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Indian shares down to lowest closing
Indian shares fell 1.06 per cent to their lowest close in a week on Thursday as concerns persisted about the fate of Washington's bailout plan and whether it would be able to shore up the slowing US economy.
- Agencies
- Published: 23:35 September 25, 2008
Bangalore: Indian shares fell 1.06 per cent to their lowest close in a week on Thursday as concerns persisted about the fate of Washington's bailout plan and whether it would be able to shore up the slowing US economy.
The market was choppy on the monthly expiry of derivatives contracts, and traders said the rollover of positions had been lower than normal as the global turmoil made investors cautious.
Shares of Reliance Industries, India's most valuable firm, fell 1.1 per cent to Rs2,025 (Dh161.87), outsourcer Infosys Technologies fell 1.2 per cent to a 5-month closing low of Rs1,504.95, and No 2 lender ICICI Bank dropped 0.7 per cent to Rs596.
The three stocks account for 30 per cent of the main index.
Oil and Natural Gas Commission (ONGC) rose 0.9 per cent to Rs1,071.15 after its chairman said the company was eyeing assets in Latin America, the Commonwealth of Independent States and west Africa.
The 30-share BSE index ended down 145.34 points at 13,547.18, after having started up 0.2 per cent and then falling as much as 1.9 per cent, with 23 components in the negative zone.
"We are dancing to the global tunes and the environment around you continues to be very negative," said Gajendra Nagpal, chief executive of Unicon Financial. "The short-term outlook is still very uncertain and people are not willing to take risk."
The BSE index is down a third in 2008, with the withdrawal of more than $9 billion (Dh33.10 billion) by foreign institutional funds being a key factor.
R.K. Gupta, managing director of Taurus Mutual Fund, said the market was unlikely to move up sharply without foreign inflows, noting nervous investors were looking to book profit on every rise.
JM Financial Services said the index's upside was capped at 14,000-14,300, while the support was at 13,100-13,300.
Inflation data
Investors were also awaiting inflation data due at 6pm (4.30pm UAE time), which could provide clues on the outlook for interest rates. A Reuters poll forecast annual inflation at 12.23 per cent on September 13, above 12.14 per cent a week earlier.
Credit Suisse said on Wednesday that most software-services firms were likely to miss their revenue guidance in US dollar terms, as the export-driven companies were witnessing outsourcing project delays and pressure on billing rates.
Sector leader Tata Consultancy Services (TCS) fell 3.3 per cent to Rs690.20 - its lowest close in nearly three years. Second-ranked Infosys posted its lowest close since April 11, while Wipro shed 4.8 per cent to Rs352.90, its weakest finish in more than three years.
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