BANGALORE, Jan 1 (Reuters) - India's main stock index is set
to start 2009 on a quiet note on Thursday, with little direction
from world markets and thin institutional participation, after
plunging more than half in 2008 in its biggest annual fall ever.
All major Asian markets were closed for the new year holiday, while the U.S. market rose on Wednesday as investors bet that fresh initiatives from Washington would help stave off a deep recession.
Shares in Tata Consultancy Services will be watched after the top outsourcer said acquisition of the Indian back office operations of Citigroup is bringing in new business and it was hopeful of closing two contracts.
ICICI Bank will also be in focus after the No. 2 lender cut its main lending rates by 50 basis points from Wednesday, joining other lenders that have lowered rates to revive growth.
'There won't be much excitement in the market today because there are no great triggers and institutional investors are still in a holiday mood,' said V.K. Sharma, head of research at Anagram Stock Broking.
Traders said investors would watch the annual inflation data which is seen falling to near 10-month lows in the third week of December, as lower fuel prices feed into the economy and the cost of manufactured products slides.
The data is due around noon (0630 GMT).
India's current account deficit swelled to a record $12.54 billion in the September quarter and analysts warned on Wednesday it could balloon further as the world economy slows, putting pressure on the rupee.
On Wednesday, the main 30-share BSE index fell 0.71 percent at 9,647.31 points. It plunged 52.4 percent in 2008, its worst annual performance ever, and the outlook for 2009 was muddled by uncertainties with corporate earnings set to slow sharply.
Indian stocks could see another round of correction in early 2009, though lower valuations and economic fundamentals should lend support later, a fund manager at Principal Asset Management told Reuters.
Foreign fund withdrawals of more than $13 billion weighed down Indian shares in 2008 after record inflows of $17.4 billion in 2007 when the BSE index had risen 47 percent.
--------------MARKETS SNAPSHOT AT 0347 GMT------------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 903.25 1.42% 12.610
USD/JPY 90.65 -0.02% -0.020
10-YR US TSY YLD 2.2189 -
0.000
SPOT GOLD 880.15 0.13% 1.100
US CRUDE 43.35 11.07% 3.630
DOW JONES 8776.39 1.25% 108.00
ASIA ADRS 95.04 0.96% 0.90
STOCKS TO WATCH
* Strides Arcolab Ltd after the drugmaker said its joint venture with Akorn Inc had received U.S. regulatory approval for two generic antibiotics.
* Bank of Rajasthan after the private sector lender said it was reducing its benchmark prime lending rate by 50 basis points to 15.50 percent from Jan. 1.
FACTORS TO WATCH
* Indian rupee report
* Indian bond report
* FOREX-Dollar records yearly gains, yen a standout in 2008
* Oil jumps 14 percent, products up
* GLOBAL MARKETS-World stocks ends up after historic losses
* US STOCKS-Wall St closes out worst year since Depression
* For closing rates of Indian ADRs
(Reporting by Sumeet Chatterjee & Sowmya Kamath; Editing by Ranjit Gangadharan) ASIA-PACIFIC STOCK MARKETS: Pan-Asia........ Japan....... S.Korea... S.E. Asia....... Hong Kong... Taiwan.... Australia/NZ.... India....... China..... OTHER MARKETS: Wall Street .... Gold ....... Currency.. Eurostocks..... Oil ........ JP bonds... ADR Report ..... LME metals. US bonds.. Stocks News US.. Stocks News Europe DIARIES & DATA: Indian Data Watch Asia earnings diary U.S. earnings diary European diary Indian diary Wall Street Week Ahead Eurostocks Week Ahead Upcoming IPOs TOP NEWS: For top Asian company news, double click on: U.S. company news European company news Forex news Global Economy news Technology news Telecoms news Media news Banking news Politics/General news Asia Macro data A multimedia version of Reuters Top News is available at: http://topnews.session.rservices.com LIVE PRICES & DATA: World Stocks Currency rates Dow Jones/NASDAQ Nikkei FTSE 100 Debt Indian rupee LME price overview Keywords: INDIA STOCKS/ (sowmya.kamath@thomsonreuters.com; +91 22 6636 9115; Reuters Messaging: sowmya.kamath.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
All major Asian markets were closed for the new year holiday, while the U.S. market rose on Wednesday as investors bet that fresh initiatives from Washington would help stave off a deep recession.
Shares in Tata Consultancy Services will be watched after the top outsourcer said acquisition of the Indian back office operations of Citigroup is bringing in new business and it was hopeful of closing two contracts.
ICICI Bank will also be in focus after the No. 2 lender cut its main lending rates by 50 basis points from Wednesday, joining other lenders that have lowered rates to revive growth.
'There won't be much excitement in the market today because there are no great triggers and institutional investors are still in a holiday mood,' said V.K. Sharma, head of research at Anagram Stock Broking.
Traders said investors would watch the annual inflation data which is seen falling to near 10-month lows in the third week of December, as lower fuel prices feed into the economy and the cost of manufactured products slides.
The data is due around noon (0630 GMT).
India's current account deficit swelled to a record $12.54 billion in the September quarter and analysts warned on Wednesday it could balloon further as the world economy slows, putting pressure on the rupee.
On Wednesday, the main 30-share BSE index fell 0.71 percent at 9,647.31 points. It plunged 52.4 percent in 2008, its worst annual performance ever, and the outlook for 2009 was muddled by uncertainties with corporate earnings set to slow sharply.
Indian stocks could see another round of correction in early 2009, though lower valuations and economic fundamentals should lend support later, a fund manager at Principal Asset Management told Reuters.
Foreign fund withdrawals of more than $13 billion weighed down Indian shares in 2008 after record inflows of $17.4 billion in 2007 when the BSE index had risen 47 percent.
--------------MARKETS SNAPSHOT AT 0347 GMT------------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 903.25 1.42% 12.610
USD/JPY 90.65 -0.02% -0.020
10-YR US TSY YLD 2.2189 -
0.000
SPOT GOLD 880.15 0.13% 1.100
US CRUDE 43.35 11.07% 3.630
DOW JONES 8776.39 1.25% 108.00
ASIA ADRS 95.04 0.96% 0.90
STOCKS TO WATCH
* Strides Arcolab Ltd after the drugmaker said its joint venture with Akorn Inc had received U.S. regulatory approval for two generic antibiotics.
* Bank of Rajasthan after the private sector lender said it was reducing its benchmark prime lending rate by 50 basis points to 15.50 percent from Jan. 1.
FACTORS TO WATCH
* Indian rupee report
* Indian bond report
* FOREX-Dollar records yearly gains, yen a standout in 2008
* Oil jumps 14 percent, products up
* GLOBAL MARKETS-World stocks ends up after historic losses
* US STOCKS-Wall St closes out worst year since Depression
* For closing rates of Indian ADRs
(Reporting by Sumeet Chatterjee & Sowmya Kamath; Editing by Ranjit Gangadharan) ASIA-PACIFIC STOCK MARKETS: Pan-Asia........ Japan....... S.Korea... S.E. Asia....... Hong Kong... Taiwan.... Australia/NZ.... India....... China..... OTHER MARKETS: Wall Street .... Gold ....... Currency.. Eurostocks..... Oil ........ JP bonds... ADR Report ..... LME metals. US bonds.. Stocks News US.. Stocks News Europe DIARIES & DATA: Indian Data Watch Asia earnings diary U.S. earnings diary European diary Indian diary Wall Street Week Ahead Eurostocks Week Ahead Upcoming IPOs TOP NEWS: For top Asian company news, double click on: U.S. company news European company news Forex news Global Economy news Technology news Telecoms news Media news Banking news Politics/General news Asia Macro data A multimedia version of Reuters Top News is available at: http://topnews.session.rservices.com LIVE PRICES & DATA: World Stocks Currency rates Dow Jones/NASDAQ Nikkei FTSE 100 Debt Indian rupee LME price overview Keywords: INDIA STOCKS/ (sowmya.kamath@thomsonreuters.com; +91 22 6636 9115; Reuters Messaging: sowmya.kamath.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2009 AFX News
