Sensex dips 106 pts in early trade

Similarly,the wide-based National Stock Exchange index Nifty shed 32.30 points,or 0.62 per cent,to 5,210.85. Brokers said profit-booking by participants after yesterday8217;s gains and a weakening trend in other Asian bourses,following overnight losses on the US markets,led to the fall in stock prices here.

In addition,a cautious approach adopted by participants ahead of tomorrow8217;s monthly expiry in the derivatives segments also influenced the trading sentiment,they added.

In the Asian region,Hong Kong8217;s Hang Seng index fell by 0.40 per cent,while Japan8217;s Nikkei Index shed 0.99 per cent in morning trade. The US Dow Jones Industrial Average ended 0.33 per cent lower yesterday.

PRE-OPEN:

Asian shares drifted lower on Wednesday as investors waited for more clues on the state of the U.S. economy,after hopes for further stimulus from the U.S. Federal Reserve strengthened risk appetite and lifted prices the previous session.

U.S. stocks retreated from near four-year peaks on Tuesday,while a batch of large-cap shares hit new highs,with the help of portfolio managers snapping up top performers near the end of the quarter.

KEY EVENTS TO WATCH

Leaders from BRIC countries,plus South Africa,arrive in New Delhi for a summit meeting in which they are likely to discuss the global economic crisis,especially the euro zone and their own growing headaches. All day

INDIAN STOCKS TO WATCH

CLSA has stopped selling participatory notes,or derivatives through which foreign investors can invest in Indian securities,citing recent uncertainty regarding the taxation of these products,several sources familiar with the situation said.

India plans to raise 3.7 trillion rupees 72.98 billion through bond sales during April-September,in line with market expectations,but dealers expect yields to rise on back of heavy weekly supplies.

An up to 25 million initial public offering by India8217;s state-run National Buildings Construction Corporation NBCC was subscribed nearly five times the shares on offer at the close of the issue on Tuesday,the stock exchange data showed.

India has agreed to examine jewelers demand for removal of excise duty levied on unbranded jewelry and come out with an acceptable solution,but won8217;t reduce import duty on gold and platinum,Finance Minister told lawmakers on Tuesday.

India8217;s Lamp;T Finance Holdings has acquired Fidelity Worldwide Investment8217;s India mutual fund business to boost growth in the country8217;s growing but highly competitive asset management business.

Ailing Indian carrier Kingfisher Airlines said on Tuesday it has temporarily suspended operations to several destinations as per its revised flight schedule,and has asked most employees at those places to stay at home.

Indian Internet and media company Sify Technologies Ltd said it would sell its entire stake in MF Global8217;s India unit in all cash deal. Financial details of the deal were not disclosed.

Tata Global Beverages Ltd says its board approves independent purchase of 1.4 million shares of Mount Everest Mineral Water Ltd from Foresight Holdings and Vinod Sethi at 198 rupees per share.

State-run Air India8217;s board on Tuesday approved a 195 million bridge loan for financing its purchase of two Boeing 787 Dreamliner aircraft.

State-owned HUDCO,IIFCL and LIC will replace private sector infrastructure firms ILamp;FS and IDFC in the company that will execute the ambitious 90-billion Delhi-Mumbai Industrial Corridor. Economic Times

Japan8217;s Mitsubishi Pencil has picked up a 13.5 stake in Linc Pen amp; Plastics for around 200 million rupees. Economic Times

Dr Reddy8217;s Laboratories expects to sign a definitive agreement by June with Japan-based Fujifilm for a joint venture that will develop and produce generic drugs for the Japanese market. Economic Times

FACTORS TO WATCH

Indian rupee seen down on inflow worries,payments

Indian bond report

Yen supported by Japanese exporter flows

Brent breaches 125 on US crude stocks rise

Shares pause after rally,eye US data

Wall St dips,but winners gain as quarter8217;s end near

Foreign institutional investor flows

For closing rates of Indian ADRs