Sensex Sheds 4.8%
By SANTANU CHAKRABORTY
MUMBAI -- Profit-taking in banks and technology stocks after the recent rally sent Indian shares
Monday to their sharpest single-day fall in nearly five months.
The Bombay Stock Exchange's Sensitive Index closed 4.8%, down at 9,568.14, snapping a five-
session rising streak in the process. The 30-stock index traded between 9,520.96 and 9,902.35
during the day.
The index - which gained more than 23% March 9 to 27 and 12% last week - declined by a
steeper margin last Nov. 5.
Analysts said uncertainties over the outcome of the April-May federal elections and company
results for the January-March quarter will now make the markets range bound with a negative
bias.
\"There is an underlying bearish mood in the market as most short positions were covered in the
March derivatives series (which expired last week) and long positions were not rolled over to the
present series,\" said Jagannadham Thunuguntla, head of equity at SMC Capitals.
Dow Jones Newswires technical analysis estimate the Sensex to trade between 8,900 and 10,200
this week.
Total traded volume on the Bombay Stock Exchange was 32.56 billion rupees ($644.7 million),
compared with 43.35 billion rupees Friday, which was the last day for funds to buy shares to
shore up net asset value before the financial year ends March 31. Purchases from Monday will be
recorded in the new financial year as settlement takes two more days to complete after the
purchase.
Decliners outnumbered gainers 1,457 to 916 Monday, while 96 stocks were unchanged.
On the National Stock Exchange, the 50-stock S&P CNX Nifty fell 4.2% to close at 2,978.15.
The BSE Bankex - comprising 18 bank stocks - ended 8.6% down at 4,414.47. The index had
risen nearly 33% between March 9 and March 27.
Analysts expect the non-performing assets of banks to spike up to 7% in the fiscal year
beginning April 1, which could hurt their earnings by nearly three-fourths.

ICICI Bank shed 12.3% to 337.95 rupees, State Bank of India lost 9.2% to 1,022 rupees and
HDFC Bank dropped 5.2% to 945 rupees.
Technology stocks fell on continuing concerns over declining information technology spending
by clients after U.S.-listed Accenture last week cut its revenue outlook.
Software bellwether Infosys Technologies lost 3.6% to 1,297.85 rupees, Tata Consultancy
Services dropped 9.1% to 522.75 rupees and Wipro fell 3.6% to 244.05 rupees.
Among blue chips, engineering and construction company Larsen & Toubro fell 4.3% to 650.95
rupees and Reliance Industries - which has the highest weight in the index - dropped 1.7% to
1,521.05 rupees, while mortgage lender Housing Development Finance Corp. lost 5.2% to 1,506
rupees.
Metals also traded weak, tracking an overnight fall in base metal prices on the London Metal
Exchange.
Tata Steel fell 12.2% to close at 196.15 rupees, Sterlite Industries declined 6.2% to 350.85
rupees, Hindalco Industries lost 8.8% to 50.20 rupees and Steel Authority of India dropped 9.3%
to 93.35 rupees.