Markets end lower amid weak global cues

Markets ended lower on Monday, amid weak global cues, weighed down by selling pressure in rate sensitive shares as investors turned cautious ahead of the RBI policy on Tuesday.

The 30-share Sensex ended at 19,293 down 134 points or 0.69% and the 50-share Nifty ended at 5,835 down by 37 points or 0.64%.

The Sensex and the Nifty reached an intra-day low of 19,232 levels and 5,814 mark, respectively.

On the global front, Asian markets witnessed a sell-off after the Cyprus announced that it would impose a one-time 10% tax on private bank deposits in exchange for equity shares in the bank, to avail credit of 10 billion euros from global lenders for shoring up the nation's financial position.

The surprise decision by euro zone leaders to part-fund a rescue of Cyprus by taxing bank deposits sent shockwaves through financial markets on Monday, with shares, the euro and the bonds of its southern members all tumbling.

The euro zone struck a deal on Saturday to hand Cyprus a bailout worth 10 billion euros, but defied warnings -- including from the European Central Bank -- and imposed a levy that will see those with cash in the island's banks lose between 6.75 and 9.9 per cent of their money.

Back home, the rupee is trading at 54.28/29 versus its previous close of 54.02/03, tracking losses in the domestic equity market and a broad risk-off globally.

On the sectoral front, BSE Metal index plunged over 2% followed by counters like PSU, Auto, Realty, Oil & Gas, Power, IT and Banks, all slipping between 1-2%. However, BSE FMCG index gained by nearly 1%.

Metal shares were trading lower amid weak metal futures on the London Metal Exchange, weighed down by selling pressure in Coal India.

Coal India witnessed selling pressure on Monday and was down over 5% on reports that the government is planning to sell up to 10% of its holding in the world’s largest coal producer through the offer-for-sale (OFS) route.

Steel shares were also among the top losers in the index with Jindal Steel, Sterlite, Tata Steel nd JSW Steel down 1-3 each.

Rate sensitive shares were down after hopes of a rate cut faded with better-than-expected

industrial growth in January even as retail inflation continues to remain in double digits for the third straight month.

Among the rate sensitive shares, financials were among the top losers. ICICI Bank, HDFC and SBI dipped between 1-2%.

In the auto segment, Tata Motors, Mahindra and Mahindra and Maruti Suzuki slipped 1-3% each.

Shares of software exporters ended weak with Wipro, TCS and Infosys down 0.4-1% each.

Bharti Airtel was down nearly 1% ahead of the Delhi High Court (HC) decision on notice issued by the Department of Telecommunications (DoT) to the company to stop 3G services in seven circles.

The DoT on Friday asked the telecom operator Bharti Airtel to stop 3G services within three days in the seven circles in which the company does not have the required license.

On the gaining side, HDFC Bank ended higher by almost 2%, bouncing back almost 4% from intra-day low, after the private lender said it has appointed Deloitte Touche Tohmatsu India to conduct an independent forensic enquiry into the allegations made by news website Cobrapost.

Meanwhile, BSE Midcap index slipped by 0.29% and BSE Smallcap index dipped by nearly 1%.

The market breadth in BSE ended weak with 1,752 shares declining and 1,099 shares advancing.

SMART MOVERS

Jet Airways (India) tanked almost 3% on reports that the company’s deal with the Abu Dhabi-based carrier Etihad Airways may be called off.

Thomas Cook (India) ended higher by over 3% after the company said that it has received market regulator the Securities and Exchange Board of India (Sebi) approval for raising funds via institutional placement programme (IPP) issue.

Shares of sugar manufacturer ended firm on the bourses in otherwise weak market on reports that the Union Cabinet may discuss a partial decontrol of the sugar sector today.

Bajaj Hindustan, Shree Renuka Sugars, Balrampur Chini Mills, Dhampur Sugar Mills, and EID Parry ended higher in the range of 1-4% on BSE.

National Aluminium Company (Nalco) ended lower by nearly 5% after the government received poor response from the investors for its share sale on Friday.