Mumbai: The Indian market ended Wednesday' trade on a pessimist note as traders chose to sit on the sidelines ahead of the F&O expiry and Q4 GDP numbers slated for a release on Thursday.
European markets slipped too after euro fell to its record low in 23 months as investors worried over Spain's banking problems. After more credit ratings downgrades of Spain and news of European Central bank rejecting Spains bank-recapitalisation plans, eurozone worries heightened.
Rupee tumbled for third consecutive day and fell below the psychological mark of Rs 56/$. Heavy demand for American Dollar and its strength over euro amid concerns regarding euro zone weakened the rupee.
The Sensex closed at 16312.15 down 126.43 points or 0.77 per cent and the Nifty shuts shop at 4946.95 down 43.15 points or 0.86 per cent. The breadth of the market turned negative. About 1045 shares advanced, 1642 shares declined, and 737 shares remain unchanged.
IT stocks witnessed some buying interest on weak rupee. A 100 bps depreciation in rupee improves margins of the IT companies by 25-40 bps based on their hedging policies. Banking stocks ended in red on profit booking.
Top gainers on the Nifty were Ambuja Cements, ACC, Sun Pharma, Maruti Suzuki and Tata Power. Tata Motors, Reliance Infra, IDFC, BHEL and Jaiprakash Associates were top losers.
Q4 GDP Poll
India's annual economic growth probably held steady in the January-March quarter at 6.1 per cent and the global economic slowdown, government policy paralysis and a record low currency suggest little chance of a pick up in the current quarter.
A poll of 31 economists produced a median forecast of 6.1 per cent, unchanged from the growth of the October-December quarter. Forecasts ranged from 5.5 per cent to 7.3 per cent.
M&M zooms, Tata Motors skids
Utility vehicle maker Mahindra & Mahindra beat street expectations on Wednesday, with standalone net profit of Rs 874 crore, up 44 per cent from a year ago, helped by one time gains and lower tax provisions, apart from strong sales growth.
The Mahindra-group company's revenue in the fourth quarter rose 39 per cent from a year ago to Rs 9,387 crore.
Shares of Tata Motors tumbled over 10 per cent on Wednesday as weak margins at its luxury Jaguar Land Rover unit, despite strong sales growth, left investors disappointed.
Speciality Restaurants revives primary market
Speciality Restaurants ends with smart gains on the listing day. The issue price was fixed at Rs 150 per share. The IPO of restaurant chain operator was subscribed 2.54 times.
Essar Ports said on Wednesday Belgium's Port of Antwerp has infused Rs 175 crore into the company, as it looks to expand in the country. The Belgian company's investment is through global depository receipts at Rs 100 a piece.
Asia ends in red
Asian stocks closed largely in red on disappointment that China would not come-up with another large-scale stimulus program and mixed bag of news out of China, Europe, and US.
Japan's Nikkei average ended a four-session winning run on Wednesday, weighed by exporters as the yen firmed on mounting concerns over Spain's banking system, although Renesas Electronics Corp rebounded after a recent slide.
Brent oil dropped to below USD 106 per barrel on Wednesday, on track for its biggest monthly decline in two years as a worsening euro zone debt crisis slashed risk appetite.