Mumbai, May 03: The BSE Sensex shed 0.6 percent on Monday, with export-driven outsourcer Infosys Technologies among the big losers on weaker-than-expected U.S. economic growth and debt troubles in the euro zone.
China’s tightening moves and a survey that showed India’s manufacturing in April expanded at a slower pace for the second month following a drop in new orders and output also added to the shaky sentiment.
Infosys Technologies, which gets most of its revenue from the United States, shed 1.3 percent after the U.S. economy grew 3.2 percent in the first quarter, below expectations.
Automobile stocks such as Maruti Suzuki and bike maker Bajaj Auto bucked the trend and rose following robust April vehicle sales.
The benchmark had eked out a 0.2 percent gain in April, after rising 6.7 percent in March and 0.4 percent in the month before.
Traders said euro zone debt troubles were a concern as they could slow down foreign portfolio investment, which has been a key driver for the market. Overseas funds have moved about $6.5 billion into Indian shares so far this year.
The emergency aid for Greece, the most ever for a country, alleviated some fears of a near-term sovereign debt default, but left investors wondering which fiscally vulnerable country in Europe might be next.
“The fear is that more European countries may fall into the debt trap. People are just worried — who next and what next,” said R.K. Gupta managing director of Taurus Mutual Fund.
“That said, it does not seem like we will hear big names coming into trouble.”
Bajaj Auto, the No.2 motorcycle maker, was trading up 0.8 percent after its April sales jumped 85 percent. Bigger rival Hero Honda was up nearly 1 percent after its sales nudged up 0.3 percent
Maruti rose 0.6 percent after the leading car maker said April sales rose 29.7 percent.
In the broader market, losers outnumbered gainers in a ratio of 1.1:1 in a volume of 145 million shares.
The 50-share NSE index was down 0.7 percent at 5,243.50.
STOCKS ON THE MOVE
* Glenmark Pharmaceuticals jumped more than 12 percent early as the drugmaker said it had entered into a licensing agreement with French drugmaker Sanofi-Aventis.
It later erased some of the gains and was trading 4.8 percent higher at 282.90 rupees.
* Software design services firm Tata Elxsi was down 6.4 percent at 297.50 rupees, after it said its January-March net profit fell 47 percent.
MAIN TOP 3 BY VOLUME
* Reliance Natural Resources on 4 million shares
* Indiabulls Financial on 1.8 million shares
* Ashok Leyland on 1.7 million shares