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Bank, IT stocks lead 199-pt Sensex fall

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Stocks declined, driving the Bombay Stock Exchange’s Sensitive Index to its worst week in four months. ICICI Bank led lenders lower after Goldman Sachs Group said the government’s plan to borrow record amounts this financial year would drive up interest rates.

Infosys Technologies led software exporters lower after Hewlett-Packard cut its profit forecast. Infosys slid 2.6 per cent as the recession has sapped demand for computers in the US, from which India’s software exporters derive more than half their revenue. Wipro declined 3.8 per cent.

“Globally, news flows aren’t good and locally the government’s borrowing programme will result in interest rates remaining high,” said Jayesh Shroff, who helps manage $1.9 billion in equities at SBI Asset Management in Mumbai.

 

Sensex fell 2.2 per cent or 199.41 points to 8,843.21. The index dropped 8.2 per cent this week, its biggest decline since the week ended October 24. The CNX Nifty Index on the NSE declined 1.9 per cent to 2,736.45. The BSE 200 Index retreated 2.1 per cent to 1,044.06. S&P CNX Nifty futures for February delivery dropped 1.8 per cent to 2,735. Tata Consultancy Services fell 3.2 per cent to Rs 474.05, its lowest since December 26. Wipro declined 2.3 per cent to Rs 215.25.

ICICI dropped 7.1 per cent to Rs 335.85, the lowest since December 3. Housing Development Finance Corp, India’s biggest mortgage lender, fell 2.9 per cent to Rs 1,352.40, the lowest since November 25.

India’s consolidated fiscal deficit may rise to 10.3 per cent of the gross domestic product (GDP ) in the year to March 31 and 10 per cent of the GDP in the next year, Goldman Sachs said in a note to clients On Friday.

Overseas investors sold a net Rs 434 crore ($87.4 million) of Indian stocks yesterday.

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First Published: Feb 21 2009 | 12:41 AM IST

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