Markets end lower amid weakening rupee

Key benchmark indices witnessed volatile trades in today's session and ended the day on a soft note as negative global cues and a weakening ruppee continued to weigh on the benchmark indices.

The BSE Sensex ended at 16,480, down 67 points and the Nifty ended at  4,975, down 25 points.

Heavy-weight Reliance Industries and SBI accounted for a 53-point loss on the benchmark index.

Earlier in the day, the BSE Sensex had touched the day's high at 16,616 and the day's low at 16,423.

In Asia, Japan's Nikkei share average fell 1.5% to a fresh three-month closing low as concerns grew that Greece could reject its hard-won bailout deal with international lenders that saved it from a disruptive bankruptcy.

The index ended at 9,045, down 137 points. The Shanghai Composite and Hang Seng indices shed nearly 1-2% each.

European markets are mixed today.

At 1545 hours, the DAX was higher by 0.06%, while the CAC 40 was down 0.68% and the FTSE 100 shed 0.39%.

Meanwhile, the rupee opened lower today as renewed concerns about the euro zone battered riskier assets, setting up the prospect of continued intervention from the RBI.

The rupee was at 53.54/55 to the dollar in early trades versus its Tuesday close of 53.12/13.

On the sectoral front, BSE FMCG index led the gains, having advanced nearly 3%.

From the FMCG space, ITC gained 6% at Rs 240 in trades today, after having declined almost 8% in six consecutive days from Rs 247 on April 28.

Citigroup says the government has proposed an amendment to the pricing methodology for an excise duty announced in March, according to a report.

The change would be positive for cigarette manufacturers as it would provide better pricing flexibility and margin upside, Citi says.

From the space, Dabur India advanced 1% at Rs 107.

BSE Realty, Metal, Bankex, Oil & Gas and Auto indices shed 1-3%

each.

On the Sensex, DLF shed 4.2% at Rs 182 and was the top loser from the space.

The scrip had, however, traded higher yesterday in an otherwise weak market on reports that the company is planning to sell around 51% stake in its life insurance joint venture -- DLF Pramerica Life - to HCL Group for about Rs 500 crore.

Other prominent losers from the space included SBI, Mahindra & Mahindra, NTPC and Jindal Steel, down 3-4% each.

Mahindra & Mahindra Ltd said today that a fire broke out at it Nashik plant this morning and affected the storage areas pertaining to manufacturing of its Scorpio and Xylo TCF lines.

The gainers from the pack were ITC, TCS, Hindalco Industries, Bajaj Auto and Wipro, up 1-6% each.

Reliance Industries slipped almost 2% at Rs 695, extending its 5% fall in past five trading sessions after the company in its annual report said that it has cut estimates for proven gas reserves in its Krishna-Godavari (KG) block off the east coast by 6.7%, to 3.67 trillion cubic ft.

"Ambani said production from the KG-D6 block had been adversely impacted, mainly due to unforeseen reservoir complexities and water ingress in the producing fields," reports suggest.

Drug major Ranbaxy Laboratories today said its consolidated net profit surged over four-fold to Rs 1,246 crore during the first quarter ended March 31, 2012, over the same period of previous year.

The company had posted a profit of Rs 304 crore during the quarter ended March 31, 2011, Ranbaxy Laboratories said in a filing to the BSE. The scrip ended at Rs 513, up 4%.

The broader markets, too, witnessed weak trades with the BSE mid-cap and small-cap indices having shed nearly 1% each.

The overall market breadth was negative as 1,796 stocks declined against 936 advancing ones, on the BSE.