Indian shares are expected to
start lower on Monday, tracking weaker regional markets, but
Satyam Computer Services Ltd (SATY.BO) could bounce after the
government appointed a three-man board to restore confidence in
the scandal-hit outsourcer.
"Whatever shares had to be sold have already been sold and
now with the old board out and a new board in, foreign
investors will feel encouraged to invest in the stock and in
the Indian market," said Arun Kejriwal, director of Kris
Brokerage.
An accounting fraud, revealed by chairman and founder
Ramalinga Raju last Wednesday in a stunning resignation letter,
has battered Satyam shares, with its market value plunging to
$330 million at Friday's close, against more than $7 billion
just six months ago. [ID:nBOM408609]
Bigger rivals Infosys Technologies (INFY.BO), which
reports
December quarter result on Tuesday, Tata Consultancy Services
(TCS.BO) and Wipro (WIPR.BO) are expected to be in focus on a
perception they could benefit from problems in Satyam.
However, the main BSE index , which fell 5.5
percent last week to 9,406.47, could ease on concerns the
Satyam scandal could trigger tighter regulations. Foreign funds
sold $262 million worth of Indian equities on Wednesday
following Satyam's revelations.
The Securities and Exchange Board of India said on Friday
the certification of corporate results from the December
quarter by auditors would be subject to peer review in a bid to
assure investors the fraud at Satyam was unique.
[ID:nDEL002375]
"There are apprehensions that such a review will lead to
more qualifications in companies' books," said V.K. Sharma,
head of research at Anagram. "There will be a fear element in
the market about hyperactivism of auditors."
Global cues could also weigh down sentiment. The Hang Seng
index .HSI was down 1.4 percent at 0341 GMT, while the
Straits Time index shed 1 percent.
By 0348 GMT, the Nifty futures SINc1 in Singapore were
trading down 0.7 percent.
--------------MARKETS SNAPSHOT AT 0331 GMT-----------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 890.35 -2.13% -19.380
USD/JPY 90.03 -0.13% -0.120
10-YR US TSY YLD 2.4102 -- 0.012
SPOT GOLD $ 850.25 -0.39% -3.350
US CRUDE CLc1 $ 40.62 -0.51% -0.210
DOW JONES .DJI 8599.18 -1.64% -143.28
ASIA ADRS .BKAS 94.54 -2.39% -2.31
-------------------------------------------------------------
STOCKS TO WATCH
* Petronet LNG (PLNG.BO), after the company said it would
restart its 5 million tonnes a year plant at Dahej in western
India three days before schedule to help ease a natural gas
shortage. [ID:nDEL002369]
* Gitanjali Gems Ltd (GTGM.BO), after the jeweller said its
unit had signed a deal to form an equal joint venture with
Kuwait-based Hassan's Optician Co LLC.
* Chettinad Cement Corp (CHET.BO), after it said it would
call off its proposed share rights issue due to unfavourable
market conditions.
* Automotive Axles Ltd (ATOA.BO), after the auto parts
maker said it would shut production from Jan. 10-18 and Jan.
22-31 due to a severe downturn in the commercial vehicle
market.
FACTORS TO WATCH
* Indian rupee report
[INR/]
* Indian bond report
[IN/]
* FOREX-Yen buoyed by risk reversal, euro on defensive
[FRX/]
* Oil falls toward $40 on demand worries
[O/R]
* GLOBAL MARKETS-Asia stocks dip with no signs to end of
slowdown
[MKTS/GLOB]
* US STOCKS- Wall St falls on job woe, Citi, Chevron,
techs[.N]
* For closing rates of Indian ADRs
INADR
(Reporting by Janaki Krishnan & Aniruddha Basu; Editing by
Ranjit Gangadharan)
