The markets have slid deeper into the red in the past one hour due to disconcerting cues from the Asian front. The Sensex is trading near the day's lows of 16,762, weaker by 320 points and the Nifty is at 5,039, down 97 points. The midcap index is at 6148, down 45 points and the smallcap index is at 6862, down 36 points.
The benchmark indices had witnessed a gap-down opening as the fall in US stocks and euro on Wednesday dampened sebtiment post a buoyant session on trade on Wednesday. The cause for the morning pessisim was the fading optimism that European leaders will make substantial progress on resolving the euro zone debt crisis at their summit meeting this weekend.
And with the cut getting only wider on the Asian front, the selling has only got aggravated back home. Hang Seng and Seoul have shed more than 2%, while the Shanghai, Nikkei and Taiwan have lost more than a percent each in mid-day trades.
Banking stocks are seeing a reversal in fortunes after the stellar gains on Wednesday. HDFC has weakened by 4.7% at Rs 641, ICICI Bank has shed 3% at Rs 877 and HDFC Bank has lost 1.85 at Rs 482. Jaiprakash Associates, Wipro and Hero MotoCorp are the other major losers.
On the other hand. Sun Pharma has gained 1.4% at Rs 489 and Maruti has gained 0.8% at Rs 1075.
Among the major results candidates for the day, Bajaj Auto has slid by 0.6% at Rs 1625 and Yes Bank has lost 1.1% at Rs 286.
The overall market breadth is negative as 1446 stocks have declined for 800 advancing stocks.