Key benchmark indices remained weak in early afternoon trade. The BSE 30-share Sensex was down 255.92 points. All the sectoral indices on BSE were in negative zone. Mid-cap and small-cap shares also witnessed selling pressure.
Stocks from the steel and power sector slipped. Reliance Industries pared gains after the company announced scrapping of a plan to transfer an 80% stake in a deepwater block to its subsidiaries
At 12:20 IST, the BSE 30-share Sensex was down 255.92 points or 1.76% to 14,308.61. At day’s low of 14,281.10, the index fell 283.43 in early afternoon trade. At day's high of 14,485.95, the Sensex shed 78.58 points in early trade
The S&P CNX Nifty was down 65.05 points or 1.49% to 4294.95.
The BSE Mid-Cap index was down 0.67% at 5,704.05 and the BSE Small-Cap index was down 0.40% at 6,864.21.
The market breadth was weak on BSE with 975 shares advancing as compared to 1332 that declined. 70 shares remained unchanged.
India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) was almost unchaged at Rs 2137.75. The stock moved in the range of Rs 2165 to Rs 2106. The company has abandoned a plan to transfer an 80% stake in a deepwater block to its subsidiaries as it has raised the money it needs for the block, the company said in a statement today, 1 September 2008. RIL, which owns 90% in the gas-rich D-6 block in the Krishna Godavari basin off India's east coast, said last week it had sent a proposal for the transfer of the stake to four fully-owned subsidiaries and was awaiting government approval.
India’s largest private sector bank by market capitalisation ICICI Bank slipped 2.53% at Rs 654.
India's second largest software exporter by sales Infosys Technnologies down 1.73% at Rs 1718.20.
India’s largest passenger car maker by sales Maruti Suzuki India declined 4.52% to Rs 621 after the company posted 9.2% fall in sales to 59,908 units in August 2008 over August 2007. The stock had risen 3.83% in two trading sessions to Rs 650.40 on 29 August 2008 from Rs 626.40 on 27 August 2008.
Other major Sensex losers were Ranbaxy Laboratories (down 3.12% at Rs 502.30), Bharat Heavy Electricals (down 2.45% at Rs 1664.80), State Bank of India (down 2.825 at Rs 1363.70), and Reliance Infrastructure (down 3.19% at Rs 960).
Steel stocks declined after the Indian Steel Minister Ram Vilas Paswan said the government was committed to take further steps to tame steel prices, if needed. Tata Steel (down 3.31% at Rs 580.50), Steel Authority of India (down 3.11% at Rs 151.20), JSW Steel (down 1.47% at Rs 753), and Jindal Steel & Power (down 1.28% at Rs 1882.95), slipped. Indian steel firms have held prices since May this year, under pressure from government which is fighting a double-digit inflation.
Power stocks dipped ahead of a crucial two-day meeting of the Nuclear Suppliers Group (NSG) on Indo-US nuclear deal which begins in Vienna on Thursday, 4 September 2008. GVK Power & Infrastructure (down 2.90% at Rs 38.50), NTPC (down 2.57% at Rs 170.70), Power Grid Corporation of India (down 2.20% at Rs 91.05), Neyveli Lignite Corporation (down 2.19% at Rs 111.60), and Tata Power (down 1.98% at Rs 1,030.15), declined. The BSE Power index was down 1.91% at 2,554.46.
India's third biggest motorcycle maker by sales TVS Motors rose 1.23% at Rs 33.05 after the company said its two-wheeler sales rose 11% to 114,321 units in August 2008 over August 2007.
Construction firm Gammon Infrastructure Projects rose 2.42% to Rs 97.25 after the company said it has won rights to build a 261 megawatt hydrapower plant in Himachal Pradesh, at a cost of Rs 1510 crore.
Oil rose above $116 a barrel on Monday, 1 September 2008, as a quarter of US crude production was shuttered because of Hurricane Gustav, the biggest threat since 2005's destructive Hurricane Katrina.
Asian stocks dropped today, 1 September 2008, amid concerns about the impact of weaker global demand on the region's economies. Key benchmark indices in Hong Kong, Japan, South Koera, Singapore, Taiwan and China were down by between 1.43% to 4.06%
US stocks tumbled on Friday, 29 August 2008, led lower by tech shares after computer maker Dell warned that companies worldwide are cutting back on technology spending. The Dow Jones industrial average lost 171.47 points, or 1.46%, at 11,543.71. The Standard & Poor's 500 Index was down 17.93 points, or 1.38%, at 1,282.75. The Nasdaq Composite Index shed 44.12 points, or 1.83%, at 2,367.52.
Economic data added to the market's jitters ahead of the long Labor Day weekend. US market remains closed on Monday, 1 September 2008, for Labor Day holiday.