(RTTNews) - Monday, the Indian market is trading sharply lower following weak sentiment prevailing in the rest of the Asian markets amid concerns about the health of the US economy. The passage of a $700 billion bailout package could not enthuse investors, as focus has now shifted to the deepening financial turmoil in Europe, threatening a slowdown in the world’s economic output.

Investor sentiment was dampened following a new bailout package totaling 50 billion euros ($69 billion) announced by the Germany government on Sunday for Hypo Real Estate, the country’s second-biggest commercial property lender. A dismal report on Friday that showed worse-than-expected job losses in September raised concerns about weakening American consumer demand for exports from the Asian region.

The Indian market regulator Securities & Exchange Board of India (Sebi) is expected to review restrictions on the issue of participatory notes (P-Notes) at a board meeting today. Any significant changes in the investment policy for foreign funds could influence market movement later in the day.

After opening lower at 12,284, the BSE Sensex has further lost its ground. The index is currently trading near the day’s lows at 12,080, down 447 points or 3.57% over Friday’s close. The mid-cap index is losing 3.83%, the small-cap index is slipping 3.48% and the broad-based BSE 500 index is down 3.60%. Meanwhile, the S&P CNX Nifty is trading at 3,680, down 3.63%.

Twenty-Seven out of 30 Sensex stocks are trading in the red. However, Tata Motors is gaining 1.91%, Maruti Suzuki is adding 0.66% and Hindustan Unilever is up 0.21%. On the BSE, the market breadth is extremely negative, with only 270 stocks gaining compared to 1789 stocks that are declining. Stocks across sectors are trading in negative territory. Realty, metal, consumer durables, power and capital goods stocks are the major losers.

Sterlite Industries (down 10.37%), Jaiprakash Associates (down 9.86%), DLF India (down 9.69%), Tata Steel (down 8.72%), Reliance Communication (down 5.90%), Reliance Infrastructure (down 5.83%), Tata Power (down 5.31%), BHEL (down 4.96%), Satyam Computers (down 4.51%), Bharti Airtel (down 4.49%), Larsen & Toubro (down 4.26%), Ranbaxy Laboratories (down 4.11%), Wipro (down 4.09%), TCS (down 4.08%), ICICI Bank (down 3.53%), Infosys (down 3.53%), ACC (down 3.45%), HDFC (down 3.29%), HDFC Bank (down 3.17%) and NTPC(down 3.0%) are some of the notable decliners.

On its debut on the Bombay Stock Exchange, 20 Microns is trading at Rs.50.30 compared to its initial public offer price of Rs.55 per share. Dr Reddy’s Laboratories is slipping 6.65% following reports that the commercial launch of its new experimental diabetes drug Balaglitazone could be delayed after Rheoscience A/S, the Danish firm conducting phase III clinical trials reportedly ran into a financial crisis.

D-Link India is down 1.35% after the company’s board of directors approved a proposal to restructure the company’s businesses. Tata Motors is gaining 1.92% after the company officially announced that it would relocate its Nano Project away from Singur. Consolidated Construction Consortium is gaining 0.56% after the company bagged new orders worth Rs.1, 212 crore from the Chennai Airport Authority of India.

Centum Electronics is down 3.25% even as the company bagged new orders worth Rs.4.3 crore from a Defence Sector Unit for the supply of sub-systems. AVT Natural is up 0.64% after the company said it has commissioned a 600- KW Windmill at Elavanti near Coimbatore, Tamil Nadu. Fortis Healthcare is down 3.48% over reports that the company will invest Rs.50 crore for a minority stake and management control in a joint venture with Bangalore-based NU Hospitals.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2008 RealTimeTraders.com, Inc. All Rights Reserved

Posted in Categories: Eurozone, Releases, Stocks, USA.

Subscribe by RSS Subscribe by Email