Markets Live: Nifty slips below 4900; Asian shares extend losses

The benchmark index Nifty slipped below 4900 mark in the afternoon trade. Asian shares and the euro extended losses on Friday as China's factory activity data delivered its weakest reading this year, highlighting concerns the worsening euro zone debt crisis will further undermine global economic growth.

The Sensex was down 143.41 points or 0.88% at 16075.12, and the Nifty was down 47.40 points or 0.96% at 4876.85. The breadth of the market turns negative. About 955 shares advanced, 1324 shares declined, and 1145 shares remain unchanged.

Shares of auto companies were trading lower ahead of announcement of monthly sales volume data for May 2012. India's largets four-wheeler maker Maruti Suzuki India declined on reporting 5% fall in total sales in May 2012.

Banking stocks surge on hopes the Reserve Bank of India (RBI) will cut interest rates to revive growth after sharp deceleration in GDP growth in Q4 March 2012.

Aviation stocks took off as the state-owned oil companies on Thursday, 31 May 2012 cut jet fuel price by 2%.  

Top gainers on the Sensex were ICICI Bank, Hindalco, ITC, Tata Steel and SBI. Jindal Steel, Wipro, TCS, Infosys and Bajaj Auto were top losers.

Cairn India was down 3% as Crude oil futures dropped today. US crude fell 0.4% to $86.16 a barrel on Friday after settling at the lowest close since October 20. With a 17.5% loss for May, US crude futures marked their biggest monthly decline since December 2008.

BEML lost 3% after the company reported a net loss of Rs 13.99 crore in Q4 March 2012 as against a net profit of Rs 70.25 crore.

India's manufacturing sector kept up its steady expansion in May, with fast-rising output evened out by slowing growth of domestic order books, a business survey showed on Friday.

The HSBC manufacturing Purchasing Managers' Index (PMI), compiled by Markit, slipped marginally to 54.8 in May from 54.9 in April.

It has stayed above the 50 mark, that separates growth from contraction, for a little over three years now.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 1% after ending May with a 10.9% slide for its worst monthly performance in eight months.

Japan's Nikkei fell 1% after registering its biggest monthly drop in two years in May and was set for its worst weekly losing streak in 20 years.

The euro fell as low as $1.2324 on Friday and hovered near an 11-1/2-year low against the yen at 96.48 hit on Thursday.

The yen eased against the dollar to 78.55 yen on Friday after rising to a 3-1/2 month high of 78.21 yen the day before on strong bids for safety.

Brent crude futures eased 0.3% at $101.56 on Friday after settling at its lowest finish since early October.