Markets close in red, banks slump ahead of GDP data, HDIL tanks

Snapping a three-day winning streak, the Indian share markets fell ahead of quarterly economic growth data and the expiry of May derivative contracts later this week.

The BSE Sensex closed at 20147.64, down 0.07 percent, while the Nifty closed at 6104.30, down 0.11 percent.

Meanwhile, prime minister Manmohan Singh hasvirtually ruled out the introduction of the goods and service tax (GST) in the remainder of the United Progressive Alliance (UPA) government’s second term in office, citing differences between the centre and states over the levy billed as a landmark tax reform.

“I cannot say we can deliver tomorrow, but if you ask me by 2014, once elections are out of the way, whichever government is there, (there) will be a general agreement of appropriate type in place to help propel India’s growth story,” Singh told Japanese businessmen in an interaction in Tokyo.

Stocks in news

Shares of Wockhardt fell for the third day closing down 10 percent on lower than expected Q4 earnings and the US import alert on one of its India factories.

Lenders such as ICICI Bank, Canara Bank and Union Bank were down 3.5-1.5 percent.

Housing Development & Infrastructure shares plunged 10 percent after the realty major said it has received a termination notice from Mumbai International Airport Limited (MIAL) for its slum rehabilitation project.

The project, which involves rehabilitating a million people living near the city’s international airport, is one of the biggest for the Mumbai-based developer.

MIAL Sources told CNBC-TV18 that HDIL failed to reply to a notice of non-performance which was sent in June 2011. HDIL was to vacate ineligible slum dwellers by 2011 but failed to do so. Moreover, the company failed to reimburse the Rs 25 crore cost incured by MIAL for the project.

The biggest gainer was Sun Pharmaceutical Industries which closed at an all-time high of 7 percent, after its announcement of better than expected profits.

Sun TV Network closed up 4.23 percent after the promoters’ offer to sell around 8 million shares via offer-for-sale (OFS) was oversubscribe by 1.50 times.