The Hindu : Business : Sensex closes flat amid global financial worries

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Wednesday, Sep 17, 2008
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Sensex closes flat amid global financial worries

MUMBAI: Amidst a plunge in major Asian and European stocks on Tuesday on global financial crisis, the Indian benchmark Sensex closed flat after recovering the hefty losses in morning trade with a surprise buying in banking stocks.

The BSE barometer settled the day at 13518.80, lower by marginal 12.47 points from its last close.

Worried over by the current global economic crisis, the 30-share Sensex nosedived by hefty 480 points to intra-day low of 13051.73 points. However, the barometer rebounded on buying support in oil and gas and banking stocks which closed higher by 1.29 per cent and 0.89 per cent.

IT stocks take a hit

IT stocks continued to fall for the second day on Tuesday reeling under the impact of global financial crisis with the sectoral index taking a hit of 51.78 points amid concerns that the country’s outsourcing sector will face the heat. Shares of the country’s largest software exporter TCS dropped 1.61 per cent to close at Rs. 749.55 after touching an intra-day low of Rs. 720, while IT major Infosys closed 0.64 per cent down at Rs. 1,564.25.

Another IT major Satyam has an outsourcing deal with Lehman Brothers, wherein less than 100 employees of the domestic firm works for the U.S. financial major. When contacted, Satyam HR head S.V. Krishnan said, “The contract continues.”

However, he added, that he had not received any formal communication from Lehman Brothers. — PTI

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