The Bombay Stock Exchange’s Sensitive Index fell to its lowest in more than three months. Tata Consultancy Services (TCS) led declines among software makers as the US economy contracted at the fastest pace in more than 25 years.
TCS, the biggest software exporter, fell 4.8 per cent on concern that sales in the US, India’s largest software market, will weaken. Oil & Natural Gas Corporation (ONGC), the No 1 oil producer of the country, led commodity producers lower, after metal and crude prices declined.
ICICI Bank fell 7.1 per cent, leading lenders lower, after Indian exports plunged the most in a decade in January as the global recession damped demand.
“Globally, the economic situation hasn’t shown much improvement,” said Jayesh Shroff, who helps manage $1.9-billion in equities at SBI Asset Management Company in Mumbai. “The data from the US is looking pretty dismal.”
The Sensex fell 284.53, or 3.2 per cent, to 8,607.08, its lowest since November 20. The S&P CNX Nifty Index on the National Stock Exchange declined 3.2 per cent to 2,674.60. The BSE 200 Index slid 3 per cent to 1,013.88. S&P CNX Nifty futures for March delivery dropped 3.9 per cent to 2,629.
TCS fell 4.8 per cent to Rs 459.85, its lowest since October. Infosys Technologies, the second-largest software exporter, slid 1 per cent to rs 1,219.05. Wipro, ranked third, dropped 2 per cent to Rs 203.40, its lowest since October 2003. India’s software exporters derive more than half their revenue from the US.
ICICI, the nation’s second-largest lender, dropped 7.1 per cent to Rs 304.40, its lowest since November 2004. HDFC Bank, the No 3, slid 4.9 per cent to Rs 845.70.
ONGC retreated 3.8 per cent to Rs 664.45. Tata Steel, India’s biggest producer of the alloy, dropped 8 per cent to Rs 159.05. Sterlite Industries (India), the No 1 copper producer, fell 1.6 per cent to Rs 241.05. Hindalco Industries, India’s biggest aluminum maker, declined 1.4 per cent to Rs 38.05.
London Metal Exchange copper fell as much as 2.9 per cent to $3,350 a tonne and was at $3,365 as of 11:11 am Singapore time, extending a 1.5 per cent decline on February 27. Crude oil fell for a second day as a contraction in China’s manufacturing, a drop in South Korean exports and lower Japanese wages added to evidence that the global recession would reduce the demand for fuel.
Reliance Industries (RIL), India’s most valuable company, dropped after it offered one of its shares for every 16 held in Reliance Petroleum as it seeks to buy back its refining unit. The parent fell 3.2 per cent to Rs 1,225.65, while the unit declined 1.4 per cent to Rs 75.3.
Investors in the Mukesh Ambani Group companies lost nearly Rs 6,800 crore in a day On Monday even as RIL absorbed the refining unit in a share swap deal.
The combined market capitalisation of RIL and RPL saw an erosion of Rs 6,752 crore after the shares of the two firms fell On Monday.
Overseas investors sold a net Rs 239 crore ($47 million) of Indian stocks on February 26, according to the nation’s market regulator.
Apollo Tyres jumped 23 per cent to Rs 18.45, the most since May 1992. The Indian tyre maker backed by Michelin & Cie rose the most in more than a year on a proposed repurchase of shares. The board will consider a plan to buy back shares on March 19, the company said On Monday in a statement to the BSE.
Bajaj Auto dropped 5.4 per cent to Rs 506.20. India’s second-biggest motorcycle maker said sales of motorcycles, three-wheeled auto rickshaws and scooters dropped 16 per cent in February to 153,782.
Edserv Softsystems jumped 130 per cent to Rs 137.70. The Indian company that provides placement services and online training to job seekers rose on its debut after the nation’s first initial public offering in four months. Chennai-based Edserv raised Rs 23.8 crore by selling 3.97 million shares at Rs 60 apiece last month.
Larsen & Toubro slid 4.8 per cent to Rs 584.20, its lowest since August 2006. India’s biggest engineering company, which tripled its stake in Satyam Computer Services to 12 per cent, may appoint Nomura Holdings and Citigroup as investment bankers to advise on a potential bid for Satyam, said two officials at Larsen.
Satyam fell 2.7 per cent to Rs 40.25.
Orissa Sponge Iron & Steel jumped by the 5 per cent limit to Rs 326.55. Bhushan Energy, Bhushan Steel and partners have offered to acquire 20 per cent of Orissa Sponge at a price of Rs 330 a share, countering a rival bid, its bankers said in an advertisement in the Business Standard on February 28. Bhushan Steel fell 2.9 per cent to Rs 291.55.
State Bank of India declined 3 per cent to Rs 994.50, the lowest since April 2007. Overseas investors can seek the central bank’s permission to buy additional shares of the nation’s largest bank after the proportion of stock held by foreigners fell below the 18 per cent limit, the Reserve Bank of India said on Februay 27.
TVS Motor climbed 2.8 per cent to Rs 19.90. India’s third-biggest motorcycle maker said sales of motorcycles and scooters in February rose 13 per cent to 107,301, compared with 95,235 in the same month a year ago.
United Spirits retreated 3.2 per cent to Rs 602.80.
