Markets end lower, IT shares weigh

Infosys and TCS among the top Sensex losers

The benchmark indices ended lower on Monday, amid weak European cues, because of selling pressure in software majors Infosys and TCS. The Sensex slipped 110 points to close at 17,103 and the 50-share Nifty shed 30 points to close at 5,197 levels. For the most part of the day, the markets were stuck in a tight range and the Sensex traded in a range of 200 points.

European shares edged down on Monday after registering a sixth straight week of gains on Friday after the euro hit a three-and-a-half year low against sterling . The CAC 40, DAX and FTSE ended lower by 0.2% each.

The Asian markets ended on a mixed note. Shanghai Composite slipped nearly 2% or 38 points to close at 2,147 levels following dismal earnings reported by corporates. While, Hang Seng ended flat at 19,121 levels.

Back home, on the macro economic front headline inflation slowed to its lowest level in five months in June, helped by slower increases in fuel prices, adding to pressure on the RBI from business leaders to cut interest rates to help revive the lacklustre economy.

The wholesale price index rose an annual 7.25% in June, lower than the 7.62% rise estimated by analysts. Wholesale prices provisionally rose 7.55% in May.

Tata Steel was the top loser among the Sensex stocks. It slipped 4% to Rs 409 on turning ex-dividend. TCS and Infosys also slipped 2.5 and 3% each in trades today. The three shares collectively contributed 72 points fall in the benchmark index- Sensex.

Tata Motors ended down 2.6%. The auto major said its global vehicle sales rose 6% in June from a year earlier, mainly helped by a 39% rise in sales of its luxury Jaguar Land Rover vehicles.

Among the other losers, Jindal Steel, Tata Power, Gail India, Sterlite Industries, Hindalco, Larsen & Toubro, Wipro, Bajaj Auto, NTPC, ITC and HUL also ended weaker by 0.5-2% each in trades today.

On the other hand, Bharti Airtel was the top gainer the stock jumped 3.85% to Rs 320. The stock gained on expectations for a favourable decision as the telecom ministry is scheduled to meet on Wednesday to decide on which prices to charge for 2G radio airwaves at an upcoming auction.

Dr Reddy's Labs, Maruti Suzuki, Cipla, ONGC, SBI and Sun Pharma were also among the notable gainers.

IT and metal stocks were amongst the worst hit in trades today. The BSE IT index was the top sectoral loser down 2.3% or 125 points to close at 5,235. The BSE metal index shed 211 points to ended at 10,430 levels. Realty, capital goods, power, auto, PSU, FMCG and bankex indices also ended weaker by 0.3-1.6% each.

At the same time, healthcare, consumer durables and oil & gas indices ended on a flat note.

Among the individual stocks, Kingfisher Airlines dipped almost 5% at Rs 9.85, falling below its face value of Rs 10. The stock is currently trading at a record low on the Bombay Stock Exchange, after a large number of its employees went on a strike from Saturday, leading to cancellation of over 40 flights.

Avanti Feeds soared 6% at Rs 151, also its lifetime high, after reporting 43% year-on-year (y-o-y) jump in net profit at Rs 7.72 crore for the quarter ended June 2012, on back of higher operational income and lower finance cost. Net sales grew 41% at Rs 159 crore on y-o-y basis.

Lloyds Steel Industries locked upper circuit of 5% at Rs 10.61 after Miglani Group made open offer to shareholders for buying 26% stake in the company at Rs 11.65, which is premium to the current price.

The broader markets were in-line with the bechmark indices. The BSE mid-cap and small-cap indices slipped 0.6% each.

The overall breadth was negative as 1,661 stocks declined while 1,160 advanced.