Sensex down as Asian bourses sink

Funds and retail investors booked profits after recent gains.

Written by Agencies | Mumbai | Published:February 16, 2012 11:54 am

The BSE benchmark index Sensex declined by 59 points in early trade today as funds and retail investors booked profits after recent gains amid weakening trend on other Asian bourses.

The 30-share index,which had gained nearly 454 points in the previous three sessions,declined by 59 points,or 0.32 per cent,to 18,143.41 with consumer durables,oil and gas and realty stocks coming under pressure.

In a similar fashion,the wide-based National Stock Exchange index Nifty shed 22.20 points,or 0.40 per cent,to 5,509.75.

Brokers said profit booking by participants after recent rally amid weakening trend in other Asian markets tracking overnight losses on the US markets on renewed concerns over Greece’s debt crisis,mainly influenced the trading sentiment.

In the Asian region,Hong Kong’s Hang Seng index fell by 0.74 per cent,while Japan’s Nikkei Index shed 0.26 per cent in morning trade.

The US Dow Jones Industrial Average ended 0.76 per cent lower yesterday.

Stocks More on Unitech

Company INFO More on Kingfisher

STOCKS (PREOPEN): Sensex seen down; Unitech,Kingfisher may fall

Sensex is expected to open lower on Thursday after three straight sessions of rise as investors could turn cautious due to a delay in cementing a crucial bailout for Greece.

The MSCI’s measure of Asian markets other than Japan fell 1.25 percent by 0242 GMT,while the Nifty India stock futures in Singapore were down 0.35 percent,indicating a lower open for the local market.

Unitech Ltd may fall after its telecoms joint venture partner Norway’s Telenor said it would seek indemnity and compensation following a court order to cancel some telecoms permits,including those held by the joint venture.

Telenor also said it would start process of looking for a new partner for the Indian joint venture. Unitech said it was surprised that Telenor was seeking compensation from it and that it may consider legal action against Telenor.

Leading Indian telecoms stocks Bharti Airtel,Reliance Communications and Idea Cellular would be watched after India approved relaxed mergers and acquisition rules and new rules for spectrum grant,which are seen as positives for the battered sector.

The main 30-share BSE index rose 2 percent on Wednesday to its highest close in more than six months.

STOCKS TO WATCH

* Kingfisher Airlines is seen falling after the troubled carrier reported a 75 percent increase in losses during the quarter to end-December.

* Zee Entertainment and Zee News may open higher after the Business Standard newspaper reported the Zee Group were front-runners in the race to buy Indian news channel NewsX.

FACTORS TO WATCH

* Euro falls to 3-wk low on Greece bailout worries

* Brent ends at 8-month high on supply risks

* Markets fall,Greek bailout delay dampens mood

* Apple falls,drags Wall Street lower

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