Business | Markets
Sensex falls to lowest close in two weeks
Indian shares fell 3.38 per cent to their lowest close in two weeks yesterday, spooked by poor sentiment in European equities and jitters that a correction at home may deepen, with Reliance Industries leading the drop.
- Reuters
- Published: 01:04 February 8, 2008
Mumbai: Indian shares fell 3.38 per cent to their lowest close in two weeks yesterday, spooked by poor sentiment in European equities and jitters that a correction at home may deepen, with Reliance Industries leading the drop.
The market took news that India's economy is likely to expand at 8.7 per cent this fiscal year in its stride, with the slower pace from 2006-07 widely expected.
But a warning from Cisco triggered fresh concern in European markets that a US economic slowdown may erode profitability.
India's benchmark BSE 30-share index dropped 612.6 points to 17,526.93, its weakest close since January 24, with 29 components in the red.
"Looks like there was heavy selling from the foreign funds today," said Neeraj Dewan, director at Quantum Securities.
"The confidence is just not there. There are not many buyers in the market as people are fearing that the market will fall further," he said.
The index, which drop-ped 2.8 per cent on Wed-nesday, is now more than 17 per cent below a record 21,206.77 hit on January 10 and foreign funds, who bought shares worth more than $17 billion in 2007, have been net sellers of more than $2.5 billion so far this year.
Shares in some Indian outsourcers dropped after peers in the United States fell following a weak earnings forecast from network equipment maker Cisco Systems and Electronic Data Systems Corp.
The software services exporters earn more than half their revenue from the United States and bellwether stock and second largest exporter Infosys Technologies ended down nearly two per cent at Rs1,480.90.
Smaller firm Satyam Computer Services Ltd fell 4.4 per cent to Rs390.85.
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