Sensex tanks 427 points in early trade

Sensex tanks 427 points in early trade
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First Published: Wed, Mar 14 2007. 01 46 PM IST
Updated: Wed, Mar 14 2007. 01 46 PM IST
By Gautam Chakravorthy, Bloomberg
Mumbai:India’s shares fell for the first day in three, mirroring a slide in global markets on renewed concern the US economy is slowing. Infosys Technologies led declines among exporters.
“The fall is a reaction to the global stock decline on concerns of a US slowdown,” R Rajagopal, who manages $68 million as head of equities at DBS Chola Asset Management Co. in Mumbai, said in a phone interview.
The Bombay Stock Exchange’s Sensitive Index, or Sensex, slid 427.44, or 3.3% to 12,556.64 in early morning trade. The S&P/CNX Nifty Index on the National Stock Exchange declined 120.85, or 3.2%, to 3,649.70.
Infosys Technologies, India’s second-biggest software exporter, dropped Rs85.65, or 4.1%, to Rs2,020. The software maker earns about 60% of its revenue from the US and 26.8% of sales come from Europe. ICICI Bank, the nation’s biggest bank by market value declined Rs42.35, or 4.8%, to Rs835.
Lupin Ltd fell Rs12.15, or 2.1%, to Rs572. Wyeth, marketer of the Prevnar meningitis vaccine and Enbrel arthritis drug, sued the Indian drugmaker to block sales of a generic, extended-release form of the antidepressant Effexor.
US stocks, in the meanwhile, wiped out three days of gains after growing mortgage delinquencies heightened concern a home-loan crisis is spreading across the economy. A gauge of financial shares on the Standard & Poor’s 500 Index fell 3.2%, while homebuilders lost 4.6%. S&P 500 futures lost 0.1%.
A report by the US Mortgage Bankers Association yesterday showed the number of borrowers with the best credit who were at least 30 days late in their mortgage payments reached the highest level in almost four years. Delinquencies for subprime borrowers reached 13.33%, also the highest since 2003’s second quarter.
In addition, retail sales in the U.S. rose 0.1% in February after being unchanged in January, according to the U.S. Commerce Department. Economists in a Bloomberg News survey predicted they would increase 0.3% last month.
With reporting by Subramaniam Sharma in New Delhi.
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First Published: Wed, Mar 14 2007. 01 46 PM IST
More Topics: Money Matters | Equities |