[R]6:00 PM Mumbai, 8:30 AM New York – Mumbai stocks in volatile trading fell sharply in the last hours of trading. The benchmark index opened lower on a weak trading sentiment in the U.S. and worries that local markets may be stretched. The advance payments of taxes for the first fiscal quarter were nearly unchanged from a year ago.[/R]

Stocks in Mumbai trading declined after the U.S. President made cautious remarks on the economy. The remarks drove several markets in Asia lower and European markets opened lower. In trading, Mumbai stocks were volatile and accelerated their decline in the last two hours of the session.

The Sensex index in India decreased 435.07 or 2.91% closed to 14,522.84 and CNX Nifty index plunged 3.9% to 4,342.65. All members of Sensex 30 index declined.

On the BSE, trading turnover edged higher to 6,932 crore rupees from 6,892 crore rupees. Of the stocks traded on the exchange 664 increased, 1992 declined and 79 were unchanged.

On the NSE, total trading declined to 20,982 crore rupees from 21,181 crore rupees.

The preliminary indications about the advance tax payments for the first quarter indicate nearly flat receipts from a year ago. The total taxes received by the government were estimated at 23,000 crore rupees. Manufacturing sector tax payments were lower than expected but financial sector taxes were higher than expected.

Net fund flows from foreign investors to June 15, in the month were 5,900 crore rupees and for the year were 27,220 crore rupees. The net investment outflows on June 16 were 213 crore rupees and on June 17 were 728.51 crore rupees.

Gainers & Losers

Sagar Cements declined 5% to 240 rupees after it reported net income decline of 47% to 16.46 crore rupees.

Larsen & Toubro fell 3.9% to 1,466.55 rupees after it reported advance tax payment increase of 16% to 110 crore rupees.

Metal stocks traded lower after metal prices in London and Shanghai closed down. Sterlite Industries dropped 4.9% to 603.10 rupees and Hindalco Industries declined 5.3% to 93.80 rupees.

Max India Ltd closed up 0.8% to 230.35 rupees after surging as much as 10% on the news that the company may sell 23% stake in an insurance venture to New York Life.

Reliance Communications Ltd declined 5.9% to 309 rupees and Bharti Airtel fell 0.7% to 802.35 rupees.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 87.97 or 0.90% to 9,840.85, Hang Seng index in Hong Kong decreased 80.90 or 0.45% to 18,084.60, CSI 300 index in China increased 49.37 or 1.67% to 3,010.59. ASX 200 index in Australia decreased 58.40 or 1.47% to 3,904.10. The KL Composite index in Malaysia decreased 3.22 or 0.30% to 1,070.90.

The Kospi Index in South Korea decreased 7.98 or 0.57% to close at 1,391.17.SET index in Thailand closed lower 10.40 or 1.74% to 586.14 and JSE Index in Indonesia decreased 5.40 or 0.27% closed to 2,024.96. The Sensex index in India decreased 435.07 or 2.91% closed to 14,522.84.