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Indian shares end sharply lower on privatisation jitters
Thursday, 18 September 2003, 19:30 IST
MUMBAI: India's blue-chip equities ended lower Thursday on across-the-board selling pressure, triggered by fears foreign fund inflows would slowdown in the days ahead following an anticipated delay in privatisation of state-run firms.
Reflecting the bearish sentiment, the stock market barometer 30-share Bombay Stock Exchange sensitive index or Sensex closed at 4,134.15, a loss of 101.20 points or 2.39 percent from its previous session's close.
Dealers said that the stock market opened for the day unchanged from its previous session's close and inched higher in the early trade on a rebound in shares of state-run companies after last two day's large-scale selling pressure.
The market, however, slipped in the negative zone on across-the-board selling pressure as investor talks, that the foreign find inflows would witness a dip after a court verdict halting the privatisation of two firms, gained ground.
In a major setback to the privatisation programme, the Supreme Court Tuesday restrained the government from privatising Hindustan Petroleum Corp (HPCL) and Bharat Petroleum Corp (BPCL) without parliamentary approval.
The Centre for Public Interest Litigation and the Oil Sector Officers' Association had filed petitions in the Supreme Court challenging the government's decision to privatise HPCL and BPCL without parliamentary approval.
The Supreme Court verdict came as a blow to the government's efforts to raise money through the sale of its stake in public sector companies to rein in the spiralling fiscal deficit.
The government had planned to raise 
132 billion in the fiscal year ending March 31, 2004 through this route. So far, it has managed to raise only a fraction of that.
"A section of investors had build up huge positions on state-run counters and the court decision has clearly hit them very hard. They are now rushing to offload their excessive holdings," said a market analyst.
"The court verdict is also likely to dampen the sentiment of foreign fund investors to some extent. A sharp dip in foreign fund inflows would have a very bad impact on the market," the analyst added.
In the old economy sector, State Bank of India, the country's largest commercial bank, ended nearly five percent lower at 403.80 and consumer goods giant Hindustan Lever closed with a loss of 3.4 percent at 178.30.
Reliance Industries, the largest refiner and petrochemicals maker, lost 2.8 percent to touch 394.05 and tobacco giant ITC closed with a loss of nearly one percent at 773.35 on institutional selling pressure.
State-run Indian Oil fell 5.4 percent to 341.19. Other major losers in the sector included Tata Motor, Hero Honda Motors, Bajaj Auto, Associated Cement Companies, Larsen and Toubro, Grasim Industries and Gujarat Ambuja Cements.
In the technology sector, HCL Technologies, a New Delhi-based software development and services major, lost 3.1 percent to touch 161.30 and Hyderabad-based Satyam ended 2.1 percent lower at 236.
Infosys Technologies, India's largest listed software exporter, also closed with a loss of 1.6 percent at 4,245.95 on large-scale selling pressure.
Source: IANS
132 billion in the fiscal year ending March 31, 2004 through this route. So far, it has managed to raise only a fraction of that.
"A section of investors had build up huge positions on state-run counters and the court decision has clearly hit them very hard. They are now rushing to offload their excessive holdings," said a market analyst.
"The court verdict is also likely to dampen the sentiment of foreign fund investors to some extent. A sharp dip in foreign fund inflows would have a very bad impact on the market," the analyst added.
In the old economy sector, State Bank of India, the country's largest commercial bank, ended nearly five percent lower at 403.80 and consumer goods giant Hindustan Lever closed with a loss of 3.4 percent at 178.30.
Reliance Industries, the largest refiner and petrochemicals maker, lost 2.8 percent to touch 394.05 and tobacco giant ITC closed with a loss of nearly one percent at 773.35 on institutional selling pressure.
State-run Indian Oil fell 5.4 percent to 341.19. Other major losers in the sector included Tata Motor, Hero Honda Motors, Bajaj Auto, Associated Cement Companies, Larsen and Toubro, Grasim Industries and Gujarat Ambuja Cements.
In the technology sector, HCL Technologies, a New Delhi-based software development and services major, lost 3.1 percent to touch 161.30 and Hyderabad-based Satyam ended 2.1 percent lower at 236.
Infosys Technologies, India's largest listed software exporter, also closed with a loss of 1.6 percent at 4,245.95 on large-scale selling pressure.
Source: IANS