Indian markets started Monday in freefall, in reaction to the downgrading of American sovereign debt. But they then recovered some of that lost ground on news that the European Central Bank was buying Italian and Spanish bonds. The Sensex closed 315.69 points lower on Monday to end at 16990.18. And the Nifty wound up with a loss of 92.75 points at 5118.50.
Monday saw losses across the board, despite the later recovery. Infosys was a top loser, tumbling 4.73% on the BSE to 2,468. And Reliance Communications dropped 4.56% to less than 87.90. Real estate firm Unitech retreated 3.56% to 28.45%
Mahindra and Mahindra managed to eke out a profit in the first quarter despite rising costs and falling sales. The company’s results were just inches behind street estimates. Net profit rose 7.6% to Rs 604 crores in the three months to June. And net sales climbed 30% to Rs 6,673 crores. Mahindra’s numbers were helped along by SUV and tractor sales. Volumes from utility vehicles alone grew 15.4% during the period. Mahindra also said it benefited from better cost management. And investors reacted with delight. Its shares jumped 1.68% on the BSE to 666.