Indian equities fell for the second consecutive day as the key Sensex index closed down 2.43%. Profit taking and uncertainty about the direction of the market led to continued selling pressure. All sectors declined, with consumer durables falling the most. Major losers included Satyam Computers, Jaiprakash Associates, and Tata Motors. Asian markets also declined due to lower than expected interest rate cuts in China and a forecast loss from Toyota. US markets closed lower as well ahead of an early close for the Christmas holiday.

1. Markets fall second day in a row (Roundup)
Dec 23rd, 2008 | By Sindh Today | Category: India
Mumbai, Dec 23 (IANS) Indian equities fell the second consecutive day Tuesday as a key index
closed 2.43 percent amid continued selling by investors.
The sensitive index (Sensex) of the Bombay Stock Exchange (BSE) closed at 9,686.75 points, a
fall of 241.6 points or 2.43 percent from its previous close Monday of 9,928.35 points.
Profit booking will keep happening intermittently as investors are not sure how long the Indian
equities markets will continue to show positive trends. Having said that, it is difficult to say
whether the market will continue a particular trend, bullish or bearish, said Jagannadham
Thunuguntla, head of the capital markets arm and director of India’s fourth largest share
brokerage firm, the Delhi-based SMC Group.
S&P CNX Nifty of the National Stock Exchange (NSE) was also going through a slump, trading
at 2,968.65 points 2.32 percent lower than its previous close. Broader market indices also fell
with the midcap index going down 2.58 percent from Monday’s close, while the smallcap index
fell similarly, closing about 2.56 percent compared to its previous close.
There was hardly anything to choose from sectors or companies with losers far outnumbering
gainers. All 13 of the sectoral indices in the Sensex fell with consumer durables being the worst
hit and settling at 5.81 percent lower than its previous close. Among top losers Tuesday were
Satyam Computers, which registered a fall of 13.98 percent and closed at Rs.162.40. Other losers
were Jaiprakash Associates (down 11.67 percent to close at Rs.87.40) and Tata Motors (down
7.04 percent to close at Rs.188.10).
Reliance Communications was among the very few performers in the Sensex Tuesday and closed
1.24 percent up at Rs.213.50. Asian markets were sluggish with the Hang Seng, a key index of
the Hong Kong Stock Exchange, falling 2.75 percent. The slump was largely attributed to China
cutting interest rates by less than what was expected and auto major Toyota Motors forecasting a
loss.
Overnight US markets closed Monday in the red with a key index of the New York Stock
Exchange finishing 1.7 percent lower than Friday’s close. The Nasdaq index closed 2.04 percent
lower than its previous close.
US markets may also turn more volatile as many market participants may choose to extend their
Christmas holidays. US markets will close early Wednesday and will remain closed Thursday.