Sensex extends losses,down over 86 pts

Sensex lost 366.53 points in previous session,fell further by 86.20 points to 16,459.98.

The BSE benchmark index Sensex fell further by over 86 points in opening trade today,extending yesterday’s losses on sustained selling by funds following RBI’s weak outlook on rate cuts amid a subdued trend on Asian bourses.

The 30-share index,which had lost 366.53 points in the previous session,fell further by 86.20 points,or 0.52 per cent,to 16,459.98 with stocks of realty,banking and metal sectors leading the fall.

On the similar lines,the wide-based National Stock Exchange index Nifty declined by 28.60 points,or 0.57 per cent,to 4,971.35 in opening trade.

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Brokers said sentiment remained bearish after RBI Deputy Governor Subir Gokarn’s comment that there is little room for further reduction in interest rats in view of inflationary pressure,triggering selling pressure by participants.

In addition,a weak trend on other Asian bourses following overnight losses at the US market on investor worries over political uncertainty in Greece was another factor behind fall in stock prices,they said.

In the Asian region,the Hong Kong’s Hang Seng index fell by 0.77 per cent,while Japan’s Nikkei index was down by 1.19 per cent in early trade today. The US Dow Jones Industrial Average ended 0.59 per cent lower in yesterday’s trade.

Pre open: Sensex to watch

GLOBAL MARKETS ROUNDUP

* Asian shares fell on Wednesday,as Greece struggled to form a government two days after elections,raising the risk that a hard-won bailout could be nullified.

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* US stocks ended lower on Tuesday after political developments in Greece fanned concerns about Europe’s fiscal health,but a late rally helped indexes cut losses to close well above lows.

KEY EVENTS TO WATCH

* Ranbaxy,India’s top drugmaker by sales,will report its quarterly earnings. The company is expected to report strong numbers as it continues to enjoy exclusivity on generic Lipitor in US and Europe. (0930 GMT)

* Other Jan-March earnings: ABB Ltd,Arvind Ltd ,IRB Infrastructure Developers,Punjab National Bank,United Breweries Holdings,Union Bank of India.

* Tribhovandas Bhimji Zaveri Ltd to debut today after investors bid for 1.15 times the shares offered by the company in an initial public offering last month.

INDIAN STOCKS TO WATCH

TELECOMS

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* Indian mobile carriers will have to spend nearly $24 billion more on their networks if the government goes ahead with a proposal to replace the more-efficient spectrum bands of older carriers with relatively inferior quality spectrum,an industry group estimated on Tuesday.

* Norway’s Telenor distanced itself further from the Indian market on Tuesday,excluding the country from its 2012 forecasts for the first time after licensing problems there led to massive writedowns that weighed on its quarterly results.

INDUSTRIAL / TRANSPORT

* Asian Paints Jan-March net profit rose 39.25 percent from a year ago.

* Tata Coffee Jan-March net profit rose 64.37 percent to 288.3 million rupees from a year ago.

FINANCIAL / PROPERTY

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* IDFC reported net profit rose 16.72 percent in the Jan-March quarter from a year ago.

OTHER FACTORS TO WATCH

* Indian debt/FX factors to watch

* Euro near 3-mth low as political risks weigh

* Oil slips as Europe,Greece fan demand worries

* Foreign institutional investor flows

* For closing rates of Indian ADRs