The market slipped on Tuesday, dogged by the overnight sharp setback in the US markets and the test firing of a missile by North Korea.
The 30-share Bombay Stock Exchange Sensitive Index was down by 27.59 points, or 0.8%, at 3,294.58. in early trades.
The S&P CNX Nifty shed 10.25 points, or 0.9%, at 1,059.90.
Most of the IT stocks were in the red. Software bellwether Infosys Technologies was down by 1.4% at Rs 4,148, Digital GlobalSoft slipped by 1.2% to Rs 611.55, Wipro declined by 1.2% to Rs 1,415 and Satyam Computer fell by 0.9% to Rs 223.90.
The market declined from the higher levels on Monday. The Sensex, which was up by over 34 points at one point, settled with a gain of 14.97 points at 3,322.17 on that day.
Chartists said that technically the market looks weak at sub-3,300 level. The Sensex is currently at 3,294.58.
The early weakness in the market today stemmed from an overnight sharp setback in the US markets, already gripped by war fears. The Dow Jones Industrial Average tumbled by 159.87 points, or 2%, at 7,858.24. The tech-laden Nasdaq Composite Index lost 26.64 points, or 2%, at 1322.38.
The test-firing of a land-to-ship missile into the sea between the Korean peninsula and Japan by North Korea on Monday, also hit the sentiment adversely. The test-firing will escalate tensions in a sensitive region already perturbed by North Korea's alleged nuclear transgressions. The US had earlier said that North Korean officials admitted in October last year of going ahead with an advanced nuclear programme. Later, North Korea walked out of a nuclear non-proliferation treaty and asked UN weapons inspectors to leave the country.
Some of the Asian markets were hit hard today as a result of North Korea's missile test and the setback on the US markets. Japan's Nikkei 225 average was down by 206 points, or 2.4%, at 8,358.73; the Kospi index of South Korea was down by 20.71 points, or 3.3%, at 595 and the weighted index or Taiex of Taiwan was down by 152 points, or 3.3%, at 4,456. However, the China market bucked the trend with the Shanghai Composite index up by 25.73 points, or 1.6%, at 1,574.78. With the rising geo-political tensions, the prices of gold, which is considered to be a safe investment, have once again gained momentum.
Back home, dealers said there was some impact on the market of reports in a section of the media that
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