Markets Live: Nifty stays below 4900; Europe in red

The Indian market slipped in late afternoon trade after European markets turned negative. The Nifty was dragged down by rate sensitives, commodities and technology stocks, whereas midcap infra & textile shares pulled down the broader markets.  
 
The Sensex was down 159.74 points or 0.98% at 16058.79, and the Nifty was down 52.60 points or 1.07% at 4871.65. About 911 shares advanced, 1526 shares declined, and 987 shares remain unchanged.

Meanwhile, India's exports rose 3.23% year-on-year to $24.5 billion in April, while imports grew 3.83% on year to $37.9 billion, government data showed on Friday.

After yesterday's GDP shocker, all big brokerages slashed India's FY13 targets. Morgan Stanley cut it down to 5.7%, while JP Morgan revised it to 6.3%. CLSA warned it may revise its forecast of 6.3% to around 6%.

ITC, Jaiprakash Associates, Hindalco, Coal India and ICICI Bank were top gainers on the Nifty. Asian Paints, Bank of Baroda, Cairn India, Ranbaxy Labs and IDFC were top losers.

Software services exporters fell as worries about the global economy intensified over euro zone woes and ahead of US jobs data later in the month. Infosys shares were down 2%, while TCS fell 1.7% lower.

Global News

Spain's Manufacturing PMI for May comes in at 42, the lowest since may 2009. Asia witnessed a bad close with Nikkei shutting down more than 1% and Taiwan losing more than 2%. China's May official PMI came in at a little over 50 versus a forecast of 51.

Weak Chinese data and worries about Spain's banking sector drove the euro to two-year lows against the dollar and safe-haven German Bund futures towards record highs on Friday.

Weighing on the global demand outlook, China's official purchasing managers' index fell to 50.4 in May from April's 13-month high of 53.3, and a separate HSBC PMI survey showed a seventh consecutive month of contraction in the manufacturing sector.