Sensex, Nifty down, DLF shares fall for 3rd day

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The BSE Sensex dropped 125 points while the broader Nifty slipped below the 5,700 mark in early trade Wednesday. Indian stocks tracked weakness in Asian markets, which traded with deep cuts. The rupee, too, breached the 53 mark to the dollar.

At 09.15 a.m., the Sensex was down 0.66 per cent at 18,669 while the Nifty traded 40 points lower at 5,665. Analysts expect some correction in markets after a sharp rally through September.

"The momentum is slowing... 5,666 is crucial for Nifty below which a correction to 5,550-5,000 looks possible," independent analyst Sarvendra Srivastava said.

All groups of stocks traded lower on the BSE indicating broad based selloff. On the Nifty, 43 of the 50 stocks were in the red.

Cement major Jaiprakash Associates was the top loser, down 3 per cent. Materials producer CRH said negotiations over the possible acquisition of an equity stake in Jaypee Cement have been terminated.

Shares in realty major DLF fell for a third straight day. The stock traded 2.7 per cent lower after activist Arvind Kejriwal produced new set of documents on Tuesday that he says reek of the illicit business transactions between Robert Vadra, the son-in-law of Congress president Sonia Gandhi, and real estate giant DLF.

Shares in mid-cap IT firm Polaris plunged 5 per cent after market regulator Sebi barred Polaris Software Labs's CMD Arun Jain from securities market for a period of two years for alleged insider trading in the company's shares.

Among the gainers, IT major HCL Tech and drug makers like Ranbaxy and Cipla saw modest gains.


Global cues:

Japan's Nikkei average fell to a two-month low on concerns that upcoming corporate earnings for the latest quarter would be hurt by sluggish global growth, as the IMF cut its forecasts for the second time since April.

Investors on Wall Street were discouraged by the IMF report as well as expectations of lower corporate earnings. Analysts expect earnings for Standard & Poor's 500 companies to be lower than a year ago — the first time that has happened in almost three years. The Dow Jones industrial average fell 0.8 percent to 13,473.53.


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