TCS Q1 net up 5 per cent, lags forecast

TCS Q1 net up 5 per cent, lags forecast

Country's top software exporter, Tata Consultancy Services (TCS), narrowly missed forecasts with a 5 per cent rise in quarterly profit, as a global credit turmoil crimped outsourcing deals from its big financial clients.

Tata Consultancy, which provides services such as consulting, system integration and back-office outsourcing, said on Wednesday net profit rose to Rs 1,244 crore ($289 million) in its first quarter ended June from Rs 1,186 crore reported a year ago under US accounting rules.

A poll had forecast a net profit of Rs 1,251 crore for Tata Consultancy, whose clients include General Electric, Lloyds TSB Group, French insurer AXA SA and Qantas Airways. Ahead of the result, shares in Tata Consultancy, which the market values at about $17 billion, ended nearly 3 per cent down at Rs 727.35 in BSE that fell 0.79 per cent.

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Other Qtr Results:

Container Corporation Of India net profit rises 7.88% in the June 2008 quarterSales rise 5.71% to Rs 822.84 crore

Mindtree reports net loss of Rs 12.96 crore in the June 2008 quarter

ABC Bearings net profit rises 33.01% in the June 2008 quarter

Chambal Fertilisers & Chemicals net profit declines 61.43% in the June 2008 quarter

State Bank of Mysore net profit declines 80.34% in the June 2008 quarter

Mysore Paper Mills net profit rises 9284.62% in the June 2008 quarter

SKF India net profit declines 10.04% in the June 2008 quarter

Timken India net profit rises 44.16% in the June 2008 quarter

Housing Development Finance Corporation net profit rises 25.56% in the June 2008 quarter

Power Finance Corporation net profit declines 4.00% in the June 2008 quarter

Tata Teleservices (Maharashtra) reports net loss of Rs 34.72 crore in the June 2008 quarter

S.Kumars Nationwide net profit declines 37.04% in the June 2008 quarter

Excel Crop Care net profit rises 105.14% in the June 2008 quarter

Bafna Spinning Mills & Exports net profit rises 16.67% in the June 2008 quarter

Sunflag Iron & Steel Company net profit rises 94.34% in the June 2008 quarter

Modern India net profit rises 23.01% in the June 2008 quarter

Tata Metaliks net profit rises 31.71% in the June 2008 quarter

Country Club India net profit rises 46.21% in the June 2008 quarter

Source: ET, Capitalmarket

Trillion Dollar Economies: World Bank Report

Rapid growth in the four quarters of calendar 2007 ensured India became a trillion-dollar economy in nominal terms at the end of last calendar , according to a World Bank report. According to the World Development Indicators released on July 1, India was a $1.17 trillion economy at the end of calendar 2007. The US retained its pole position as the largest economy with GDP of $13.8 trillion. Following are names of the largest countries in terms of GDP.

For more @ http://economictimes.indiatimes.com/quickiearticleshow/3234829.cms

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Other Top stories:
Sensex, Nifty end at new 15-month lows
'Indian Clinical trials biz will touch $546 b FY 11'
Tata Teleservices Q1 net loss at Rs 34.715 cr
World's best places to invest in realty

Source: ET, Sify

New 15 month Low for Sensex, Nifty: ET

Market slumps to 15-month low as inflation worries persist

It was a classic example of a 'dead cat bounce' that the market witnessed on Wednesday as benchmarks collapsed to a 15-month low after a promising start. Even as global equities tumbled overnight after Fed Chairman Ben Bernanke spelled out serious economic risks facing the US, crude oil's steep fall below $139 per barrel gave a ray of hope for Indian markets, especially after being severely beaten down in the last few sessions.

However, the relief rally was short-lived as political uncertainty ahead of next week's parliamentary trust vote and worsening global credit crisis took precedence. Also, fears of inflation topping 12 per cent weighed on sentiment. Starting this week, inflation data will be released every Thursday at 5 pm instead of midday on Friday. Interest rate sensitive sectors like realty, automobiles and banks were punished the most as investors expect interest rates to inch up further if inflation continued to spike. The first sign of weakness was seen in the mid- and small-cap space, but as the day progressed, it seeped into frontline stocks as well, crippling the Sensex and Nifty.

Bombay Stock Exchange's Sensex closed at 12,575.80, down 100.39 points or 0.79 per cent after rising to an intra-day high of 12,935.25. The index fell to a new 15-month low of 12,514.02 during the day. National Stock Exchange's Nifty ended at 3816.70, down 44.40 points or 1.15 per cent. It saw a low of 3790.20 and high of 3920.05 intraday.

“The market lacks confidence as macro-economic factors and political uncertainties weigh on sentiment. I would advise investors to remain short till the market shows a convincing upmove backed by heavy volumes,” said an analyst with a local brokerage. Second line stocks were the worst affected. BSE Midcap Index declined 1.14 per cent to 5,104.66 and BSE Smallcap Index ended at 6,340.48, down 1.41 per cent.

But the standout performer was Ranbaxy Laboratories. Shortly before the market opened, the pharmaceutical major's CEO Malvinder Singh clarified on the Daiichi Sankyo stake buy and USFDA allegations over adulteration. He said there was a lot of speculation in the market due to lack of clarity on the issues and that the stock price of Ranbaxy doesn't reflect the potential of the company. He tried to put to rest rumours that Daiichi Sankyo was seeking to opt out of the acquisition.

Singh said that Daiichi Sankyo was fully aware of the USFDA issue before the deal took place. He added that the Lipitor settlement was independent of Daiichi Sankyo and there will be no change in the settlement with Pfizer. The stock, which had tanked 23 per cent in the previous two sessions, rebounded 15.02 per cent, making it the biggest gainer on the Sensex.

Other gainers were Bharti Airtel (2.87%), ONGC (2.52%), Hindustan Unilever (1.77%), Ambuja Cement (1.37%) and ITC (1.25%). DLF (down 7.73%), Jaiprakash Associates (6.09%), Mahindra & Mahindra (5.42%), HDFC (4.43%), SBI (3.32), Tata Steel (3.29%) and Tata Consultancy Services (2.98%) were the biggest losers in the Sensex. Market breadth remained weak through the day. On BSE, there were 1,803 declines and 810 advances, while on NSE there were 300 gainers and 948 losers.

Meanwhile, European stocks also declined after UK unemployment jumped the most in June since the last recession in 1992 as the economic slowdown forced companies to cut jobs and stop hiring. Claims for jobless benefits climbed for a fifth month, increasing 15,500 from May, data showed on Wednesday. The FTSE 100 declined 1.69 per cent, DAX 30 lost 0.69 per cent and CAC 40 slumped 1.02 per cent.
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BGR Energy bags Rs 4,900 cr order, stock up 9%
Chambal Fertilisers Q1 falls to Rs 23.80 cr
Rel Retail to open 50-60 'i stores'
Inflation data to be out on Thursday
Ambani brothers' spat highlights India's coalition politics

Parsvnath to invest Rs 400 crore in Nanocity project
Goldman Sachs retains 'buy' on Sesa Goa

Source: ET

US STOCKS-Dow closes below 11,000 as bank fears mount

US STOCKS-Dow closes below 11,000 as bank fears mount

* Dow closes below 11,000 for first time in two years
* S&P 500 slides over 1 pct, Nasdaq nearly flat
* Oil plunges over $6 a barrel, hurting energy shares
* Fannie, Freddie shares fall on worries over rescue plan
* Financial shares end lower in choppy trading (Adds Intel, Sun Micro after-hours rise)
By Walter Brandimarte

NEW YORK, July 15 (Reuters) - The Dow industrials closed below 11,000 for the first time in two years on Tuesday as doubts about the U.S. plan to rescue mortgage finance companies Freddie Mac and Fannie Mae hurt financial stocks and tumbling oil prices hurt energy shares.
Freddie and Fannie shares plunged over 25 percent on fears that a government plan to stabilize the companies will dilute the value of their shares. U.S. Treasury Secretary Henry Paulson said the plan was designed to be a backstop.

The whole banking sector finished lower, with the KBW banking index .BKX sliding 3.08 percent in an extremely volatile session, as investors feared the ongoing credit crisis could spur more bank failures after regulators took over IndyMac last week. Federal Reserve Chairman Ben Bernanke said the banking system is well capitalized, but also said that financial markets remain under "considerable stress."

"The weakness was concentrated in financials and it seemed like, despite the testimony from Bernanke and Paulson, skepticism remains related to all the credit issues," said Alan Gayle, senior investment strategist at Trusco Capital Management in Atlanta.

The Nasdaq edged up as investors bet Microsoft Corp (MSFT.O: Quote, Profile, Research, Stock Buzz) would ease concerns about slower growth at its Windows business when it reports earnings later this week. Shares of the software maker jumped 4.0 percent to $26.15.

The technology sector may get another boost on Wednesday after Intel (INTC.O: Quote, Profile, Research, Stock Buzz), the world's biggest chip maker, reported stronger-than-expected results after the market close and Sun Microsystems (JAVA.O: Quote, Profile, Research, Stock Buzz) posted preliminary results that pleased investors. Shares of Intel gained as much as 2.4 percent in after-hours trade, while shares of Sun Micro rose as much as 12.6 percent.

The Dow Jones industrial average .DJI dropped 92.65 points, or 0.84 percent, at 10,962.54, and the Standard & Poor's 500 Index .SPX fell 13.39 points, or 1.09 percent, at 1,214.91. The Nasdaq Composite Index .IXIC was up 2.84 points, or 0.13 percent, at 2,215.71.
Shares of Freddie Mac slumped 26 percent to $5.26 while Fannie Mae shares lost 27.3 percent at $7.07.

Despite the slide in the bank sector, shares of Lehman Brothers Holdings Inc (LEH.N: Quote, Profile, Research, Stock Buzz) surged 6.6 percent to $13.22 after a report that the investment bank was considering ways to go private. [ID:nN15304704]

Among energy shares, Exxon Mobil (XOM.N: Quote, Profile, Research, Stock Buzz) slid 3.8 percent to $82.19 as the price of crude oil plunged. The S&P energy index shed 4.19 percent.
Trading volume was moderate on the New York Stock Exchange, with about 1.85 billion shares changing hands, below last year's estimated daily average of roughly 1.90 billion, while on Nasdaq, about 2.7 billion shares traded, above last year's daily average of 2.17 billion.
Declining stocks outnumbered advancing ones on the NYSE by 3 to 1, whole on the Nasdaq, about 3 stocks fell for every two that rose. (Additional reporting by Jennifer Ablan; Editing by Leslie Adler)
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Oil steady under $139, eyes on U.S. oil demand
Bank shares sink to 1996 levels on loss fears
Bernanke: Markets under stress, outlook uncertain


Source: Reuters.com