Weak global markets impact domestic bourses

Mumbai, Apr 12: The Sensex today was down by 69.43 points on the Bombay Stock Exchange to settle in the red at 13,113.81, taking cue from weak global bourses and concerns of a further rise in US interest rates.

Among the broader markets, the Nifty Index also tanked by 32.80 points and closed weaker at 3,829.85, from its previous close of 3,862.65 points.

''Domestic bourses have been closely tracking global bourses in recent months. Rising US interest rates did not indicate any good omen for emerging markets, since cash in emerging markets may consequently become a casualty,'' market analysts explained.

The market-breadth was weak. Against 1,446 shares that declined on BSE, 1,099 scrips rose. A total of 71 stocks remained unchanged.

Losers outpaced gainers by a ratio of 1.31:1. It clocked Rs 3127 crore in turnover compared to yesterday's Rs 3952 crore.

US stocks fell yesterday, as markets faced up to the reality that the Federal Reserve may raise interest rates again to quash inflation. The Dow Jones industrial average fell 89.23 points, or 0.71 per cent, to 12,484.62. The Standard&Poor's 500 Index slid 9.52 points, or 0.66 per cent, to 1,438.87. The Nasdaq Composite Index also lost 18.30 points, or 0.74 per cent, to 2,459.31.

Asian and European stocks fell today, dented by concerns about the economic outlook for the US and a rise in oil prices. Minutes of the US Federal Reserve's March meeting, released yesterday, hinted at a need for further interest rate increase in the US, to fight inflation.

Meanwhile, key benchmark indices in Japan, Hong Kong, Singapore, and Taiwan were down between 0.1-1.4 per cent. In Europe, key benchmark indices in London, Germany and France were down between 0.4 - 0.6 per cent.

As per official data released today, industrial production rose 11 per cent in February this year from a year earlier. It is also slightly lower than upwardly revised annual growth of 11.4 per cent in January this year. Manufacturing, which represents more than 75 per cent of industrial output, rose by 12.3 per cent in February from a year earlier, compared to a revised 12.1 per cent annual growth in January.

Infosys led gains in IT shares ahead of the announcement of quarterly March 2007 results by the IT bellwether, which is due tomorrow. Infosys gained 2.3 per cent to Rs 2040, while Satyam Computer gained 1 per cent to Rs 446.

TCS rose 1.1 per cent to Rs 1204. Tata Sons is considering a USD 1 billion-plus overseas equity offering in Tata Consultancy Services to fund acquisitions. The offer may take place in six months and include the sale of new shares, a report said.

Oil exploration major ONGC plunged by 3.4 per cent to Rs 850. It was the top loser among 30 Sensex constituents.

Tata Steel lost 3.2 per cent to Rs 495.

Ranbaxy shed 3 per cent to Rs 334.45. The company said today that it had received approval from Canadian authorities to sell antibiotic cefprozil tablets and powder in Canada.

Auto shares drifted lower. Car major Maruti Udyog (MUL) shed 2.9 per cent to Rs 759.05, Tata Motors lost 1.7 per cent to Rs 709 and Hero Honda shed 1.4 per cent to Rs 631.10. But Bajaj Auto rose nearly 3 per cent to Rs 2345.

Selling was conspicuous in banking stocks. HDFC Bank lost 2.2 per cent to Rs 958, State Bank of India (SBI) shed 1.3 per cent to Rs 968.45 and ICICI Bank lost 1.1 per cent to Rs 849.

UNI