Business | Markets
Indian shares fall 1.9% as finance sector hit hard
Indian shares fell 1.9 per cent on Wednesday, taking losses to more than a tenth over seven consecutive sessions, with the slide led by financials as sentiment weakened for the sector globally.
- Agencies
- Published: 23:37 September 17, 2008
Mumbai: Indian shares fell 1.9 per cent on Wednesday, taking losses to more than a tenth over seven consecutive sessions, with the slide led by financials as sentiment weakened for the sector globally.
The 30-share benchmark index ended down 1.89 per cent, or 255.90 points at 13,380.56, its lowest close in two months, with 23 of its components in the red.
ICICI Bank, India's second-largest lender, tumbled as much as 10.4 per cent in the afternoon before recouping some losses after the bank said its top management had not sold the bank's shares.
The stock, with 6.7 per cent weight in the main index, ended down 5.3 per cent at Rs560.30, its lowest close in two months. The share has tanked 14.2 per cent this week on worries the bank's exposure to Lehman Brothers debt may hurt profits.
The bank said on Tuesday it had 57 million euros ($81 million, Dh301.53 million) of Lehman's senior bonds, and would increase its provision on the debt by about $28 million to cover half of that exposure.
Confidence bruised
Jayesh Shroff, fund manager at SBI Mutual Funds, said investor confidence was badly bruised after the problems in the US financial sector worsened this week.
"Rumours abound and confidence is missing," he said. "One needs to be very cautious."
Top lender State Bank of India fell 3.6 per cent to Rs1,528.65, HDFC Bank slipped 3.7 per cent to Rs1,184.40 and the sector index dropped 3.8 per cent.
In the broader market, losers overwhelmed gainers nearly two-to-one on volume of 250.6 million shares.
The 50-share NSE index fell 1.6 per cent to 4,008.25.
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