Sensex, Nifty snap 4-day winning streak

MUMBAI, April 3 (Agencies): Sensex and Nifty snapped a four-day wining streak on Wednesday to post their biggest falls in two weeks as auto shares such as Tata Motors were hit by weak March sales, while recent outperformers such as Larsen & Toubor retreated. Continued political uncertainty and worries about early elections also weighed on market sentiment, dealers said.

General polls can happen in 2013 along with 6 state assemblies, media reports quoted BJP leader LK Advani as saying.

Commenting on Advani's statement, Bibek Debroy said that he doesn't see any material trigger to early polls as yet. Debroy however admitted that there is a lot of anti-incumbency around.'

Tata Motors Ltd shares fell 3.6 per cent, while Larsen & Toubro Ltd shares fell 2.7 per cent after adding 4.3 per cent in the previous four sessions.

The BSE index provisionally fell 1.4 per cent, posting its biggest daily per centage fall since March 19 and erasing a good chunk of its 1.9 per cent gain over the past four previous trading sessions

The 50-share NSE index ended down 1.31 per cent.

Meanwhile, European shares, the euro and German bonds were barely changed as investors turned cautious before this week's policy decisions by the Bank of Japan (BoJ) and European Central Bank (ECB), along with monthly US jobs data.

On Thursday the ECB is forecast to leave interest rates unchanged but expectations are high that Japan's central bank will announce a forceful monetary easing to try to boost its recession-bound economy.

America's non-farm payrolls report on Friday is likely to confirm market views that the Federal Reserve will maintain its extremely accommodative monetary policy, which has underpinned investor sentiment all year.

Before these events European equity markets were taking a breather after posting strong gains on Tuesday. The FTSE Eurofirst 300 index of top European shares was just 0.1 per cent lower by mid-morning, consolidating its 1.3 per cent gain made in the previous session.
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