Markets slip amid weak global cues

Realty shares slip while autos hold on to gains

Markets ended marginally lower on Wednesday, amid weak global cues, on profit taking after the Sensex surged to its highest close in five months in the previous session. The Sensex ended at 17,847 - down 38 points after trading in 112-point range while the Nifty ended down 8 points at 5,413 after trading in 38-point range.

Asian markets slipped ended in red. Japan reported a wider-than-expected trade deficit in July as Europe's sovereign debt crisis and a slowdown in China dragged down exports and higher oil prices boosted imports. Japan's Nikkei slipped 25 points at 9,131. Hang Seng shed 1%, followed by Shanghai Composite and Taiwan Weighted.

According to provisional data, foreign institutional investors (FIIs) bought shares worth net Rs 141.36 crore from the secondary equity markets on Tuesday, 21 August 2012.

BSE healthcare index advanced 0.5% to 7,371. Auto shares gained, with the BSE auto index adding 0.4% at 9,684.

Meanwhile, BSE realty index has slipped 0.8% to 1,639. Power, capital goods and consumer durables indices delcined 0.3% each.

Broader markets delcined in line with the benchmark indices. BSE mid-cap index slipped 0.14% at 6,164.

Bank employees in India began a two-day strike on Wednesday to protest against proposed reforms that would ease mergers and allow more private capital, including foreign investment, in the banking sector. BSE bankex ended flat at 12,030. From the banking pack, ICICI Bank ended down 0.1% at Rs 973, while SBI and HDFC bank ended unchanged.

Bharti Airtel shed 4% to Rs 248, its lowest level since October 2006 in morning trades on the NSE after Morgan Stanley downgrades the stock to "equal-weight" from "overweight". According to a Reuters report, “Morgan Stanley says traffic growth is coming at the expense of operating margins as tariff wars in the sector bring down average revenue per minute for voice calls.” Investment bank cuts its target price to Rs 280 from Rs 366, added the report.

"Overall, the medium term bias is negative and the strategy should be to sell on rise as the target on the down side is around Rs 190," said Somil Mehta, Sr Technical Analyst (Equity), Sharekhan.

NTPC slipped 1.5% to Rs 171. Sterlite, GAIL India and HDFC dropped around 1% each.

On the other hand, Coal India added 1.4% to Rs 357. Infosys continued Tuesday's rally and ended up 1% at Rs 2,433 after a U.S. court dismissed a lawsuit from an employee.

Dr Reddy's added 1% to Rs 1,678. Bajaj Auto, Hero MotoCorp and Tata Motors were some of the other key gainers.

Cox and Kings soared 5% at Rs 148, after the travel and tour operator said that Citi Venture Capital International (CVCI), the private equity arm of Citigroup Inc. has agreed to invest $137.75 million in Prometheon Holdings (UK) Ltd, a subsidiary of the company.

Ranbaxy Laboratories moved higher by 4% at Rs 533, bouncing back almost 5% from day’s low after the company issued clarification on reports of withdrawal of 27 approved Abbreviated New Drug Applications (ANDA) in the US market.

BSE market breadth was marginally negative. Out of 2,959 stocks traded, 1,459 shares declined while 1,341 shares advanced.