Sensex falls over 200 points; auto stocks, L&T hit

MUMBAI Wed Apr 3, 2013 6:57pm IST

Stock brokers engage in trading at a brokerage firm in Mumbai February 14, 2008. REUTERS/Arko Datta/Files

Stock brokers engage in trading at a brokerage firm in Mumbai February 14, 2008.

Credit: Reuters/Arko Datta/Files

Related Topics

Stocks

   

MUMBAI (Reuters) - The BSE Sensex snapped a four-day winning streak on Wednesday to post its biggest fall in two weeks as auto shares such as Tata Motors were hit by weak March sales, while recent outperformers such as Larsen & Toubro retreated.

Prime Minister Manmohan Singh's speech earlier in the day urging business leaders to keep faith in his government's efforts towards improving a dire investment climate failed to bolster market sentiment as he did not give concrete measures towards recovery. (Read full story here)

Singh's comments also failed to resonate given continued political uncertainty and worries about early elections after the withdrawal of a key regional ally from the ruling coalition last month, dealers said.

A redeeming factor has been foreign institutional inflows of over $10 billion so far this year.

"The sentiment is cautious at this point. Given the political situation, some more downside is possible," said G. Chokkalingam, Executive Director & Chief Investment Officer, Centrum Wealth Management.

"It seems like even the FII investments this year also look at risk of being pulled out," he said.

The Sensex fell 1.26 percent, or 239.31 points to 18,801.64 points, posting its biggest daily percentage fall since March 19 and erasing a good chunk of its 1.9 percent gain over the past four previous trading sessions.

The Nifty ended down 1.31 percent, or 75.20 points to 5,672.90.

Auto shares were among the leading decliners amid continued concerns after companies posted declines in sales in March from a year earlier.

Tata Motors (TAMO.NS) fell 3.7 percent, while Bajaj Auto (BAJA.NS) ended 3.4 percent lower.

Recent outperformers fell, with Larsen & Toubro (LART.NS) down 3.2 percent after adding 4.3 percent in the previous four sessions.

Tata Consultancy Services Ltd (TCS.NS) shares fell 1.5 percent, and have fallen 2.1 percent in April on worries about their January-March earnings.

However, Adani Power Ltd (ADAN.NS) ended nearly 9 percent higher after regulators allowed it to raise tariffs for electricity on a temporary basis, in a ruling that could boost other firms grappling with erratic fuel supplies.

Tata Power Company Ltd (TTPW.NS) ended up 0.7 percent while Jaiprakash Power Ventures Ltd (JAPR.NS) gained 1.34 percent.

Reliance Communications Ltd (RLCM.NS) gained 1.6 percent, extending gains a day after entering into a pact with a unit of brother Mukesh Ambani's Reliance Industries Ltd (RELI.NS) on Tuesday, for sharing the company's optic fibre network.

(Additional reporting by Abhishek Vishnoi; Editing by Sunil Nair)

FILED UNDER:

Religion and Politics

REUTERS SHOWCASE

Fund Raising

Fund Raising

Flipkart raises $700 million in fresh funding.   Full Article 

Reforms Push

Reforms Push

Modi may order insurance, coal reforms if vote delayed - officials.  Full Article 

Reuters Exclusive

Reuters Exclusive

India looks to sway Americans with nuclear power insurance plan  Full Article 

To Boost Growth

To Boost Growth

Crank up public spending to revive growth - chief economic adviser.   Full Article 

Bold Steps

Bold Steps

SpiceJet rescue plan marks bold bet on Indian aviation recovery.   Full Article 

New Airline

New Airline

Tata, Singapore Air venture Vistara to take off on Jan 9.  Full Article 

Online Sales

Online Sales

Knock knock. Who's there? Amazon's best-selling holiday author.  Full Article 

Hacking Attack

Hacking Attack

N.Korea says did not hack Sony, wants joint probe with U.S.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage