More downside likely on weak global cues; Satyam in focus

MUMBAI: The downside on Dalal Street is expected to continue as the global picture deteriorated. The Dow Industrials and the S&P 500 slid to 12-year lows on Thursday as General Motors' warning of possible bankruptcy and concerns about the banking system's fate reinforced investors' reluctance to take on risk.  The Dow Jones Industrial Average dropped 281.40 points, or 4.09 percent, to end at 6,594.44, the Standard & Poor's 500 Index slid 30.32 points, or 4.25 per cent, to 682.55 and the Nasdaq Composite Index tumbled 54.15 points, or 4.00 per cent, to 1,299.59, its lowest close since March 2003.  Asian stocks slipped, snapping a two-day advance, after commodity prices fell and a stronger yen darkened the profit outlooks for Japanese exporters. The Nikkei lost 2.5 per cent, Topix fell 2.22 per cent, Hang Seng slid 1.03 per cent and Straits Times was down 0.63 per cent.  Meanwhile, crude oil was steady under $44 on Friday, after sinking 4 percent overnight as signs that the financial crisis is deepening stoked fears that energy demand would shrink further.  The next major signal on the US economy will come from February US non-farm payrolls and unemployment data due later today, which are expected to reinforce the grim outlook for the world's top energy consumer. US crude was up 4 cents at $43.65 a barrel.  Back home, equity indices broke psychological supports and ended sharply lower Thursday after heavy selling emerged in index heavyweights from the oil&gas and banking space. Traders ignored the rate cut announced by the Reserve Bank of India and gains in Asian markets. Most sectoral indices ended in the red.  Bombay Stock Exchange’s Sensex ended lowest in more than three years at 8,197.92, down 248.57 points or 2.94 per cent from the previous close. The index touched an intra-day low of 8166.97 and high of 8535.03. The index had ended at 8193.96 on September 13, 2005.  National Stock Exchange’s Nifty breached the psychological support of 2600 to close at 2576.70, down 68.5 points or 2.59 per cent. The index touched a low of 2564.10 and high of 2663.90 in today’s trade.  On a stock specific note, fraud-hit Satyam Computer Services said it has received approval from India's market regulator to sell a 51 per cent stake in the company in a global bidding process.  As part of the two-phased sale process, a chosen investor would acquire newly issued equity shares representing 31 per cent of Satyam's share capital and then make a mandatory minimum public offer to buy a further 20 per cent stake, the company, which has been mired in India's biggest corporate scandal, said in a statement. Source: ET