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Indian stocks fall on recovery woes

Indian stocks fall on recovery woes
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First Published: Mon, Jul 11 2011. 04 52 PM IST
Updated: Mon, Jul 11 2011. 04 52 PM IST
Mumbai: Indian stocks fell for a second day as weak economic data from the US and continuing debt woes in the European region sparked concerns about sustainability of the recovery in the global economy. The jobless rate in the US unexpectedly rose to 9.2% in June as payrolls increased by only 18,000. The anemic growth in the US job market raised concerns about the recovery in the world’s largest economy.
While this led to selling in information technology stocks, negative cues from the European region sealed the day in favor of bears. Stock markets in Europe fell for a second day on concerns that the debt crisis might spread to Italy.
According to a Bloomberg report, Italian and Spanish bonds tumbled as contagion from Greece’s debt crisis threatened to spread to bigger economies. With two large economic regions in the world struggling to stave-off economic growth decelerating, the sentiment in the domestic stock markets took a hit, leading to broad based selling.
Sensex: 18,721 –0.72%
Nifty: 5,616 –0.79%
Stoxx 50: 2,744 –1.63%
FTSE 100: 5,964 –0.44%
Hindalco, DLF, Axis Bank, Wipro and SAIL led the losses among Nifty shares. Hindalco slumped 4.17% after the environment ministry referred the decision on Mahan coal block to a group of ministers. Read more...
Hindalco: Rs 180 –4.17%
DLF: Rs 228 –3.52%
Axis Bank: Rs 1,263 –3.24%
Wipro: Rs 418 –3.12%
SAIL: Rs 132 –3.11%
At the sectoral level, real estate, information technology, metals and banking stocks led the losses on the BSE. Except FMCG, consumer durables and oil & gas, all BSE sectoral indices closed the day with losses.
BSE Realty: 2,172 –2.54%
BSE IT: 6,091 –1.73%
BSE Metal: 14,733 –1.54%
BSE Bankex: 12,741 –1.39%
After rallying last week, real estate stocks fell on concerns of faltering demand for property. With borrowing costs rising, analysts are worried that real estate firms will find it hard to revive sagging sales.
Unitech: Rs 34 –5.88%
DB Realty: Rs 80 –6.37%
Orbit Corporation: Rs 43 –5.24%
Ahead of the first quarter results, investors pared their holdings in information technology stocks. Infosys Technologies Ltd reports its earnings tomorrow.
Mphasis: Rs 454 –2.04%
Infosys: Rs 2,919 –1.98%
HCL Technologies: Rs 493 –1.67%
Patni Computers: Rs 336 –1.55%
TCS: Rs 1,155 –1.34%
Meanwhile, Essar Ports rose 2% after UBS initiated coverage on the stock with a buy rating citing better outlook. The brokerage house expects the Essar Ports to report strong first-quarter results.
Essar Ports: Rs 99 +2.04%
Overall, 52.74% of the stocks traded on the BSE closed the day with losses.
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First Published: Mon, Jul 11 2011. 04 52 PM IST
More Topics: Markets Update | India | BSE | NSE | Sensex |