Markets end lower, ITC weighs

Markets ended lower on Thursday, amid weakness in Europe, weighed down selling pressure in ITC. Profit taking in private banking and software majors also dampened sentiment.

The 30-share Sensex ended down 71 points at 17,657 and the 50-share Nifty closed lower by 17 points at 5,363.

On the global front, Asian shares ended mixed on Thursday. The Hang Seng and Shanghai Composite ended marginally lower while the Nikkei ended up 1.9%.

European stocks and the euro were lower on Thursday after global growth engine China warned its trade outlook was worsening and stronger U.S. data tempered expectations of additional stimulus from the Federal Reserve. The CAC-40, DAX and FTSE-100 were down 0.03-0.2% down.

Among the sectoral indices on the BSE, FMCG, Metal, Consumer Durables, Bankex and IT were the top losers down 1-2% each.

ITC was among the top Sensex losers which ended down 3.6% on concerns about regulatory action at home after reports that Australian court has approved logo ban on tobacco packs from December 1. "Australia called on the world to match its tough new anti-tobacco marketing laws that will ban logos on cigarette packs, after its highest court on Wednesday dismissed a challenge from global manufacturers," the Reuters report suggests. HUL ended 0.1% lower.

Both the private banking majors, ICICI Bank and HDFC Bank ended over 1.2% down as hopes of a rate cut by the central bank remained elusive.

Metal shares declined tracking weakness in industrial metal prices on the London Metal Exchange. Sterlite, Hindalco and Tata Steel ended down 2-2.8% each.

Software exporters like Wipro, TCS and Infosys slipped nearly 0.5-1.6% after the New York Fed's general business conditions came in lower-than-expected.

Index heavyweight Reliance Industries was among the top Sensex gainers up 2% at Rs 815 after the company proposed to drill the first exploration well in almost five years at its own cost to reverse the falling output at KG-D6 block. Further, a report by Goldman Sachs which said Reliance Industries can potentially become a $100 billion stock by fiscal 2017 from its current market capitalisation of around $46.6 billion also boosted sentiment.

Other gainers in the Sensex include, L&T and HDFC.

Among other shares, Geodesic ended up 20% at Rs 42.15 after its board approved the share buyback proposal and authorized a committee to take steps to implement the buyback.

Kemrock Industries has ended in 10% lower circuit at Rs 205, its lowest level since May 2009, after reporting a sharp decline in its standalone net profit at Rs 1.87 crore for the quarter ended June 30, 2012, due to lower realisation. The plastic products maker had a net profit Rs 26.05 crore in previous year quarter.

IDFC ended up 4% at Rs 142 on reporting a 21% year-on-year (yoy) growth in consolidated net profit at Rs 380 crore for the quarter ended June 30, on higher interest and fee-based income. "IDFC's core net interest income grew 30% to Rs 629 crore during the quarter and non-interest income was up 24% to Rs 137 crore. The company's loan book grew 34% at Rs 50,892 crore over the previous year," it said.

Meanwhile, BSE Mid-cap index and BSE Small-cap index ended marginally up.

The market breadth in BSE was weak with 1,335 losers and 1,236 shares declining.