Mumbai: Markets extended losses to more than 1% in afternoon trade on Wednesday as fresh worries about Europe’s spreading debt crisis and weak Asian markets dampened investor sentiment.
At 12:41pm, the 30-share BSE index was down 0.94% at 17,842.20 points, with 26 components declining. It had briefly slipped more than 1% earlier. The 50-share NSE index was down 0.9% at 5,347.30 points.
DLF fell 5% to Rs 208.10 to its lowest in two years after it missed analysts’ estimates with a 19% fall in quarterly profit, and warned the central bank’s actions to tighten liquidity will likely temper sector growth in the current fiscal year.
“DLF’s numbers were not good. Concerns are building up about the company’s cash flows,” said K. K. Mital head of portfolio management services at Globe Capital. “The high interest rates environment will keep the real estate stocks under pressure.”
By 11:53am, the 30-share BSE index was down 0.7% at 17,888.62 points, with 26 of its components falling.
The 50-share NSE Index was down 0.7% at 5,358.35 points. In the broader market, 855 losing stocks led 468 advancing ones on volume of about 203 million shares.
“There are inflationary pressures hovering over the market. The outlook for the market is not positive,” said Mital. “The way the market is going down, the way the foreign inflows are not coming in -- (this) does not give comfort to the investors.”
Foreign funds have withdrawn $1.7 billion so far this month pressured by a sharper-than-expected 50 basis point rate hike by the country’s central bank.
Infosys was another major loser on Wednesday, shedding 1.9% to Rs 2,790 rupees, after India’s No. 2 software services exporter said late on Tuesday it had received a subpoena from a US district court related to short-term business visas for its staff.
Larger rival Tata Consultancy Services Ltd was down 2.1% at Rs 1,125.30.
Top engineering and construction firm Larsen & Toubro , which had gained almost 9% since last week when it posted estimate-topping quarterly results and forecast 2011/12 revenue to grow a quarter, saw some selling pressure on Wednesday. The shares were down 1.7% at Rs 1,614.
Tata Steel was trading 0.4% down at 564 rupees ahead of its quarterly results. The world’s No. 7 steel maker is expected to report profit fell by a third, hurt by tepid demand in Europe and rising raw material prices.
Coal India , the world’s largest coal miner, is expected to post strong revenue and profit for the quarter later in the day, helped by a price hike for some customers in late February. The shares were trading 2.2% up at Rs 378.90.
Reliance Industries Ltd , which has the highest weight on the index, was trading 0.7% up at Rs 909.6. The stock last week fell to its lowest level in more than six weeks, mainly on concerns over decline in gas output from its blocks off India’s east coast.
Elsewhere, the MSCI’s measure of Asian markets other than Japan was down 1.3% by 12:06pm, while Japan’s Nikkei fell 0.6%.
Indian Hotels Co was up 1.1% at Rs 79.85 after it reported on Tuesday a 57% rise in quarterly net profit.
Tyre maker JK Tyre and Industries rose nearly 2% to Rs 90.30 after a top official said it was looking to acquire a rubber plantation to offset rising input costs.
Suzlon Energy rose 2.7% to Rs 50.50 after the company said on Wednesday it signed a contract with African Clean Energy Developments for supplying up to 200 wind turbines