Markets end lower on weak global cues

Markets ended lower on Monday, amid weak global cues, weighed down by profit taking in oil and gas shares alongwith banks and autos.

The Sensex, after touching a low of 19,542, ended at 19610 - down 150 points ot 0.7%. Nifty ended down 47 points at 5,939.

Asian markets were in the red this afternoon. Investors took profits from recent Asian share rallies in the face of uncertainty over how much longer the current US stimulus would continue, while data underscoring the fragility of China's economy weighed on oil.

Nikkei shed 3.7% or 513 points to end at 13,262. Hang Seng, Taiwan Weighted and Kospi ended lower by half a per cent each.

European stocks followed a fresh dive on Asian markets to open 0.8% lower, as the week, which includes key US jobs data and the monthly meetings of the European Central Bank and Bank of England, got underway. The FTSE-100, CAC-40 and the DAX were trading 0.4-1.5% lower.

Investors sold riskier assets amid concerns over slowing growth after country’s factory output shrank for the first time in over four years.

The overall HSBC manufacturing purchasing managers’ index (PMI), which gauges business activity in Indian factories but not its utilities, sank to 50.1 in May from 51 in April, and was the third straight monthly fall.

Meanwhile, the Reserve Bank of India has issued clarifications on new banking license norms.

Over 400 clarifications have been sought by prospective applicants from central bank about the final guidelines.

The final guidelines were issued by RBI in February 2013 after it issued draft guidelines in August 2011.

BSE oil & gas index shed 1.8% at 8,496. BSE power, consumer durables and capital goods indices dropped around 1% each.

On the other hand, BSE IT index managed to hold on to gains and traded up 1% at Rs 6,126.

In line with the equity market, rupee washed out initial gains against the US dollar and was quoted at 56.66 per dollar on fresh

dollar demand from importers.

Shares of Maruti Suzuki were down 2.3% at Rs 1,570 after the company on Saturday announced that total sales in May 2013 were down 14% compared to the same month last year.

The country's largest car-maker reported 14.4% decline in total sales in May this year at 84,677 units compared with sales of 98,884 units in May 2012.

Mahindra & Mahindra gained 0.8% at Rs 973 after its tractor sales rose 24.24% to 23,626 units in May 2013, as compared to 19,016 units in the same period of previous year.

The company's domestic sales of tractors grew 24.70%, standing at 22,471 units during May 2013, as compared to 18,019 units in corresponding period previous year.

Shares of Infosys surged over 4.4% at Rs 2,514 after the board on Saturday appointed NR Naryana Murthy as executive chairmacn for a period of five years.

The reason for the appointment of Murthy seven years after he gave up his executive post and nearly two years after he retired as non-executive chairman is obvious, the software major has been grappling with a string of disappointing results and loss in market share.

State-run CIL ended flat at Rs 326 after it said that it produced 34.5 million tonnes of coal in May, missing its target of 36.5 MT for the month.

The company also missed it offtake target of 40.9 MT for the month, achieving an offtake of 38.2 MT, Coal India (CIL) said in a filing to BSE.

In April and May together, the PSU produced 70.3 MT of coal against the target of 71.6 MT, the company said.

Bajaj Auto reported 5.32% decline in its motorcycle sales at 3,04,780 units in May 2013.

The company had sold 3,21,922 units in the corresponding month last year, Bajaj Auto Ltd said in a statement. Shares of Bajaj Auto dropped 3.3% at Rs 1,762.

Crisil Ltd shares surged by their daily limit of 20% after McGraw Hill Financial Inc offered to increase its stake in the domestic ratings agency to 75% from 52.77%.

BSE market breadth was negative.

Out of 2,451 stocks traded, 1,307 shares declined while 1,013 shares advanced in trades.