Markets down 1% as global mood dampens

Markets down 1% as global mood dampens

Mumbai: Indian shares extended losses and fell 1% on Thursday morning, tracking a fall in Asian and US stocks, which tumbled after disappointing data on the US housing market fuelled concerns about global growth.

Banks continued to be the top losers, on worries their profits would be hurt after the central bank raised the provision ratio for bad debts in its credit policy review.

By 11:22am, the 30-share BSE Index was trading down 1.07% at 16,109.73, with 22 of its components declining. The 50-share NSE index was down 1.05% at 4,775.60.

It slipped below 16,000 mark in early deals and touched a low of 15,993.83 points.

“We may correct more as globally the concerns still remain. Globally, the economic data is yet to indicate recovery," said K.K. Mital, head of portfolio management services at Globe Capital.

The benchmark has rallied 67% so far this year, as foreign funds poured in over $14 billion in Indian equities.

However, Sensex has shed around 4% so far in the week, and is down nearly 6% this month, on concerns over the speed of recovery, and as the central bank set a hawkish tone at its policy review this week.

Top lender State Bank of India was down 1.4% at Rs2,187.80 while private lender ICICI Bank shed 1.8% at Rs796.

Energy giant Reliance Industries was down 0.9% while state-run explorer Oil & Natural Gas Corp rose 0.9%, ahead of their quarterly earnings announcement.

Reliance Industries is expected to report a net profit of Rs38.6 billion, while ONGC may report its net profit rose 7.3% to Rs51.6 billion, a Reuters poll showed.

In the broader market, losers were nearly thrice the number of gainers in a volume of 133 million shares.