The Hindu : Business : Sensex tumbles 300 points

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Tuesday, Jan 13, 2009
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Sensex tumbles 300 points

MUMBAI: Sliding for the third day in a row, the Bombay Stock Exchange benchmark Sensex on Monday ended nearly 300 points lower with some of the bluechip IT stocks tumbling on reports of the World Bank barring five more software developing companies, including Wipro, till 2011. Satyam Computer Services, however, bucked the trend and posted a gain of little more than 44 per cent after the Government put in place a new leadership in the company.

Discounting a 2.4 per cent growth in industrial production for November 2008, the market moved down on fresh concerns over the corporate governance standards after self-confessed manipulations in the accounts of IT major Satyam Computer.

Market regulator SEBI last Friday decided to set up a panel to review the working papers of auditors of the companies from the Sensex and Nifty.

Marketmen further said that even better than expected industrial output in November failed to trigger buying support as there were many uncertainties clouding the outlook of corporate earnings.

The Sensex which has been on a falling streak after the Satyam fraud, fell further by 296.42 points to end the day at 9110.05.

The National Stock Exchange index Nifty fell by 99.90 points to 2773.10.

Bluechip IT stock Wipro, the third biggest software company and one of the 30 Sensex scrips, fell 12 per cent soon after the World Bank barred the company from direct contracts until 2011, citing a conflict of interest.

Rupee turns weak

The rupee depreciated in tandem with weakness in domestic stocks, and closed at 48.84 on Monday against 48.28/29 a dollar last Friday.

At the interbank foreign exchange market, the rupee resumed weak at 48.53/55 and moved in a range of 48.38 and 48.87 intra-day.

Oil refiners bought dollars as the global oil prices fell to around $40 a barrel level in Asian trade. — PTI

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