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Sensex extends losses, drops 3.66%

Sensex extends losses, drops 3.66%
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First Published: Mon, Mar 05 2007. 05 15 PM IST
Updated: Mon, Mar 05 2007. 05 15 PM IST
Agencies
Mumbai: The Bombay Stock Exchange’s Sensitive Index, or Sensex, fell 471.09, or 3.66%, to 12,415 at the close of trading today.
The S&P/CNX Nifty Index on the National Stock Exchange slid 150.25, or 4.03%, to 3,577.
About 195 shares advanced, 2,335 shares declined, and 29 shares were unchanged.
Indian stocks fell as a global stock rout extended to a second week. Infosys Technologies Ltd led software exporters lower after US consumer confidence unexpectedly dropped.
Among the heavyweights, shares of Infosys dropped Rs96.55 to Rs2,006.60, Tata Consultancy Services Ltd down by Rs46.25 to Rs1,162.20, ICICI Bank Ltd declined Rs25.15 to Rs820.70, and Tata Steel Ltd shrank Rs22.90 to Rs420.25.
“Equities are being sold globally; India is a part of that selling,” said Jayesh Shroff, who helps manage about $3.6 billion (Rs15,999 crore) in stocks at SBI Funds Management Ltd in Mumbai. “There is no point in catching a falling knife. We will have to wait and see when investors return to the market.”
US stocks had their biggest weekly decline since January 2003 amid a global selloff spurred by concern share prices have climbed too high during a four-year rally.
Consumer confidence in the US, the world’s biggest economy, fell as fuel prices rose. The Reuters/University of Michigan’s reading for consumer sentiment dropped to 91.3 last month from 96.9 in January, a two-year high. Economists surveyed by Bloomberg News estimated the figure would rise to 93.5 from its initial reading of 93.3 issued 16 February.
The US accounts for about 60% of sales for Indian software companies.
Investors Selling
Overseas investors sold a net Rs4.39 billion worth of Indian shares on 1 March, according to the latest information on the Securities & Exchange Board of India’s Web site. They sold $695 million worth of stocks so far last week.
“Overseas funds have turned sellers; that’s adding to the declines,” Shroff at SBI said.
Indian exchanges will extend trading hours from today until 19 March because the sun’s position may disrupt information received via satellites. Trading at the National Stock Exchange and the Bombay Stock Exchange will start at the usual 9:55 a.m. and end at 4:15 p.m. local time, 45 minutes after the normal close, the exchange said in a notice posted on its Web site.
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First Published: Mon, Mar 05 2007. 05 15 PM IST
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