8:00AM NY-7:00PM Mumbai Sensex declines on selling pressure, weak global markets.
The Sensex on BSE finished 170.69 points, or 1.25%, lower at 13,478.83. The market was highly volatile and traded within a range of 294.85 points. The market-breadth was slightly positive as 1,330 stocks advanced, 1,205 declined and 62 were unchanged. Of the 30 stocks in the Sensex, seven advanced while the rest 23 declined. The turnover on BSE was Rs 4,019.74 crore, higher than Rs 3,956.87 crore on Monday. On NSE, the turnover was Rs 8,148.78 crore, lower than Rs 9,046.18 crore on Monday.

Economic news

The government announced on Tuesday that there was no need to worry over the economy''''s rapid growth, and added that the momentum is sustainable even though containing inflation would be difficult. The government made the announcement on the eve of the release of the annual budget due Wednesday, February 28.

State election results showed that the ruling Congress party, is about to lose in the states of Punjab and Uttarakhand on voter concern about inflation and economic reforms.

Trading highlights

JSW Steel was the most-active stock with a turnover of Rs 163.65 crore followed by Power Finance and Global Broadcast.

Advancers

HDFC Bank led the gainers, despite the mixed trend in banking stocks on fears that rising inflation may bring about raising the interest rates. HDFC Bank gained 2.6% to Rs 976.2. Construction shares and large-cap Maruti Udyog also gained. Construction shares advanced on hopes that the budget will help the infrastructure sector, whereas Maruti Udyog added on expectations of cuts in excise duty on cars. Maruti gained 1.5% to Rs 887.7. ACC advanced 1.6% to Rs 961.1. ACC rose after Swiss Holcim increased its stake in Ambuja Cements India Private Ltd, a company which owns 35.15% of ACC.

Decliners

ICICI Bank lost 3.3% to 875.7. Although the trend was mixed, banking stocks were sold on concerns of rising inflation that could lead to hikes in interest rates, which could hit credit growth. Auto makers exhibited considerable weakness. Hero Honda shed 3.6% to Rs 680, and Bajaj Auto declined almost 3.2% to Rs 2,724.3. IT large-caps slipped. Satyam Computer lost 2.4% to Rs 450.5, Wipro shed 1.9% to Rs 602, TCS lost 1.4% to Rs 1,264 and Infosys shed nearly 1% to Rs .4% to Rs 2,195.15. Satyam Computers has made an alliance with US global defence and technology company Northrop Grumman for expanding in the global aerospace and defence market place.

Unlike ACC, Gujarat Ambuja Cements shed 2.3% to Rs 124.50, after the cement company announced it sold 11% stake in Ambuja Cements India to Swiss company, Holcim, for Rs 527 crore. ONGC, the oil exploration leader, declined despite higher global crude oil. The stock shed 2.1%, to Rs 817.4. Index heavy Reliance Industries lost 0.2% to Rs 1,401.


6:30AM Europe is lower on Tuesday on weakness in banking sector.
European markets were lower on Tuesday. By mid morning, Frankfurt Xetra Dax shed 1.5% to 6,927.34, the CAC 40 in Paris lost 1.6% to 5,669.2 and London FTSE 100 fell 1.5% to 6,339.6.

Advancers

GKN, U.K. maker of car and airplane parts, rallied 8.7%, as the company said full-year profit more than tripled to 177 million pounds or $347 million after it sold more plane components and reduced spending on reorganization.

Reuters Group advanced 1.4% as Credit Suisse Group raised its recommendation on the world largest publicly traded provider of financial data to outperform from neutral.

Decliners

Austrian Raiffeisen International, which has substantial operations in Russia and Ukraine, fell 6.3%. Erste Bank, which also has businesses across central and eastern Europe, shed 3.4%. National Bank of Greece, which owns Finansbank of Turkey, fell 3.3%. Bank of Piraeus lost 3.1%.

BHP, the world largest mining company, lost 3.9% and Rio Tinto, the third biggest, declined 3.5%. Xstrata, the world fourth-biggest nickel producer, dropped 4.8%.