Markets close in red; Tata Motors butchered

The market today ended trade in red on falling rupee and GDP concerns. The Sensex ended at 16,312.15, down 126.43 points while the Nifty fell 39 points. Major Headlines: IT dept freezes bank a/cs of KFA M&M Q4 net profit jumps by 39% United Spirits cons Q4 net profit slips by 67% Colgate Palmolive Q4 net profit slips by 14% Indian Indices Indian markets closed today's volatile session in red zone. Profit booking was seen in majority of the sectors like auto, consumer durables, realty, banking and other sectors except technology, which was the only gaining sector. Lack of support from global peers led to a lacklustre trade. Heavyweights like Tata Motors, ICICI Bank, ONGC, L&T, HDFC Bank, HDFC and SBI led the markets to remain under pressure. The broader market too ended trade on a negative note. At the end of day, the BSE Midcap index declined 1.28%, while the BSE Smallcap index was down by 1.21%. The Investors chose to remain on the sidelines, ahead of F&O expiry and Q4 GDP numbers to be released tomorrow (May 31, 2012). The Sensex closed at 16312, down by 126 points and the Nifty fell 39 points to close at 4951. On the earnings front, Tata Motors declined 11% on disappointing JLR earnings. CLSA slashed JLR's EBIDTA margin expectations to 15.5% over FY13-14 from 18.5% previously. Morgan Stanley downgraded the stock to an equal weight, while CITI has cut bottom-line estimates by 13% in FY13. Today, the stock fell 11.80%. United Spirits too declined nearly 10% as its consolidated net profit fell by 67% to Rs187.93 crore for the year ended March 31, 2012. The stock closed down by 6.07%. Mahindra & Mahindra's (M&M) net profit in Q4 was up 44% at Rs874 crore, beating the forecasts. At end of the market hours the stock closed 0.14% higher. Housing Development and Infrastructure (HDIL) had announced today a growth of 70.35% in its consolidated net profit which came in at Rs315.51 crore for the quarter ended March 31, 2012. The stock closed 2.39% lower. On the sectoral front, Metal Index declined after copper prices fell today. Metal Stocks like, Sterlite Industries (down 2.06%), Nalco (down 2.06%), Tata Steel (down 1.33%), Steel Authority of India (down 1.02%), Sesa Goa (down 0.92%), Bhushan Steel (down 0.79%), JSW Steel (down 0.51%) and Hindalco Industries (down 0.13%) took a hit. New Listing: Speciality Restaurants closed the first day of trading with good gains. The issue price was fixed at Rs150 per share. The IPO of restaurant chain operator was subscribed 2.54 times. The stock closed 7.10% higher. Now coming to currency, Rupee tumbled for the third consecutive day and fell below the psychological mark of Rs56. Heavy demand for American Dollar and its strength over Euro amid concerns regarding euro zone weakened the rupee. Market sentiment: The market breadth stood in favour of declines. Of the 2828 stocks traded on the BSE, 1046 (36.99%) rose, 1654 (58.49%) fell and 128 (4.53%) stocks remained unchanged Sectoral & stock screening: Among the 13 sectoral indices, eleven sectors closed in red zone, while remaining two closed in green zone. Top Gainers: BSE IT (up by 0.38%), BSE TECk (rose by 0.33%). Top Losers: BSE Auto (down by 3.97%), BSE CD (fell by 2.25%) and BSE Realty (slipped by 2.18%). Among 'A' group stocks, top three gainers were- Container corp (rose by 4.98%), Tech Mahindra (up by 3.80%) and Crompton Greaves (surged by 3.30%). Top three losers were- Tata Motors (down by 11.80%), Havells India (declined by 6.97%), and Unitech (fell by 6.31%). Global Signals: The Asian markets sank on Wednesday on growing concerns that Spain could be forced to seek a bailout. On the other hand, China signaled that it is not planning any large stimulus package and it will introduce new measures to boost its economy. The European shares slipped today and Euro touched 23-month low as the investors were worried about Spain's banking problems which could push its borrowing costs to unsustainable levels. The US Stock index futures pointed to a lower opening at the Wall Street on Wednesday Market Outlook: Data to be released in the US on Wednesday is: Pending Home Sales