The Indian market is likely to open on a cautious note on global concerns. The geo-political tensions in Egypt pulled the US markets down on Friday, resulting in the biggest one-day loss in nearly six months. Rioting in Egypt also led to a week opening of the Asian markets on Monday. The SGX Nifty was down 92 points at 5,452 from its previous close of 5,544.50.
While the local market witnessed a marginal pull-back in late trade on Friday, the Egyptian turmoil will keep the market under pressure. On the economic front, the government will release the infrastructure output numbers for December later today, HSBC Purchase Managers’ Index data will be out on Tuesday and auto and cement sales data will be available later in the week. This apart, corporates continue to come out with quarterly numbers this week. These events will also give some direction to the market.
The market ended lower in the holiday-shortened week (ending 28th January) on persistent weakness from the domestic arena, fuelled by the rate-tightening move by the Reserve Bank of India (RBI), rise in weekly food inflation numbers and caution about corporate earnings estimates, going forward. It suffered a vicious third day of decline on Friday. The Sensex and the Nifty started lower at the opening and continued to fall sharply throughout the day. Towards the afternoon, panic selling gripped the market when it hit a low of 18,235 on the Sensex and 5459 on the Nifty after a free-fall. In the last hour, short covering and some value buying pulled the market higher. The Sensex closed at 18,396 and the Nifty at 5,512. The broader markets were also hammered in the day's trade. The BSE Mid-cap index tanked 2.66% and the BSE Small-cap tumbled 3.59%.
US markets suffered their biggest one-day loss in nearly six months on Friday triggered by anti-government rioting in Egypt. Investors offloaded stocks and chose to go in for less risky bets. The plunge ended the Dow's eight-week winning streak while the S&P slipped to a two-month low. Investors also were disappointed by earnings from several widely owned companies including Amazon.com and Ford. On the economic front, the government said Friday that the gross domestic product grew at a 3.2% annual rate in the fourth quarter, up from the 2.6% in the previous quarter.
The Dow dived 166.13 points (1.39%) at 11,823.70. S&P 500 fell by 23.20 points (1.79%) at 1,276.34 and the Nasdaq declined 68.39 points (2.48%) at 2,686.89.
Developments in West Asia also resulted in a subdued opening in most Asian markets. The developments renewed concerns about the global economic recovery process, which has been marred by debt issues in Europe, political tightening moves by China, and now the Middle-East crisis.
The Hang Seng tumbled 1.25%, the Jakarta Composite plunged 2.22%, the KLSE Composite declined 0.29%, the Nikkei 225 tanked 1.22%, the Straits Times lost 1.01% and the Seoul Composite was down 1.23%. Bucking the trend, the Shanghai Composite gained 0.45% and the Taiwan Weighted rose 0.47%.
Back home, the parliament’s Public Accounts Committee (PAC) has called RBI governor Duvvuri Subbarao on Thursday to record evidence in connection with the second generation (2G) spectrum allocation probe.
The committee, headed by senior BJP leader Murli Manohar Joshi, is expected to ask Mr Subbarao whether any bank regulations were violated while making the financial transactions related to the spectrum allocation. A Raja had to quit as telecom minister following a furore over the alleged irregularities in the 2G spectrum allocations.
“Export-related payments for goods and services into your PayPal account may not exceed $500 per transaction,” PayPal spokesman Dickson Seow said in a blog
Washington: Online payment service PayPal on Friday announced changes in its payment to Indian transactions, following the guidelines issued by the Reserve Bank of India (RBI) on requirements for governing the processing and settlement of export-related receipts facilitated by online payment gateways, reports PTI.
Beginning 1 March 2011, “any balance in and all future payments into your PayPal account may not be used to buy goods or services and must be transferred to your bank account in India within seven days from the receipt of confirmation from the buyer in respect of the goods or services,” said PayPal’s blog, spokesman Dickson Seow in a posting.
“Export-related payments for goods and services into your PayPal account may not exceed $500 per transaction,” he said in a blog.
Mr Seow hoped that this 30-day advance notice period will enable its Indian customers to plan their future use of its services accordingly.
For global users, he said he regrets the inconvenience to be caused from 1 March 2011, when they try to purchase from or send payment to an Indian merchant over $500 per transaction.
“For purchases or payments above this transaction value, you will have to use an alternative payment method,” he wrote.
In February last year, PayPal had announced to have suspended certain type of payment transaction in India.
“I am writing to let you know that personal payments to and from India and transfers to local banks in India have been suspended while we work with our business partners and other stakeholders to address questions they have about the service,” wrote PayPal spokesman Anuj Nayar in a blog posting in February 2010.
PayPal facilitates online payment and protects customers’ sensitive financial details with customizable security filters.
Net sales during the third quarter, however, rose by 26.49% at Rs9,276.73 crore as against Rs7,333.77 crore earlier
New Delhi: Dragged down by rising input costs, adverse foreign exchange movement and higher royalty payout, the country’s largest passenger car maker Maruti Suzuki India (MSI) today reported 17.80% decline in its net profit for the third quarter ended 31 December 2010 at Rs565.17 crore from Rs687.53 crore in the same period a year ago, reports PTI.
Net sales during the third quarter this fiscal, however, rose by 26.49% at Rs9,276.73 crore as against Rs7,333.77 crore.
“The third quarter this year compared to the same period last year was marked by pressure on margins primarily due to adverse foreign exchange movement and higher royalty payout,” the company said.
Increase in commodity costs during the quarter also impacted the margins, it added.
In terms of units, the company’s total sales grew by 28.16% at 3,30,687 units as against 2,58,026 in the year-ago period.
Domestic sales during the quarter grew by 36.83% to 2,99,527 units as against 2,18,910 units in the corresponding quarter last fiscal. The growth was led by Alto, Wagon R and Swift. It had posted the highest-ever sales in the domestic market with 1,07,555 units in October 2010.
In November 2010, the domestic sales touched 102,503 crossing the one lakh milestone for the second time in the quarter.
Exports during the quarter were down by 20.34% to 31,160 units from 39,116 units in the same period last fiscal, it said.