Markets end lower amid weak global cues; Nifty holds 7,700

IT majors Infosys and TCS were the top losers while capital goods shares BHEL and L&T ended firm on robust core sector growth

Despite a marginal recovery in late trades benchmark share indices ended the first trading day of fiscal 2017 on weak note, amid weak global cues, with IT shares leading the decline.

The S&P BSE Sensex ended down 72 points at 25,270 while the Nifty50 slipped 25 points to settle at 7,113.

In the broader markets, the BSE Midcap gained 0.2% and Smallcap index ended nearly 1% higher. Market breadth ended strong with 1707 gainers and 830 losers on the BSE.

"Global cues remained weak with mixed macro economic data especially from Japan and China  while caution was also seen ahead of US jobs data today. Further, markets are awaiting the quantum of rate cut by the RBI and the commentary by the RBI Governor thereof," said Mayuresh Joshi, Fund Manager, Angel Broking.

Growth of eight core sector industries surged to a 15-month high of 5.7% in February 2016, almost double the 2.9% of January 2016. These industries had expanded by 2.3% in February 2015. Official data issued on Thursday showed only one segment, steel, had a fall in February output against three — crude oil, natural gas and steel — in January.

Foreign institutional investors were net buyers in equities worth Rs 4,057 crore on Thursday, as per provisional stock exchange data.


SECTORS & STOCKS

BSE IT, Oil & Gas indices were among the top losers while Realty was the top gainers up over 2% followed by Capital Goods and FMCG indices among others.

Capital goods shares were among the top gainers on the back of robust core sector growth in February. L&T was up 1.8% while state-owned engineering major BHEL gained 2.2%. Further, Deutsche Bank has raised BHEL's outlook to ‘Buy’ from ‘Sell’.

Maruti Suzuki ended flat. The car maker reported a double digit growth of 14.6% in domestic sales for March. The company posted growth of 11.5% in domestic sales in the year ended March 31, 2016.

Tata Motors ended down 1.5% after it said it has divested its entire stake in wholly-owned subsidiary Sheba Properties to another group firm Tata Motors Finance for Rs 405.37 crore.  

Mahindra and Mahindra's farm equipment division has raised 35% stake in Finland's Sampo Rosenlew, a combined harvester specialist, for 18 million. M&M eased 1.5%.

ICICI Bank gained 0.8% after it put the plan to sell its subsidiary ICICI Home Finance Co. Ltd on the backburner. Among other banks, SBI, and Axis Bank ended up 0.4%-1% each.

Among others, IVRCL extended losses and slumped 10% after the collapse of the Vivekananda Flyover in Kolkata on Thursday, under execution by the company.

IDBI Bank ended up 5% on the Bombay Stock Exchange after the company announced sale of its stake in National Stock Exchange.

Ashok Leyland gained over 1% after the commercial vehicle major registered 31% growth in total sales at 16,702 units during March, 2016 as against 12,754 units the same month of 2015

Mandhana Industries has rallied 7% after the company said that the High Court of judicature at Bombay approved the scheme of arrangement for demerger of the retail undertaking of the company into Mandhana Retail Ventures.

JP Associates surged over 11% after the sale of its cement units to UltraTech Cement.

Alkem Laboratorie ended down 3% after observations made by the UK health regulator, UK-Medicines and Healthcare Products Regulatory Agency following an inspection at the company's bioequivalence facility located at Taloja, Maharashtra in March 2016.

Bharat Wire Ropes which made its debut today ended flat at Rs 45.40 compared to its offer price of Rs 45 per share.

Geometric ended down 4%  ahead of board meeting after 5pm today to discuss various strategic and restructuring options.

GLOBAL MARKETS

Asian markets ended lower with Japanese shares declining the most after weak PMI data for March while China's manufacturing data indicated expansion in March for the first time in nine months. Japan manufacturing PMI eased to 49.1 in March. Japan's benchmark Nikkei ended down 3.7% while China's Shanghai Composite ended flat. Among others in the region, Straits Times and Hang Seng ended down 0.8%-1.4% each.

European markets were trading lower with energy shares leading the decline tracking weak crude oil prices and caution ahead of US jobs data later today. The FTSE, CAC-40, DAX were trading 1.2%-1.8% each.