Goldman Sachs lawsuit triggers sharp fall across global markets; downtrend may accelerate
The market swung sharply into negative territory on Monday, following weakness on Wall Street on Friday on news that the Securities and Exchange Commission (SEC) had filed civil-fraud charges against US investment bank Goldman Sachs.
The BSE Sensex closed at 17,400, down 190 points (1%) from Friday’s close, and the Nifty closed 59 points lower (down 1%) at 5,203.
The market opened on a weak note and then slipped sharply, but it rebounded in the afternoon session to pare off some of the losses.
Stock markets across Asia lost ground on Monday, dragging the MSCI Asia Pacific index down by the most in two months, on concern that the US suit against Goldman Sachs signals increasing regulatory scrutiny on financial companies. The key benchmark indices in Hong Kong, Japan, South Korea, Singapore, Indonesia and Taiwan fell by 1.43% to 3.17%.
US stocks snapped a six-day winning streak with a sell-off on Friday (16th April) after Goldman Sachs was charged with fraud by US regulators and corporate earnings fell short of heightened expectations. The Dow Jones industrial average was down 126 points (1.13%) at 11,018. The Standard & Poor's 500 Index was down 19 points (down 1.61%) at 1,192. The Nasdaq Composite was down 34 points (down1.37%) at 2,481.
The US treasury secretary has expressed confidence that the financial reforms will bolster the derivatives market and protect taxpayers from paying for any future bailouts.
The International Air Transport Association (IATA) has revised its estimates of airline revenue losses to $250 million from $200 million earlier. Most of Europe's airspace has been closed since Thursday after a huge ash cloud from an Icelandic volcano spread out, stranding millions of business passengers and holidaymakers and paralyzing freight and businesses worldwide.
In the Indian market, foreign institutional investors were net buyers on Friday to the tune of Rs243 crore. Domestic institutional investors were net sellers, offloading stocks worth Rs188 crore. The rupee ended lower on Monday, taking a cue from the stock market.
Core Projects & Technologies (down 2.4%) has received an order worth Rs120 crore from the government of Maharashtra. The scope of the project includes setting up of computer infrastructure in schools across three districts of Maharashtra.
ABB (up .5%) has received an order from the Bharatiya Rail Bijlee Company (BRBCL). BRBCL is a subsidiary of NTPC and Indian Railways. It is building a thermal power plant in Nabingarh to meet the increasing demand from rail networks in eastern and central India.
Roman Tarmat (down 1.6%) has received a project worth Rs 26.6 crore from the Tamil Nadu government for widening and strengthening the Minjur-Kattur-Thirupalaivanam Road.
Metal stocks were down on low demand for risky assets after the US Securities and Exchange Commission charged Goldman Sachs with fraud.
Petron Engineering (down 1.1%) has bagged a Rs180-crore order from Indian Oil Corporation for its Paradip Refinery project.
Jay Bharat Maruti (up 1.1%) posted an increase of 31% and 37% in sales and operating profit, respectively, in the March 2009 quarter over the corresponding year-ago period.
The monsoon is expected to be normal this year. The Met department said it expects scanty rainfall in the pre-monsoon season but rainfall will be in the normal range in July.
IL&FS Clusters is in talks with the governments of Orissa and Andhra Pradesh for developing industrial infrastructure in these states. At present, the group is working closely with the Karnataka government in the textiles sector
IL&FS Clusters Development Initiative Ltd plans to explore infrastructure development options in the states of Orissa and Andhra Pradesh. The company is in talks with the respective governments for developing industrial infrastructure for specific sectors. The company is already working with the Karnataka government to develop infrastructure for the state’s textiles sector.
“We are in talks with a few other states for working out things in a similar way like Karnataka. We are looking at states like Andhra Pradesh and Orissa,” said Girish Kamath, senior manager, IL& FS Cluster.
IL&FS Clusters is currently working with the Karnataka government on developing the industrial infrastructure for the textiles sector in the state. The group also has various other cluster-based projects all over the country. It is working with the ministry of textiles for developing integrated textile parks. “Out of around 45 planned parks, IL&FS is providing assistance to 33 of them,” added the official.
While, the group’s primary dominance has been in the textile and food-agro sectors, it also plans to explore other sectors. In Orissa and Karnataka, new sector opportunities, depending upon their predominance in the state, will be explored.
“We are looking at whether it should be a holistic model or some specific model (specific to a particular sector dominant in this state),” stated the official.
Apart from these sector-specific projects, the group also plans to bid for urban centres to be developed in different parts of the country. These government-initiated projects would be region-specific and not sector-specific.
“They (the government) have issued advertisements asking for private participation in developing infrastructure in the rural areas; we would be responding to them. Each project would require around Rs150 crore to Rs200 crore of investment. The government is planning around ten such projects,” said RCM Reddy, managing director, IL&FS Cluster Development Initiative Ltd.
Last year, Big Bazaar recorded sales of Rs700 crore. This time the Group is targeting growth of over 20% and sales of up to Rs850 crore
Kishore Biyani-promoted Future Group on Monday said it expects sales worth Rs850 crore during the month-long shopping festival at its stores, which began last week, reports PTI.
The Group also said it expects to attract over 2.75 crore bargain hunters at its 1,000 outlets across India during 'The Great India Shopping Festival'.
The festival, which began 16th April and will go on till 17th May, covers all Future Group stores, including Pantaloons, Big Bazaar, Central, Hometown, Food Bazaar and Brand Factory.
"Last year, during the first edition of the festival, we recorded sales of Rs700 crore. This time we are targeting growth of over 20% and total sales of up to Rs850 crore at our group's outlets," Big Bazaar business head for North Zone, Vineet Jain said.
He said the Group is also aiming to increase footfalls (number of customer visits) by over 20% during this year's festival.
"During the month, we are targeting footfalls of 2.75 crore, against 2.50 crore customers during last year. As the market condition currently is much better compared with last season, we expect a major boost in both demand and sales," Mr Jain said.
The festival, which was started last year by the Rs10,000-crore group, includes special discount offers, besides customer interactive programmes like food sampling, lucky draws and beauty contests.
"It also offers us an opportunity to amalgamate our shopping formats, which is part of our group's recent focus area. Besides, the customer engagement programmes allow our brands to be more recognisable," he said.
Future Group had last year announced plans to invest Rs3,000-Rs4,000 crore to more than double its retail space to around 24 million sq ft by 2013-14. This is part of its ambitious effort to increase revenue to Rs25,000 crore during the period, from Rs10,000 crore in 2008-09.