Markets slip on growth concerns

Jindal Steel top Sensex loser

The markets ended lower amid a volatile trading session on Monday after profit taking was seen across the board because of growth concerns.

Citing high fiscal deficit and renewed weakness in external demand, Morgan Stanley today lowered India's growth forecast to 5.1% for the current fiscal, from its earlier estimate of 5.8%.

The Sensex ended lower by 45 points at 17,384 and the Nifty has slipped 5 points at 5,254 levels.

Meanwhile, the Asian markets ended higher after US Federal Reserve Chairman Ben Bernanke kept the door open for further stimulus if needed, but gains were capped by weak economic indicators across the region and caution over US data due later this week. The Hang Seng advanced 77 points or 0.4% to close at 19,559, Shanghai Composite closed higher by 12 points at 2,059 and the Taiwan Weighted ended up 0.7% or 53 points at 7,450. While the Nikkei closed weaker by 0.6% at 8,784 levels.

The European markets were trading on a flat note. The CAC 40, DAX and FTSE were up 0.3-0.5% each after weak data from China highlighted the poor health of the world economy, keeping alive talk of action from the world's major central banks.

Calling for immediate policy action by the government, it warned that in the absence of such a step the GDP growth could slide even deeper to 4.3% in 2012-13.

Jindal Steel was the top loser among the Sensex stocks, it slipped  2.2% to Rs 344. Tata Power, Tata Motors, Tata Steel, ONGC, Mahindra & Mahindra, Reliance Industries, Dr Reddy's Labs, HDFC Bank, Wipro, Sun Pharma, TCS, ICICI Bank and HUL wee also among the laggards from the heavyweight space.

On the other hand, Bajaj Auto was the top Sensex gainer, up 3% to close at Rs 1,664. Coal India, Cipla, Maruti Suzuki, BHEL, Larsen & Toubro, Hero MotoCorp and Bharti Airtel were also among the notable gainers.

On the sectoral front, realty, oil & gas, bankex, metal, healthcare, teck, IT, FMCG and PSU indices were down 0.1-1% each. At the same time, capital goods, consumer durables, auto and power indices ended on a flat note with a positive bias.

Aviation shares such as Jet Airways and SpiceJet  fell more than 4% each after the state-owned oil marketing companies hiked jet fuel price by 7.6% from Friday midnight, due to firm international oil prices and weakening of rupee against dollar.

Aurobindo Pharma rallied 7% to Rs 118 on reports that the US drug regulator is expected to inspect company’s two manufacturing facilities in Andhra Pradesh during September-December.

Selan Exploration Technology soared 11% to Rs 294 after the company announced  buyback of its own equity shares from existing shareholders other than promoters.

Bilcare rallied 10% at Rs 171 on reports that United Drug has completed the acquisition of the UK and US clinical services of Bilcare Global Clinical Supplies from the company.

Shares of Network18 Group companies Network18 Media and Investments and TV18 Broadcast ended weaker by more than 4% each after these companies fixed the price of their rights issues at a discount to their closing prices.

The broader markets ended on a flat note with BSE mid-cap and small-cap indices advancing 0.1% each respectively.

The overall breadth is neutral as 1,424 stocks advanced while 1,392 declined.