Markets open in the red, drops 268 points

Mumbai, Aug 29: The Bombay Stock Exchange (BSE) Sensex today opened weaker by nearly 268 points at 14,651.49 from it's previous close of 14,919.19 following a drop in US stocks overnight driven by credit concerns, US housing data and doubts about the sustainability of global economic growth.

The National Stock Exchange (NSE) S&P CNX Nifty also opened in the red at 4,317.70 from it's previous close of 4,320.70, a loss of around 3 points.

Analysts say that the market breadth is weak now with 1,129 shares declining as compared to 674 that advanced, while 35 remained unchanged. The total turnover so far amounted to Rs 676 crore. Among the 30-member Sensex pack, 27 slipped while the rest gained.

The early losers include Infosys Technologies, Satyam Computers, Wipro, TCS and Reliance Industries, while the gainers included Tata Steel and Nagarjuna Construction Company.

In Asia, Hang Seng, Nikkei, Taiwan Weighted, Straits Times and Seoul Composite are all in the red.

US shares slumped yesterday, as investors grew more uneasy about the economy and whether the Federal Reserve will take the steps needed to prevent credit market problems from spreading further. The Dow Jones Industrial Average fell 280.28 points, or 2.10 per cent, to 13,041.85. The Standard&Poor's 500 index was down 34.43 points, or 2.35 per cent, at 1,432.36, and the Nasdaq Composite index shed 60.61 points, or 2.37 per cent, to 2,500.64.

Crude oil prices were steady today, as mounting concerns over the health of the US economy overshadowed worries that US refinery outages could drag down fuel inventories in the world's top consumer. US crude eased 7 cents to USD 71.66 a barrel while London Brent crude was unchanged at USD 70.55.

UNI