Indian shares slide 2.9pc
Tuesday, 9 June 2009
MUMBAI, June 8 (AFP): Indian shares were down 2.9 per cent Monday as Asian and European markets fell and investors locked in gains, dealers said.
The benchmark 30-share Sensex fell 437.63 points to 14,665.92.
European markets were down Monday following a sharp defeat for the left in European Union (EU) elections.
And local funds booked profits following a sharp rally which has seen the Sensex rise nearly 90 per cent from a recent low of 8047.17 in early March.
The Sensex has gained 20 per cent since the Congress party swept to election victory in mid-May with its biggest seat tally in nearly two decades.
Mutual funds had bought shares on expectations the new government may announce reforms in the budget that had been stalled during its previous term.
The Congress-led government is set to present its budget in early July and its focus is expected to be on spurring growth even at the risk of a wider fiscal deficit.
"We are seeing a churning of portfolios as investors are exiting stocks, which had lagged earlier. The markets will be choppy in coming weeks," said a dealer with brokerage Prabhudas Lilladher.
Losers led gainers 2,246 to 582 on turnover of 73.35 billion rupees (1.54 billion dollars).
The rupee fell against the dollar to 47.38 from 47.08 but rose against the euro at 66.07 from 66.86.
The rupee, which has risen in recent weeks, had been under pressure for many months as investment funds moved money into areas regarded as safer havens.
Property, banking and telecom stocks fell.
India's top property firm DLF fell 42.2 rupees or 10.34 per cent to 365.85 while the second largest mobile phone firm, Reliance Communications, fell 29.4 rupees or 8.68 per cent to 309.45.
India's largest bank, State Bank of India, fell 122.8 rupees or 6.76 per cent to 1,695.1 on media reports that it may lower lending rates further.
ICICI Bank, India's largest private bank, fell 26.9 rupees or 3.58 per cent to 724.25.
The benchmark 30-share Sensex fell 437.63 points to 14,665.92.
European markets were down Monday following a sharp defeat for the left in European Union (EU) elections.
And local funds booked profits following a sharp rally which has seen the Sensex rise nearly 90 per cent from a recent low of 8047.17 in early March.
The Sensex has gained 20 per cent since the Congress party swept to election victory in mid-May with its biggest seat tally in nearly two decades.
Mutual funds had bought shares on expectations the new government may announce reforms in the budget that had been stalled during its previous term.
The Congress-led government is set to present its budget in early July and its focus is expected to be on spurring growth even at the risk of a wider fiscal deficit.
"We are seeing a churning of portfolios as investors are exiting stocks, which had lagged earlier. The markets will be choppy in coming weeks," said a dealer with brokerage Prabhudas Lilladher.
Losers led gainers 2,246 to 582 on turnover of 73.35 billion rupees (1.54 billion dollars).
The rupee fell against the dollar to 47.38 from 47.08 but rose against the euro at 66.07 from 66.86.
The rupee, which has risen in recent weeks, had been under pressure for many months as investment funds moved money into areas regarded as safer havens.
Property, banking and telecom stocks fell.
India's top property firm DLF fell 42.2 rupees or 10.34 per cent to 365.85 while the second largest mobile phone firm, Reliance Communications, fell 29.4 rupees or 8.68 per cent to 309.45.
India's largest bank, State Bank of India, fell 122.8 rupees or 6.76 per cent to 1,695.1 on media reports that it may lower lending rates further.
ICICI Bank, India's largest private bank, fell 26.9 rupees or 3.58 per cent to 724.25.