Indian shares joined a global sell-off on Thursday, as continued concerns about Spanish banks and signs of a sluggish economic recovery in the United States deepened risk aversion. The rupee is trading at a record low of 56.50 against the dollar and a Bharat bandh today to protest the recent steep hike in petrol prices disrupted normal life across India, further dampening investor sentiment. Meanwhile, traders eagerly await the Q4 GDP figures for directional cues.
The benchmark 30-share Sensex is currently down 170 points or 1.05 percent at 16,141, while the broader Nifty index is at 4,902, down 49 points or a percent from its previous close. Key benchmark indexes across Asia are down 1-3 percent.
Tata Motors is losing 3.4 percent, extending Wednesday's 12 percent plunge on concerns over a steep decline in operating margins at its JLR unit. DLF is edging down modestly on posting weak Q4 earnings. Power Grid Corp. is down half a percent as the state-run company unveiled a Rs.20,000-crore capex plan this fiscal.
United Spirits is down 2.4 percent as its fourth-quarter profit slumped 83 percent, mainly due to foreign exchange losses. Kingfisher Airlines is tumbling 5 percent after its fourth-quarter net loss more than trebled due to high fuel prices and a softer rupee. Shares of group firm United Breweries Holdings are moving down 0.9 percent.
Hindalco is climbing 4.4 percent and Reliance Power is gaining 2.7 percent after a ministerial panel reportedly cleared two controversial blocks to coal mining. Jaiprakash Associates is adding 0.7 percent after posting a modest 7 percent drop in quarterly profit.
GAIL is up marginally despite reporting a 38 percent fall in fourth-quarter profit because of heavy subsidy burden. Aurobindo Pharma is rising 2 percent. The company said it has restructured its board in the wake of an ongoing CBI interrogation with respect to the senior management members' links with Kadapa MP YS Jagan Mohan Reddy.
Benchmark indexes Sensex and the Nifty fell about 0.8 percent each on Wednesday, weighed down by concerns about Spain's banking system and news that China has no plans to introduce large-scale stimulus measures.
by RTT Staff Writer
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