Markets extend losses

Markets extended losses in morning trades as realty stocks tumbled. Cues from the Asian markets also dampened investor sentiments. However, Reliance ADAG group stocks rebounded in trades, led by Reliance Infrastructure.

Sensex opened at 17,603 and dropped to a low of 17,468. The index was down 99 points at 17,494.

Nifty slipped 17 points at 5,237.

BSE mid and small-cap indices underperformed and declined around 1% each.

"We think that both large-caps and mid-caps offer attractive opportunities.  However, we think that large-caps will perform better in the near term given the aversion to risk currently," said Rajat Jain, Chief Investment Officer, Principal Mutual Fund.

Asian markets slipped on profit booking. Hang Seng shed 0.7% at 22,994. Seoul Composite was down over 1%, along with KLSE Composite even as Jakarta markets tumbled 2% in trades.

The government is set to announce WPI inflation data later today.

Interest rate sensitive realty stocks extended recent steep losses on concerns higher interest costs and higher property prices may dent demand for residential units. BSE realty index shed 3% at 2,022.

Unitech dropped 8.6% to Rs 34.55 after being named in the SBI report as one of the beneficiaries of the spectrum allocation in 2008.

IT, metal and PSU stocks were in red while auto index jumped 0.5% at 8,254.

Bharti Airtel slumped 5% to Rs 316. SBI dropped 3.2% to Rs 2,506. Sterlite and HDFC declined 2% each.

Cipla, Hindalco, BHEL, TCS and Infosys were down 1% each. Market heavyweight, Reliance was unchanged at Rs 911.

Meanwhile, Reliance ADAG group stocks went up. Rel Infra soared 8% to Rs 580. Reliance Communications jumped 4% to Rs 99. Reliance Mediaworks, Reliance Capital and  Reliance Power added 2-3% each.

ITC, Hero Honda, Tata Motors and Maruti SUzuki were up 1-2% each.