Indian stocks fall
Tuesday, 1 September 2009
MUMBAI, Aug. 31 (Bloomberg): India's benchmark stock index fell, ending a seven-day 7.5 per cent rally, led by metals producers after prices of commodities declined.
Sterlite Industries (India) Ltd., India's largest copper and zinc producer, dropped the most in two weeks after the price of the metals fell in Asia. Larsen & Toubro Ltd., the No. 1 engineering company, retreated after reports that India may cut its economic-growth target for the period from 2007 through 2012.
"Weak Asian markets, metal prices and some profit-booking is pulling the markets down," said Alex Mathews, head of research at Geojit BNP Paribas Financial Services Ltd. "We may see a pullback in late trade today."
The Bombay Stock Exchange's Sensitive Index, or Sensex, lost 153.65, or 1 per cent, to 15,768.69 at 11:23 a.m. in Mumbai trading. The gauge is set to gain 0.7 per cent this month. The S&P CNX Nifty Index on the National Stock Exchange lost 0.9 per cent to 4,689.30. The BSE 200 Index decreased 0.6 per cent to 1,937.34.
Sterlite fell 2.5 per cent to 680.4 rupees. Hindalco lost 1.9 per cent to 107.05 rupees. Tata Steel Ltd., the biggest producer of the alloy, declined 1.3 per cent to 433.05 rupees.
Zinc fell to the lowest in more than a week in Shanghai as expanding inventory raised speculation supply may outpace demand for the metal used to galvanize steel. Zinc for December delivery on the Shanghai exchange slumped 2.2 per cent to the lowest since Aug. 21. Copper declined 1.8 per cent and aluminum slid 0.9 per cent.
India's economic growth accelerated for the first time since 2007, indicating the global recession's impact on Asia's third-largest economy is waning. Gross domestic product expanded 6.1 per cent in the three months to June 30 from a year earlier after a 5.8 per cent gain in the previous quarter, the Central Statistical Organisation said in New Delhi today. That was less than the median 6.2 per cent forecast in a Bloomberg News survey of 27 economists.
Larsen & Toubro fell 1.9 per cent to 1,578.8 rupees. Bharat Heavy Electricals Ltd., whose turbines and generators light up three of every four homes in India, lost 1.1 per cent to 2,305 rupees.
Prime Minister Manmohan Singh may reduce the five-year growth estimate to 7.8 per cent from 9 per cent as the nation faces a drought and is still recovering from the impact of the global recession, the Economic Times reported, citing a report prepared by the Planning Commission. The estimate for the 12 months ending March 31 may be revised to 6.3 per cent, from as much as 7.75 per cent, the report said.
Sterlite Industries (India) Ltd., India's largest copper and zinc producer, dropped the most in two weeks after the price of the metals fell in Asia. Larsen & Toubro Ltd., the No. 1 engineering company, retreated after reports that India may cut its economic-growth target for the period from 2007 through 2012.
"Weak Asian markets, metal prices and some profit-booking is pulling the markets down," said Alex Mathews, head of research at Geojit BNP Paribas Financial Services Ltd. "We may see a pullback in late trade today."
The Bombay Stock Exchange's Sensitive Index, or Sensex, lost 153.65, or 1 per cent, to 15,768.69 at 11:23 a.m. in Mumbai trading. The gauge is set to gain 0.7 per cent this month. The S&P CNX Nifty Index on the National Stock Exchange lost 0.9 per cent to 4,689.30. The BSE 200 Index decreased 0.6 per cent to 1,937.34.
Sterlite fell 2.5 per cent to 680.4 rupees. Hindalco lost 1.9 per cent to 107.05 rupees. Tata Steel Ltd., the biggest producer of the alloy, declined 1.3 per cent to 433.05 rupees.
Zinc fell to the lowest in more than a week in Shanghai as expanding inventory raised speculation supply may outpace demand for the metal used to galvanize steel. Zinc for December delivery on the Shanghai exchange slumped 2.2 per cent to the lowest since Aug. 21. Copper declined 1.8 per cent and aluminum slid 0.9 per cent.
India's economic growth accelerated for the first time since 2007, indicating the global recession's impact on Asia's third-largest economy is waning. Gross domestic product expanded 6.1 per cent in the three months to June 30 from a year earlier after a 5.8 per cent gain in the previous quarter, the Central Statistical Organisation said in New Delhi today. That was less than the median 6.2 per cent forecast in a Bloomberg News survey of 27 economists.
Larsen & Toubro fell 1.9 per cent to 1,578.8 rupees. Bharat Heavy Electricals Ltd., whose turbines and generators light up three of every four homes in India, lost 1.1 per cent to 2,305 rupees.
Prime Minister Manmohan Singh may reduce the five-year growth estimate to 7.8 per cent from 9 per cent as the nation faces a drought and is still recovering from the impact of the global recession, the Economic Times reported, citing a report prepared by the Planning Commission. The estimate for the 12 months ending March 31 may be revised to 6.3 per cent, from as much as 7.75 per cent, the report said.