A delay in US Federal Reserve's quantitative easing tapering, coupled with better-than-expected September quarter earnings, ensured FIIs kept foreign money flowing into Indian equities.
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Q1 results indicate more pain ahead, as slowdown has spread to more sectors, pricing power has come down and rising interest cost is eating into profits.
A record net inflow in Indian equities in the financial year ending March 2013 helped foreign investors widen their grip.
With uncertainty over economic prospects and higher interest rates leading to subdued investments by the private sector, Indian companies' new order inflows in the quarter ended December 31 stood at the lowest level in nearly four years.
Sales growth slows but expenditure control, lower interest burden save the day.
Though the Infosys stock has regularly tanked on days the company's results are announced, it has made up for the losses before the announcement of the next results.
One in three stocks outperforms market after disclosing quarterly numbers
All sectors are expected to deliver positive growth, with huge positive growth swings in pharma, telecom, infrastructure, real estate, metals and auto.
The aggregate dividend payout by corporate India may be lower in the current financial year (2011-12), compared to 2010-11.
Sectors that will drive profit growth include refineries, private banks, capital goods, cement, fast moving consumer goods, metals and oil & gas. Sectors with disappointing growth are public sector banks, construction, media, pharmaceuticals, steel, textiles, telecom and tyres.
Equity dividend payment rises 14.9 per cent in 2010-11.
Net sales rose 26 per cent but profit rose at a slower 22.7 per cent, as operating margins took a hit by 160 basis points, year on year.
Order inflows during the quarter-ended September declined 31.5 per cent compared to the level a year ago. Companies are still not committing fresh capital expansion.
Capex plans for the next six months imply a 20 per cent increase in calendar 2010.
India Inc's order book doubled in the fourth quarter (January-March) of the last financial year compared, to the year-ago period.
A study of 435 companies listed on the Bombay Stock Exchange, which provide their capital-employed data on a quarterly basis, shows capex grew by a meagre 3.4 per cent in the nine months ending December 2009, compared to the level in March 2009.
QIP is a capital raising tool, whereby a listed company can issue equity shares, fully and partly convertible debentures, or any securities other than warrants that are convertible to equity shares to a Qualified Institutional Buyer.
Manufacturing sector suffers from project delays, lack of fresh capital.
This year was the best since 1991, with benchmark indices rising over 100 per cent from their March lows.
India Inc could set a new fund-raising record in 2010. Even before the year starts, companies have lined up equity raising plans of Rs 1,50,000 crore, close to two-and-a-half times of what they raised through share sales this year.
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