Sensex in India Drops on Budget Speculations

123jump.com Staff
18 Jun, 2009
New York City

The benchmark index in India dropped lower on the worries that some of the recent tax reliefs may be withdrawn by the government. Stocks declined as the fourteen week old rally falters, global markets are directionless and uncertainty on the national budget expected in three weeks.

[R]5:00 PM Mumbai, 7:30 AM New York – The benchmark index in India dropped lower on the worries that some of the recent tax reliefs may be withdrawn by the government. Stocks declined as the fourteen week old rally falters, global markets are directionless and uncertainty on the national budget expected in three weeks.[/R]

Stocks opened lower in Mumbai trading and steadily declined in the afternoon on the worries that the government may be forced to roll back some of the recent subsidies in the excise duties and central value added tax also known as cenvat.

The pre-payment of first quarter taxes also did not indicate a sustained increase in earnings except in the financial sector.

The Sensex index in India decreased 257.31 or 1.77% closed to 14,265.53 and CNX Nifty declined 90.20 or 2.07% to 4,265.95.

Of the 30 stocks in the Sensex, 24 increased and 6 declined.

On the BSE, trading turnover increased to 7,148 crore rupees from 6,968.96 crore rupees yesterday. On the NSE, turnover decreased to 20,841.04 crore rupees from 20,982 crore rupees.

Of the stocks traded on the BSE, 537 increased, 2,087 decreased and 52 were unchanged.

Gainers & Losers

ONGC decreased 5.1% to 1,007.65 rupees after it reported its advance first quarter tax payment dropped 33% to 890.50 crore rupees.

Tata Steel decreased 6.6% to 389 rupees to after advance tax payment for the fiscal first quarter dropped 37% to 230 crore rupees.

Sical Logistics dropped 4.6% to 34.60 rupees its daily limit of 5% to 34.45 rupees after it reported net profit declined 85% to 5.46 crore rupees.

Dish TV increased 2.6% to 39.95 rupees after it reported net loss of 78.66 crore rupees in the fourth quarter ending in March compared to a loss of 115.08 crore rupees.

ABG Shipyard dropped 9.4% to 186.70 rupees after it indicated that the company may not receive any new order this year.

Capital goods stocks declined the most as investors took profit. Bharat Heavy Electricals decreased 2.7% to 2,7032.95, Siemens Limited dropped 2.9% to 453.15 rupees and Cummins India Limited declined 3.8% to 266.45 rupees.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 137.13 or 1.39% to 9,703.72, Hang Seng index in Hong Kong decreased 307.94 or 1.70% closed to 17,776.66, CSI 300 index in China higher 46.84 or 1.56% closed to 3,057.43. ASX 200 index in Australia decreased 12.00 or 0.31% closed to 3,892.10. The KL Composite index in Malaysia lower 16.49 or 1.54% closed to 1,054.41.

The Kospi Index in South Korea decreased 15.41 or 1.11% to close at 1,375.76.SET index in Thailand closed lower 15.71 or 2.68% to 570.43 and JSE Index in Indonesia decreased 73.98 or 3.65% closed to 1,950.99. The Sensex index in India decreased 257.31 or 1.77% closed to 14,265.53