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Bangalore: Indian stocks fell 1.81 per cent yesterday to their lowest close in more than a month, with Reliance Communications shedding 5.1 per cent after saying it was in exclusive talks for a tie-up with South Africa's MTN Group.
The statement from India's No. 2 mobile operator came after bigger rival Bharti Airtel pulled out of talks at the weekend aimed at taking control of MTN.
Shares in Reliance Communications ended down 5.1 per cent at Rs543.20, its lowest close since May 9, on concerns about the cost of a deal. The stock had fallen as much as 5.7 per cent during the day. Bharti's stock ended 3.2 per cent up at Rs863.15.
The 30-share BSE index ended down 301.14 points at 16,348.50, its lowest close since April 16, with 26 components falling.
The benchmark opened down 1.1 per cent and dropped as much as 2.1 per cent during the day. The benchmark fell 4.5 per cent last week and is down more than 19 per cent in 2008.
"Global weakness is the major concern for Indian markets," said K.K. Mital of Escorts Mutual Fund.
"Inflation and oil prices have spoiled the sentiment and people are not putting in money on fears that the markets may come down further."
Bank stocks
Shares in No 2 lender ICICI Bank fell 4.3 per cent to Rs826.70, their lowest close since April 16, on fears the central bank may again tighten monetary policy to curb inflation. Top lender State Bank of India shed 2.3 per cent to Rs1,537.70, its lowest close since September 12, 2007.
In the broader market, 2,047 losers outpaced 660 gainers on volume of more than 252 million shares.
The broader 50-share NSE index fell 1.45 per cent to 4,875.05.
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