Sensex in India Falls

123jump.com Staff
09 Mar, 2009
New York City

Indian stocks fell in volatile trading ahead of market holidays on Tuesday and on Wednesday on a weakness in regional and a weak rupee. The rupee fell to 51.65 against the dollar. Real estate linked stocks declined on a government report suggested a weakness in the industry.

[R]10:00AM New York, 7:30 PM Mumbai - Sensex falls ahead of holidays.[/R]

Indian stocks fell in volatile trading ahead of market holidays on Tuesday and on Wednesday on weaker global cues and a weak rupee.

The rupee fell to 51.65 against the dollar from 51.63 on Friday last week. Foreign investors outflow increased to 2,707 crore rupees in February.

In Mumbai, the BSE 30-share Sensex Index fell 2% or 165.42 to 8,160.40, and CNX Nifty dropped 1.8% or 47 to 2573.15.

Of the stocks traded on the BSE, 811 rose, 1,577 dropped, and 89 remained unchanged.

Trading Statistics

Daily turnover on the BSE dropped to 2,188 crore rupees from 3,338.61 crore rupees on Friday last week.

Indian Inflation to Fall to Zero at the end of March

Economic Times of India reported today that Axis Bank said in a note the country’s inflation will drop to zero at the end of March in the wake of a cut of aviation turbine fuel prices and factory gate duties.

The latest read on weekly wholesale inflation dropped to 3.03% for a period of one year ending February 21 from 3.36% a week earlier.

Axis Bank noted that though consumer price inflation, a gauge of the household consumption basket, remains high, it will start easing due to cuts in state-set fuel prices and service tax cuts.

Gainers & Losers

Realty stocks dropped after the government reported that infrastructure sector output dipped 1.4% in January from the year ago period. Jaiprakash Associates plunged 5.8% to 65.55 rupees, Reliance Infrastructure fell 3.2%, GMR Infrastructure dipped 1.9%, and GVK Power Infrastructure declined 2.7%.

Reliance Industries fell 0.7% to 1,163 rupees on worries the worsening global economy will affect demand for petrochemicals.

Oil and Natural Gas Corporation slipped 0.9% to 667.50 rupees.

Cairn India gained 0.8% after crude oil prices soared 4.2% to $45.5 per barrel.

However state-run oil marketing firms dropped. HPCL fell 6.8%, BPCL plunged 7.2%, and IOC plummeted 5.9%.

Financial stocks fell. ICICI Bank shed 2.3% to 263.05 rupees, HDFC Bank tumbled 0.1% to 800 rupees and State Bank of India declined 4.8% to 895.60 rupees.

DLF fell 4.7% to 138.55 rupees, Indiabulls Real Estate shed 3.8%, Housing Development & Infrastructure plummeted 7.4%, and Omaxe declined 2.4%.

Mahindra & Mahindra rose 0.4% to 318 rupees on expectations the sales will improve in March after rising 1% in February.

Maruti Suzuki India rose 0.1% to 649.50 rupees and Tata Motors slipped 1.1% to 137 rupees.

Hindustan Unilever fell 3% after brokerage JPMorgan Chase & Company slashed its rating on the stock to ''underweight'' from ''neutral'', on weakening growth and increasing competition.

ITC tumbled 4.2%, Britannia Industries dipped 3.3%, Bata shed 1.5%, and Tata Tea plunged 2.2%.

Ranbaxy Laboratories declined 4.8% to 134.50 rupees and Sun Pharmaceuticals fell 4.1% to 979.60 rupees.