Sharp sell-off spoils the cheer

Strong selling activity during the final hour led the indices to lose most of their gains, to end the day marginally above the dotted line. The BSE-Sensex closed with gains of around 75 points, while the NSE-Nifty closed higher by about 15 points. Stocks from the mid-cap and small-cap space ended the day on a positive note as well. Stocks from the realty and banking space led the pack of gainers today, while stocks form the healthcare and metal space bore the brunt of profit booking.
Most of the other Asian markets ended the day in the green. The European indices are currently trading firm as well. Rupee was trading at 49.85 against the US dollar at the time of writing.
Logistics stocks ended the day on a weak note led by Aegis Logistics and Gateway Distriparks. Container Corporation of India (Concor) announced its full year results recently. The company’s revenues for the year grew by 2% YoY. During the year, the company’s export-import business grew by 3% YoY, while its domestic business’ revenues dropped by 2% YoY. Despite lower volumes, the growth has come in on account of improved realisations. Stable to lower cost of operation resulted in 2% EBITDA margin expansion for the fiscal, which stood at 29% during FY09. At the profit level, the company’s numbers grew by 9% YoY. This growth in profits was on the back of a strong operating performance and higher other income.
Media stocks ended the day on a mixed note. While Zee News and SunTV led the pack of gainers, Zee Entertainment and UTV Software ended on a weak note. As per television rating agency TAM Media Research, television channel Colors, a joint venture between Viacom and Network 18 has taken the position of India’s No. 1 channel in the Hindi general entertainment segment. This position was held by Star Plus for over nine years. Zee Entertainment came third. It may be noted that the method of rating done by agency is often questioned by some parties on the grounds that many important sections are not covered by the samples. Moreover, there is considerable leeway in selection of data points. Nonetheless, the results highlight the impact a few blockbuster shows can have on the fortunes of any particular channel. However, it may be noted that few soaps of Colors command higher rating.
The world's largest mobile phone maker, Nokia has recorded a 90% YoY fall in profits during 1QCY09, while its topline dropped by 27% YoY. As per the company’s management, the economic slowdown has forced customers to buy cheaper handsets. Surprisingly, the company’s stock price rose by 9% as the financial community expected worse results. It may be noted that during 2008, sales from India contributed nearly 14.5% of the company’s total revenues. In fact, India is the 2nd biggest market for company. The biggest market for Nokia is China, which contributed nearly 23% of the company’s revenues during 2008.