Markets end lower for 2nd day amid volatility

Selling in heavyweights amid negative European cues weighed on the markets, with the Sensex down 66 points and the Nifty down 25 points

Major headlines

Food inflation at 7.58% versus 8.31%

Biocon Q1 consolidated net profit down 9%

Hero Honda Q1 net profit surges 13%



Indian indices

Weak European cues ahead of EU Summit dragged the Indian markets in today’s trade. The markets fell consistently in the second half of trade as heavyweights like RIL, NTPC, HDFC Bank, BHEL, SBI, ICICI Bank, L&T were putting pressure. The volatile session ended lower for the second day in a row.

Disappointing earnings continued to have a bearing on markets. Investors ignored a decline in food inflation as euro zone worries led to a cautious trade.

Sensex movements: The Sensex was flat in the opening trade, up 12 points at 18515. After few minutes, the index gained momentum and touched the day’s high of 18567. Later, the Sensex witnessed volatility and declined in the second half of trade as heavyweights weighed. Heavy selling in consumer durables, realty, banking and pharma pack led the Sensex to hit the day’s low of 18415 in the last half hour of trade. The Sensex declined by 66 points to shut at 18436 and the Nifty closed 25 points lower at 5542.

Market sentiment

The market breadth stood negative. Of the 2,957 stocks traded on the BSE, 1,187 (40.14%) rose while 1,643 (55.56%) declined and 127 (4.29%) stocks traded unchanged.

Viewing volumes

India's largest private sector enterprise - Crompton Greaves was traded the most, with over 0.92 crore shares changing hands on the BSE. It was followed by wind turbine major - Suzlon Energy (0.56 crore shares), a large Indian business conglomerate - Lanco Infratech (0.52 crore shares), India's biggest gas importer - Petronet LNG (0.34 crore shares) and the largest Indian media and entertainment company - Zee Entertainment Enterprises (0.22 crore shares).

Sectoral & stock screening

Out of the 13 sectors, 11 closed lower. There were only two sectoral gainers, which include - BSE Information Technology (IT) rose by 0.14% and BSE TECk up by 0.09%. Losers - BSE Consumer Durables (CD) was the worst performer, declining by 2.20%, following that BSE Realty down by 1.43% and BSE Bankex fell by 0.98%.

Among the 'A' group companies, top three gainers were - SKS Microfinance went up by 9.19%, Petronet LNG rose by 9.08% and Zee Entertainment Enterprises surged by 6.10%. Top three losers were - Exide Industries dropped by 8.77%, JSW Energy down by 6.64% and Lanco Infratech slipped by 6.47%.

Global signals

The European shares fell on Thursday on global recovery worries after new data showed an unexpected weakening in German private sector growth and a contraction in China's manufacturing industry for the first time in a year, hitting mining stocks.

The Asian markets closed mixed on Thursday ahead of EU summit.

The US stock index futures point to a cautious opening on the Wall Street on Thursday.

Market Outlook: In the US, Weekly Jobless Claims, Philadelphia Fed Survey and General Business Conditions Index will be watched.