Yugal Kishore
Junior member
- Messages
- 10
- Likes
- 0
A steep interest rate cut by the Federal Reserve lifted the domestic bourses in early trade. However, the market soon plunged into the red after India's fourth largest software firm in terms of sales, Satyam Computer Services' aborted attempt to buy two related companies raised concerns about corporate governance standards at Indian firms.The BSE 30-share Sensex was down 55.51 points, or 0.55%, shedding 151.63 points from the day's high.
Satyam Computer Services slumped 23.29%. Bowing to investor pressure, Satyam called off a deal to buy Maytas Properties and Maytas Infra, the two firms promoted by the family of promoter and chairman Ramalinga Raju. The company made the announcement before trading hours today, 17 December 2008.
Satyam's shares, which closed down $6.85, or 55%, at $5.70 on the New York Stock Exchange, jumped 50% in after-hours trading to $8.89. Even after the evening rally they were still down 28% from Monday's (15 December 2008) close of $12.30. Investors slammed the move by Satyam to buy Maytas Properties for $1.3 billion and a 51% stake in Maytas Infrastructure for $300 a million, a move which could have wiped out its entire nearly $1.2 billion cash pile. Satyam had announced the acquisition after trading hours on Tuesday, 16 December 2008. Maytas Properties is into urban infrastructure development whereas Maytas Infra is into infrastructure construction and asset development.
Asia stocks pared gains after the firm start after the Federal Reserve on Tuesday, 16 December 2008, cut rates to a record low, paving the way for regional policymakers to take more aggressive actions to support growth. Key benchmark indices in China, Hong Kong, Singapore and Taiwan were up by between 0.46% to 1.26%. Key benchmark indices in Japan and South Korea were down by between 058% to 0.61%.
The Fed slashed its key interest rate to a target rate of zero to 0.25%. Fed also said it would use unconventional means to revive the US economy from a deep recession, including buying long-dated Treasuries.In an all-out battle to protect the US economy from deflation, the Fed explicitly said it would take steps to make sure benchmark rates remain low for some time and to keep its balance sheet loaded with debt. US stocks closed 5% higher after the Fed decision. US stocks closed 5% higher after the Fed decision.
At 10:22 IST, the BSE 30-share Sensex was down 55.51 points, or 0.55%, to 9,921.87. At the day's low of 9,886.33, the Sensex fell 90.65 points in early trade. The Sensex rose 96.12 points at the day's high of 10,073.10 hit in early trade.
The S&P CNX Nifty down 19.05 points, or 0.63%, to 3,022.70.
The market breadth was strong. On BSE, 924 shares rose as compared with 479 that declined. 41 shares remained unchanged.
Sterlite Industries, Grasim Industries, Maruti Suzuki India, ONGC rose by between 1.09% to 1.77%.
Reliance Infrastructure, DLF, Reliance Communications, Hindalco Industries fell by between 1.52% to 4.09%.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) fell 2.02% to Rs 1,361 on profit taking after a recent solid surge. From the recent low of Rs 1,118.60 on 5 December 2008 the stock had jumped 10.68% to Rs 1,238.15 on 16 December 2008.
Banking shares gained on hopes lower interest rates will boost lending growth. India's largest commercial bank State Bank of India (SBI) rose 0.44% as its advance tax payment rose 56% at Rs 1,700 crore in Q3 December 2008 over Q3 December 2007. India's second largest private sector bank by net profit HDFC Bank rose 1.71% as its American depository receipt (ADR) gained 11.63% on Tuesday 16 December 2008. Its advance tax payment fell 10.7% to Rs 250 crore in Q3 December 2008 over Q3 December 2007.
India's largest private sector bank by net
Satyam Computer Services slumped 23.29%. Bowing to investor pressure, Satyam called off a deal to buy Maytas Properties and Maytas Infra, the two firms promoted by the family of promoter and chairman Ramalinga Raju. The company made the announcement before trading hours today, 17 December 2008.
Satyam's shares, which closed down $6.85, or 55%, at $5.70 on the New York Stock Exchange, jumped 50% in after-hours trading to $8.89. Even after the evening rally they were still down 28% from Monday's (15 December 2008) close of $12.30. Investors slammed the move by Satyam to buy Maytas Properties for $1.3 billion and a 51% stake in Maytas Infrastructure for $300 a million, a move which could have wiped out its entire nearly $1.2 billion cash pile. Satyam had announced the acquisition after trading hours on Tuesday, 16 December 2008. Maytas Properties is into urban infrastructure development whereas Maytas Infra is into infrastructure construction and asset development.
Asia stocks pared gains after the firm start after the Federal Reserve on Tuesday, 16 December 2008, cut rates to a record low, paving the way for regional policymakers to take more aggressive actions to support growth. Key benchmark indices in China, Hong Kong, Singapore and Taiwan were up by between 0.46% to 1.26%. Key benchmark indices in Japan and South Korea were down by between 058% to 0.61%.
The Fed slashed its key interest rate to a target rate of zero to 0.25%. Fed also said it would use unconventional means to revive the US economy from a deep recession, including buying long-dated Treasuries.In an all-out battle to protect the US economy from deflation, the Fed explicitly said it would take steps to make sure benchmark rates remain low for some time and to keep its balance sheet loaded with debt. US stocks closed 5% higher after the Fed decision. US stocks closed 5% higher after the Fed decision.
At 10:22 IST, the BSE 30-share Sensex was down 55.51 points, or 0.55%, to 9,921.87. At the day's low of 9,886.33, the Sensex fell 90.65 points in early trade. The Sensex rose 96.12 points at the day's high of 10,073.10 hit in early trade.
The S&P CNX Nifty down 19.05 points, or 0.63%, to 3,022.70.
The market breadth was strong. On BSE, 924 shares rose as compared with 479 that declined. 41 shares remained unchanged.
Sterlite Industries, Grasim Industries, Maruti Suzuki India, ONGC rose by between 1.09% to 1.77%.
Reliance Infrastructure, DLF, Reliance Communications, Hindalco Industries fell by between 1.52% to 4.09%.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) fell 2.02% to Rs 1,361 on profit taking after a recent solid surge. From the recent low of Rs 1,118.60 on 5 December 2008 the stock had jumped 10.68% to Rs 1,238.15 on 16 December 2008.
Banking shares gained on hopes lower interest rates will boost lending growth. India's largest commercial bank State Bank of India (SBI) rose 0.44% as its advance tax payment rose 56% at Rs 1,700 crore in Q3 December 2008 over Q3 December 2007. India's second largest private sector bank by net profit HDFC Bank rose 1.71% as its American depository receipt (ADR) gained 11.63% on Tuesday 16 December 2008. Its advance tax payment fell 10.7% to Rs 250 crore in Q3 December 2008 over Q3 December 2007.
India's largest private sector bank by net
