Shares extend losses to more than 2%

Shares extend losses to more than 2%

Mumbai: Indian shares extended losses to more than 2% in Tuesday afternoon trade, amid subdued Asian equities as Irish debt troubles drove investors away from risky assets.

At 2:45 pm, the BSE 30-share index Sensex was down 2.214% at 19,861.60 points.

The NSE 50-share index Nifty slipped 2.05% to 5,995.35.

Outsourcer Mahindra Satyam fell to a 16-month low. It tumbled as much as nearly 14% to Rs72.60, its lowest level since July 2009, after it posted a fiscal second-quarter profit that narrowed from the first quarter as wage hikes squeezed margins.

BNP Paribas downgraded the company, formerly known as Satyam Computer Services, to hold from buy.

“While we still like the long-term margin restructuring story, we are at this point unable to call the timing of the recovery," BNP Paribas said in a note.

“The fact of the matter is their (foreign funds’) investments are not as robust as earlier since the last few sessions. With the year end approaching, Ireland issues -- it’s a wait and watch," said Arun Kejriwal, director of research firm KRIS.

The benchmark index is up 16.1% year to date backed by net foreign fund investments of $28.4 billion.

Foreign funds were net sellers of Indian equities on 12 November, their first outflow so far this month, after showing signs they were slowing down their investments on 10 and 11November.

Bharti Airtel jumped 2.6% after Citigroup upgraded the top mobile operator to “buy" from hold" and raised its target price to Rs400 from Rs350.

Financials dropped as investors booked profits after the surge in the previous session. The banking sector index shed 0.3% after a 2.4% rise on Monday.

Leading lenders State Bank of India, ICICI Bank and HDFC Bank dropped between 0.1% and 1%.