Business | Markets
India's bourse claws back some early loss
India's main share index clawed back from sharp early losses of more than 4 per cent on Tuesday and ended down 1.1 per cent after a rise in US stock futures eased selling pressure.
- Reuters
- Published: 23:25 December 2, 2008
Mumbai: India's main share index clawed back from sharp early losses of more than 4 per cent on Tuesday and ended down 1.1 per cent after a rise in US stock futures eased selling pressure.
Investors have been looking to foreign markets for direction, with global economic gloom setting the trend for shares. The market had tumbled at the start after confirmation the United States was in recession sent Wall Street sliding overnight.
The 30-share BSE index closed down 1.14 per cent, or 100.63 points, at 8,739.24, with 18 of its components falling. It had fallen to 8,467.43 in early trade.
"US stock futures was one thing that helped. Also, we have reached levels which are already abys-mal," said Arun Kejriwal, director of Kejriwal Research and Investment Services.
The BSE index has dropped 56.9 per cent in 2008, making it one of the worst performers in Asia. US index futures pointed to a higher start on Wall Street.
Auto makers were among the top losers. Top utility vehicle maker Mahindra & Mahindra fell 8.2 per cent to Rs249.80 (Dh18.32), leading car maker Maruti Suzuki dropped 5.2 per cent to Rs460.05 (Dh33.74).
Top vehicle maker Tata Motors shed 3.3 percent to Rs128.40 (Dh9.43).
All three firms reported big falls in November sales from a year earlier - Maruti's fell 24 per cent, Tata Motors' were down 30 per cent and Mahindra's shed 39 per cent.
Banking stocks were also hit, amid the presence of both a weak global sentiment towards the sector and local disappointment that an expected official interest rate cut anticipated from last week after China's rescue efforts, has not been announced yet.
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