SENSEX 16936.89 -148.45
NIFTY 5091.90 -47.25
USD/INR 0049.72 +00.56
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UPDATEDTIME 09.28 PM 20 OCTOBER 2011
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Indian
shares fell 0.9 per cent on Thursday after most large banks reversed the
previous day's rise in anticipation of an interest rate increase next week, and
as doubts about Europe's ability to solve its debt crisis hit global equity
markets.
Lender ICICI Bank ended 2.9 per cent down, while Housing Development Finance Corp fell 4.3 per cent and HDFC Bank ended 0.5 per cent lower. The banking sector index had risen 2.7 per cent on Wednesday.
Rising rates due to persistently high inflation have increased worries over asset quality and margins at banks. The Reserve Bank of India, which has raised rates a dozen times since mid-March 2010, is expected to hike them again next week when it meets to review policy.
India's food price index rose 10.60 per cent and the fuel price index climbed 15.17 per cent in the year to Oct. 8, government data on Thursday showed.
The main 30-share index ended 0.87 per cent lower at 16,936.89 points, with 22 of its components declining.
The benchmark has risen 3.8 per cent since the end of September, but is down 17 per cent this year as high borrowing costs squeezed corporate profits and a series of government scandals paralysed government policy making.
"The instability, globally, is affecting sentiment in a big way. That is why one day when global markets are up we are going up and the next day when they are down we follow. It is very difficult to say where they are headed even in the short-term.
To add to worries there is a rate hike expected and that is also having a go at market sentiment.
Shares of India's No.2 motorcycle maker Bajaj Auto fell as much 5 per cent after its September quarter profit lagged estimates.
Interest rate sensitive auto stocks also fell with Tata Motors ending 2 per cent down, Mahindra & Mahindra falling 1.1 per cent and Hero MotoCorp ending 1.8 per cent down.
Lender ICICI Bank ended 2.9 per cent down, while Housing Development Finance Corp fell 4.3 per cent and HDFC Bank ended 0.5 per cent lower. The banking sector index had risen 2.7 per cent on Wednesday.
Rising rates due to persistently high inflation have increased worries over asset quality and margins at banks. The Reserve Bank of India, which has raised rates a dozen times since mid-March 2010, is expected to hike them again next week when it meets to review policy.
India's food price index rose 10.60 per cent and the fuel price index climbed 15.17 per cent in the year to Oct. 8, government data on Thursday showed.
The main 30-share index ended 0.87 per cent lower at 16,936.89 points, with 22 of its components declining.
The benchmark has risen 3.8 per cent since the end of September, but is down 17 per cent this year as high borrowing costs squeezed corporate profits and a series of government scandals paralysed government policy making.
"The instability, globally, is affecting sentiment in a big way. That is why one day when global markets are up we are going up and the next day when they are down we follow. It is very difficult to say where they are headed even in the short-term.
To add to worries there is a rate hike expected and that is also having a go at market sentiment.
Shares of India's No.2 motorcycle maker Bajaj Auto fell as much 5 per cent after its September quarter profit lagged estimates.
Interest rate sensitive auto stocks also fell with Tata Motors ending 2 per cent down, Mahindra & Mahindra falling 1.1 per cent and Hero MotoCorp ending 1.8 per cent down.
Analysts
said investors were also wary as monthly derivatives contracts will expire two
days early on Oct. 25 due to holidays.
Shares of Biocon, India's top biotechnology company, ended 0.3 per cent lower after it reported a 4 per cent drop in quarterly profit due to higher energy costs and rise in wages.
Shares of oil explorer Cairn India ended down 2.1 per cent at 293.55 rupees ahead of its earnings announcement. The company saw its quarterly net profit fell over 50 per cent to 7.63 billion rupees.
Reliance Industries, India's largest listed firm also fell 0.5 per cent. The stock has lost about 20 per cent since the beginning of the year as its growth outlook has been marred by falling gas output from its huge gas fields off India's east coast.
The 50-share NSE index ended down 0.9 per cent at 5,091.9 points.
In the broader market, there were 1.8 losers for every gainer on total volume of 495.8 million shares.
The MSCI's broadest index of Asia Pacific shares outside Japan fell 2.28 per cent, while Japan's Nikkei was 1.03 per cent lower. World stocks as measured by MSCI fell 0.53 per cent, while emerging equities were down 1.93 per cent.
Regards
Shares of Biocon, India's top biotechnology company, ended 0.3 per cent lower after it reported a 4 per cent drop in quarterly profit due to higher energy costs and rise in wages.
Shares of oil explorer Cairn India ended down 2.1 per cent at 293.55 rupees ahead of its earnings announcement. The company saw its quarterly net profit fell over 50 per cent to 7.63 billion rupees.
Reliance Industries, India's largest listed firm also fell 0.5 per cent. The stock has lost about 20 per cent since the beginning of the year as its growth outlook has been marred by falling gas output from its huge gas fields off India's east coast.
The 50-share NSE index ended down 0.9 per cent at 5,091.9 points.
In the broader market, there were 1.8 losers for every gainer on total volume of 495.8 million shares.
The MSCI's broadest index of Asia Pacific shares outside Japan fell 2.28 per cent, while Japan's Nikkei was 1.03 per cent lower. World stocks as measured by MSCI fell 0.53 per cent, while emerging equities were down 1.93 per cent.
Regards
RAKESH MAKIN
+91,
9041667797(DIRECT), 9915684997
OFF 0172-4657997
PANCHKULA (Haryana).
Email:makin_97@yahoo.com
Group mail id: makin97NSEtips@yahoogroups.co.in
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