India Sen*** Index at a Six-Month Low; ICICI, Indian Oil Fall
By Shailendra Bhatnagar
March 13 (Bloomberg) -- India's Sensitive Index fell to its lowest in
almost
six months, paced by banking stocks, on concern that the U.S. Federal
Reserve will need to do more to solve the credit crisis in the world's
largest economy.
State-run Indian Oil Corp. led domestic refining stocks lower after global
crude oil prices traded near record levels of $110.2 a barrel. Indian Oil
fell to a one-month low. ICICI Bank Ltd., the nation's second largest,
fell
to its lowest since August. Most Asian markets were trading lower as the
dollar tumbled to the lowest against the yen since 1995.
``The domestic market is reacting to weakness across Asia,'' said Jigar
Shah, head of equity sales at Motilal Oswal Securities Ltd. ``The market
will remain in a weak to sideways trend and investors are hesitant to take
up long positions at the end of the week.''
The Bombay Stock Exchange's Sensitive Index, or Sen*** fell for the first
time in three days. The gauge of 30 companies dropped 591.17 points, or
3.7
percent, to 15,536.81 as of 11:44 a.m. local time in Mumbai. Twenty seven
out of 30 stocks comprising the measure declined. The S&P CNX Nifty
dropped
190.05 points, or 3.9percent, to 4,681.95
ICICI Bank slumped 32.90 rupees, or 3.7 percent, to 847, its lowest since
Aug. 24. Indian Oil, the nation's largest state-run refiner, declined 12.5
rupees, or 2.5 percent, to 491, its lowest since Feb. 13.
Indian Oil is making daily losses of as much as 1.8 billion rupees ($45
million) by selling fuels below cost, Chairman Sarthak Behuria said on
March
10. The company and other state run refiners are barred by the government
from raising retail fuel prices as it helps partially control inflation.
The following stocks were the most active on the Bombay Stock Exchange:
Hindustan Zinc Ltd. (HZ IN) dropped 19.5 rupees, or 3.3 percent, to 568.60
after the nation's largest producer of zinc cut metal prices by 8,300
rupees
a ton and reduced lead prices by 11,500 rupees a ton.
Indiabulls Real Estate Ltd. (IBREL IN) recorded its biggest percentage
drop
since listing in March 2007, dropping 64.10 rupees, or 11 percent, to 504
after Goldman Sachs Group, Inc. said it started coverage on the Indian
real
estate developer with a ``sell'' rating and a share price estimate of 495
rupees.
V-Guard Industries Ltd. (VGRD IN) rose 2.6 rupees, or 3.2 percent, to
84.60
on its debut on the Bombay Stock Exchange after selling shares at 82
rupees
apiece.
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