Indian share prices were seen slipping further in the absence of fresh overseas inflows and increasing investor worry over the global economic outlook, dealers said. They said uncertain global market trends could impact emerging markets such as India in coming weeks.
For the week to February 8, the Mumbai stock exchange's benchmark 30-share Sensex index fell 4.26 percent or 777.69 points to 17,464.89. "Investors are clearly spooked by global trends and local concerns linked to weak primary markets. There's choppiness ahead," said a dealer at brokerage Prabhudas Lilladher.
Real estate developer Emaar MGF Land on Friday said it had withdrawn its initial public offering temporarily due to uncertain market conditions. Emaar, which sought to raise up to 1.64 billion dollars, had cut its price band twice and extended its IPO by three days to February 11.
On Thursday, India's Wockhardt Hospitals, which had also lowered its price band, withdrew its IPO due to weak investor demand. Earlier this week, the government forecast India's economy would expand by 8.7 percent in the financial year ending March as farm and manufacturing output slowed from last year's rapid pace.
Indian markets are down more than 17 percent from a record intraday high of 21,206.77 on January 10. In 2007, India's stock markets rose by a record 47.1 percent, the largest climb in four years, led by overseas fund flows of 17.23 billion dollars for the year, compared with 7.99 billion for 2006. The market gained 46.7 percent in calendar 2006.