Business | Markets
Sensex falls to its lowest this year
Wobbly Indian shares fell to their lowest in 2008 yesterday, rattled by concerns interest rates may be raised to cool inflation, but pared some losses toward the close on late buying by domestic funds.
- Reuters
- Published: 00:03 June 11, 2008
Mumbai: Wobbly Indian shares fell to their lowest in 2008 yesterday, rattled by concerns interest rates may be raised to cool inflation, but pared some losses toward the close on late buying by domestic funds.
The 30-share main share index ended down 1.17 per cent at 14,889.25, its lowest close since mid-March, with 21 components in the red.
It hit a trough of 14,645.31, below the previous 2008 low of 14,677.24 in March, and the lowest since August 29, 2007.
Traders said domestic funds scooped up bargains, helping the market to pull off the lows. "They have started cherry picking long-term outperformers," said Amitabh Chakraborty, president of equities at Religare Securities.
Software stocks such as bellwether Infosys Technology that get more than half their revenue from the US led the losses amid worries the US economy was heading for stagflation.
Financials like ICICI Bank, India's No 2 lender fell 2.5 per cent to Rs731.60, its lowest since October, on worries higher interest rates would slow down loans growth.
Smaller rival HDFC Bank dropped 4.5 per cent to Rs1,130.95, the lowest close since August. The sector index fell 2.4 per cent.
Traders said the outlook remains shaky with foreign portfolio investors dumping Indian stocks, which have fallen 26.6 per cent this year and making them among the worst performers in Asia.
Pullout
Data yesterday showed foreign funds pulled out $332.6 million the previous day, taking the total outflow in 2008 to more than $5 billion.
Top listed firm Reliance Industries rose 1.7 per cent to Rs2,199.40, ahead of its annual shareholders meet on Thursday where it is expected to announce a slew of business initiatives, traders said.
Infosys fell 2.9 per cent to Rs1,849.10, its lowest close in more than two weeks, while leader Tata Consultancy Services lost 3.9 per cent to Rs880.05.
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