Sensex falls over 75 points ahead of railway budget

Feb 26 2013, 14:49 IST
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Asian shares fell on Tuesday, taking their lead from overnight plunges in global equities. (Reuters) Asian shares fell on Tuesday, taking their lead from overnight plunges in global equities. (Reuters)
SummaryThe 30-share index fell by 75.34 points, or 0.39 per cent, to 19,256.35.

The BSE benchmark Sensex fell over 75 points in early trade today, as funds and retail investors booked profits ahead of the railway budget amid a weak Asian trend.

The 30-share index fell by 75.34 points, or 0.39 per cent, to 19,256.35, with auto, metal and oil and gas sector stocks coming under pressure. The index had gained 14.68 points in the previous session.

Similarly, the wide-based National Stock Exchange index Nifty shed 28.75 points, or 0.49 per cent, to 5,826.

Brokers said besides profit-booking by participants ahead of the railway budget, a weak trend on Asian bourses mainly influenced the sentiment.

In the Asian region, Japan's Nikkei Index was down 1.83 per cent, while Hong Kong's Hang Seng index shed 0.79 per cent in the early trade. The US Dow Jones Industrial Average ended 1.55 per cent lower yesterday.

(Reuters)

* Nifty futures on the Singapore Exchange fell 0.3 percent. The MSCI-Asia Pacific index, excluding Japan fell 0.5 percent.

* Asian shares fell on Tuesday, taking their lead from overnight plunges in global equities while currency markets remain volatile as no party has won a Senate majority in Italy's elections, extending fears of a resurgent euro zone debt crisis. * Foreign investors bought 2.46 billion rupees of stocks, while domestic institutions sold 1.62 billion rupees of stocks on Monday, when the BSE index rose 0.08 percent. * The Indian government will unveil the railway budget for 2013/14. (0630 GMT) * Also on watch, Ranbaxy Laboratories Ltd, India's top drugmaker by sales and a unit of Japan's Daiichi Sankyo Co Ltd, will announce Q4 earnings.

GLOBAL MARKETS ROUNDUP

* Nifty futures on the Singapore Exchange fell 0.3 percent. The MSCI-Asia Pacific index, excluding Japan fell 0.5 percent

* Asian shares fell on Tuesday, taking their lead from overnight plunges in global equities while currency markets remain volatile as no party has won a Senate majority in Italy's elections.

* U.S. stocks on Monday suffered their biggest drop since November after a strong showing in Italian elections by groups opposed to the country's economic reforms triggered worry that Europe's debt problems could once again destabilize the global economy.

FACTORS TO WATCH

* India's 2013/14 railway budget (0630 GMT)

* Ranbaxy Laboratories Ltd Oct-Dec earnings (0730 GMT)

* RBI Deputy Governor K.C. Chakrabarty to address investors' conference (0430 GMT)

STOCKS TO WATCH

FINANCIAL/REGULATORY

* India's finance minister had a bruising battle with cabinet colleagues in the run-up to the budget he unveils this week, rebuffing demands for pre-election spending and insisting on austerity to shore up investors' faith in a troubled economy.

* The Reserve Bank of India is moving closer to requiring foreign banks to set up subsidiaries to operate in India, said two people familiar with the latest licensing conditions for foreign banks.

INFRASTRUCTURE

* Jaypee Infratech Ltd has raised 66 billion rupees in loans from IDBI Bank Ltd at reduced interest rates to repay its high-cost debt and improve profitability, a senior executive with the bank said

TELECOMS

* Sistema emerged as the only operator bidding in an auction of airwaves in India, a sign that the government may have to drop the reserve price of remaining airwaves to attract interest, analysts said.

* Vodafone Group PLC has put off plans to list its Indian unit because of the regulatory and policy uncertainties in the country, said Vittorio Colao, the chief executive of the world's largest private telecom company.

AIRLINES

* India said it will give away Kingfisher Airlines Ltd's slots and foreign flying rights to other operators in the latest blow to the grounded carrier.

PROPERTY

* The Gurgaon District Court has restrained Unitech Ltd from carrying out further construction at the site of its luxury project in Gurgaon after an apartment owner association filed a suit against a shift in location, according to an order on Saturday.

RETAIL

* Seven Bank, a unit of Japanese chain 7-Eleven, which itself is owned by Seven & I Holdings Co, is considering entering into the white label automated teller machine (ATM) space in India, three people aware of the development said.

IT

* Tata Elxsi Ltd and Get2Volume (G2V) on Monday announced their partnership to incubate and grow technology companies in India and Singapore.

GLOBAL MARKETS ROUNDUP

* Asian shares fell on Tuesday, taking their lead from overnight plunges in global equities while currency markets remain volatile as no party has won a Senate majority in Italy's elections, extending fears of a resurgent euro zone debt crisis.

* The euro crouched near a six-week low against the dollar while the yen kept some distance from multi-month lows on Tuesday after the spectre of political gridlock in Italy spurred traders to seek refuge in the U.S. and Japanese currencies.

* Brent crude futures fell by more than a dollar to one-month lows below $114 a barrel on Tuesday as a potential political vacuum in Italy revived worries over instability in the debt-plagued euro zone.

* U.S. Treasury debt prices rose and benchmark yields dipped to the lowest level in a month on Monday as uncertainty over whether Italy would be able to form a stable government whetted investors' appetite for safe-haven U.S. Debt.

* Call money 7.85/7.90 pct (7.75/7.80 pct)

OVERNIGHT NEWS

* India's finance minister had a bruising battle with cabinet colleagues in the run-up to the budget he unveils this week, rebuffing demands for pre-election spending and insisting on austerity to shore up investors' faith in a troubled economy.

* India's central bank will buy up to 100 billion rupees ($1.9 billion) of federal government bonds on March 1 through open market operation, it said in a release on Monday.

KEY FACTORS/EVENTS TO WATCH

* Indian government will unveil the railway budget for 2013/14 starting at 0630 GMT.

* The Reserve Bank of India's Deputy Governor K.C. Chakrabarty is scheduled to address an investors' conference at 0430 GMT.

MAJOR DEALS/ACQUISITIONS

* State-owned Rural Electrification Corp priced a 15 billion rupees ($278.5 million) seven-year deal at 8.87 percent. (IFR)

* London-listed Great Eastern Energy Corp is planning an Indian IPO of 8m shares totalling about 4 billion rupees ($74 million). (IFR)

LIQUIDITY

* The RBI said on Monday it accepted all 38 bids for 1.28 billion rupees at its one-day repo auction, through which it injects cash into the banking system. It also accepted the sole bid 250 million rupees at its reverse repo auction, through which it absorbs cash from the system.

* Indian banks' refinancing with RBI falls to 165.37 billion rupees.

* Indian banks' cash balances with RBI fall to 2.76 trillion rupees.

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