Markets end lower as diesel hike deferred

HUL, Reliance Ind and Bharti Airtel top Sensex losers

Markets ended marginally lower on Wednesday after postponement of hike in diesel prices dampened sentiment and ahead of expiry of July derivative contracts with HUL and Reliance Industries leading the decline.

The 30-share Sensex provisionally ended down 74 points at  16,844 and the 50-share Nifty ended down 19 points at 5,109.    

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(Updated at 14:23 hrs)

Benchmark Indices have trimmed the losses and are trading marginally lower amid volatility ahead of the expiry of July futures and options series tomorrow. Positive opening of the European markets and selling pressure easing across the board has helped the local markets to recover from day lows.

By 14:20, the Sensex was at 16,857 down 61 pts and the Nifty was at 5,115 down 13 pts.

On the global front, Nikkei share average fell 1.4 percent on Wednesday to a seven-week closing low after disappointing results from Apple Inc results hit the iPhone maker's Japanese suppliers, while printer makers fell after Lexmark International cut its outlook.

Worries about slowing global growth and the deepening euro zone sovereign debt crisis have bitten into U.S. and Japanese corporate earnings. Of 26 U.S. firms that have revised third-quarter profit forecasts since mid-June, 19 have cut them, according to Thomson Reuters I/B/E/S.

The Nikkei dropped 122.19 points to 8,365.90, edging closer to its June 4 low of 8,238.96. The benchmark has fallen 7 percent so far this month, and is down 1 percent this year.

The euro jumped and European shares turned higher on Wednesday after a European Central Bank policymaker said there were reasons to boost the firepower of the euro zone's new bailout fund to tackle the region's deepening debt crisis. CAC, DAX and FTSE have gained between 0.1-1%.

Back home, Pranab Mukherjee was today sworn in as the country's 13th President at an impressive ceremony in the Central Hall of Parliament.

On the sectoral front, BSE Metal index has fallen by almost 2% followed by counters like Consumer Durable, Power, PSU, Auto, Oil & Gas and Capital Goods, all declining by almost 1% each. However, BSE Technology and Realty indices are trading marginally in green zone.

JSPL continue to reel under selling pressure, down by almost 4% after reporting 59% year-on-year (yoy) fall in consolidated net profit at Rs 385 crore for the quarter ended June 2012, due to a provision of Rs 574 crore for its impaired investment in Bolivia. The company had reported a net profit of Rs 933 crore in a year ago quarter. Hindalco, Tata Steel, Coal India and Sterlite have declined between 1-2%.

FMCG major HUL has dropped by over 2%. HUL surged 7.5% yesterday, touching earlier a record high of Rs 477.75, after yesterday reporting April-June quarterly earnings that handily beat estimates. CLSA upgraded its target price on the stock to Rs 485 while retaining its ‘overweight’ rating, calling HUL’s earnings ‘a strong all-around performance.’

Auto shares like Tata Motors, Bajaj Auto and M&M have slipped by almost 1% each.

Other notable losers include Wipro, Bharti Airtel, NTPC, Dr Reddy’s Lab, SBI, L&T and RIL.

On the winning side, ITC is the top Sensex gainer, up by almost 1%. HDFC Bank, ICICI Bank, HDFC, TCS, Infosys and BHEL have gained between 0.05-1%.

Among other shares, Orissa Minerals Development Company (OMDC) has locked upper circuit of 20% at Rs 36,377 on getting environment clearance from Ministry of Environment and Forest (MOEF) for its KoIha-Roida iron and manganese mines.

Polaris Financial Technology has moved higher by 5% at Rs 119 on reporting 37% growth in net profit at Rs 61 crore in June 2012 quarter from Rs 45 crore in the corresponding quarter of previous fiscal. Revenues grew 26% at Rs 569 crore on year-on-year (yoy) basis.

The BSE mid-cap and small-cap indices maintain the weak trend, both declining by almost 1% each.

The market breadth in BSE remains unhealthy with 1,361 shares declining and 868 shares advancing.