Markets slip ahead of Nov inflation data

Markets ended lower on Thursday with the BSE Sensex sliding for the fifth straight session, ahead of November inflation data, weighed down by selling pressure in FMCG majors.

The 30-share Sensex ended at 19,229 down 126 points or 0.65% and the 50-share Nifty ended at 5,852 down by 37 points or 0.62%. The Sensex and the Nifty touched an intra-day low of 19,227 levels and 5,848 mark, respectively.

On the global front, Asian markets ended mixed. Nikkei, Strait Times, Taiwan and Kospi gained between 0.5-2%. Shanghai declined by 1%.

European shares edged lower and the dollar slipped against most major currencies on Thursday after the US Federal Reserve announced new measures to support the world's largest economy. London's FTSE 100, Paris's CAC-40 and Frankfurt's DAX opened 0.2 to 0.4% lower.

Back home, in line with equity market, the rupee trimmed its earlier gains but was still quoted up by 15 paise at 54.17 per dollar on mild selling of the American currency from banks amid persistent foreign capital inflows in stock market.

On the sectoral front, BSE Consumer Durable and FMCG indices slumped by nearly 3% followed by counters like Realty, Metal, Capital Goods, Power, PSU, Banks, IT and Healthcare, all declining between 0.3-2%. However, BSE Auto index gained by nearly 1%.

From the FMCG segment, Hindustan Unilever fell 2% for the second day, on concerns that it may face higher royalty payments to its parent Unilever PLC. Concerns came after Unilever Indonesia agreed on Wednesday to pay a higher royalty payment to the parent company.

ITC slumped nearly 4% after FTSE lowered its free float weighting for the cigarette maker in its global equity index series, according to the web site of the index provider.

Capital Goods majors BHEL and L&T declined between 1-2%. Metal shares like Sterlite, Hindalco and Tata Steel melted between 1-3%.

Banking and financial shares too plunged after rising consumer price inflation dashed hopes of a rate cut by the central bank. SBI, HDFC and HDFC Bank fell between 0.3-1%.

Other notable losers include Cipla, NTPC, DRL, M&M and Sun Pharma.

On the winning side, shares of automobile companies were in limelight on the bourses with the BSE Auto index hitting a lifetime high after Tata Motors' UK subsidiary Jaguar Land Rover (JLR) reported strong sales growth in November.

Tata Motors was the top Sensex gainer, up over 3% on reports that the company's UK subsidiary Jaguar Land Rover (JLR) reported a record 29,893 vehicles in the month of November.

Other prominent gainers included JSPL, Bharti Airtel and Bajaj Auto.

The broader indices underperformed the benchmarks– BSE Midcap and Smallcap indices were down 1% each.

The market breadth in BSE ended unhealthy with 1,834 declining and 1,106 shares advancing.

Smart Movers

ACC and Ambuja Cements, both a Holicm Group company dipped 2% after ACC said that its board approved for paying 1% of the net annual sales of the firm as technology and know-how fees to Switzerland's Holcim with effect from January 1, 2013.

Jet Airways (India) rallied 7%, extending its past two days gain, in an otherwise weak market on the back of over two-fold surge in trading volumes.

Honeywell Automation of India surged 3% ahead of its offer-for-sale (OFS), which open tomorrow.

Claris Lifesciences surged over 3% after the company said that it will utilize part of the net proceeds received from sale of its infusion business towards a special dividend or buyback of shares.

GTL Infrastructure locked in 20% lower circuit at Rs 6.97 on the BSE after the fresh shares of more than 300 million allotted on conversion of Foreign Currency Convertible Bonds (FCCBs) got listed today.

NMDC ended higher by 2% after the government's offer Wednesday to sell a 10% stake in iron-ore miner has received strong response.