Markets end on a soft note

Benchmark share indices ended lower amid a volatile trading session Monday as the political logjam over the retail FDI continued to weigh on market sentiment. The Sensex ended down 41 points at 16,805. Nifty ended down 11 points at 5,039.

In the week to December 2, the Sensex and the Nifty, surged over 7% in the week to December 2 on the back of strong global cues.

Asian markets were mixed on hopes that the Euro Zone crisis wopuld come to an end. SMC Global, in its research report said that the rise came as Italy took steps to resolve its debt problems before European Union leaders meet this week to tackle the region’s crisis. Nikkei and Hang Seng gained 0.6% each. However. Shanghai Composite slipped 1% to 2,333. European shares continued to trade firm with a positive bias after opening between 0.5-1.0% each. Italy announced 30 billion euro plan of austerity measures and hopes that European leaders would find a solution to the debt crisis at the summit scheduled for December 9 in Brussels.

BSE metal index dropped 1% to 10,815 as China came out with weak economic data. Realty and FMCG indices were down around 0.5% each. China's services sector cooled in November to its weakest growth in three months, an HSBC purchasing managers' index showed.

"Most metal and banking stocks continue to remain in long term declines. The current uptrend is merely a small correction after most of the stocks became oversold in the first half of November. Most of these stocks are likely to continue moving lower once this upward consolidation is completed. I see no reason to make any hurried investments in these stocks," said Hormuz Maloo, Technical Analyst, Geojit BNP Paribas Securities.

Tata Steel shed 1.8% to Rs 411 after temporarily shutting down its hot strip steel mill at the Llanwern site in South Wales due to poor demand.

Telecom major Bharti Airtel has paid a first-ever interim dividend of Rs 11.75 crore to its minority partner in Bharti Hexacom, state-owned TCIL, at the rate of 15% for FY12. The stock was unchanged at Rs 390.

Sun Pharma from the pharma pack was down 1.5% at Rs 525, followed by Sterlite and Hero MotoCorp. ITC and HDFC together were the biggest draggers in the Sensex.

HT Media was flat at Rs 124 following a 50:50 joint venture with Apollo Global Affiliate.

Finance Minister Pranab Mukherjee today told opposition leaders that the decision on allowing FDI in retail was being put on hold and a final decision will be taken only after consulting all opposition parties. Retail stocks were down in red. Pantaloons Retail slumped 12%, followed by Brandhouse Retail, V2 Retail and Provogue India.

Buoyed by strong performance, two-wheeler manufacturers India Yamaha and Bajaj Auto aim to post decent sales this financial year. This comes at a time when the auto industry is generally exhibiting a slump. Bajaj Auto however was down 0.6% at Rs 1,702. Hero MotoCorp 1% at Rs 2,063.

Among other stocks, Bank of India surged 1.6% at Rs 346 post the news that the bank has agreed to enter into a joint venture with AXA Investment Managers in the asset management business in India.

Markets would be closed on Tuesday on occasion of Moharram.

BSE market breadth was neutral with 1,353 shares on the advancing side and 1,337 shjares on the declining side. A total of 2,842 shares were traded today.