Markets end lower amid weak global cues

Bharti Airtel, banks and software shares among top Sensex losers

Benchmark share indices ended lower on Wednesday, amid weak global cues, as investors booked profits ahead of the September derivative contracts expiry.

The 30-share Sensex provisionally ended down 78 points at 18,617 and the 50-share Nifty ended down 16 points at 5,658  

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(Updated at 14:16hrs)

Key share indices have extended the losses led by weakness among Metal, Capital Goods and Banking shares. Weak opening of the European markets has further dampened the sentiments among local investors.

By 2:15 PM, the 30-share Sensex was at 18,599 down 95 points or 0.51% and the 50-share Nifty was at 5,646 down by 28 points or 0.50%. The Sensex and the Nifty have touched an intra-day low of 18,573 levels and 5,639 mark, respectively so far.

On the global front, Japan's Nikkei average fell 2% on Wednesday, breaking below the key 9,000 mark and hitting a two-week closing low, as a mass of companies went ex-dividend, while concerns over debt-laden Spain dampened sentiment.

European shares fell sharply and the single currency hit a two-week low on Wednesday as popular opposition within the euro zone to budget austerity measures unnerved investors already worried about a weak global growth outlook. CAC, DAX and FTSE have plunged between 1-2%.

Back home, on the sectoral front, BSE Metal, Capital Goods, Realty, TECk, PSU, Power and Bankex indices have declined by almost 1% each. However, defensive sectors like FMCG and Healthcare have surged by almost 1% each.

From the Metal space, Hindalco, Tata Steel, Jindal Steel and Sterlite have melted between 1-2% on weakness in the London Metal Exchange. 

L&T and BHEL have slumped by almost 1% each on account of profit booking after sharp gains recently.

Banking and financial shares like HDFC Bank, HDFC and ICICI Bank have slipped between 0.3-2%. HDFC Bank has said it might slash the minimum lending rate.

“The broad principle is when costs go down; interest rates will also go down. The Asset Liability Committee (ALCO) will decide by how much the base rate will go down,” said managing director Aditya Puri, on the sidelines of an event here.

Bharti Airtel is the top Sensex loser, down nearly 5%.

On the gaining side, Cipla, ITC, HUL, GAIL, Wipro and SBI have surged between 1-3%.

The broader indices are outperforming the benchmarks – BSE Midcap and Smallcap indices are up between 0.1-0.4%.

The market breadth turns weak with 1,423 declining and 1,319 shares advancing.