Global growth concerns weigh on markets; Nifty ends below 7,750

ITC, ICICI Bank and Tata Motors contributed the most to the decline in the benchmark indices

Benchmark share indices ended at their lowest closing level in three week amid a sell-off in late trades after weak economic data from China and devalution of the yuan sparked global growth concerns while the ongoing geopolitical tensions in the Middle-East also dampened sentiment.

The S&P BSE Sensex ended down 174 points at 25,406 and the Nifty50 closed 44 points lower at 7,741.

"Markets came under pressure after weak economic data from China raised global growth concerns. Further, the devaluation of the yuan and the continued geopolitical tensions in the Middle-East and the developments in North Korea also dampened sentiment. Further, investors are also cautious ahead of the third quarter earnings," said Alex Mathews, Head of Research, Geojit BNP Paribas Financial Services.

ECONOMY

Growth in India's services firms rose at its fastest pace in 10 months in December as demand picked up, a private business survey showed today.

The Nikkei/Markit Services Purchasing Managers' Index (PMI) surged to 53.6 in December from November's 50.1, marking a sixth month above the 50-level that separates growth from contraction.

The Indian rupee was down 22 paise at 66.82 against the American currency compared to its previous close on sustained bouts of dollar demand from importers.

GLOBAL MARKETS

European shares were trading lower weighed down by commodity stocks after the devaluation of the Chinese yuan raised growth concerns in the world's second largest economy while talk of a nuclear test in North Korea also weighed on investor sentiment. CAC-40, DAX and FTSE-100 were down nearly 1% each.

Asian markets were mixed with Chinese stocks rebounding after losses in the previous three sessions. The Shanghai ended up 2.2% after market regulator imposed a ban on share sale by major shareholders while Nikkei ended down 1%. Talk of a possible nuclear test in North Korea further dampened investor sentiment in Asia. Hang Seng and Straits Times ended down 1% each.


STOCKS IN FOCUS

BSE Oil & Gas index was the top gainer along with Metal and Auto indices while FMCG index was the top loser.

Reliance Industries ended 2.7% at Rs 1,032 after hitting a 5-month high of Rs 1,038 on the National Stock Exchange. Downstream expansions and the much-awaited US$17bn 4G telecomventure hold the key, but the year will also see it foray in Ecommerce and launch its own brand of 4G devices and several mobile apps. We find excessive pessimism on telecom; commercial launch of 4G in mid-2016 will be a key positive trigger. Ebitda should rise 50% in two yearsdriven by downstream expansion; retain high-conviction BUY; it is our top pick in the sector, foreign brokerage CLSA said in a note.

Telecom stocks ended lower with Bharti Airtel down 0.6% while RCom and Idea Cellular ended down 0.4%-1.8% each. The Delhi High Court is likely to pronounce its order on compensation for call drops later today.

Metal stocks witnessed profit taking after sharp gains in the previous session. Tata Steel which had surged over 6.5% in the previous trade ended down 2% while Hindalco, Vedanta and Hindustan Zinc ended down 2.8%-4% each.

Tata Motors ended down 2.6%. Jaguar Land Rover (JLR) said its US sales rose 30% to 9,638 units in December 2015 over December 2014. Land Rover sales rose 47% to 8,441 units in December 2015 over December 2014. Jaguar sales fell 29% to 1,197 units in December 2015 over December 2014.

Among other auto stocks, Maruti Suzuki, Hero MotoCorp, Bajaj Auto and M&M ended down 0.7%-2.6% each.

Other Sensex losers include ITC, ICICI Bank and L&T among others.

Among others, shares of Bharati Shipyard has locked in upper circuit for fourth straight trading sessions, up 5% at Rs 33.85 on the BSE ahead of board meeting tomorrow to consider issue of convertible warrants to non-promoters on preferential basis.

Shares of Gokaldas Exports surged 5% to Rs 69 after the board at its meeting on Tuesday decided to transfer/sale of land, building and related assets pertaining to some of its properties.