Benchmark indices ended lower for the fourth straight day on Monday as investors booked profit in index heavyweights and weak third quarter earnings reported from companies such as Bank of Baroda. At close, the Sensex was down 30 oints at 19,751 and the Nifty slipped 12 points at 5,987.
In the broader markets, the smallcap and the midcap indices slipped 0.7-0.8%, underperforming the Sensex which was down nearly 0.2%.
In international markets, Asian shares climbed to 18-month highs on Monday after U.S. data showed some promise of a credible recovery but not strong enough to threaten the Federal Reserve's easing plans, while momentum also gained on firmer manufacturing data from Europe and China. Japan's benchmark Nikkei stock average rose 0.6% after climbing to a fresh 33-month high earlier as the yen declined. The other gainers were Taiwan Weighted, Shanghai Composite and Straits Times 0.3-0.9%.
European shares edged up but the euro fell and German bonds trimmed their losses on Monday as a resurgence of worries about Europe undermined positive sentiment stemming from stronger U.S. and Chinese economic data. London's FTSE 100, Paris's CAC-40 and Frankfurt's DAX were flat to slightly lower.
Back home, all the sectoral indices closed in the negative territory except the auto index which gained 0.5%. The major laggards in today’s trades were PSU, Health Care, Power, Oil & Gas and Metal indices down 1-1.5%.
From the auto space, gains in Tata Motors, Hero MotoCorp and Bajaj Auto up 0.2-2% helped the index remain in the green.
The other gainers among the Sensex stocks were HDFC, ICICI Bank, Jindal Steel, TCS, HDFC Bank and Hindustan Unilever up 0.3-2%.
On the other hand, the draggers among the Sensex-30 were BHEL, Cipla, SBI, Tata Power, ONGC, Sterlite and Dr Reddys Lab down 2% each.
The other notable losers were Tata Steel, Coal India, Gail India, Maruti Suzuki, NTPC, Reliance Industries and ITC down 1% each.
Among other stocks, Oil India was up nearly 2% at Rs 539 after the offer-for-sale got good response oversubscribed by over two times.
IFCI rallied 3% to Rs 35.55 on back of heavy volumes on reports that the government plans to dilute its sake in the country’s oldest financial institution, through a strategic sale.
Indian Bank dipped 3% to Rs 197 after reporting 37% year-on-year drop in net profit at Rs 331 crore for the third quarter ended December 31, 2012 due to higher provisioning for bad loans.
Berger Paints gained 2.5% at Rs 184 after the paint maker reported 57% year-on-year (yoy) growth in consolidated net profit at Rs 77 crore for the quarter ended on December 31, 2012 (Q3) on the back of higher sales.
Bank of Baroda slipped 7.5% to Rs 802 after reporting a sharp 22% year-on-year drop in net profit at Rs 1,012 crore for the third quarter ended December 2012 due to higher provisioning and lower other income.
Jubilant FoodWorks slipped over 5% to Rs 1,134 after reporting a lower-than-expected 31% year-on-year rise in net profit at Rs 38 crore for the quarter ended on December 31, 2012 due higher expenditure and tax outgo.
The market breadth was very negative. 1308 stocks declined while 886 stocks advanced on the BSE.