Sensex in India Drops 2%

123jump.com Staff
05 Nov, 2007
New York City

Sensex in Mumbai trading fell nearly 2% after markets in Asia closed lower. Banks led the decline in Mumbai and in Asia. Hong Kong and Pakistan led the region with a loss of 5%. Mundra Port and SEZ initial public offerig was oversubscried seven times on the third day of its listing period. Relance Naural surged 25%.

[R]8:00AM New York, 6:30PM Mumbai- Sensex dropped on renewed worries of global credit crisis.[/R]

Sensex in Mumbai, India dropped on Monday as other markets in Asia fell. Investors are worried about the residual effects of the U.S. inflicted credit crisis. Banks fell in sympathy with sector weakness in China, Hong Kong, and Europe. ICICI Bank, HDFC Bank and State Bank of India traded weaker.

Asian markets closed sharply lower across the region. Hong Kong led the decliners with a fall of 5% followed by losses in Pakistan of 4.6%, in Thailand of 2.4%, in Indonesia of 2.2%, India of 1.9%, and Australia of 1.6%.

Sensex declined 1.9% or 385.45 to 19,590.78 and CNX Nifty slid 1.4% or 85.1 to 5,847.3. Daily trading on the Bombay Stock Exchange was recorded at 9,011 crore rupees and on the National Stock Exchange was at 22,800 crore rupees.

Of the 30-share Sensex index, four gained while the rest declined. Of the BSE shares, 1,403 closed higher, 1,320 traded lower, and 354 remained unchanged. ONGC led the decliners in the Sensex index with a plunge of 4.91% to 1,299.05 rupees.

The Delhi Consumer Commission fined ICICI Bank 50 lakhs rupees for using violent methods and employing criminals to collect late payments on loans. The bank has used heavy handed tactics to collect loans and interest and at times used criminal gangs operating as collection or recovery services. Despite heavy criticism by consumers and local governments, the bank has continued such collection practices.
Mundra Port initial public offering is oversubscribed seven times according to a filing with the Bombay Stock Exchange. After third day of the offering, the Adani group controlled company has received bids for 30 crore shares for an offering of 4 crore shares. The offering is expected to be priced between 400 rupees and 440 rupees.

Empee Distilleries Limited reported that its offering was fully subscribed on the third day of its offering. The distillery is expected to be priced between 350 rupees and 400 rupees and raise between 160 crore rupees and 190 crore rupees.

Reliance Natural Resources surged 25.7% to 178.55 rupees on the news reports that the company has responded to the offer made by Reliance Industries to resolve the KG Basin gas conflict.

Reliance Natural surged on heavy volume of 7.96 crore shares on BSE. The move follows a recent Bombay High Court order, which gave both parties a four months ultimatum to resolve their differences. Reliance Industries declined 1.8% to 2,663.65 rupees.

Infosys Technologies slid 2.7% to 1.856.35 rupees.

Tata Group bid for Ford Motor subsidiary Land Rover and Jaguar appears to be gaining grounds according to reports in the local media. Tata Motors traded lower at 2.1% to 739.55 rupees.

Mahindra & Mahindra fell 1.7% to 742.85 rupees, Hero Honda Motors shed 1.6% to 663.90, Maruti Suzuki India fell 2.5% to 995.45 rupees while Bajaj Auto lost 1.2% to 2,394.9 rupees.

Larsen & Toubro lost 3.9% to 4,287.3 rupees on news that the company has entered into a joint venture agreement with Mitsubishi Heavy Industries to manufacture steam turbine and generator in India. Total investment in the company is estimated near 880 crore rupees.

Sterlite Industries retreated 3.5% to 991 rupees, Hindalco Industries was down 2.1% to 183.6 rupees, Steel Authority of India shed 1.6% to 255.7 rupees and Tata Steel slid 1.7% to 879.1 rupees.

Bharti Airtel rose 5.3% to 942.2 rupees. The share had fallen more than 11% in the last two sessions on worries about allocation of additional spectrum. Separately brokers raised target price for Bharti near 1,200 rupees.

Satyam Computer gained 0.4% to 463.95 rupees, NTPC jumped 0.9% to 236.8 rupees, and Cipla edged higher at 1.8% to 176.80 rupees.