Indian shares finished the year 52.45 percent down from their 2007 close on Wednesday as the market was battered by the global economic slowdown. The benchmark 30-share Sensex index ended the day 0.71 percent, or 68.85 points, lower at 9,647.31 - leaving it 10,639.68 points off its 2007 close.
Sentiment on Wednesday was dulled by concerns over an expected rate cut by the central bank (RBI), analysts said. "Markets saw selling pressure on reports the anticipated RBI rate cuts may not be as big as expected," said Rajesh Khandar, director at Bhavik Khandar Shares & Stockbrokers. Economists expect the central bank to cut the rates by 50 basis points to 100 basis points.
"The Sensex will track Wall Street and Asian peers until the general elections in India and trading is likely to be subdued until then," Khandar said. "Any hopes of positive gains after that depends on whether a reformist government is elected." Bank shares closed lower on profit-taking with ICICI Bank, India's largest private sector lender, down 2.1 percent at 448.35 rupees, HDFC Bank off 2.0 percent at 997.60 and the State Bank of India flat at 1,288.55.
Comments
Comments are closed.