The Hindu : Business : Sensex drops 59 points

Online edition of India's National Newspaper
Saturday, Aug 21, 2004

Business

Business

Sensex drops 59 points

MUMBAI, AUG. 20. Worries over high global oil prices and rising inflation once again took heavy toll on share values today, sending the benchmark tumbling by a steep 58.99 points to close at 5064.66 on the Bombay Stock Exchange, cutting short a brief overnight rally.Crude oil prices touched a new all time peak of $49 a barrel in New York early trade today and according to market participants continuous surge in oil prices could lead to a further rise in India's oil import bill, affecting the gross domestic product growth this year, dealers said.

A further rise in inflation rate by 0.35 percentage point to 7.96 per cent for the week ended August 7 also affected sentiment as operators preferred to book profits at higher levels, they added. Global bearishness also had a negative impact on the share prices. On the Wall Street, the Dow Jones Industrial Average and the Nasdaq Composite Index dipped further by 42.33 points and 11.48 points respectively yesterday. Southeast Asian markets also ended weak today. The BSE-30 share sensitive index opened slightly better at 5128.10, which was also the day's high, as against yesterday's close of 5123.65 and later moved down to a low of 5047.75 before recovering moderately to close at 5064.66.

The mood was so bearish that the Government's step to cut customs and excise duties on petroleum products in order to contain rising inflation failed to stem the decline in share values, a broker said. — PTI

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