The selling pressure has only intensified in noon trades due to renewed concerns on the geopolitical front, spiralling crude oil prices, jump in inflation and rollover pressures on the last day of the February derivatives series. The Sensex has broken the 18k mark and is currently quoting at 17,743, weaker by 434 points or 2.3% and the Nifty is precariously poised at 5300, down 136 points. The midcap index is at 6401, lower by 157 points and the smallcap index is at 7855, down 180 points.
Oil hit two-year highs in Asian trade as the Libyan turmoil threatened to deepen further and engulf the entire Middle Eastern region. New York's main contract, light sweet crude for April delivery, rose $1.00 to $99.10 per barrel after surpassing the $100 mark in yesterday's session for the first time since October 2008. Brent North Sea crude for delivery in April was up 85 cents to $112.10.
Food inflation accelerated slightly in mid February on rising prices of milk and fruits, amid expectations the government may announce fresh measures to rein in inflation in the budget. India's food index rose 11.49% in the week ending February 12, despite policymakers' often repeated projections in 2010 that prices would ease to single digits.
The food price index rose 11.49% in mid February, slightly higher than last week's 11.05%. The fuel price index climbed 12.14% in the year to February 12, higher than 11.92%, government data showed. And wholesale food prices jumped 15.7% in January compared with 13.6% in December, fuelling fears that food inflation is leading to sustained price rises in other sectors.
The rate-sensitive banking and auto sectors are taking it on the chin in this afternoon's trades. In the bankling space, ICICI Bank has weakened by 4.5% at Rs 962, HDFC has shed 2.5% at Rs 630 and HDFC Bank has lost 2.3% at Rs 2064. And the auto space has seen the likes of Tata Motors slipping by 4.2% at Rs 1096 and M&M skidding by 4% at Rs 613. And index heavyweight RIL has lost 2.3% at Rs 973.
The stocks to buck the trend include Hero Honda (strengthened by 1.6% at Rs 1491) and Hindustan Unilever (gained 0.1% at Rs 280).
The market breadth is weak. Out of 2841 stocks traded on the BSE, there are a mere 572 advancing stocks as against 2181 dcelines.