Sensex recovers from initial losses, still down by 70 pts

Tata Motors tumbled more than 8 per cent as the company's American Depository Receipt (ADR) fell almost 3 per cent yesterday after the company reported Q4 March 2012 results.

Profit-booking ahead of the expiry of derivative contract tomorrow also affected the market sentiment. The May contract will expire tomorrow.

The BSE benchmark sensex resumed lower at 16,391.90 and dropped further to 16,299.53 before quoting at 16,368.52 at 1030hrs, showing a loss of 70.06 points or 0.43 per cent from its last close.

The NSE 50-share Nifty also dropped by 30.20 points or 0.61 per cent to 4,959.90 at 1030hrs.

Major losers were Tata Motors (8.12 pct), DLF (1.73 pct), BHEL (1.42 pct), Bajaj Auto (1.18 pct), SBI (1.00 pct), HDFC Bank (0.98 pct) and M&M (0.83 pct).

Asian stock markets fell in the early trade paring strong gains from the previous session as hopes for strong stimulus spending in China faltered, and as more trouble in Spain posed fresh threats to the euro zone. Key benchmark indices in China, Indonesia, Singapore, Hong Kong, Japan, Taiwan and South Korea were down by 0.1 per cent to 1.99 per cent.

Indication of lower opening in US index futures also the another factor behind fall in share values.