Markets fall 0.2%; Mahindra Satyam jumps

Markets fall 0.2%; Mahindra Satyam jumps
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First Published: Thu, Dec 10 2009. 11 11 AM IST
Updated: Thu, Dec 10 2009. 11 11 AM IST
Mumbai: Indian shares fell 0.2% on Thursday as investor confidence across Asia was dented by credit worries in Europe and the Middle East, pushing investors to cash in profits from a 3% rally over the past two weeks.
Top-listed firm Reliance Industries, private-sector lender HDFC Bank and No. 2 outsourcer Infosys Technologies led the losses.
Mahindra Satyam bucked the trend and jumped as much as 9.1% after it said on Wednesday it would pay $70 million to Britain-based Upaid Systems Ltd in a patent suit settlement which analysts says lifts uncertainty from the Indian technology outsourcer.
Parent Tech Mahindra was up 2.6% at Rs1,021.25.
By 11:08 am, the 30-share BSE index was down 0.2% at 17,088.72 points, with 21 stocks declining, after rising 0.2% in early trade. The 50-share NSE index was down 0.2% at 5,100.35.
“Global cues are weak. First we had Dubai, then we have Greece,” Ambareesh Baliga, vice president at Karvy Stock Broking, said.
“There is a question mark over the pace of recovery.”
Fitch Ratings has downgraded Greece, while Moody’s cut the ratings of six Dubai-linked issuers after concluding that no “meaningful” government support would be provided to top firms like DP World.
Ratings agency Standard & Poor’s on Wednesday warned Spain risks a debt downgrade in two years if the government does not take tough action on its fiscal deficit.
India’s benchmark BSE index is up more than 77% this year, outperforming the benchmark MSCI Emerging Markets Index that gained nearly 70% and a 29% rise in the MSCI all-country world stock index.
This has triggered worries about over-stretched valuations, which has led some investors to lock in profits.
But overseas funds, which have pumped in almost $16 billion into Indian stocks this year, are expected to sustain the market in the long term even though there may be a dip in the short term.
Mahindra Satyam was up 6.3% at Rs109.05, after rising to Rs112.
Energy giant Reliance Industries, which has the most weight in the main index, slipped 0.5% to Rs1,067.
HDFC Bank shed 1.3% to Rs1,781.50, while Infosys Technologies fell 0.8% to Rs2,436.20.
In the broader market, gainers led losers 1,485 to 923 on relatively moderate volume of 145.8 million shares.
Asian shares were lower on Thursday, with Japan’s Nikkei down 1.4%, while MSCI’s measure of other Asian markets fell 0.7%.
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First Published: Thu, Dec 10 2009. 11 11 AM IST
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