Market seen extending losses on weak Asian equities

Key benchmark indices are seen extending Monday's, 16 February 2009 losses mirroring weak Asian indices. The SGX Nifty futures for February 2009 series dropped 29 points in Singapore.

Disappointment from the government's interim budget 2009-2010 presented in the parliament on Monday, 16 February 2009, which failed to shower any sops and weak global cues triggered a sell-off on Monday, 16 February 2009. The BSE 30-share Sensex lost 329.29 points, or 3.42%, to 9,305.45 and the S&P CNX Nifty dropped 99.85 points, or 3.39%, to 2,848.50.

According to provisional data on NSE, FIIs were net sellers worth Rs 45.33 crore while mutual funds bought shares worth Rs 189.52 crore on Monday, 16 February 2009.

The budget turned out be a non event as there were no sector-specific tax sops for the industry hit by the global economic slowdown in the interim budget for 2009-2010 unveiled by acting Finance Minister Pranab Mukherjee on Monday, 16 February 2009. No changes were made in direct or indirect taxes. The stock market was expecting government to offer tax sops and sector-specific stimulus package for the economy in the interim budget.

Asian stocks fell, led by finance and commodity companies, amid concern insurers may have to boost capital reserves and as metals prices and shipping rates declined. China's Shanghai Composite slipped 2.01% or 48.03 points at 2,341.34, Hong Kong's Hang Seng was down 3.27% or 439.74 points at 13,016.14, Japan's Nikkei fell 1.45% or 112.68 points at 7,637.49, Singapore's Straits Times declined 1% or 16.81 points at 1,663.89, South Korea's Seoul Composite plunged 3.19% or 37.44 points at 1,138.03, Taiwan's Taiwan Weighted fell 1.97% or 90.48 points at 4,500.78

US markets remained shut on Monday, 16 February 2009 for President's Day holiday.