Markets end lower amid volatile trading session

BSE Consumer Durable, Realty, IT, Oil & Gas indices declined between 1-2%

Markets closed lower for the sixth straight session on Friday amid a volatile trading session dragged by software majors and select financial shares.

The 30-share Sensex ended at 18,736 down 57 points or 0.30% and the 50-share Nifty ended at 5,651 down by 7 points or 0.13%.

On the global front, Japan's Nikkei average shed 2.4 % on Friday as concerns mounted that Cyprus may be forced to exit the euro zone after the European Union gave the island's government until Monday to raise the billions of euros it needs to secure a bailout. The Nikkei ended 297.16 points lower at 12,338.53, retreating from 12,650.26 hit on Thursday, its highest intraday level since early September 2008.

European shares dipped on Friday, putting a key index on track for its worst weekly drop since November, as worries over Cyprus' bailout problems dented sentiment.

The pan-European FTSEurofirst 300 index fell 0.1 % to 1,190.12 points, putting it on track for its worst weekly drop since November, while the euro zone's blue-chip Euro STOXX 50 index fell 0.2 % to 2,678.57 points.

Back home, the Reserve Bank of India is expected to take "baby steps to easing" and is likely to cut key policy rates by 0.25% in its mid-June policy review to revive growth, says a Bank of America Merrill Lynch report.

On the sectoral front, BSE Consumer Durable, Realty, IT, TECk, Healthcare, Oil & Gas and PSU indices declined between 1-2%. Power, Metal and Capital Goods ended marginally positive.

Tata Motors, M&M and Maruti Suziki fell between 0.4-1%.

Tata Motors ended lower on worries that China’s new stringent fuel economy norms might affect the company’s Jaguar Land Rover (JLR) unit.

Two-wheeler firms Bajaj Auto and Hero MotoCorp were among the top Sensex gainers up 2-4% each. Hero MotoCorp was up on media reports that the company plans to spend nearly Rs 1,100 crore on capital expenditure and has formulated a strategy to take on its rivals.

SBI was the top Sensex loser, down nearly 2%. ICICI bank dipped by 1%.

Consumer Durables index was the top loser among sectoral indices on the BSE down 1.8%. Shares of consumer durables were hit on profit taking as valuations seem to be expensive at current levels. Volume growth at most companies in the sector is indicating a drop as consumption levels decline amid high inflation. Top losers in the index included, TTK Prestige, Titan, Rajesh Exports and Gitanjali Gems.

Among Sensex losers Bharti Airtel was down 1.8%, TCS was down 0.9% on profit taking after recent gains.

Meanwhile, BSE Midcap index slipped by 0.26% whereas BSE Smallcap index closed down by 1%.

The market breadth in BSE ended weak with 1,880 shares declining and 986 shares advancing.

SMART MOVERS

SKS Microfinance surged by nearly 4%, recovering from yesterday’s 10% fall, after the company said it has completed securitization transactions of over Rs 100 crore.

NHPC dipped over 6% at Rs 1,960 after the Power Minister Jyotiraditya Scindia said that around 19 cases of alleged corruption and irregularities in the company's projects have been reported.

Tribhovandas Bhimji Zaveri (TBZ) tanked by nearly 12% after HSBC Global Investments sold around 2% of its stake in the company at a price of Rs 250 per share through open market transaction.