Indian markets stem losses as global bourses continue fall (Roundup)

August 9th, 2011 - 7:19 pm ICT by IANS  

Sensex Mumbai, Aug 9 (IANS) Indian equities markets managed to stem losses as global markets continued to tumble Tuesday. A benchmark index, after falling over 550 points in early trade, managed to pare most of its losses and ended 137 points lower.

The 30-share sensitive index (Sensex) of the Bombay Stock Exchange, which fell over 550 points to 16,432 points in morning trade, started climbing later on as traders saw value buys in stocks which had been battered in a global sell off after credit rating agency Standard and Poor’s downgraded the US sovereign debt rating.

The Sensex closed the day at 16,857.91 points, down 132.27 points or 0.78 percent from its previous close as traders continued to brace for a double dip recession in the US and its ramifications for the global economy.

The Nifty of the National Stock Exchange also followed a similar pattern and ended at 5,072.85 points, down 0.89 percent.

Broader markets, too, recouped some of the intra-day losses.

FMCG and auto stocks were among the leading gainers on the BSE, but IT and telecom stocks continued to bleed.

According to data available with the Securities and Exchange Board of India, foreign institutional investors sold stocks worth $246.82 million Tuesday.

In the last two trading days, FIIs have sold stocks amounting to $606.08 million and $1.14 billion in seven trading days of August.

Among main Sensex losers Tuesday were: Tata Steel, down 4.87 percent at Rs.486.05; Tata Motors, down 4.33 percent at Rs.795.55; TCS, down 4.16 percent at Rs.967.25 and Infosys, down 3.68 percent at Rs.2,377.10.

Main gainers included: M&M;, up 4.29 percent at Rs.694.60; DLF, up 2.48 percent at Rs.200.70; ITC, up 2.44 percent at Rs.199.70 and HDFC, up 2.02 percent at Rs.660.60.

At the BSE, the market breadth, however, still showed a clear bearish trend. The number of stocks advancing was 829 stocks, compared to 2,036 on the decline and 104 remaining unchanged.

Globally, investors remained edgy as negative sentiments over the US downgrade continued to plague markets.

Other major Asian markets, too, managed to stem the loss-making spree and pared some of the losses Tuesday.

The benchmark Japanese Nikkei closed 1.68 percent down at 8,944.48 points, while the Chinese Shanghai Composite index too closed flat at 2,526.07 points.

Hong Kong’s Hang Seng fell a huge 5.66 percent lower at 19,330.7 points.

European markets, which saw a rally soon after opening, soon fell and were trading in the red later in the day.

The FTSE 100 of UK was ruling 1.57 percent lower at 4,989.26 points, while the German DAX was down 2.9 percent at 5,751.45 points.

The French CAC 40 was down 0.91 percent at 3,096.71 points.

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