Indian shares to slip further this week
Sunday, 10 February 2008
MUMBAI, Feb 9 (AFP): Indian share prices were seen slipping further this week in the absence of fresh overseas inflows and increasing investor worry over the global economic outlook, dealers said.
They said uncertain global market trends could impact emerging markets such as India in coming weeks.
For the week to February 8, the Mumbai stock exchange's benchmark 30-share Sensex index fell 4.26 per cent or 777.69 points to 17,464.89.
"Investors are clearly spooked by global trends and local concerns linked to weak primary markets. There's choppiness ahead," said a dealer at brokerage Prabhudas Lilladher. Real estate developer Emaar MGF Land Friday said it had withdrawn its initial public offering temporarily due to uncertain market conditions.
Emaar, which sought to raise up to US$1.64 billion, had cut its price band twice and extended its initial public offering (IPO) by three days to February 11.
On Thursday, India's Wockhardt Hospitals, which had also lowered its price band, withdrew its IPO due to weak investor demand.
Earlier last week, the government forecast India's economy would expand by 8.70 per cent in the financial year ending March as farm and manufacturing output slowed from last year's rapid pace.
The Indian economy grew by 9.60 per cent in the year ended March 2007, the second-fastest rate for a major economy after China.
Indian markets are down more than 17 per cent from a record intraday high of 21,206.77 on January 10.
In 2007, India's stock markets rose by a record 47.10 per cent, the largest climb in four years, led by overseas fund flows of 17.23 billion dollars for the year, compared with 7.99 billion for 2006.
The market gained 46.70 per cent in calendar 2006.
They said uncertain global market trends could impact emerging markets such as India in coming weeks.
For the week to February 8, the Mumbai stock exchange's benchmark 30-share Sensex index fell 4.26 per cent or 777.69 points to 17,464.89.
"Investors are clearly spooked by global trends and local concerns linked to weak primary markets. There's choppiness ahead," said a dealer at brokerage Prabhudas Lilladher. Real estate developer Emaar MGF Land Friday said it had withdrawn its initial public offering temporarily due to uncertain market conditions.
Emaar, which sought to raise up to US$1.64 billion, had cut its price band twice and extended its initial public offering (IPO) by three days to February 11.
On Thursday, India's Wockhardt Hospitals, which had also lowered its price band, withdrew its IPO due to weak investor demand.
Earlier last week, the government forecast India's economy would expand by 8.70 per cent in the financial year ending March as farm and manufacturing output slowed from last year's rapid pace.
The Indian economy grew by 9.60 per cent in the year ended March 2007, the second-fastest rate for a major economy after China.
Indian markets are down more than 17 per cent from a record intraday high of 21,206.77 on January 10.
In 2007, India's stock markets rose by a record 47.10 per cent, the largest climb in four years, led by overseas fund flows of 17.23 billion dollars for the year, compared with 7.99 billion for 2006.
The market gained 46.70 per cent in calendar 2006.