rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » Markets end lower on weak European cues

Markets end lower on weak European cues

Last updated on: October 23, 2012 16:36 IST

Markets ended lower on Tuesday, amid Weak European cues, weighed down by profit taking in FMCG major ITC and index heavyweights.

The Sensex ended weaker by 83 points at 18,710 and the 50-share Nifty slipped 26 points to 5,691.

The markets for the most part of the day were stuck in a tight range.

Nifty moved in a range of 40 points and the Sensex moved in a range of 120 points.

Meanwhile, most of the Asian markets ended on a subdued note with the corporate reporting season getting underway in the region, as investors stayed cautious after global shares faltered overnight on weak earning reports and outlook.

Hang Seng advanced 146 points to close at 21,697, Nikkei jumped 3 points to end at 9,014 and Straits Times advanced 16 points to close at 3,050.

However, Shanghai Composite and Seoul Composite closed flat with a negative bias.

The European markets were trading on a weak note after a mixed bag of corporate updates kept investors cautious.

CC40 index was down 20 points at 3,463, DAX slipped 66 points to 7,261 and the FTSE 100 was down 43 points at 5,840.

Back home, Jindal Steel was the top Sensex loser.

The stocks slipped 2.5% to Rs 390. Hero MotoCorp also slipped 2% at Rs 1,794. Meanwhile, the company announced its second quarter results the net profit came in at Rs 440.58 crore compared to Rs 603.62 crore during the same period previous year.

ITC slipped 1.2% at Rs 290 on profit taking after the stock surged from Rs 260 level in the past one month ahead of its second quarter earnings.

Heavyweights such as Infosys, Hindalco, BHEL, Tata Power, Gail India, Sterlite Industries, ONGC, Bajaj Auto, Tata Motors, Reliance Industries, HDFC Bank, TCS, SBI and Bharti Airtel and Sun Pharma also ended weaker by  0.3-1.6% each.

On the other hand, Larsen & Toubro continued to shine post the second quarter result announcement.

The stocks advanced 2% to Rs 1,700 after it beat analysts' expectations with 17% year-on-year sales growth and a 42% rise in net profit in the quarter ended September.

The stock reacted sharply to the result on Monday and hit a 52-week high of Rs 1,673.80. It closed the day at Rs 1,668.20.

Coal India, ICICI Bank, HUL, Cipla, HDFC and Dr Reddy's Labs were among the notable gainers.

Most of the sectoral indices ended on a weak note. The BSE consumer durables index was the top sectoral loser, down 1.2% to end at 7,214. IT, power, auto, metal, teck, FMCG, oil & gas, realty and bankex indices also closed weaker by 0.2-1% each. While, capital goods index was the only gainer on the sectoral front.

Pioneer Distilleries locked 5% lower circuit at Rs 45.65 for the second day in a row after United Spirits, the promoter of the company has fixed a floor price of Rs 38 per equity share for the sale shares, a well below the current market price.

L&T Finance Holdings (LTFH) surged 5% to Rs 56.55, in an otherwise subdued market after the company announced 100% acquisition of FamilyCredit Ltd, a wholly owned subsidiary of France's Société Générale Consumer Finance for Rs 120 crore.

Yes Bank moved higher by almost 2% at Rs 394 after reporting 30% year-on-year (yoy) growth in net profit at Rs 306 crore in the September quarter on back of higher interest income. Analysts on an average had expected profit of Rs 296 crore from the private sector bank.

The broader markets also ended on a weak note. The BSE mid-cap index slipped 0.2% or 17 points to 6,648 and the small-cap index slipped 21 points to 7,170.

The overall breadth was negative as 1,487 stocks declined while 1,311 advanced.

Abhishek Vasudev in New Delhi
Source: