Money on the markets
A maturing market amid the mayhem
Railways Minister Mamata Banerjee unveiled a populist budget on Friday that froze both passenger and freight fares, disappointing hopes for major reform in a lagging sector key to the country’s infrastructure growth.
Reuters spoke to people at the New Delhi railway station to get their reaction to the railway budget.
from India Masala:
The Union Budget is on everyone's mind and affects Bollywood too. Here's what people from the Indian film industry have to say --
Vipul Shah, Director
Vipul Shah, Director- "There have been a few burning issues that have plagued the industry for the last few years. Entertainment tax is pegged as high as 45 percent in Mumbai. There is always the impression amongst the general public and perhaps even the government that filmmakers rake in huge profits. The reality, however, is far removed. Films have an 80:20 success ratio -- this itself is self explanatory of the plight of most producers.
It was a good day for banking counters, as the banking index ended with gains of 1.5 percent in a Mumbai market that ended 200 points higher.
HDFC Bank was the top gainer in the index, ending up 4.15 percent, followed by IndusInd Bank which gained 2.4 percent. Federal Bank was the only stock in the index which ended in red.
Shares in Unitech, one of India’s leading real estate firms, rose 9.3 percent to close at 38.2 rupees, after a sell-off amid allegations that the firm was among those who were favoured in 2G licence grants in 2008.
On Tuesday, the CBI questioned Unitech’s MD as part of a probe into the alleged telecoms corruption scandal.
Software services exporter Mahindra Satyam jumped 11.7 percent to 64.65 rupees after the firm reported its third quarter net profit, which more than doubled from a quarter ago.
The company also said that it put a planned merger with its parent firm, Tech Mahindra, on hold.
from Krishna Das:
By Krishna N Das and Jonathan Saul
BANGALORE/LONDON, Feb 8 (Reuters) - Dry cargo shippers with smaller vessels are shifting to more-risk, more-reward spot markets, eyeing rising demand for sugar and grains -- commodities well suited to versatile supramax and handysize ships.
Ship owners generally prefer long-term charters in a weak market. The Baltic Dry Index <.BADI> o-year lows in recent weeks but confidence has been rocked by South Korean dry bulk group Korea Line Corp <005880.KS> filing for bankruptcy protection, highlighting the risk of charter-party defaults.
The BSE Realty index ended lower on Tuesday on concerns of increasing interest rates and as rising input costs weighed on investors.
Analysts said with foreign funds pulling out more than $1 billion from Indian equities since the start of January, the outlook for the near term remained subdued.
The BSE Realty index was down 3 percent, underperforming the benchmark index, which was down 1.5 percent. Shares of DLF, Unitech, Indiabulls Real Estate and Sobha Developers were down between 1 and 7 percent.
The Realty index has slipped over 20 percent in 2011. Do you see a further downside in real estate shares?
Shares in SpiceJet and Sun TV Network fell on market talk that Sun founder Kalanithi Maran’s deal of buying a stake in SpiceJet was under investigation by the Central Bureau of Investigation, four dealers said.
Shares of both the companies had fallen 7-13 percent on Friday
SpiceJet closed 2 percent lower at 47.65 rupees while shares in Sun TV Network ended 11.4 percent down at 410 rupees.
The BSE Power index fell 1.3 percent on Wednesday to end as one the top sectoral losers, as the broader market ended marginally higher.
Shares in JSW Steel dropped nearly 3 percent and ended as the top loser in the index. BHEL and NTPC shares lost more than 2.5 percent.