Sensex Falls 4% in Asian Markets Decline

Mayank Mehta
17 Aug, 2009
New York City

The benchmark index in Mumbai plunged 4% as markets in Asia drop sharply. Companies in India seek capital infusion through public offering and courting international investors. Nearly nine companies are looking to raise a total of $1.5 billion. Rupee declined on monsoon worries.

[R]6:00 PM Mumbai, 8:30 AM New York – The benchmark index in Mumbai plunged 4% as markets in Asia drop sharply. Companies in India seek capital infusion through public offering and courting international investors. Nearly nine companies are looking to raise a total of $1.5 billion. Rupee declined on monsoon worries.[/R]

Mumbai stocks declined sharply after the regional markets in Asia fell. Despite a rebound in the Japan’s GDP growth, investors worried that the economy is still not on the sound footing.

In China, stocks fell sharply after copper imports in July dropped 15% from June and foreign direct investment declined for the tenth month in a row. The weak data dragged commodities lower.

The Sensex index in India decreased 626.71 or 4.07% to 14,784.92 and CNX Nifty index dropped 192.15 or 4.2% to 4,387.90. Among the Sensex 30 stocks, all stocks declined.

On BSE trading, 671 stocks advanced, 1,924 declined and 73 were unchanged.

Bharti Airtel Ltd declined 2.5% to Rs 398.75 after the Wall Street Journal reported that South Africa based MTN is seeking $1 billion more for its bid to acquire the telecom operator.

Rupee edged lower after monsoon worries and fall in commodities prices dragged the sentiment lower. One dollar fetched 48.67 at close in Mumbai.

Gainers & Losers

Berger Paints India Limited decreased 0.4% or Rs.0.20 to Rs.47.65 after the paint manufacturer said its board approved the issue of 7.2 million shares to Nalanda India Fund Ltd.

Indraprastha Gas Limited plunged 9.8% or Rs.16.90 to Rs.155.55 after the retail gas distributor signed gas purchase agreement with Reliance Industries. The stocks had surged in the last two trading sessions.

KSK Energy Ventures Limited added 1.0% or Rs.1.85 to Rs.182.50 after the power project development company is looking to raise 2,000 crore rupees from qualified investors.

McNally Bharat Engineering Company Ltd fell 4.5% or Rs.7.35 to Rs.154.55 after the company secured an order from BHEL.

MIC Electronics Limited slipped 2.8% or Rs.1.50 to Rs.50.65 after the company plans to raise Rs 218.96 crore through warrants to international investors.

Provogue (India) Limited the retailer of fashion apparel and accessories for men and women rose 1.4% or Rs.0.95 to Rs.66.00.

Religare Enterprises Limited rose 1.1% or Rs.3.40 to Rs.390.10 after the diversified financial services company has submitted a bid to buy the Asian private banking assets of Dutch insurance and banking firm ING, the Economic Times said on Monday.

Reliance Industries Limited fell 4.6% or Rs.94.70 to Rs.1,939.60.

Rolta India Limited the engineering services provider fell 6.0% or Rs.9.75 to Rs.151.65.

Three public sector oil marketing companies increased more than 1% after jet fuel oil prices were increased.

Bharat Petroleum Corporation rose 1.36%, Hindustan Petroleum Corporation climbed 1.16%, and Indian Oil Corporation increased 1.01%.

Jet Airways dropped 3.67%, Kingfisher Airlines slid 2.69%, SpiceJet lost 1.77%, declined as higher aviation turbine fuel (ATF) price would increase the operating cost of airlines.

HDFC Bank Limited fell 1.3% or Rs.19.60 to Rs.1,407.25, ICICI Bank Limited dropped 5.2% or Rs.39.30 to Rs.704.85 and State Bank of India lost 4.6% or Rs.84.35 to Rs.1,713.05.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 328.72 or 3.10% to 10,268.61, Hang Seng index in Hong Kong decreased 755.68 or 3.62% to 20,137.65 and CSI 300 index in China lower 204.19 or 6.11% to 3,140.27. ASX 200 index in Australia decreased 72.60 or 1.63% to 4,388.40. The FTSE Bursa KL Composite index in Malaysia closed lower 19.52 or 1.64% to 1,169.05.

The Kospi Index in South Korea decreased 44.35 or 2.79% to close at 1,547.06. SET index in Thailand closed lower 22.20 or 3.39% to 632.05. The Sensex index in India decreased 626.71 or 4.07% to 14,784.92. The Indonesian Market was close today.