Inflation and Regional Declines Drag Sensex

123jump.com Staff
08 Apr, 2008
New York City

Stocks in India fell after a sell-off in the region on persistent worries related to credit markets. Sensex declined 1.1% or 169 to close at 5,587.62 and CNX Nifty fell 1.1% or 51 to close at 4,709.65. Larsen & Toubro fell 5.1% to 2,581.30 rupees despite the company receiving four orders worth 1,687 crore rupees. Wipro lost 4% and led the decliners among software exporters.

[R]10:00AM New York, 7:30PM Mumbai – Sensex fell after markets in the region declined on persistent worries related to subprime losses.[/R]

Market Sentiment

Indian markets fell on Tuesday, dragged by declines in Larsen and Toubro and Wipro. Weakness in the Asian and European shares also dampened the markets with the 30-share BSE Sensex declining 1.08% or 169.46 to end 5,587.62.

On the National Stock Exchange CNX Nifty fell 1.08% or 51.55 to close at 4,709.65. Of the BSE traded shares, 1,393 shares advanced, 1,210 shares declined while 69 shares remained unchanged.

Oil and gas, metal and IT shares were battered while banking stocks gained.

Turnover

Daily turnover on the BSE stood at 5,127 crore rupees while on the National Stock Exchange stood at 12,340 crore rupees.

Orchid Chemicals and Pharmaceuticals was the most active stock on the BSE with the turnover of 478.05 crore rupees followed by Bharat Heavy Electricals, Larsen & Toubro, Reliance Power and Reliance Capital.

Economic News

India''s exports are likely to reach the $500 billion mark in the next five years but the focus should be on the labour-oriented sectors so that benefits of growth trickle down to the low-income groups, according the industry body Confederation of Indian Industries.

CII said India needs to become among the top three exporters in the world in textile, leather, gems and jewelry and engineering sectors.

CII said exports to markets in Latin America, Caribbean and Africa can contribute to the target of $500 billion by 2013.

The four labor oriented sectors account for over 50% of India''s export basket and they need to be given momentum, the chamber said.

Exports for the fiscal year 2008 are expected to be between $155 billion and $160 billion compared to $126 billion in fiscal 2007. The foreign trade policy in the last five year had targeted exports to reach $200 billion at the end of the current fiscal year.

Gainers and Decliners

Larsen & Toubro lost 5.1% to 2,581.30 rupees despite the company receiving four orders worth 1,687 crore rupees. The orders are for water supply projects, sinter plant and cold roll mill and a coal handling plant.

Bharat Heavy Electricals rose 4.7% to 1,712.75 rupees. Bharti Airtel advanced 1.3% to 828.60 rupees and ONGC lost 0.6% to 1,011.25 rupees.

Steel Authority of India lost 6.1% to 157.55 rupees, National Aluminum Company fell 3.6% to 432.45 rupees and Hindalco Industries declined 1.53% to 170.30 rupees.

Wipro lost 4.6% to 414 rupees and Tata Consultancy Services declined 1.6% to 885.30 rupees while Infosys fell 2.1% to 1,461.30 rupees.

Maruti Suzuki India was down 1.9% to 744.20 rupees and NTPC lost 2.1% to 186.55 rupees.

ICICI Bank gained 0.5% to 813.25 rupees, DLF increased 0.7% to 621.25 rupees, HDFC increased 0.1% to 2,309.50 rupees, State Bank of India was up 0.1% to 1,674.80 rupees and HDFC Bank increased 0.1% to 1,304.30 rupees.

Reliance Update

Reliance Petroleum declined 1.6% to 168.75 rupees.

Reliance Industries declined 1% to 2,381.25 rupees after it recovered from day’s low of 2,358.60 rupees. A consortium of Reliance Industries is reportedly to have discovered oil in Yemen but its size is still to be determined.