Oracle Financial falls as parent falls

Oracle Financial Services is the second top loser after TCS on the BSE. The stock which had closed yesterday at Rs.2907, opened higher at 2910 and even went on to an intra day high at Rs.2929 but soon slipped to the day’s low point at Rs.2820 and is currently around the same levels. Yesterday, volumes were up 7.5 times and today its up almost 3.5 times.

The stock is showing so much activity on the back on its parent company’s third quarter performance in USA. Oracle Corp, which hasa 74.96% stake in the company, posted higher revenues and profits but failed to enthuse Wall Street, who were looking out for a more sustained kind of growth. For the third quarter, Oracle said overall revenue rose 4% to $9.31 billion, which came in below the $9.36 billion analysts had expected on average. Net income was $2.56 billion, up 2% while EPS came in at 56 cents, up 8%.

The markets had expected Oracle to show a much better performance given its turnaround in Q2 but as the numbers came in lower than expectations, analysts said that one would have to wait longer for the company to truly start showing a robust set of numbers.

Thus the stock in India, Oracle Finance, reflected the moods of the parent company abroad and there was selling in this financial services arm. No logical connection as such between the price movements but this is how traders function.