Markets end modestly lower on macro data, global cues

Equity benchmarks ended on a negative note after a volatile session on Thursday as investor sentiment remained on the back foot amid lacklustre macroeconomic data and mixed overseas cues.

Auto stocks skidded following weak April sales numbers, while IT counters tumbled as the rupee strengthened above the 70 per dollar mark.

The BSE Sensex settled 50.12 points, or 0.13 per cent, lower at 38,981.43. During the day, the index swung over 300 points, hitting an intra-day low of 38,882.99 and a high of 39,189.95.

In similar movement, the broader NSE Nifty slipped 23.40 points, or 0.20 per cent, to close at 11,724.75. It also saw an intra-day movement of 89.75 points.

Globally, stock markets struggled after the US Federal Reserve decided to keep its benchmark interest rate unchanged amid mixed signals about the direction of the American economy.

Meanwhile, India's manufacturing sector performance eased to an eight-month low in April as new business growth moderated, curbed by the elections and a challenging economic environment, PMI data showed.

In the Sensex pack, Tata Motors was the biggest loser, shedding 3.29 per cent, followed by ICICI Bank, IndusInd Bank, Infosys, HCL Tech, Axis Bank, TCS, HUL, Asian Paints, Sun Pharma, SBI, Tata Steel and NTPC, which dropped up to 3.23 per cent.

On the other hand, Yes Bank was the top gainer, rebounding 3.45 per cent. PowerGrid, HDFC, HDFC Bank, Hero MotoCorp, Bajaj Auto, Bharti Airtel, Bajaj Finance, Kotak Bank, RIL, L&T, Vedanta, ITC, ONGC and Maruti too ended in the green, rising up to 1.88 per cent.

"As we enter the final stages of the 2019 general elections, one can expect the volatility in the market to remain high. Q4 FY19 earnings so far have been lacklustre, the slowdown in sectors such as consumption and auto has hurt investor sentiments.

"Rising oil prices continue to be a threat to the domestic markets. However, due to the ongoing general elections the government has kept domestic oil prices stable and has not undertaken any steep hikes," said Hemang Jani, Head - Advisory, Sharekhan by BNP Paribas.

Sectorally, BSE IT, teck, consumer durables, bankex and auto indices ended in the red, falling up to 1.84 per cent.

The broader BSE Midcap and Smallcap gauges closed in line with the benchmarks, shedding up to 0.61 per cent.

Elsewhere in Asia, Korea's Kospi and Hong Kong's Hang Seng ended in the green, while other major bourses in China and Japan were shut.

European equities started off on a mixed note.

The rupee, meanwhile, appreciated 10 paise to 69.45 against the US dollar intra-day.

Global benchmark Brent crude was trading 1.25 per cent lower at USD 71.28 per barrel.