Sensex ends marginally lower; caution ahead of GDP

By Abhishek Vishnoi

MUMBAI (Reuters) - The BSE Sensex fell on Wednesday, snapping a three-day winning streak, as lenders such as ICICI Bank declined on caution ahead of quarterly economic growth data and the expiry of May derivative contracts later this week.

The falls tracked lower Asian and European stocks as data showing accelerating U.S. home prices and surging consumer confidence fanned speculation the Federal Reserve may taper its bond-buying programme.

Trading may remain volatile ahead of the expiry of May derivatives contracts on Thursday, with investors also watching January-March economic growth data due on Friday.

Indian economic growth probably nudged up in the three months to March from a near four-year low the previous quarter, a Reuters poll showed on Tuesday, suggesting a gradual turnaround from a prolonged slowdown.

 

"GDP data is very important in the context of falling inflation and interest rates, anything less than 5 percent will not be good for markets," said R.K. Gupta, managing director at Taurus Mutual Fund.

Rupee depreciation despite strong foreign flows is also a cause of concern, Gupta added.

The benchmark BSE Sensex inched down 0.07 percent, or 13.18 points, to end at 20,147.64.

The broader Nifty drifted down 0.11 percent, or 6.95 points, to end at 6,104.30, still above the psychologically important 6,100 level.

Lenders were among the day's decliners, with ICICI Bank Ltd falling 1.4 percent and State Bank of India falling 1.1 percent ahead of January-March GDP data due this Friday.

Shares of Housing Development and Infrastructure Ltd fell 6.8 percent after the company reported a loss of 2.80 billion rupees for the March-quarter, and also received a termination notice from Mumbai International Airport Ltd (MIAL) for its slum rehabilitation project.

Wockhardt Ltd fell 10 percent, its limit for the day, on renewed concerns about potential further action after the U.S. Food and Drug Administration imposed an "import alert" on a plant operated by the generic drugmaker last week, analysts said.

However, among stocks that gained, Sun Pharmaceutical Industries rose 7 percent after hitting an all-time high of 1,080.70 rupees earlier, after its net profit rose more than expected and its management guided for robust sales growth in FY14.

Shares in Sun TV Network Ltd gained 4.2 percent on better-than-expected response after the television broadcaster set a floor price of 403 rupees per share in the sale of a partial stake from promoter Kalanithi Maran.

(Editing by Anand Basu)