India, A Land Of Optimistic Investors: Survey

Indian investors have emerged as the most optimistic lot across Asian Markets in the first three months of 2008, although the country like the rest of the region is not insulated against the uncertainty in the global market, a latest report says.

According to a survey by global financial institution ING, India retains the position of being the most optimistic market in the first three months of 2008, but the rise in investor sentiment was a minuscule 0.6 per cent against the previous quarter.

India’s investor sentiment index rose to 168 for the first quarter (Q1) of 2008 from 167 in the fourth quarter (Q4) of the calendar year 2007.

The ING Investor Dashboard survey measures and tracks sentiment and behavior of mass affluent investors each quarter from 13 Asia-Pacific Markets including India, China, Hong Kong, Indonesia, Taiwan, Thailand, Japan, Australia and New Zealand.

Each market covered is assigned an investor sentiment score ranging from 0 (least) to 200 (most optimistic). Although Indian and other Asian investors remain cautiously optimistic for longer term and might think the worst is over, domestic investors are among those who are more bullish about the market, the survey revealed.

Moreover, while both have adopted a ‘wait and see’ investment approach, Indian investors are moving towards lower risk investments, it added. As the region continues to deal with the impact of the sub-prime crisis, global credit crunch and US economic slowdown, the ING Investor Dashboard’s pan-Asia sentiment index fell to 125 for reviewed period from 135 in Q4 2007.

India To Grow At 9.5 Pc In 2008/09: CMIE

India’s economy is expected to expand by 9.5 per cent in the current 2008/09 fiscal year, driven by large capacity additions, a Mumbai-based think-tank, Centre for Monitoring Indian Economy said on Tuesday.

The Centre for Monitoring Indian Economy(CMIE) said the slower growth in last fiscal was an aberration and expects growth to rebound in 2008. The government estimates 2007/08 growth at 8.7 per cent from 9.6 per cent in 2007.

“Our optimism stems from the fact that capex boom in India continues with more and more fresh investments getting announced quarter after quarter,” CMIE said, in its monthly review.

CMIE’s growth forecast for 2008/09 is much higher than the projections of other analysts.

Last week, Lehman Brothers cut its GDP growth forecast for the fiscal year that began on April 1 to 7.6 per cent from 8.3 per cent. HSBC and JP Morgan expect the GDP to grow 7 per cent.

Manufacturing and construction industries will power the economy in 2008/09, CMIE said. While services may grow 10.6 percent, industry is expected to expand 11.4 per cent and agriculture may grow by 2.9 per cent, it said.

CMIE expected average inflation to climb to about 5.5 per cent in 2008/09 from 4.5 per cent in 2007/08.

Sensex Bounces Back, Infosys Result soars Market Sentiments

Encouraging Q4 results announced by IT bellwether Infosys Technologies had soothing impact on the market, which bounced from its early lows and was almost flat in late morning trade on Tuesday.

The Bombay Stock Exchange’s Sensitive Index, Sensex was quoted at 15,780.27 at 1030 hours from its previous close of 15,807.64.

It touched a low of 15,573.03 in the initial five minutes of trading, a fall of 235 points from last close.

The broad based 50-share S&P CNX Nifty of the National Stock Exchange was steady at 4,771.15 in late morning trade from its last close of 4,777.80.

Brokers said the market recovered its early losses after the IT major came out this morning with better-than-expected future guidance, raising hopes of robust earning season.

Retails Investors in India were awaiting for a major trigger pinning their hopes on announcement of good last quarter results amid a host of negative factors.

Meanwhile, Asian markets showed mixed trend after a sharp fall on Monday.

Infy Declares Its Q4 results: Net Profit Up 21% At Rs 4,659 Crore

Indian IT Major, Infosys Technologies’ Q4 net profit rose 20.8 per cent to Rs 4,659 crore compared with Rs 3,856 crore in the same quarter previous year.

Net sales stood at Rs. 16,692 crore for the year ending Mar 31, 2008 against Rs. 13,893 crore in the corresponding quarter last year.

The company has declared a final dividend of Rs 7.25 per share (145% on an equity share par value Rs 5) and a special dividend of Rs 20/- per share (400% on an equity share par value Rs.5).