Share markets listless, techs weak
MumbaiThe share market was sluggish this week and technology stocks were expected to be hit by news that US analysts had slashed earnings forecast for software giants like Oracle, fund managers and dealers said.
Analysts said sentiment for domestic software firms would be edgy as long as global technology companies maintained weak earnings forecasts due to the US economic slowdown.
The Nasdaq Composite Index fell to its lowest close in four months at 1,956.47 on Friday, after losing 2 per cent earlier as analysts lowered their forecasts.
The US technology-laden index ended down 0.35 per cent even as the Dow Jones Industrial Average rose 1.14 per cent on hopes of more rate cuts from the US Federal Reserve.
The key Indian share index closed little changed over the week at 3,316.21 points, trading in a 76.7-point band, and investors are expected to be sidelined as they seek a clearer direction.
Local stockmarkets did not react much to downgrades of India's ratings by two global agencies, Standard & Poor's and Moody's Investors Services, last week.
Foreign funds also were net buyers of Indian shares last week, buying equities worth $9.3 million in the two days after the downgrades.
Dealers said quarterly structural changes by global index compiler Morgan Stanley Capital International, due on August 16, were unlikely to have a significant impact on the market as well.
Dealers said the decision would affect shares that could make their way into the index or move out of it.
Fund managers believe that the market has nearly bottomed out and the strength shown in the recent trading session further establishes this point.
The key Indian share index has shed 16.5 per cent year-to-date making it among the worst markets in the region.
But analysts say the slide in Indian shares were more because of technical rather than fundamental factors.
Some fund managers believe good monsoon rains could perk rural demand and improve corporate earnings.
In early August, the Indian weather office said that monsoon rains, a key driver of the country's economic growth, were five per cent above normal in the June-July period.
Dealers said over the past few weeks investors have moved assets to drugs, consumer goods and auto sector on hopes of improved demand resulting from goods rains.
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SAIL comes out with Rs 250 crore 2-year bond issue at 9.2 percent coupon
Mumbai--The Steel Authority of India Ltd (SAIL) has come out with a Rs 250 crore non-convertible bond issue with a green-shoe option for an equal amount. The tenure of the bonds is two years and the bonds will carry a coupon of 9.20 per cent, to be paid annually.
The bonds, sources say, have been issued primarily for meeting the repayment obligations of past loans. The bonds are backed by an unconditional and irrevocable guarantee from the Government of India (GoI), which covers the payment of interest and repayment of principal obligations on the referred programme.
The minimum application amount is Rs 5 crore. The bonds are rated LAAA (so), by the Investment Information and Credit Rating Agency Ltd (Icra) indicating highest safety. The issue, opened on August 1, will close on August 16. Sources said that SAIL might also consider a separate bond issue of Rs 250 crore with a lower coupon to reduce costs.
The issue is being placed by a consortium of seven to eight bankers and include ABN Amro Securities, Centrum Finance, ICICI Securities and Finance Company Ltd (I-Sec), SBI Capital Markets (SBI Caps), Allianz Securities and Kotak Mahindra Capital Company.
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