Hero Honda Motors Ltd has announced financial results for third quarter of this financial year. The auto maker reported 7.1 per cent increase for Q3 despite 4 per cent drop in sales.

It should be recalled that government had announced 4 per cent excise duty cut in the economic booster package which helped to propel demand in automobile sector. Banks had also cut auto interest rates in line with key rate revision by Reserve Bank.

Lalit Khaitan family owned Radico Khaitan Ltd is planning to sell about 26 per cent stake to global drink giants according to reports of financial newspaper The Economic Times. Bacardi and Pernod Ricard have shown interest to buy stakes in Radico as per banking and industry sources.

Radico Khaitan is the second largest spirits company in the country and known for its liquor brands 8PM Whiskey and Magic Moments Vodka. Promoters hold 48.7 per cent stakes in Radico Khaitan Ltd.

Country's third largest software exporter, Wipro has announced its results for third the quarter. The company posted net profit of Rs 10.04 billion for Q3 ended December 31,
08. the company posted net profit of Rs 8.54 billion for the same period last year.

Its total income stands at Rs 67.73 billion as compared to Rs 54.33 billion a year ago. The company posted 26 per cent increase in its operating profit.

Piramal Glass Ltd announced financial results for the third quarter ended December 2008 reporting net loss of Rs 37.14 crore. The company posted losses worth Rs 1.28 crore in the same period in 2007-08.

Rising raw material cost and foreign exchange losses adversely hit its business for the reporting quarter leading to significant decline in revenue and net profit.

The cost of raw material remained at Rs 63.60 crore as compared to Rs 36.98 crore in Q3 of 2007-08 which increased its expenditures. The company suffered foreign exchange losses of Rs 27.81 crore in the reporting quarter.

Rate two-way despite sharp fall in GBP; likely cross spreaders supporting on the dip as active sellers attempt to push the rate lower into major support around the 1.2780 area. Bottom may be forming around under the 1.3030 area as the drop into the 1.2900 handle was on thin volume.
50 bar MA failed now likely to offer resistance and a close above suggests the bottom will be in. Sell signal from the toolbox validated by the drop but be cautious as trend line support approaching. Semi-official and sovereign bids and offers seen overnight.

Rate falls hard as cross-spreaders sell GBP across the board. Overnight economic news seen as neutral; some rumor of UK bank downgrades adding pressure. Sell-signal from toolbox validated suggesting a test of the next major support area around the 1.3850 to 1.3780 area.

Signs of the bottom after holding the 1.4500 handle last week negated near-term with offers likely back at the sell zone around 1.4450 area now. Cross-spreaders continue to sell GBP across the board. Volumes continue light on this break.

Spillover from EURO likely. Look for two-way action into this bottom. A short-covering rally is increasingly likely now; looking for signs of late sellers.

GBP USD Daily
-Resistance 3: 1.4600
-Resistance 2: 1.4520/30
-Resistance 1: 1.4450
-Latest New York: 1.3915