| Higher than expected inflation and weakness in the Asian and European markets resulted in 1 per cent fall in indices on Friday.
|
| |
| However, shares ended off the day's low it had touched after inflation rate was detailed at noon. Inflation for the week to March 3 rose to 6.46 per cent from 6.10 per cent a week ago. A NewsWire18 poll had estimated inflation rate at 6.31 per cent. The finance minister said the government would take steps to rein in inflation.
|
| |
| Profit taking before the weekend, due to uncertainty in global trend, also weighed on sentiment. The Bombay Stock Exchange Sensex ended at 12430.40, down 113.45 points, or 0.9 per cent from Thursday, after touching a low of 12316.10 and high of 12638.78.
|
| |
| The National Stock Exchange's Nifty closed at 3608.55, down 35.05 points, or 1.0 per cent. It had touched a low of 3573.85 and a high of 3683.60 intraday. "Some fund-based buying is required to support indices, but weak indicators such as inflation are keeping them (the funds) on the sidelines," said Biranchi Sahu, head of institutional sales at Khandwala Securities.
|
| |
| Global markets were weak as mixed indicators from the US, the world's biggest economy, are keeping investors wary.
|
| |
| On Thursday, increase in February producer and core prices raised worries of high inflation, while slowing of factory activity in certain US states indicated an economic slowdown. Here, the Sensex extended losses to its fifth straight week. Combined turnover on BSE and NSE was over Rs 10,300 crore, slightly down from Thursday.
|
| |
| The CNX Mid-cap index was down 0.8 per cent and S&P CNX 500 was down 1.0 per cent. The Nifty's key losers were Suzlon Energy, down 5 per cent at Rs 964.85, and Dabur India, down 3 per cent at Rs 84.50. Suzlon fell as the company may need to raise its bid for Germany's REpower Systems to counter competitor Areva bid of 140 euros a share. Suzlon's last offer was 126 euros a share.
|
| |
| Shares of information technology companies fell on fear of an economic decline in the US. Although companies have repeatedly said even a decline in economic growth will not affect their revenue from the US, investors are worried companies could cut IT budgets in case of a slowdown.
|
| |
| Nearly 60 per cent of revenues of the Indian IT sector derive from North America.
|
| |
| Shares of bellwether Infosys ended down 1.4 per cent at Rs 2,050.10.The CNX IT Index ended down 0.5 per cent. |
| |
|
| |
Content Guide
