Stocks fall under global pressure
Published on Friday, July 25th, 2008 at 5:38 AMAuthor: admin (5507 Articles)
Stocks dropped early on Friday led lower by negative global cues as renewed concerns about the health of the US economy plagued sentiment. The over night rise in crude oil also soured the mood. Financials, oil and infrastructure related stocks led the decline.
At 10:05 am, the Bombay Stock Exchange’s Sensex was down 302 points or 2.04 per cent at 14,475.19.
Biggest Sensex losers comprised ACC (-5.48%), ICICI Bank (-5.2%), Jaiprakash Associates (-4.09%), HDFC (-4.02%), Ambuja Cements (-3.73%), HDFC Bank (-3.64%) and Reliance Infrastructure (-3.41%).
But stalwarts from the technology pack, Satyam Computer (1.18%), Tata Consultancy Services (1.15%), Mahindra & Mahindra (0.94%) and Wipro (0.61%), braved the tide. Market breadth was negative with 235 advances and 647 declines on BSE.
The National Stock Exchange’s Nifty was down 85 points or 1.91 per cent at 4348.90.
Expecting the market to open lower, Religare Securities, in its morning note to clients said, “Oil is still below the 126 level. Inflation data has brought some solace as it was 11.89 per cent against 11.91 per cent last week breaking its rise for the first time in the last 8 weeks. Volatility may remain high so make the best of it,†Religare Securities said in a note.
Equities were trading with losses elsewhere in Asia. The Nikkei 225 was down 1.86 per cent, the Hang Seng shed 1.86 per cent and the Straits Times slid 1.90 per cent.
US stocks fell sharply Thursday as data painted a pessimistic portrait of the housing sector and employment. The embattled financial sector paved the way down. The Dow Jones Industrial Average fell 2.43 per cent, the Standard & Poor’s 500 Index slid 2.31 per cent and the Nasdaq Composite Index shed 1.97 per cent.
Oil prices rebounded from a seven-week low on Thursday as traders covered shorts after recent declines left the market oversold. US light crude settled at $125.49 a barrel, up $1.05. London Brent crude settled at $126.44, up $1.15, after falling to a seven-week low of $124.10 earlier.
Inflation data, released after market hours Thursday, stood at 11.89 per cent in the 12 months to July 12, a shade down from the previous week’s reading of 11.91 percent. But the central bank is unlikely to be persuaded to loosen monetary policy at its scheduled review next Tuesday, given that inflation has softened.
Source : The Economic Times
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