Markets fall 1%; Reliance, Infosys down

Markets fall 1%; Reliance, Infosys down

Mumbai: Indian shares extended losses to 1% on Friday afternoon, with energy giant Reliance Industries and IT bellwether Infosys Technologies leading the fall.

At 2:20pm, the 30-share BSE index was down 1.025 at 16,722.67 points, with 24 components declining. The 50-share NSE Index was down 1% at 4,990.15.

Markets were trading 0.2% lower late morning tailing weak global markets, with Infosys Technologies and financial stocks leading the losses.

IT bellwether Infosys Technologies shed 1.1% to Rs2,532.50, as traders booked profits after the recent sharp gains. It was still up 3.2% this week.

Top private lender ICICI Bank dropped 0.7% to Rs820 while smaller rival HDFC Bank declined 0.7% to Rs1,660.95.

“Investors are not positive on banks from a near-term perspective, due to concerns over likely rate hike and credit offtake issues," said Kunal Sukhani, manager of institutional equities at Asian Markets Securities.

Mortgage lender Housing Development Finance Corp was down 1.2% at Rs2,569.60.

By 12:14pm, the 30-share BSE Index was trading down 0.24% at 16,853.09, with 18 of its components declining. The 50-share NSE index was down 0.2% at 5,030.60.

The benchmark is down 1.6% this week, and is likely to post its first weekly fall in three weeks.

However, it has rallied nearly 75% in 2009, helped by strong inflows from foreign funds.

Leading vehicles maker Tata Motors climbed 3.2% to Rs732.90, after its global sales in November rose 62% from a year earlier to 75,775 units, with sales at its Jaguar Land Rover unit up 30%.

“The sales numbers reinforce our positive view on the stock," Macquarie said in a note.

The brokerage expects the company’s domestic commercial vehicle sales to grow around 23% in the next couple of years on a revival in the overall economy, pickup in industrial activity, easier availability of finance, improvement in freight rates, and changes in emission norms.

In the broader market, gainers led losers in a ratio of 1.4:1. while 146 million shares changed hands on the Bombay Stock Exchange.