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Indian shares close lowest in more than a week
Indian shares fell 2.8 per cent on Friday to their lowest close in more than a week, as renewed worries about the global economy rattled markets worldwide and frightened investors.
- Reuters
- Published: 22:31 September 5, 2008
Bangalore: Indian shares fell 2.8 per cent on Friday to their lowest close in more than a week, as renewed worries about the global economy rattled markets worldwide and frightened investors.
Traders said they expected little respite in the near term, with the outlook for shares in export-focused information technology companies dented by diminishing prospects for the US economy.
"The market will continue to be choppy next week in the absence of any positive trigger," said Dipak Acharya, fund manager at BoB Asset Management.
The main 30-share BSE index ended down 2.79 per cent, or 415.27 points, at 14,483.83, its biggest one-day per centage fall since August 21. It fell as much as 3.1 per cent during trade. All but three of the index's components lost ground.
The benchmark lost 0.6 per cent on the week, its third weekly loss in four, and is down about 29 per cent this year.
Reliance Industries dropped 3.4 per cent to Rs2,079.40, its lowest close in more than a week, and ICICI Bank shed 4.3 per cent to Rs687.15.
The two stocks account for about 23 per cent of the main index.
Analysts said a slide in crude prices from record highs above $147 in mid-July was a favourable factor for India that imports 70 per cent of its oil, but this was offset by global economic concerns.
Weakening economy
V.K. Sharma, head of research at Anagram Stock Broking, said the fall in demand for oil was being seen as a sign of weakening global economy.
Shares in software firms that get more than half their revenue from the United States were among the big losers. Infosys Technologies fell 4.3 per cent to Rs1,713.25 and Wipro lost 4.9 per cent to Rs426.25.
The sector index shed 3.5 per cent.
Edelweiss Securities said it was too early to call a softening in inflation this month as a trend because manufactured products inflation was still on the rise.
Data released late on Thursday showed annual inflation eased for the second consecutive week in late-August to 12.34 per cent as food prices fell, but economists saw no let up in the central bank's tight policy stance as underlying demand pressures remained intact.
In the broader market, 1,632 losers outpaced 1,019 gainers on volume of 224 million shares.
The broader 50-share NSE index fell 2.15 per cent to 4,352.30.
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