Stocks to watch: Reliance, DLF, L&T, Satyam
Stocks are likely to be soft on Tuesday as investors are expected to book profits after a sharp rally in the previous session. Global cues are also not supportive.
By ET Online |
MUMBAI: Stocks are likely to be soft on Tuesday as investors are expected to book profits after a sharp rally in the previous session. Global cues are also not supportive.
Oil prices fell Tuesday on concerns of decline in demand owing to slow-down in global economy. US light, sweet crude for December delivery fell 3 per cent to $60.50 per barrel.
Indian rupee weakened to 47.53, down 0.5 paise against the dollar on expectations of dollar outflow from the local stock market.
Reliance Industries is unlikely to meet its previously-announced commissioning schedules for two key oil and gas projects, as depressed global fuel demand, the financial market turmoil and legal challenges to its plans force it to push back deadlines.
The refinery is likely to be commissioned in January 2009, rather than ���ahead of the initial deadline of December 2008���, a target revealed by RIL and Reliance Petroleum in July this year while announcing the first quarter results.
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DLF has put on hold construction of one of the most high-profile mall projects, ���Mall of India���, at Gurgaon, as retail rentals fall and cash becomes precious. The proposed venture was set to be the country���s largest mall, with around 4.5-million square feet space. The Anil Ambani-led Reliance Infrastructure has failed to win a bid to build India���s first monorail project in Mumbai on Monday after a consortium between engineering major L&T and Malaysian firm Scomi International bagged the Rs 2,460-crore contract.
Satyam Computer Services has decided to acquire US mobile maker Motorola���s software development centre in Malaysia. Satyam will absorb the centre���s 128 employees and take over the units assets as part of the deal. The acquisition is expected to create synergies and boost India���s fourth-largest software exporter���s competitiveness in Malaysia and Asia Pacific.
Indian enterprises in the several key sectors are seen cutting spending on information technology by up to 30% this year as they try to cope with lower demand for their products and services in a slowing economy. This is likely to negatively impact IT stocks.
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Quantum Fund, the investment vehicle of billionaire investor George Soros, has picked up close to 2% stake in power and infrastructure company GVK Power & Infrastructure for around Rs 35 crore. The investment has come at a time when many US-based investors have been on a selling spree amid concerns over acute financial crisis in the world���s largest economy. Increased presence of the Democrats in both US Houses is likely to benefit the Indian pharma industry through new legislations
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favouring use of low-cost generic drugs. The move assumes significance as expenditures on healthcare in the world���s largest market have surpassed $2 trillion in the past year and would prove to be a major target area for Indian pharma firms, one of the largest generic drug suppliers in the US.Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
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