×
Home Companies Industry Politics Money Opinion LoungeMultimedia Science Education Sports TechnologyConsumerSpecialsMint on Sunday
×

Markets fall 0.9%; techs drop, banks up

Markets fall 0.9%; techs drop, banks up
Comment E-mail Print Share
First Published: Tue, Jan 19 2010. 04 24 PM IST
Updated: Tue, Jan 19 2010. 04 24 PM IST
Mumbai: Indian shares dropped 0.95 on Tuesday, as weak global markets encouraged investors to lock in profits in outsourcers such as Tata Consultancy Services and Infosys Technologies.
The downward risk, however, is limited because of mostly robust quarterly corporate earnings and the bright domestic growth outlook, analysts said.
“The market is consolidating. It should not bother much,” said Jigar Shah, vice-president of equity sales at Motilal Oswal Financial Services.
The 30-share BSE index closed down 0.88%, or 155.02 points, at 17,486.06, with only seven of ts components advancing. The 50-share NSE index closed down 0.9% at 5,225.65.
The benchmark is up 0.1% this month after jumping 81% in 2009, which was its best performance in 18 years.
“There are more positives to support an upward move in the market in the near term than negatives,” said Rakesh Rawal, head of private wealth management at Anand Rathi Financial Services.
Tata Consultancy, India’s top outsourcer, and rival Infosys shed 2.4% and 1.6% respectively, after rallying more than 11% and 7.5% since Infosys raised full-year sales forecast a week ago.
“There is some lack of interest which is evident from the fact that FIIs (foreign institutional investors) have been net sellers for the last few sessions,” Shah said.
Foreign funds have sold $292 million of stocks in the four sessions to Monday, but are net buyers of $1.4 billion this month after pouring in $17.5 billion in 2009.
World stocks slipped as investors waited for a wave of US company earnings reports for more clarity how well the micro side of the global economic recovery is faring.
Asian stocks closed in the red while the FTSEurofirst 300 index of top European shares was trading 0.7% lower by 3:46pm.
In the broader market, losers outpaced gainers in the ratio of 1.7:1 on volume of 590 million shares, lower than last week’s daily average of 651 million.
Banks gained on optimism over their long-term prospects. Top lender State Bank of India rose 0.8% to Rs2,172.90, while private-sector lender HDFC Bank climbed 0.6% to Rs1,778.30.
India’s gross domestic product growth is expected to accelerate in 2010, Minister of Commerce and Industry, Anand Sharma said.
“We believe the earnings cycle is turning and broad market earnings are likely to outpace the narrow market in terms of growth,” Morgan Stanley said in a note.
Comment E-mail Print Share
First Published: Tue, Jan 19 2010. 04 24 PM IST
More Topics: India | Stocks | Markets | BSE | NSE |