Sensex extends losses,down 83 points

Shares in Kingfisher Airlines,whose net loss doubled in the Sept Q2,fall as much as 4.2 pct.

The BSE benchmark Sensex today fell by 83 points in opening trade,extending its three-day losing streak as funds and retail investors succumbed to selling pressure driven by weak corporate earnings and high inflation.

A weakening trend on other Asian bourses also had a negative impact on the trading sentiment.

The 30-share BSE Sensex,which has lost over 450 points in the past three sessions,fell further by 83.00 points,or 0.49 per cent,to 17,035.74 in the first few minutes of trade today. In a similar fashion,the wide-based National Stock Exchange Nifty index declined by 22.90 points,or 0.44 per cent,to 5,125.45.

Stocks of the realty,banking auto and IT sectors bore the brunt of the selling pressure,dragging the Sensex down.

Brokers said the market sentiment was bearish as funds and retail investors engaged in offloading stocks following weak second quarter earnings posted by Tata Motors and some other companies.

Stocks of Tata Motors were down by 1.88 per cent to Rs 174.55,while Mahindra and Mahindra fell by 1.11 per cent to Rs 781.65.

In addition,high inflation and a weakening trend in other Asian markets in the wake of overnight losses in the US also dampened the trading sentiment here,they said.

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In the Asia region,Hong Kong8217;s Hang Seng index was trading 1.04 per cent lower,while Japan8217;s Nikkei shed 0.66 per cent in morning trade today. The US Dow Jones Industrial Average lost 0.61 per cent in yesterday8217;s trade.

PREOPEN:

Sensex today should open down as investors sentiment takes a beating over worries about weak corporate earnings and continuing high inflation hurting growth prospects in Asia8217;s third-largest economy.

Tata Motors will be in focus after India8217;s largest vehicles maker lagged market estimates with a 16 per cent fall in September quarter net profit late on Monday.

Higher-than-expected October headline inflation have raised doubts about the central bank8217;s outlook that price pressures will abate by the year-end.

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Asian shares were trading down due to lingering doubts about the ability of politicians in Italy and Greece to push through painful reforms to resolve their debt crises and win market confidence.

At 0304 GMT,the MSCI8217;s measure of Asian markets other than Japan was down 0.5 percent,Japan8217;s Nikkei fell 0.4 percent and South Korea8217;s Kospi shed 0.5 percent.

The Nifty India stock futures in Singapore were down 0.4 percent,indicating a weak opening for the domestic market.

The main 30-share stock index fell 0.4 percent on Monday to its lowest close in three weeks.

STOCKS TO WATCH

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Kingfisher Airlines,after its net loss doubled in the September quarter.

Sobha Developers Ltd,after its September quarter net fell 30.6 percent.

Cipla after its July-September net rose 17.5 percent.

Plethico Pharmaceuticals Ltd after its second quarter net plunged 54.3 percent.

MBL Infrastructures Ltd after it won a road construction project worth 1.05 billion rupees.

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MMTC Ltd after its September quarter net profit fell 54 percent.

BGR Energy Systems Ltd after the company8217;s second quarter dropped 34 percent.