Indian shares provisionally end 4.45 percent lower

July 4th, 2008 - 12:09 am ICT by ANI  

Mumbai, July 3 (ANI): Indian shares slid on Thursday after global oil prices climbed to a record above 144 dollars a barrel, spooking markets across the region, and rattled by U.S. economic woes.

Indian shares provisionally fell 4.45 per cent on Thursday, led by ICICI Bank and Reliance Industries, as record oil prices and political uncertainty rattled investors.

Traders said political concerns also kept investors edgy, with the government wooing a regional party for support if the communists withdrew their parliamentary votes in protest against a civilian nuclear deal with the United States .

This is panic selling whenever there is political instability the market fluctuates like today morning it went down 700 points, said Ramesh Padmanabhan, an investor.

While some investors expressed apprehension over the current market trends.

Still the market is in negative sentiments we don’t see any change and that is what we can see the reaction today itself. Yesterday it was 700 plus today it is right now 700 minus so the effect has been neutralized, said Siddharth Akuawala, another investor.

The 30-share Bombay Stock Exchange (BSE) index provisionally closed 607.88 points lower at 13,056.74.

The 50-issue National Stock Exchange (NSE) index provisionally fell 4.2 per cent to 3,920.45.

Oil , India ’s biggest import, hit records for the fifth time in six sessions, as the dollar fell on the gloomy U.S. jobs data, and a higher expected fall in U.S. crude stocks raised supply concerns.

Apart from the record oil prices, the Dow Jones index closed more than 20 per cent below its October peak on Wednesday, slipping into a bear market after a report showed U.S. private employers cut the most jobs in nearly six years, intensifying concerns about the health of the economy. (ANI)

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