Weak global cues drag equity benchmarks

Weak global cues drag equity benchmarks Weak global cues drag equity benchmarks

Source: IRIS (12 February 2007)

The 30-share index opened at 14,529.28 and is trading in negative zone in the early trades on weak sentiments seen across Asian and US markets. Asian indices, were down led by Hong Kong`s Hang Seng index, which fell for the second day, led by China Mobile and HSBC Holdings.

US shares dropped after oil prices climbed above USD 60 mark and on comments from Federal Reserve officials that unexpected economic growth could prompt an interest rate hike. Nasdaq dropped 28.85 points to settle at 2,459.82 after reaching a new trading high of 2,496.52 earlier in the session. Dow Jones declined 56.80 points to settle at 12,580.83, after reaching a new trading high of 12,675.68 earlier in the session.

The BSE Sensex is trading at 14,406.56, down 132.34 points (10.05 a.m). Nifty on the other hand, is trading at 4,121.45, down 66 points.

Out of the total 1,342 shares traded so far, 391 advanced, 925 declined and 26 remained unchanged.

Laggards on the BSE Sensex were Hindalco, which dropped 4.76% to Rs 165, Reliance Comm, which dipped 1.17% at Rs 470 and SBI, which slid 0.64% at Rs 1,190. Wipro, Bajaj Auto and Infosys also declined.

Aluminium major Hindalco has snafled up a massive USD 6 billion all-cash deal to acquire the Atlanta-based Novelis just 11 days after Tata Steel acquired Corus for about USD 12 billion. ``Investors with short term strategy with exit Hindalco, says Kanan Shah of Networth Stock Broking. Strategic investors will seek to buy the stock at lower levels, said Kanan Shah who tracks the metal sector. The deal will put a strain on the balance sheet of the company, but in the long term, Hindalco will be a beneficiary, added Kanan Shah.

Leaders on the index included ITC, which moved up 0.60% to rule at Rs 177.40, TCS was up 0.56% to Rs 1,295, and Tata Motors, which gained 0.37% to Rs 909. NTPC, HLL and ONGC were among the other gainers.

* Q - Quote , N - News , C - Chart , F - Financials


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