Market correction continues on global meltdown and inflationary data

Mumbai, Aug 10 (UNI) The Bombay Stock Exchange (BSE) Sensex declined by a shocking 364.95 points to touch 14,735.20 by noon today from it's previous close of 15,100.15 after opening below the psychological barrier of 15,000 at 14,674.92 on a global meltdown and latest data that showed inflation has accelerated in the week ended July 28.

Official data showed that the wholesale price index (inflation) accelerated to 4.45 per cent in the week ended July 28 compared to 4.36 per cent in the previous week. The government today revised the inflation rate for the week ended June 2 to 5.09 per cent from 4.80 per cent. The government revises the inflation rate after a delay of two months on additional price data, experts explained.

Besides, India's industrial production grew in June at the slowest pace in eight months as interest rates at a five-year high curbed consumer spending. Production at factories, utilities and mines rose 9.8 per cent from a year earlier, following a revised 10.9 per cent gain in May this year.

The National Stock Exchange (NSE) S&P CNX Nifty also shed 113 points and fell to 4,290.20 from it's previous close of 4,403.20 after opening weaker at 4,393.60.

The market breadth was weak on BSE with over 3 losers for every single gainer. 1,910 shares declined as compared to 610 that advanced, while 54 remained unchanged. The BSE Mid-Cap index was down 2.34 per cent to 6,406.21, while the BSE Small-Cap index was down 2.13 per cent to 7,794.26. The total turnover so far amounted to Rs 2,438 crore.

All the pivotals constituting the 30-member Sensex were in red, official data showed.

HDFC, ICICI Bank, HDFC Bank, SBI, Bharti Airtel, Reliance Industries (RIL) Tata Motors, ABG Shipyard and Indiabulls Financial Services are in the red, while Atlanta, Kennametal and Falcon Tyres have outperformed.

All the Asian indices tumbled today following a rout in global markets as credit jitters flared up after a major French bank froze three funds that invested in US subprime mortgages. Financial shares across the region were hit hard. Nikkei tumbled 2.74 per cent at 16,700.58. Hong Kong's Hang Seng tanked 2.85 per cent, Taiwan's Taiwan Weighted was down 2.74 per cent, Singapore's Straits Times plunged 3.11 per cent, Shanghai Composite slipped 0.64 per cent and South Korea's Seoul Composite shaved off 4.20 per cent.

US stocks fell yesterday on deepening fears about a spreading credit crunch. The Dow Jonex Industrial Average fell 387.18 points, or 2.83 per cent, to 13,270.68. The broader Standard&Poor's 500 index fell 44.40 points, or 2.96 per cent, to 1,453.09. The Nasdaq Composite index fell 56.49 points, or 2.16 per cent, to 2,556.49.

Oil prices were steady at above USD 71 today as investors watched for any further signs of distress caused by the US subprime mortgage sector crisis. US crude fell 5 cents to USD 71.54 a barrel. London Brent crude rose 11 cents to USD 70.32.

UNI