Business | Markets
Sensex ends in the red after seesaw session
Indian shares ended a seesaw session 0.35 per cent lower on Friday, with investors wary of uncertainty in global equity markets, while two firms withdrew their initial public offers (IPO) due to volatility.
- Reuters
- Published: 01:04 February 9, 2008
Mumbai: Indian shares ended a seesaw session 0.35 per cent lower on Friday, with investors wary of uncertainty in global equity markets, while two firms withdrew their initial public offers (IPO) due to volatility.
Realty firm Emaar MGF Land, the Indian joint venture of Dubai's Emaar Properties, became the second Indian company to shelve its IPO last week, blaming adverse market sentiment fuelled by renewed indications of a US recession.
Emaar, which aimed to raise up to $1.64 billion, had already cut its price band twice and extended its IPO by three days after a weak response, while healthcare services pro-vider Wockhardt Hospitals pulled its share sale on Thursday.
The benchmark BSE 30-share index or Sensex shed 62 points to 17,464.89, with 16 of its components falling, extending its run of losses to a third day. The index rose nearly one per cent in early trade but also tumbled as much as 1.8 per cent.
"We are seeing selling at higher levels, but the corresponding buying is not happening at lower levels," said R.K. Gupta, chief executive at Taurus Mutual Fund.
"And I don't see an early respite to this. Next week also markets will remain volatile."
Reliance Power, which made India's largest ever public offer of $3 billion last month, makes its market debut on Monday and Gupta said the utility would be watched closely.
It got bids worth $190 billion in the sale and traders say that has led in part to a liquidity squeeze.
The broader 50-share NSE index slipped 0.25 per cent to 5,120.35.
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