Markets end lower on global risk aversion

Markets ended lower this Monday led by broad-based selling pressure witnessed in metal and mining stocks after China said to tighten its mortgage rules to cool the property market.

The Bombay Stock Exchange's Sensex fell 40.56 points to end at 18,877.96 while the National Stock Exchange's Nifty dropped 21.20 points to end at 5,698.50.

China, world's second-biggest economy, is expected to increase required down payments and loan rates for buyers of second homes in cities where prices are rising too quickly.

Adding to the concerns was the US fiscal crisis that threatens the global economy amid fear over resurgence of euro-zone crisis after joblessness in the region rose to an all-time high.

Reflecting the frail risk-appetite, Asian shares dropped with China's Shanghai Composite Index shed 3.65% to 2, 273 , Singapore's Straits Times declining 0.88% to 3,241 while Hong Kong's Hang Seng fell 1.5% to 22,538.

Japan's Nikkei gained 0.4% to 11, 652 on expectations of aggressive policy easing by BoJ governor to stimulate growth.

In Europe, France's CAC dropped 0.56% to 3,678, Germany's DAX fell 0.7% to 7,654  while UK's FTSE was down 0.42% to 6,353.

Back home, among sectors, barring bankex , rest all declined with consumer durable, real-estate, capital goods, metal leading the drop on BSE.

Among individual stocks, Bharti Airtel rose 1.6%, Dr Reddy's gained 1.5%, HDFC and ICICI Bank rose 0.4-0.8% while SBI was up 0.5%, Reliance Industries added 0.5% on BSE.

The laggards included, metal stocks with Jindal Steel, Hindalco and Sterlite Industries slumping over 3-5%, HUL declined 3%, Larsen & Toubro dropped 2.6%, Bajaj Auto and Maruti Suzuki shed 2-2.4% on BSE.

Among other notable movers, Bajaj Auto fell over 2% after reporting 3.3% year-on-year (yoy) fall in total sales at 332,997 units in February 2013, a sharpest fall in past five months. The company had sold total 343,777 units in the same month of previous year.

Shares of Indian cement majors ended weak today as reports suggest that February dispatch numbers have turned out to be poor. On top of it recent diesel price hike for bulk buyers making freight charges expensive took an additional toll on the counters.

Metal companies were also under pressure on the bourses with the Bombay Stock Exchange (BSE) metal index trading near to its four-year low after mixed data on the US economy and worries about scant demand from top consumer China as well as high inventories levels. China is the world's largest copper consumer, accounting for about 40% of global demand.

Among the individual stocks,SAIL, Jindal Steel and Power, Sterlite Industries, Hindalco and Sesa Goa dropped by 3% each on BSE.

The broader markets traded lower with mid-caps and small-caps falling 1.3-1.9% on BSE.

The market breadth was negative. Out of 2,896 stocks traded , 1,959 stocks declined compared to 823 advances on BSE.