India’s Sensex dips despite rate cuts, low inflation (Roundup)

March 5th, 2009 - 7:17 pm ICT by IANS  

SensexMumbai, March 5 (IANS) A key Indian stock market index shed nearly 3 percent Thursday to end at its lowest level in over three years, as the battered sentiments appeared to have ignored the rate cuts by the central bank and a six-year low for inflation rate.
The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) was in a downtrend throughout the day, dipping sharply post-noon to close at 8,197.92 points - a fall of 2.94 percent or 248.57 points from Wednesday’s close.

The broader 50-share S&P CNX Nifty of the National Stock Exchange (NSE) fared no better, ending at 2,576.7 points, down 2.59 percent from its previous close at 2,645.2 points.

As many as 25 out of the 30 shares that make up the Sensex ended in the red.

The five that managed to end with gains included Sun Pharma, up 2.19 percent at Rs.997.60; Jaiprakash Associates, up 1.91 percent at Rs.66.70; TCS, up 0.42 percent at Rs.463 and Wipro, up 0.19 percent at Rs.206.25.

Of all the 13 sectoral indices on the exchange, only one closed in the positive with the index for consumer durables stocks gaining the most. Similarly, the midcap index closed 1.71 percent lower, while the smallcap index was down 1.81 percent.

The overall market sentiment was clearly negative, with 1,686 stocks declining, 699 advancing and 85 remaining unchanged.

Foreign funds were net sellers to the tune of $112.60 million and appeared to be following the trends in other markets, where the Hang Seng of the Hong Kong Stock Exchange shed 0.97 percent and FTSE of Britain was ruling 2.11 percent lower.

“This breaching of November lows signifies what the investor community is feeling right now - doubt and uncertainty,” said Jagannadham Thunuguntla, chief executive of New Delhi-based brokerage firm SMC Group.

Among losers were Ranbaxy, down 9.27 percent at Rs.144.40; ICICI Bank, down 5.17 percent at Rs.269.60; Tata Power, down 5.07 percent at Rs.640.10; and Reliance, down 5 percent at Rs.1,419.10.

Data with the Mumbai bourse also showed that the Sensex has lost nearly 8.45 percent over the past week, nearly 9.82 percent over the past month and as much as 50.44 percent over the past year.

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