Markets end lower ahead of F&O expiry

Benchmark share indices ended lower on Wednesday ahead of the February derivatives expiry, amid weak European cues, as investors booked profits across stocks after sharp gains recently.

The BSE 30-share Sensex ended at 18,145 down 283 points and the NSE 50-share Nifty ended at 5,505 down 102 points.

The European markets opened lower adding to the worries in the Indian markets. CAC index was down 11 points at 3,453, DAX was down 66 points at 6,842 levels and the FTSE was at 5,905, down 22 points.

Back home, on the macro economic front, the PMEAC's estimated rate of growth in 2011-12 at 7.1% is marginally higher than the 6.9% projection made by the Central Statistical Organisation, due to better growth in agriculture and construction.

Interest rate-sensitive and commodity shares which had gained sharply over the past few weeks witnessed profit booking at higher levels.

SBI was the top Sensex loser, down 8% to Rs 2,258. DLF, Sterlite Industries, Hindalco, Jindal Steel, Tata Steel, Tata Power, BHEL, ICICI Bank, Bharti Airtel, Mahindra & Mahindra, HDFC, NTPC, Gail India, L&T and Tata Motors were also among the losers, down 1.3-7.7% each.

At the same time, TCS, Sun Pharma, ITC, Infosys, HDFC Bank and ONGC were among the notable gainers.

The BSE Realty index shed nearly 7% or 151 points to close at 2,018 levels. Unitech was the top loser among the Sensex stocks, down 8.3% to Rs 32. HDIL, DB Realty, Oberoi Realty, DLF, Anant Raj Industries, Prestige Estates, Godrej Properties and Phoenix Mills also ended lower by 2-8% each.

The BSE Consumer durables index shed 5% or 338 points to close at 6,527 levels. VIP Industries was the top gainer from this space, down 11% to Rs 110. It was followed by Titan Industries, TTK Prestige, Blue Star, C Mahendra Exports and Videocon industries.

The metal stocks lost shine in trades today. The index plunged over 4% to close at 12,115 levels led by losses in the JSW Steel, NMDC, SAIL, Sesa Goa, Hindustan Zinc and Bhushan Steel.

Power, PSU, Capital Goods, Auto, Healthcare, Oil & Gas and FMCG indices also ended lower in trades today, down 0.6-3.8% each.

Among the individual stocks, Raj Television Network jumped 3.3% to Rs 105, extending its previous day’s 8% rally, after the company has entered an agreement with Tamilnadu Government Cable Network- Arasu Cable.

Tata Communications, formerly known as Videsh Sanchar Nigam Ltd, rallied 6% to Rs 254 on reports that the company has sought Government approval for selling residential property in southern India.

The broader markets were in line with the benchmark indices. The BSE mid-cap index shed 3.5% or 228 points to close at 6,375 levels and the small-cap index shed 233 points to 6,969 levels.

The overall breadth was negative as 2,208 stocks declined while 769 stocks advanced.