On the NSE, the Nifty ended 50 points lower at 5,063.Many analysts expect a near-term weakness in Indian markets given their sharp run-up in the near term. Jyotivardhan Jaipuria, head of research at DSP Merrill Lynch, said valuations are not very attractive. He expects a near-term correction of 7-10 per cent before markets resuming their upward move again.
Dilip Bhat, joint MD, Prabhudas Lilladher, said, “Clearly, the prices are ahead of fundamentals. Even at the risk of some underperformance, one should exercise caution.”
Auto, banking and metal stocks led the decline on the bourses today. The BSE auto index shed 2.3 per cent. Amtek Auto plunged 6.1 per cent and MRF lost 3.3 per cent.
The BSE bankex lost 2 per cent and the metal index on the BSE fell 1.7 per cent. In the banking space, Bank of Baroda was down 4.5 per cent and Yes Bank ended 3.8 per cent down. Yes Bank today said its net profit expanded 75.6 per cent to Rs 111.7-crore in the September quarter as against Rs 63.6-crore in the year-ago period.
In the metal pack, Sesa Goa plummeted nearly 8 per cent.
In the Sensex pack, Tata Stee was the biggest loser. The stock ended down 4 per cent at 552. JP Associates fell 3.5 per cent and SBI dropped 3.2 per cent.
TCS, however, rose 1.9 per cent and Tata Power gained 1.5 per cent. Bharti Airtel also advanced 1.2 per cent.
World stock markets fell modestly on Wednesday after soft U.S. housing data reined in some of the optimism generated by a raft of better-than-expected earnings.
In Europe, the major markets were moderately lower in early trade, echoing the performance of Asian markets. Earlier in Asia, Japan's Nikkei 225 stock average slipped 3.45 points, or less than 0.1 percent, to 10,333.39, while Hong Kong's Hang Seng dropped 66.85 points, or 0.3 percent, to 22,318.11.
On Tuesday, Wall Street ended lower, weighed down by soft U.S. housing data. US official data showed applications for building permits fell by the largest amount in five months, reinforcing worries that the fledgling housing revival could be derailed by rising unemployment and the expiration on November 30 of the government's $8,000 tax credit for first-time homebuyers. US stock futures also pointed to another weak session for Wall Street.