Sensex has ended (provisional) at 17531 - down seven points. Nifty ended flat at 5318.
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(updated at 1431 hrs)

Markets have pared losses in afternoon trades. The Sensex, after touching a low of 17,425, is now trading down 23 points at 17,516. Nifty is down 16 points at 5,311.

Markets would be looking at the corporate result next to decide direction. The result season kicks off with HDFC on July 11, 2012.

European shares declined as doubts of further monetary stimulus ahead of a key US jobs report pushed investors to book more profits on five straight weeks of gains. The European Central Bank (ECB) cut interest rates to a record low on Thursday to breathe life into a deteriorating euro zone economy. In Asia, markets slipped following ECB decision to cut rates. Japan's Nikkei shed 0.6% to 3,478. Kospi and Jakarta dropped half a per cent each.

BSE metal index slipped 1% to 10,999. Metal shares declined, mirroring cues of the London Metal Exchange. Jindal Steel & Power, the biggest loser right now, has declined 3.2% at Rs 455 on reports that the company has suspended operations at its iron ore mine at El Mutun in Bolivia. Sterlite has dropped 2.3% to Rs 107, followed by Hindalco and Tata Steel.

Realty, IT and capital goods indices have slipped around 1% each.

Meanwhile, FMCG shares rose on the back of news that monsoons had finally arrived in the state. The southwest monsoon made a further advance on Thursday into more parts of the country. The index has advanced 0.7% to 4,913.

Larsen & Toubro has slipped 1.6%, followed by Wipro, Maruti Suzuki and Tata Power. On the other hand, ITC has gained 1.3% at Rs 253. Mahindra & Mahindra is up 1.2% at Rs 731. According to reports, M&M has entered the Kenyan market with its XUV500 and Scorpio.

Reliance has selected Technip as a technology supplier and engineering contractor to implement its Refinery Off-Gas Cracker project as part of the expansion project being executed at RIL's Jamnagar refinery and petrochemical complex in Gujarat. Shares of Reliance were down 0.8% at Rs 732.

Shares of tyre makers extended recent gains on lower rubber and crude prices. Govind Rubber added 6.5%, Dunlop advanced 4%, while Apollo Tyres, CEAT and JK Tyres moved up 1-2% each.