Indices log 1st drop in 5 days on China data,US stimulus fears

Indian benchmark indices today ended lower for the first time in five days on all-round selling, led by banking and metal shares, after global stocks slipped amid downbeat Chinese data and fears of more US stimulus cuts.
The BSE Sensex resumed resumed lower at 20,661.07 and dropped further to 20,522.04. It ended at 20,536.64, logging a loss of 186.33 points or 0.90 per cent. In the past four days, it had spurted by 529.62 points to reach near one-month highs.
Only six constituents like Dr Reddy's and Bajaj Auto of the 30-share Sensex managed to end up. ICICI Bank and Tata Steel led the 24 laggards in the bluechip index.

The NSE 50-share Nifty dropped 61.30 points, or 1 per cent, to finish at 6,091.45. In previous 4 days, it had gained over 150 points, amid buoyancy over interim budget proposals.
Rupee was last trading marginally lower at 62.25 versus dollar in line with weak regional peers.
Poor performance of Indian stocks was in sync with fall in Asia as a HSBC-Markit survey showed a drop in Chinese manufacturing in February. The HSBC/Markit flash version of monthly China manufacturing Purchasing Managers' (PMI) Index dropped to 48.3. A reading below 50 suggests contraction.

Key benchmark indices in China, Taiwan, Japan, Hong Kong, Singapore and South Korea finished lower by 0.07 per cent to 2.15 per cent.

"Global markets were showing selling pressure, post weaker manufacturing data in China and also because of US Federal Reserve indicating continuation of tapering of stimulus. This, along with profit booking after recent rally, led to selling pressure in India too," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio.
Europe was trading lower in early trade as the US Federal Reserve minutes signalled stimulus cuts will continue and as Chinese manufacturing shrank. Key indices in France, Germany and the UK were trading lower in 0.41-1.18 per cent range.
US stocks closed lower yesterday after the minutes from the Federal Reserve's policy setting meeting revealed little consensus about when short-term rates would be hiked. A larger-than-expected drop in home construction in January also weighed on the sentiment, said analysts.