Key share indices ended lower on expiry of May derivative contracts, recording their highest monthly decline since November 2011, after lower-than-expected fourth quarter GDP which slumped to a nine year low heightened fears of an economic slowdown.
The 30-share Sensex provisionally ended down 44 points at 16,268 and the 50-share Nifty ended down 11 points at 4,939. In May the Sensex was down 6% and the Nifty dropped 5.9%. In November 2011, both the benchmark share indices had slumped 9% each.
India's gross domestic product growth in the January-March quarter plunged to a nine-year low of 5.3%, against a consensus of just over 6%, due to contraction in the manufacturing sector. GDP growth for the corresponding quarter last fiscal (Jan-Mar 2011) was 9.2% and 6.1% in the previous quarter (Oct-Dec 2011). GDP growth for 2011-12 stood at 6.5%.
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(Updated at 14:45 hrs)
Markets are trading around the day's high thus far after seeing a sharp fall in the late morning deals due to the Q4 GDP shocker. The markets recouped some of its losses in the afternoon deals on account of a positive opening in the European markets.
The Sensex was down 155 points at 16,157 and the Nifty lost 41 points at 4,910. Meanwhile, in the broader markets , the midcap index down nearly 0.2% outperformed the BSE benchmark index down 1% and the smallcap index which was down 0.6%
Earlier in the day, the Sensex had touched the day's low at 16,086 as India's annual economic growth slumped in January-March to a nine-year low of 5.3%.The growth rate was much lower than expected 6.1%. During the same time, the Nifty saw a low of 4,883.
In the international markets, the European markets opened in the green as the demand for German bond futures whioch was near record highs today as European shares and the euro regained some stability. CAC and FTSE gained 0.7% each while DAx was up 0.2%.
In Asia,almost all the markets were trading in the red. Hong Kong shares posted their worst May performance in 14 years, as an escalating euro zone crisis and fears about China's economy threatened to wipe out the Hang Seng Index's gains for the year.The index closed down 0.32% at 18,629.
Japan's Nikkei share average fell by over 1% with exporters buckling under a strong yen, as investors pulled out of stocks with exposure to Europe.
Back home, Auto, Consumer Durables and Oil & Gas indices down 1% each continued to remain under strain. Capital Goods, IT and Bankex too were in the red, down 0.5-0.8%.
However, Realty, Power, PSU and Metal indices saw some buying interest in the noon deals. The indices were up between 0.2-0.4%
Tata Motors, Maruti Suzuki and Mahindra & Mahindra which shed 1-4% were the ones weighing down the Auto index.
In the Realty space, HDIL, Godrej Properties and Phoenix Mill which added 1-3% were the top gainers.
The major losers among the Sensex stocks were ICICI Bank and Reliance Industries down 2-3% after these stocks turned ex-dividend today.The others included Tata Steel, L&T, Jindal Steel and SBI which shed 1.5-2%
Hindalco up 3% continued to lead the gainers list among the Sensex scrips after an empowered group of ministers on Wednesday gave the go-ahead to start mining at two coal blocks allotted to them, albeit with some riders.Coal India, NTPC, CIpla up 1% each were the gainers.
Shares of telecom companies like Bharti Airtel, Reliance Communications and Idea Cellular bounce back more than 2% each from their intra-day lows after the Cabinet nod for the National Telecom Policy 2012, which would pave the way to free national roaming.
The market breadth on the BSE continued to remain negative. 1371 stocks declined while 1062 stocks advanced.
