Sensex ends down 34 pts

Banks, realty stocks drag

Sensex ends (provisional) at 17,224 - down 34 points. Nifty ended down 13 points at 5,228.
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(Updated at 1439hrs)

Markets continued to trade in the negative zone with pressure seen in oil & gas, metal and banking shares. The Sensex declined to a low of 17,157 and is now down 42 points at 17,215. Nifty slipped 11 points at 5,231.

Broader markets outperformed with the BSE mid and small-cap indices gaining 0.1-0.3% each.

The rupee today lost 25 paise to 55.72 against the dollar in early trade at the Interbank Foreign Exchange market as the American currency gained strength against other currencies overseas.

In Asia, markets declined as hopes of stimulus action by central banks faded ahead of a European Central Bank's meeting. The Monetary Policy Committee of Bank of England will hold a monthly policy meeting on interest rates in the United Kingdom today. Hang Seng declined  0.6% and Shangai COmposite dipped 0.5%. Nikkei was up marginally. Among other European bourses, CAC and FTSE advanced marginally.

BSE oil & gas index shed 1% to 8,056 on selling pressure in index heavyweight - Reliance. Bankex, metal and auto indices have also dropped around half a per cent each.

Reliance was the biggest dragger among Sensex stocks and accounted for a 16 points rally on the Sensex. Tata Motors has shed 2% to Rs 223. Sterlite, Tata Steel are down 1-2% each.

Coal India slipped 0.7% to Rs 347 The Children's Investment Fund Management LLP, a shareholder in Coal India has reportedly filed a petition in an Indian court seeking an increase in coal prices by the state-run company. According to reports, the U.K.-based hedge fund said in its petition to the Delhi High Court that India's coal ministry had illegally interfered in the setting of coal prices.

State Bank of India (SBI), on Wednesday brought interest rate relief to its new home and automobile loan customers. The new rates, lower by 25-85 basis points (bps) for home loans and 50 bps for auto loans, will come into effect from August 7. The bank, however, is yet to decide on reducing the base rate — the benchmark rate to which all bank loans are linked. Shares of SBI dropped 1% at Rs 2,010.

DLF was up marginally at Rs 209  on reports that the company is planning to raise around Rs 3,000 crore from sale of its 17.5 acre prime land in Mumbai and the deal is expected to close this quarter.

Aviation and OMCs reacted to the 4.5 per cent hike in jet fuel prices, the second increase in a month. Spice Jet was down 1.3% while Jet Airways gained 1.5%. HPCL and BPCL were down 1-2% each.

BSE market breadth was marginally positive. Out of 2,658 stocks traded, 1346 shares have advanced while 1177 shares have declined.