Markets extended losses in afternoon trades with realty and banking stocks declining. The Sensex touched a low of 18,154 - down 155 points. Nifty was at the day's low of 5,458 - down 43 points. Caution prevailed ahead of the Reserve Bank of India's mid-quarter monetary policy review tomorrow, 16 June 2011.
A higher than expected inflation data, released yesterday, sparked fears that the RBI may once again raise key rates to tame inflation. Interest rate sensitive stocks dropped. BSE realty index shed 1.6% to 2,117. Bankex was down 1.3% at 12,177.
Among realty stocks, India Bulls Real Estate slipped 2.3% to Rs 114. DLF, DB Realty, Peninsula Land and Unitechd ropped 1-2% each.
Banking losers included SBI and ICICI Bank down about 2% each. KOtak Mahindra Bank, Axis Bank, Yes Bank and IndusInd Bank were down 1% each.
Global stocks also slipped after Euro zone ministers failed on Tuesday to reach agreement on how private holders of Greek debt should share the costs of a new bailout. Hang Seng shed 0.7% to 22,339. Shanghai Composite was down 1% at 2,705. However, Nikkei advanced 0.3% to 9,574.
IT heavyweight, Infosys, dragged market. The stock was down 1.5% at Rs 2,832. According to reports, the IT company is likely to pay Rs 300 cr advance tax, vs Rs 225 cr (yoy). Wipro slipped 2.2% to Rs 427.
Among metal stocks, Sterlite and Hindalco dropped 1-2% each. Jaiprakash Associates, ONGC, NTPC and Jindal Steel were also down.
However, Reliance Infra jumped 1% to Rs 562.HDFC Ban and Tata Motors added marginally in trades.
BSE market breadth was negative. Out of 2,812 stocks traded, 1,542 declined while 1,138 advanced in trades.
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