Markets slip amid growth concerns

Metal stocks weigh

The benchmark indices ended lower on Tuesday, extending losses for the third straight session, amid growth concerns with metal shares leading the decline on worries of lower demand going forward. The Sensex closed 17,632, down 47 points and the 50-share Nifty shed 16 points to close at 5,335 levels.

The markets were stuck in a very tight range in trades today. The Sensex traded in a narrow range of 140 points.

Meanwhile, the Asian markets ended on a mixed note as some investors made bearish bets after a recent strong run and as concerns over China's economic growth outweighed expectations the U.S. Federal Reserve will soon launch more stimulus. The Nikkei ended weaker by 0.6% at 9,033, Taiwan Weighted slipped 106 points to 7,362. While, Shanghai Composite and Hang Seng closed on a flat note.

On Monday China's industrial sector posted a sharp profit drop in July, offering a fresh sign that slackening domestic and external demand has further weighed on corporate earnings.

The European markets were also trading on a weak note. The CAC40, DAX and FTSE were down 0.2-0.6% each.

Back home, the metal stocks were amongst the worst hit in trades today. The BSE metal index was the top sectoral loser, the index slipped 2.4% or 250 points to close at 10,026 levels. Sterlite Industries was the top loser among the Sensex stocks from the metals pack, down 5% to close at Rs 104. Jindal Steel, Hindalco, Tata Steel and Coal India also slipped 2-5% each.

Larsen & Toubro, ONGC, Tata Motors, ICICI Bank, Bajaj Auto, HDFC Bank, BHEL, Hero MotoCorp and Cipla also closed weaker from the heavyweight pockets.

On the other hand, Sun Pharma jumped 1.8% to Rs 682, bouncing back 2.4% from day’s low after the company said its subsidiary Caraco has received USFDA clearance to resume operations at its manufacturing facility and packaging sites in Detriot and Wixom, Michigan. TCS, Tata Power, Dr Reddy's Labs, Tata Power, NTPC, ITC and Wipro were also among the notable gainers.

Capital goods, bankex, auto, PSU, realty, consumer durables, oil & gas and healthcare indices also closed weaker by 0.3-1.6% each.

While, IT, FMCG, teck and power indices ended higher by 0.6-0.9% each.

Among the individual stocks, HCL Infosystems rallied 20% to Rs 44 on reports that Lenovo, the world’s second largest PC maker, is in talks to buy out the promoter stake in the company for around Rs 500 crore.

Shares of Wockhardt, Mastek, SKS Microfinance, Heidelberg Cement India and Fame India have tanked more than 5% each after the Bombay Stock Exchange (BSE) has decided to shift these stocks to trade-to-trade (T2T) segment.

Jain Irrigation Systems has tanked 8% to Rs 67.80, its lowest value since April 2009 on the National Stock Exchange (NSE).

The broader market under performed the benchmark indices. The BSE mid-cap index fell 1% or 63 points to end at 5,994 and the small-cap index shed 1.4% or 92 points to close at 6,419.

The overall breadth was extremely negative as 1,889 stocks declined while 929 declined.