Business | Markets
Indian shares fall 1.6% but Infosys posts gains
Indian shares shed 1.6 per cent yesterday to their lowest close this week, with banks slipping as global sentiment toward financials was dented by Lehman Brothers' woes.
- Reuters
- Published: 23:39 September 10, 2008
Mumbai: Indian shares shed 1.6 per cent yesterday to their lowest close this week, with banks slipping as global sentiment toward financials was dented by Lehman Brothers' woes.
Shares in outsourcer Infosys Technologies bucked the trend and climbed 0.7 per cent to Rs1,759.15 as the rupee weakened to a near two-year low and its chief executive said he was confident of winning its bid for Britain's Axon.
Traders said the broader market was weighed down by a drop in world markets as investors awaited the fate of US investment bank Lehman, which needs to raise capital to tide over a credit crisis.
"Of course we will not have any immediate impact because of Lehman's woes but sentiments are a crucial factor and today that was weak," Jayesh Shroff, fund manager at SBI Mutual Funds, said.
The 30-share BSE index fell 238.15 points, to 14,662.61, its lowest close since September 5, with 24 components dropping.
Reliance Industries led the index lower dropping 2.8 per cent to Rs2,083.55, its lowest close since September 5, on concerns easing oil prices may hurt its refining margins.
Reliance along with ICICI Bank, which fell 1.7 per cent to Rs700.50, account for more than 22 per cent of the main index.
Religare Securities said the BSE index had formed a range between 15,107 and 14,438 and a breakout would indicate future trend. It said a move above 15,106 would be positive for the market, while a move below 14,438 would turn the bias negative.
The benchmark is down about 28 per cent so far this year after rising 47.1 per cent in 2007.
The broader 50-share NSE index fell 1.5 per cent to 4,400.25.
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