The Hindu : Business : Sensex takes a hit on global weakness

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Friday, May 09, 2008
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Sensex takes a hit on global weakness

MUMBAI: The Bombay Stock Exchange’s sensitive index closed weak for the fourth straight session on Thursday with the benchmark Sensex shedding 259 points on across-the-board selling, triggered by weakness in Asian and European bourses following a sharp decline in the U.S. on Thursday.

Marketmen attributed the reason for the downfall in markets around the world to surging global crude oil prices which traded near its all-time record at $123.5 a barrel in Asian trade.

The 30-share BSE barometer settled at 17080.65, a fall of 258.66 points from its last close.

The broader 50-share S&P CNX Nifty of the National Stock Exchange also dipped 53.80 points to close at 5,081.70. Marketmen said investors fear high oil prices may widen trade deficit and in turn further push up inflation, which is already in uncomfortable zone of over seven per cent.

The absence of a positive trigger after the completion of earnings season in April was also a factor, they added.

IT sectors after hogging limelight in the past two sessions, faced investors’ wrath, rupee posting major gains against the US dollar.

Infosys Technologies were down 3.44 per cent, Satyam Computer 3.72 per cent, TCS 2.33 per cent.

Other major Sensex losers were ITC 5.24 per cent, SBI 2.17 per cent, ICICI Bank 3 per cent, HDFC Bank 2.24 per cent, L&T 3.36 per cent, Reliance Infrastructure 2.93 per cent, Jaiprakash Associates 2.09 per cent, ONGC 1.09 per cent and DLF 1.11 per cent.

Tata Steel bucked the trend to gain 2.51 per cent after touching a low of Rs. 811, on reports that the company has raised sizeable funds through redeemable non-convertible rupee debentures. . — PTI

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