Reliance Energy rose to 2,056.35. Reliance Communications rose 0.7% to 681.6 rupees. Reliance Communications is reportedly set to test-launch its Direct-to-Home services called Big TV this week, before a full commercial launch in March this year.

According to reports, the company is investing $250 million in the first phase for the launch and has placed order for over 2 million set-top boxes.

International Markets

U.S. stocks closed sharply lower on Tuesday with Dow Jones Industrial Average, Nasdaq index, and S&P 500 falling between 2.5% and 3%. Market averages fell after January service sector index showed a decline in service industry, contrary to what most economists had hoped.

In Tokyo Nikkei 225 Index closed lower 646.26 or 4.70% to 13,099.24, in Hong Kong Hang Seng index decreased 1339.24 or 5.40% closed to 23,469.46, in Australia ASX 200 index lower 183.50 or 3.17% to close 5,609.40.

Thailand SET index closed lower 13.05 or 1.62% to 794.63, and Indonesia JSE Index edged decreased 65.16 or 2.41% to 2,639.09. Sensex index in India decreased 523.70 or 2.81% to 18,139.49. Market of South Korea was closed today.

In London FTSE 100 Index closed higher 7.40 or 0.13% to 5,875.40, in Paris CAC 40 Index increased 39.57 or 0.83% to close at 4,816.43 and in Frankfurt DAX index higher 82.26 or 1.22% to close at 6,847.51. In Zurich trading SMI increased 48.04 or 0.64% to close at 7,565.45.


6:00AM New York, 6:00PM Hong Kong - IMF revises Hong Kong economic growth estimate to 4.6%. Insurers pay Rmb680 million in losses related to snow storms.

Market Sentiment

Stocks in Hong Kong were hit by massive sell-off across the board before the market closed after the morning session for the Lunar New Year holiday. Worries over the U.S. economy that triggered losses in other Asian markets also negatively affected trading.

In Hong Kong trading Hang Seng Index fell 5.4% or 1,339.24 at 23,469.46, down 0.8% for the week, and the Hang Seng China Enterprises Index, which tracks ``H shares'''' of Chinese companies, slid 6.9 % to 13,067.11.

Daily turnover on main-board was HK$70.66 billion from HK$46.44 billion in yesterday’s morning session.

Economic Forecast

The Standard news reported today the IMF revised Hong Kong’s GDP growth estimate to 4.6% this year from rate of 6% in 2007 on the projection of falling demand from the United States and in Europe.

IMF observed that “the biggest risk to this outlook is a more-than-expected deterioration on external demand, especially in the U.S. and in Europe, and potentially further financial turbulence, both internally as well as domestically”.

According to the Fund, inflation will rise 3.7% this year from 2.2% in 2007.

Snow Storm Losses

Separately, the online edition added that the China Insurance Regulatory Commission reported that mainland insurance companies have paid an estimated Rmb680 million in compensation caused by the recent snowstorms.

In addition, Xinhua News Agency also reported today China has intensified relief efforts to the country’s southern, central and eastern regions in order ease price pressures during the forthcoming Lunar New Year holidays.

Economic losses from the snowstorms are currently estimated at Rmb80 billion.