[R]10:30AM The Sensex broke its winning streak on an intense selling pressure.[/R]
The Sensex on BSE finished 349.08 points, or 2.54% at 13,382.01. The market breadth was negative on BSE, with almost two decliners for every gainer. On BSE, 1,641 shares declined while 919 advanced and 69 remained unchanged. From the Sensex 30 stocks, only Hero Honda advanced, rest declined. The turnover on BSE was Rs 4,114 crore, higher than Rs 3,772 crore on Monday. The turnover on NSE was Rs 9,066.2 crore, compares to Rs 8,222.2 crore on Monday.

Economic news

Thai stocks slumped almost 15% Tuesday as panic seized the market after the Central Bank of the country imposed a 10% penalty on overseas investors if they take out funds within a year of investment, pulling markets down throughout the region including India.

India must take preventive measures to curb inflation as it is still not clear that inflation worries are over, Finance Minister Chidambaram stated on Tuesday.

George Soros, a global financial speculator, today cautioned India not to go for full float of rupee and added that the government should not let the economy get overheated. Mr. Soros is widely blamed for his attacks on weak currencies in Asia for personal gains during the Asian contagion in the year 1998.

Most-active stocks

Reliance Industries was the most active stock on BSE with turnover of Rs 219.19 crore followed by BHEL and Tech Mahindra.

Advancers

Hero Honda was the only advancers from the Sensex stocks, up 0.89% to Rs 757. Sugar stocks advanced on a day of broad sell-off. On Monday, Union Cabinet took a decision to let sugar companies export. Uttam Sugar advanced 3.61% to Rs 136.50, Sakthi Sugar was up 3.80% to Rs 106.50, Ugar Sugar Works surged 7.51% to Rs 17.90, Mawana Sugar gained 3.78% to Rs 52.15.

Decliners

BHEL led the decliners, plummeting 5.39% to Rs 2,262.35. According to analysts the decline is the likely loss of equipment orders for the upcoming mega power projects.

Of all the sectors, capital goods sector led the decliners. Crompton Greaves dipped 6.3% to Rs 193, Bharat Electronics lost 4.99% to Rs 1,252, SKF Bearings shed 3.20% to Rs 277.20, BEML was down 3.86% to Rs 925 and ABB slipped 3.62% to Rs 3,535.

NTPC dipped 5.05% to Rs 133.60, Reliance Communications lost 4.80% to Rs 445.45, L&T shed 4.21% to Rs 1,410 and ACC declined 3.82% to Rs 1,013.

Index heavy Reliance industries plunged 3.20% to Rs 1,248 despite reports that Reliance Industries and its partner Niko Resources have discovered huge oil in the hydrocarbon rich Krishna-Godavari basin.

Tata Steel declined 3.23% to Rs 452.30 having advanced to a high of Rs 475 in view of reports that the UK Takeover Panel is likely to condust two way auaction for Corus.

IT stocks declined on overnight drop in the U.S. market. Infosys shed 3.20% to Rs 2,152, Satyam Computer was down 3.51% to Rs 463, TCS lost 3.52% to Rs 1,140, Wipro sank 3.21% to Rs 563.25.


[R]9:45AM Stocks dropped at opening, amid disappointing sales at Oracle and inflation worries.[/R]
U.S. stocks opened lower on Tuesday after government data showed the sharpest rise in producer prices in 32 years last month, sparkling inflation and higher interest rates concerns. The Labor Department reported that the Producer Price Index climbed 2% in November, while the core PPI, which excludes energy and food prices, rose 1.3%. In other report, the Commerce Department said construction of homes rose by 6.7% in November, but at the same time applications for building permits dropped for the 10th straight month. Further pressure was exerted by news that the stock market in Thailand tumbled 15% Tuesday after the Thai government announced controls on foreign investment.

Earnings-related news also generated negative mood. Oracle Corp. (ORCL: chart) was the biggest drag on the Nasdaq, falling 4.6% as the software maker posted disappointing sales results. Circuit City Stores (CC: chart) said it swung to a loss in Q3 because of sharp discounts on flat-panel televisions and computer equipment. The company also lowered its full-year sales forecast. The stock slipped 17%. Best Buy Co. (BBY: chart) also declined, down 4.2%. On a positive earnings note, investment bank Morgan Stanley (MS: chart) reported 10% profit drop in Q4, which came in above estimates. The company reported net income drop of $2.21 billion from $2.47 billion a year ago. On a per-share basis, the profit was $2.08, down from $2.32 a year ago, exceeding expectations of $1.77 a share. The stock rose 2.8%.

In the first hour of trading, the Dow Jones industrial average was down 27.95, or 0.22%, at 12,413.32. The Standard & Poor''s 500 index was down 3.97, or 0.28%, at 1,418.51, and the Nasdaq composite index was down 18.99, or 0.78%, at 2,416.58. Bonds rose, with the yield on the benchmark 10-year Treasury note falling to 4.58% from 4.59% late Monday.