The Indian market is likely to open on a cautious note today on unsupporting global cues. Wall Street closed lower on Wednesday on gloomy earnings outlook by technology stocks — Adobe Systems and Microsoft Corporation. Most Asian markets are closed today for local holidays but those that are open were lower in subdued trade. The SGX Nifty was down 3.50 points at 5,990 against its previous close of 5,993.50.
The domestic market ended its three-day winning streak on Wednesday, as the recent rally led investors to book profits. With a clutch of Asian markets closed for local holidays, cues from the regional peers were limited. The lower opening of the influential European markets also weighed on the sentiments. While the market made feeble attempts of a recovery, it succumbed to the selling pressure. The Sensex ended 60 points (0.30%) down at 19,941. The Nifty settled at 52,991, down 18.05 points (0.30%).
The US market closed lower overnight on subdued earnings outlook by technology giants Adobe Systems and Microsoft Corporation. Adobe tanked 19% after estimating sales that missed analysts’ projections. PMC-Sierra fell 6% as the chipmaker cut its third quarter revenue forecast. Microsoft declined 2.2% after announcing a smaller-than expected dividend increase.
Stocks reversed earlier gains after the Federal Housing Finance Agency said US home prices slid 3.3% in July from a year earlier, the eighth consecutive decline, as foreclosed properties swamped the market. The Dow tripped 21.72 points (0.20%) to 10,739. The S&P 500 slid 5.50 points (0.48%) to 1,134. The Nasdaq shed 14.80 points (0.63% to 2,334.
Most Asian markets are closed for local holidays and the ones that are open are trading lower. Earnings outlook from US tech stocks also weighed on the markets. The KLSE Composite and Taiwan Weighted were down 0.41% each while Straits Times gained 0.02%. The SGX Nifty was down 3.50 points at 5,990 against its previous close of 5,993.50. Markets in South Korea, China, Japan and Hong Kong are closed for local holidays.
Directed by the government, telecom companies are understood to have partially upgraded their networks for lawful interception of BlackBerry Messenger (BBM) services only.
The solution for encrypting enterprise mails, however, remains elusive. This has been a major cause of concern which has prompted the government to ask BlackBerry service provider, Research In Motion (RIM), to enable monitoring or face termination of service.
Some of the operators have submitted compliance report for BBM to the Department of Telecom (DoT) which had asked the service providers to upgrade their technical capability for lawful interception facility of BlackBerry services, if not upgraded.
The market ended its three-day winning streak, as the recent rally led investors to book profits. With a clutch of Asian markets closed for local holidays, cues from the regional peers were limited. The lower opening of the influential European markets also weighed on the sentiments.
The local markets opened in the green this morning on support from the Asian bourses that were open today. The Sensex and Nifty touched their intraday highs of 20,105 and 6,037 soon after the opening bell. However, they could not sustain the gain as profit booking led the steep plunge in mid-morning trade. While the market made feeble attempts of a recovery, the market succumbed to the selling pressure.
The Sensex ended 60 points (0.30%) down at 19,941, gaining some strength from the day’s low of 19,802. The Nifty settled at 52,991, down 18.05 points (0.30%). It touched an intraday low of 5,946.
The market breadth on the Sensex was equated with 15 stocks in the green and a similar number ending in the red. The breadth on the Nifty was negative — 31 scrips declined, 18 edged higher and one stock returned unchanged. The broader indices underperformed the key benchmarks. The BSE Mid-cap index was down 0.37% while the BSE Mid-cap index shed 0.22%.
The top Sensex gainers included Maruti Suzuki (up 3.59%), HDFC (up 1.61%), State Bank of India (SBI) (up 1.40%), Tata Power (up 0.98%) and Wipro (up 0.92%). The main losers were Jaiprakash Associates (down 2.76%), Reliance Communications (RCom) (down 2.08%), Larsen & Toubro (L&T) 1.97%), TCS (down 1.91%) and Infosys (down 1.66%).
The sectoral gainers did not have any convincing gains today. BSE Consumer Durables (CD) (up 0.99%), BSE Bankex (up 0.42%) and BSE Fast Moving Consumer Goods (FMCG) (up 0.21%) were the noteworthy gainers. The losing sectors were BSE Realty (down 1.60%), BSE IT (down 1.33%) and BSE Technology (TECk) (down 1.05%).
At a time when the country is facing several internal security threats, home-grown security solutions firm Orkash has developed an automated intelligence- based network to combat situations such as terrorism, Naxalism and insurgency.
The system named Unconventional Conflict and Intelligence Management System (UCIMS) is highly capable of collaborating various databases and information sources to create local intelligence pivotal to executing sharp, focused operations.
While a clutch of markets in Asia remained closed for local holidays, the ones that were open ended on a mixed note. While the Hang Seng ended higher as the Hong Kong Monetary Authority expressed optimism on the country-state’s economic growth, the Japanese market settled in the red as the yen gained strength following assurances from the US Federal Reserve.
The Hang Seng gained 0.21% and the Straits Times added 0.02% in trade. On the Other hand, Jakarta Composite was down 0.64%, KLSE Composite was down 0.08% and Nikkei 225 was down 0.37%. Markets in China, South Korea and Taiwan were shut today.
All the BRIC nations — Brazil, Russia, India and China — would be member of the UN Security Council in the coming year and could present a united front on several contentious issues, a top Indian diplomat has said.
"This, of course, is predicated on India being elected in October, which is widely anticipated," India's envoy to the UN Hardeep Singh Puri told reporters.
The US market closed mixed on Tuesday as the Federal Open Market Committee (FOMC) reiterated its stand to infuse more money, if required, to boost the economy. However, it kept its overnight interest rates steady at near zero levels. In other news, US housing starts surged in August to their highest level in four months, while permits for future construction rose, indicating the housing market was beginning to stabilise. The Dow was up 7.41 points (0.07% at 10,761. The S&P was down 2.93 points (0.26%) at 1,139. The Nasdaq was down 6.48 points (0.28%) at 2,349.
Foreign institutional investors were net buyers of stocks worth Rs2,311 crore on Tuesday. Domestic institutional investors were net buyers of Rs30 crore worth of equities on the same day.
After nearly four years of legal wrangling, Sun Pharma (down 0.23%) has finally completed the acquisition of a controlling stake in Israeli firm Taro Pharmaceutical Industries Ltd.
Subsequently, the company chairman, Mr Dilip Shanghvi, has taken over as the chairman of the Tel-Aviv based firm, Sun Pharma said in a statement.
The Mumbai-based firm had signed a $454-million merger deal with Taro in 2007, which was terminated a year later by the Israeli firm unilaterally. After this, both the companies had filed various legal suits against each other.
Rating agency Crisil (down 0.63%) has signed an agreement to buy the business of US-based knowledge process outsourcing (KPO) firm Pipal Research Corporation for $12.75 million.
Crisil’s KPO division Irevna and Pipal combination will be uniquely positioned in the high-end analytical offshoring space with the widest range of services, geographic locations and customer diversity.
Elder Pharmaceuticals (down 0.65%) has closed its qualified institutional placement (QIP) issue for raising nearly $50 million (about Rs228 crore). The last date for the closure of the QIP issue was 21 September 2010, the company said in a filing to the Bombay Stock Exchange (BSE) on Wednesday.
Elder Pharma in an earlier filing to BSE had said that its QIP issue was to open with the floor price of Rs414 per share, thus setting the price band for the issue between Rs415 and Rs419.
Foreigners: Foreign institutional investors bought shares at the start and towards...