Markets end sharply lower amid choppy trade; FMCG down 2.6 per cent

The markets lost ground completely in late trade after remained volatile since morning and ended sharply lower led by selling in FMCG, realty, metal, banking and pharma stocks. Midcap and small cap indices also finished weak. The Sensex has tried to move closer to 16000 in opening trade but could not manage and closed just above 15500 levels again. The Nifty also inched above 4700 but selling pressure pushed it below 4650 mark.

Markets have not reacted to inflation numbers fully as in markets factored in. Inflation for the week ended May 24 stood at 8.24% as against 8.10% in the earlier week, which is in line with market expectations of 8.25%. Wholesale Price Index (WPI) for all commodities was up 0.1% at 229.8, Non food articles went up by 0.5% at 231.5 and Imported Edible Oil up 6% for week ended May 24. Inflation for March 29 revised to 7.75% versus 7.41%.

The Sensex plunged 197.54 points or 1.25% to settle at 15,572.18 after hitting an intraday high of 15,970.70 and low of 15,526.50. The Nifty closed at 4627.80, down 49.15 points or 1.05% and touched a high/low of 4746.30 and 4614.25.

It was an disappointing close for whole week; Nifty and Sensex cracked 4.5% each. CNX Midcap was down 5.5% and BSE Small Cap down 5%. Amongst sectors, BSE Realty Index was worst hit, down 10% followed by metals and Cap Goods indices, which down 8% each. Top Nifty losers were BPCL (-16%), BHEL (-15%), Unitech (-12%), DLF (-12%) and Power Grid (-12%%) while Nifty gainers -ONGC up 8.5% and Sun Pharma up 2%..

Market breadth was negative, about 1246 shares have advanced, 1693 shares declined, and 174 shares remained unchanged.

Turnover traded by the markets for the day stood at Rs 60694.13 crore, including Rs 12572.41 crore from NSE cash segment, Rs 42888.38 crore from NSE F&O and the balance Rs 5233.34 crore from BSE Cash segment.

On the global front, Asian markets closed higher barring Shanghai. Nikkei was up 1%, Hang Seng up 0.6% while Shanghai down 0.7%. European markets were trading flat at the time of writing market report.

Asian markets were trading higher. Hang Seng was up 0.96% or 231.78 points at 24,487.07. Nikkei 225 Average jumped 1.3% or 188.38 points at 14,529.50. Jakarta Composite was up 0.92% or 22 points at 2,421.72. Straits Times shot up 0.64% or 20 points at 3,163.96. Taiwan Weighted rose 0.63% or 55.10 points at 8,793.56.