Sensex ends 126 points lower on weak global cues (Roundup)

MUMBAI - A benchmark index for Indian equities ended 126 points lower Tuesday on weak global cues as the euphoria over China’s move to free the yuan died down and Europeans braced for another round of spending cut in Britain, renewing doubts over the region’s economic recovery.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 17,868.12 points, closed at 17,749.69 points, 126.86 points or 0.71 percent down from its previous close at 17,876.55 points.

Earlier, it fell to an intra-day low of 17,725.63 points.

At the National Stock Exchange (NSE), the broader 50-share S&P CNX Nifty shut shop at 5,316.55 points, down 0.69 percent from its previous close at 5,353.3 points.

Broader markets indices closed flat, with the BSE midcap index ending 0.02 percent lower and the BSE smallcap index 0.07 percent up.

Metals stocks, which rallied handsomely Monday faced the bulk of the selling pressure, followed by IT and telecom scrips.

The market breadth was tilted towards the negative, with 1,322 scrips on the decline, compared to 1,544 stocks advancing, and 116 remaining unchanged.

There were only three gainers on the Sensex - Hindustan Unilever, up 1.2 percent at Rs.262; ITC, up 1.04 percent at Rs.301.95, and Tata Power, up 0.37 percent at Rs.1,319.60.

Among the major losers were Sterlite Industries, down 2.69 percent at Rs.178.75; ACC, down 2.43 percent at Rs.860.80; Jaiprakash Associates, down 2.32 percent at Rs.130.40; and Jindal Steel, down 2.06 percent at Rs.671.95.

Asian markets came under selling pressure after the US market fell overnight and investors booked profit.

The Japanese Nikkei ended at 10,112.89 points, down 1.22 percent, while the South Korean Kospi closed at 1,731.48 points, 0.47 percent lower.

Hong Kong’s Hang Seng was trading 0.23 percent down at 20,864.67 points. The Chinese Shanghai composite index too was quiet, though trading marginally higher at 2,590.45 points, up 0.16 percent.

European markets gave up their Monday gains after the initial optimism over China’s currency overtures disappeared and Ficht Ratings cut French bank BNP Paribas SA’s debt rating.

In Britain, the benchmark index, FTSE 100 was ruling 1.53 percent lower at 5,218.08 points ahead of an emergency budget meeting called by the government to mull huge spending cuts and raise taxes.

The French CAC 40 too was in the red, at 3,688.21 points, down 1.28 percent, while the German DAX was trading 0.91 percent lower at 6,235.58 points.