MUMBAI: Stocks lost further ground
Tuesday as losses mounted in other Asian markets on concerns of the impact of
the global credit squeeze and amid political uneasiness back home. Around noon
today, the Left allies will meet and may decide to withdraw support to
government today itself after Prime Minister made it clear that government will
soon approach IAEA for nuclear safeguards.
While the changes in the
allies of the UPA government have been looked at positively, as it takes the
country closer to finalizing the Indo-US nuclear deal, it could not have come at
a worse time.
The market is wary of the demands of the Samajwadi
Party, and at the same time, there is the feeling that the government is not
able to concentrate on the economic situation arising out of escalating
inflation as a result of this.
Stocks have been struggling to hold
on in the broad based sell-off and dealers say there is no follow up buying
despite the sharp decline.
At 11:25 am, the Bombay Stock
Exchange’s Sensex was down 413 points or 3.05 per cent at 13,112.94,
making a low of 13,049.96.
Reliance Infrastructure (down 8.05%),
Jaiprakash Associates (5.15%), ICICI Bank (4.51%), Satyam Computer (4.47%) and
Reliance Industries (4%) were the biggest index losers.
ACC (up
1.63%), Mahindra & Mahindra (0.33%), BHEL (0.24%) and Cipla (0.1%) were the
only Sensex gainers. market breadth on BSE showed 516 gainers and 1637 losers.
The National Stock Exchange’s Nifty was down 111 points or
2.74 per cent at 3919.45. The index touched a low of 3896.05 in trade so far.
Asian stocks are trading weak on concern financial companies will be
forced to take more write downs related to credit-market losses. The Nikkei 225
was down 2.35 per cent, the Hang Seng fell 3.41 per cent and the Straits Times
dropped 1.86 per cent.
Oil rebounded on Tuesday in Asia on a weaker
dollar and renewed buying interest after prices plunged nearly US$4 in the
previous session. Midday in Singapore, light, sweet crude for August delivery
was up 88 cents at US$142.25 a barrel in electronic trade on the New York
Mercantile Exchange.
www.economictimes.com