Indian equities crash after budget announcement

Wednesday, 28 February 2007, 06:00 Hrs
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Mumbai: Indian shares were down by 4 percent following presentation of the union budget for 2007-08 on Wednesday and a global sell-off triggered by a slide in the Chinese stock market on Tuesday.

The Sensitive Index ('Sensex'), the 30-share benchmark index of the Bombay Stock Exchange (BSE), closed 540 points down at 12,938.09, while the broad-based National Stock Exchange index Nifty was down 148 points at 3,7455.30 - the lowest level in two months.

In the early morning trade the shares fell as much as 5 percent, with Sensex down 677.92 points at 12,800.91 - the lowest since Oct 27 - mirroring a sell-off in equity market around the world.

Though it gained somewhat after Finance Minister P. Chidambaram began his annual budget speech, it closed at 12,938.09, down 540.74 points at close of trade.

The market breadth was extremely weak in the intra-trading with all the BSE 30 and Nifty 50 scrips trading in the red. Dr Reddy's, HDFC Bank, Gujarat Ambuja Cements and Bharti Airtel slipped over six percent each.

Satyam Computers, which led the major losers of the day, was down 8.42 percent at 412.50, followed by Gujarat Ambuja Cement, down 7.76 percent at 115.95, and IT major Wipro, down 7.34 percent at 560.85.

Index heavyweights including ACC Cements, Tata Steel, Infosys Technologies, TCS and Maruti Udyog were among the other major losers.

Tobacco giant ITC was the only major gainer, up 4.03 percent at 171.85.

"The downward movement mirrored a global sell-off that was triggered by a major slide in the Chinese market since Tuesday," said a market analyst.
Source: IANS
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