Wednesday, February 06, 2008

Markets reel under pressure

The market tumbled in opening trade on weak global cues. An unexpected contraction in the service sector in the US once again sparked fears the economy may sink into recession.The markets continue to reel under pressure on account of sustained selling pressure in scrips across sectors.

At 1.36 hrs IST, the Sensex is down 588.04 points or 3.15% at 18075.12, and the Nifty down 185.10 points or 3.38% at 5298.80.

Consumer Durables stocks declined. Rajesh Exports (down 8.99% to Rs 136.75), Titan Industries (down 6.4% to Rs 1,165), Videocon Industries (down 2.88% to Rs 433.50) and Blue Star (down 1.77% to Rs 486) edged lower.

Software services exporters declined for a second day in a row due to a gloomy economic outlook in the United States, which contributes to more than half of their revenue. Satyam Computer Services (down 5.98% to Rs 412), Wipro (down 5.48% to Rs 429.65), Infosys (down 5.91% to Rs 1,516.50) and Tata Consultancy Services (down 5.31% to Rs 899) edged lower.

Metal stocks extended losses in early afternoon trade. Sterlite Industries (down 6.49% to Rs 780.75), National Alluminium Company (down 5.75% to Rs 391.80), Hindalco Industries (down 4.67% to Rs 173.45), Steel Authority of India (down 4.11% to Rs 223) and Tata Steel (down 2.53% to Rs 797.10) edged lower.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries fell 2.9% at Rs 2,540.20. As per reports, Reliance Industries (RIL) two wells in D6 block in the Krishna Godvari (KG) basin have hit a technical snag. The loss to wells runs into about $175 million. RIL executive, however, said the snags have been rectified and that the problems would not delay production of natural gas from the D6 block.

India’s largest private sector bank by assets ICICI Bank fell 3.01% to Rs 1,153.65.

India’s largest engineering & construction firm by revenue Larsen & Toubro fell 2.21% to Rs 3,772.

India’s largest telecom services provider by market share Bharti Airtel slumped 5.53% to Rs 884.20.

Reliance Communications declined 1.66% to Rs 665.75. Reliance Communications (RCom) is reprotedly set to test-launch its direct to home (DTH) services Big TV this week, before a full commercial launch in March this year. According to reports, the company is investing $250 million in the first phase for the launch and has already placed orders for over 2 million set-top boxes to cater to the launch. The target is to get 50% share of the new customers who join the DTH club.

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