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Wednesday, February 18, 2009

Stock Market News, Financial News - Feb 18, 2009

Satyam buyer may emerge soon; govt moves on Maytas

By Manoj Kumar and Rajesh Kumar Singh

NEW DELHI (Reuters) - A buyer for fraud-hit Satyam Computer Services may emerge by the end of February, a board member said, while the government sought the removal of boards of two companies linked to Satyam's founder.

Satyam's government-appointed board will meet on Saturday to discuss client and staff issues, board member and veteran banker Deepak Parekh said in New Delhi.

Asked by reporters whether he saw any buyer coming forward for Satyam, he said: "Yes. By the end of this month."  (More ....)


Instanex Skindia slips 7.5% on downturn

By Pradip Kumar Dey, Indian Express Finance

The Instanex Skindia DR Index bore the impact of the global economic downturn. During the first one and a half months of the calendar year 2009, the depository index slipped 99.01 points, or 7.5%.

The index was at 1,212.30 on February 16, down from 1,311.31 points on January 1, 2009. A sharp decrease in the price of depositary receipts (ADR/ GDR) pushed the index down.

Meanwhile, during the same period, the Sensex declined 598.01 points, or 6.01%. It was at 9,903.46 on January 1, and fell to 9,305.45 points on February 16, 2009.

Out of 15 companies that constitute the Instanex Skindia DR Index, 11 are listed on the Sensex. Among them, only five rose during the study period.  (More ...)


Nikkei down 1.4 pct as recession worry deepens

TOKYO (Reuters) - Japan's Nikkei stock average slipped 1.4 percent on Wednesday, with Mizuho Financial Group falling amid growing worries that the U.S. recession is deepening and fears about European banks.

The Dow Jones index and S&P 500 each fell to their lowest levels since Nov. 20 on Tuesday, despite U.S. President Barack Obama signing into law a $787 billion stimulus package, as weak manufacturing data showed the recession is deepening.

The benchmark Nikkei shed 105.41 points to 7,540.10, while the broader Topix lost 1.2 percent to 747.75.


Retail dream hits big bumps

Hindustan Times

Last August, global consulting firm McKinsey, in a tantalizingly titled report called, "The Great Indian Bazaar," said that by 2015, India's retail market would be worth $450 billion, roughly the current size of the Italian market.

Other consultants have different, but somewhat comparable numbers. A who's who of corporate names has jumped into the retail market pool: Reliance Industries Ltd , Bharti, Aditya Birla group, Future Group, Rahejas, Goenkas, Wadhwa group as well as smaller outfits such as Subhiksha and Vishal Retail.

Tesco and Wal-mart have forged ties with Tata and Bharti respectively, for their cash and carry business in India while Metro has also been active in India through its cash and carry outlets at multiple locations.

Big talk veered around the barriers to foreign direct investment (FDI) in the retail sector, with vehement opposition from those who feared this would lead to local shopkeepers going out of business. But suddenly, everything is in a phase of consolidation.

Subhiksha, which grew to over 1,000 outlets, is now in the middle of news over payment problems to employees. Debt-ridden retailers are struggling to meet capital needs for working capital purposes. The economic slowdown has hit both the demand outlook.

The economic slowdown, cues of which started appearing in October 2008, however took a toll on small fries such as Subhiksha and Vishal. Being debt ridden worsened their state as they struggled to get adequate working capital. Even big names like the Rahejas, the RPG Group and Reliance are busy tightening their belts, calling off partnerships or shutting down stores.

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