Indian Stocks Hit Lowest Point This Year
Tuesday June 13, 7:25 am ET
Indian Benchmark Stock Index Tumbles 4.4 Percent to Lowest Point This Year
BOMBAY, India (AP) -- Indian shares fell sharply Tuesday, with the benchmark index tumbling 4.4 percent to its lowest point this year amid declines in global markets.
All but one of the 30 shares tracked by the Sensex, the benchmark index of the Bombay Stock Exchange, were down as investors sold off blue chips. The index fell 414 points to 9,063.
On the rival National Stock Exchange, the 50-company S&P Nifty index fell 4.1 percent to 2,663 points.
Earlier Tuesday, the Sensex fell as much as 5 percent to an intraday low of 8,994 points, before recovering slightly.
There was little buying interest among investors who remained jittery amid declines Japan and elsewhere in Asia. Wall Street and European markets also closed lower overnight.
"Buying is shallow," said Vivek Mahajan, the chief dealer at investment firm IL & FS Investments. "I think the weakness will persist. In case we see European markets opening weak later in the day, then the pressure (on Indian shares) will continue."
Analysts said Indian markets were taking their cue from global markets, "but it provides an excellent time to buy value stocks," said Porinju Veliyath, chief executive officer of investment management company Equity Intelligence, adding that eventually stocks should reflect their true value.
The Indian stock market has been among the hardest hit over the last month amid concerns about higher interest rates and slowing global growth. The Sensex has now fallen more than 25 percent after hitting an all-time high of 12,612 points on May 10.
Among blue chips, housing finance company HDFC Ltd. led the losses falling 9.6 percent to 1,017 rupees, while Tata Steel dropped 8.5 percent to 390 rupees. Sensex heavyweight Reliance Industries fell 4.9 percent 856 rupees.
Auto stocks, which have tumbled after the government increased fuel prices last week, also fell sharply. Maruti Udyog Ltd., the country's largest car manufacturer, fell 6.6 percent to 702 rupees and motorcycle maker Hero Honda Ltd. was down 7 percent at 658 rupees.
