Overseas weakness weighs on bourses

Mumbai, Nov 28 | Updated: Nov 29 2006, 07:53am hrs
By the time the Indian bourses opened for trading on Wednesday, most of the Asian markets were already in the red on account of a major fall in the overnight US markets. Concerns over rising crude prices and firm valuations, especially of the technology heavyweights, affected investor sentiments in the US and all the major bourses across the globe moved southwards on Wednesday. Incidentally, the Dow was down by nearly 150 points on Tuesday.

Meanwhile, the 30-share Sensex of the Bombay Stock Exchange (BSE) opened the day lower at 13,690.67 and traded in the red for the entire session. After touching a low of 13,577.38, it finally ended the day at 13,601.95, down 171.64 points or 1.25%. The market breadth was also in the red with nearly 1,500 stocks losing ground on BSE, as against only 1,093 gainers. On the other hand, the broader S&P CNX Nifty of the National Stock Exchange (NSE) ended the day at 3,921.75, down 47.15 points or 1.19%. Analysts were of the opinion that apart from the global negative cues, the nearing of the expiry of November contracts also acted as a catalyst in Wednesdays fall.

Elsewhere in Asia, Hong Kongs Hang Seng index lost a whopping 564 points, while Taiwans TSEC was down by 53 points. Japans Nikkei also ended the day lower by 30 points.

Back in India, as expected, the technology pack was the worst hit with the BSE IT index shedding nearly 2.50% or 126 points. Technology majors like Infosys Technologies, Wipro and Satyam Computer were among the top losers among the Sensex pack and lost between 3-4% each.