from 8.40 crore shares reserved under the category. Domestic Institutional Investors (DIIs) bid for 86.95 lakh shares while mutual funds (MFs) bid for 17.10 lakh shares.
Similarly, the Non-Institutional Investor (NII) quota saw a lukewarm response. It was subscribed 0.0009 times, and received bids for just 40,800 shares from individuals. Even corporates have shied away from investing on the first day, which saw zero bids.
Employees subscribed for just 1,600 shares from the reserved quota of 48 lakh shares. The company has 20.40 crore shares on offer, including 3.60 crore shares for anchor investors at a price of Rs104 per share. The company has 16 anchor investors on board. Overall, the issue was subscribed 0.05 times on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
The company is planning to raise Rs2,400 crore-Rs2,760 crore through the IDR issue with a price band of Rs100-Rs115. The issue opened today and closes on 28 May 2010.
The global conglomerate is selling a number of its consumer electronic and home appliance products in India. However, getting through to the company for any kind of customer service can be a daunting task
Chinese manufacturers have swamped the globe with their low-priced products. Walk down an aisle of a supermarket or mall selling electronic items in any developed country and the chances are that you will find the shelves stacked with Chinese goods.
Haier India is a Chinese company which made a mark in the Indian market because of its wide range in low-cost home appliance and consumer electronics products. A price-line below what the overall market has to offer has always been the company’s strategy to increase its customer base. Its product offering includes refrigerators, air-conditioners, washing machines, LED & LCD televisions and water-heaters. But the quality of the company’s after-sales service is a different story.
The most important part that any manufacturer has to take care of is the after-sales service. Haier might be a conglomerate with operations in many parts of the globe, but there are a number of complaints against this multinational on the deafening silence that its customer-service department seems to stoically maintain, despite numerous complaints.
Haier India is a subsidiary of the Haier Group, which started its commercial operations in Delhi in January 2004. Haier has an established dealer network of around 1,600 outlets across the country, with what it proclaims to be a “strong service and after-sales service network.” Haier products are also available at all major retail outlets in cities across the country. The company has almost 18 branch offices & 25 warehouses; six direct service centres & 135 Haier ‘customer-care’ centres with a 24-hour call centre service.
Apparently, according to a former Haier employee (who preferred anonymity), the company does not have enough service centres around the country. Furthermore, the existing service centres are not stocked with enough spare parts—and service technicians usually have to wait for days before they attend to a particular customer complaint.
The customer care number on the Haier India site is barely decipherable.
Here are just a few of the complaints against Haier:
Vaidya DV from Pune-based Ablesoft Computers had bought a fridge from Haier through its retailer Gokul Electronics on 1 September 2006. Mr Vaidya told Moneylife that the refrigerator was not operational when it was installed—it was taken away by Haier for repairs, but it continued to remain non-operational. Mr Vaidya then filed an appeal against the company, but Haier chose not to appear in court for four successive hearings. The customer was forced to run from pillar to post but is still awaiting justice.
Yogesh Sapkale, deputy editor of Moneylife had a similar experience with a Haier phone handset. “I bought the handset and as soon as I inserted a SIM card, the phone went on the blink. I have been trying to reach the Haier customer care department since last year. First I had gone to the Ghatkopar (a Mumbai suburb) service centre after speaking with the chief technician. I had to skip office twice to give the handset for repairs as Haier refused to receive calls. The handset is still lying at the Kalyan service centre. They have changed the service centre and have not bothered to even inform me about the same,” said Mr Sapkale.
Achintya Mukherjee, a consumer activist has also had a similar experience. “We had bought a Haier fridge about three years ago. We wrote to the company as the piece was defective and since they were going to replace it anyway, we asked for a bigger one. At the same time, we were constantly in touch with their main office in Faridabad. It took them nearly three to four months to replace the fridge and we had immediately deposited the cheque as payment for the replacement as well. It took them three months even to credit the amount to their account. Maybe they are not equipped to handle so many customers in India. The initial service support of the company doesn’t seem to be in place because it is not a bad product per se but a bad piece. The fridge is working fine till date.”
When Moneylife tried to contact Haier’s customer-care department, through their customer care number, it was constantly busy.
We finally got through to a Haier India spokesperson (VV Rao), but he preferred not to comment on any of the above cases.
Is this how Haier plans to service its existing customers and increase its market share in India?