US markets close lower after a volatile day of trade

The US markets despite late hour recovery could not manage to close in green with all the major indices witnessing cut of about a quarter percent. There was late bounce back in the markets following reports that the International Monetary Fund was preparing a contingency plan to rescue Spain if the country's financial situation continues to deteriorate. Spain has taken the center stage of the European crisis and traders expect that the country would sooner or later have to ask for outside help to bail out its banks. Investors were also worried about some weak economic reports; the Commerce Department said first-quarter economic growth in the United States was slightly slower than initially thought. The US economy grew at an annual rate of 1.9 percent in the first quarter of 2012, down from an earlier estimate of 2.2 percent, while separate reports showed that private payroll growth accelerated only slightly last month and claims for jobless benefits rose last week.

Report on private-sector hiring from payroll services firm ADP showed a gain of 133,000 jobs, less than the 157,000 forecast by economists. While, the number of people filing for first-time unemployment benefits in the US rose 10,000 to 383,000 in the latest week, which was higher than the expected 368,000 forecast by analysts.

The Dow Jones Industrial Average lost 26.41 points, or 0.21 percent, to 12,393.45. The S&P 500 fell by 2.99 points, or 0.23 percent, to close at 1310.33, while the Nasdaq lost 10.02 points, or 0.35 percent, to settle at 2827.34.

Most of the Indian ADRs closed in red on Thursday, HDFC Bank was down by 0.94%, ICICI Bank was down by 0.12%, Infosys was down by 0.41%, Wipro was down by 0.04% and Tata Motors was down by 0.05%.