Markets end lower ahead of May F&O expiry

Markets ended lower ahead of the expiry of May derivative contracts, amid weak global cues, weighed down by selling pressure in Tata Motors because of decline in fourth quarter operating margins.

The 30-share Sensex ended at 16,312 down 126 points or 0.77% and the 50-share Nifty ended at 4,951 down by 39 points or 0.8%. The Sensex and the Nifty reached an intra-day low of 16,295 levels and 4,945 mark, respectively.

On the global front, Asian markets ended weak on worries that China may not get fresh stimulus spending even as Euro troubles remained in Spain. Hang Seng, Nikkei, Shanghai, Kospi, Taiwan and Strait Times declined between 0.2-2%.

European shares slipped and the euro touched a 23-month low on Wednesday as investors worried that Spain's banking problems would push its borrowing costs to unsustainable levels and after China signaled it is not planning a large stimulus package. CAC, DAX and FTSE have plunged by almost 1% each.

Back home, barring Technology, all the sectoral indices ended in red zone. BSE Auto index slumped by over 4% followed by counters like Banks, Consumer Durable, Realty, Capital Goods, Power and PSU, all declining between 1-2%.

Tata Motors ended near day low, plummeted nearly 12% after reporting a 30 basis points decline in EBIDTA (earnings before interest, taxes, depreciation, and amortization) margin for Q4FY12 to 14.3%. The market expected a jump of over 100 basis points.

Banking and financial shares like ICICI Bank, SBI, HDFC and HDFC Bank declined between 1-3%.

Capital Goods majors like BHEL and L&T have plunged between 1-3%.

Other notable losers included DLF, Sterlite, ONGC, Tata Steel, Hero Moto, GAIL, Bajaj Auto, Cipla and JSPL.

On the winning side, IT stocks like Infosys and Wipro spurted by almost 1% each.

Other gainers included Sun Pharma, Maruti Suzuki, Tata Power, HUL and RIL.

In the broader market, the mid-cap and small-cap indices shed over 1% each.

The market breadth remained weak with 1,648 stocks declining and 1,051 shares advancing.

Among other shares, Shree Renuka Sugars ended 4% lower at Rs 26 on the back of disappointing Q4FY12 numbers.

PVR Limited dropped 7% to Rs 150 after its consolidated net loss widened to Rs 13.24 crore due to an exceptional loss of Rs 14.47 crore during the fourth quarter ended March 2012.

Hercules Hoists zoomed 11% to Rs 279 after the board of directors of the company recommended bonus shares in the ratio of 1:1.

Steelcast Limited surged 9% to Rs 228 after the company said that the board of directors of the company will meet on June 5, to consider issue of bonus shares to its equity shareholders.