Sensex tanks 200pts, realty, metals weigh

The markets ended with significant losses on the back of weakness in metal and realty stocks. Taking a heavy beating, the BSE Sensex ended at 18,110, down 204 points and the S&P CNX Nifty ended at 5,457, down 59 points.

Earlier in the day, the markets had opened in the red taking negative cues from their global peers at large. The Sensex opened at 18,284, and the Nifty lost 24 points to start at 5,493. Owing to continuous sell off in the rate sensitives during the day, the Sensex slipped to touch a low of 18,038 in mid-noon session.

In the broader markets, the smallcap and the midcap indexes opened on a flat note, but went on to log losses in line with the benchmark indices. The broader markets ended the day on a signficantly weak note with the midcap and the smallcap index declining around 1.5% each, at 6,808 and 8,164, respectively.

Across the globe markets witnessed edgy trades. In the US markets, stocks had risen in early trades on hopes of a resolution to the debt standoff. Following a weak manufacturing report, the markets plunged into the negative zone with the Dow Jones dropping over 100 points. However, recovery, eventually, saw the Dow end with a marginal loss of 11 points at 12,132. Nasdaq was down 12 points at 2,744. The Standard & Poor's  Index fell 0.4%, to 1,287.
 
All the indices across the Asian markets ended on a week note. The Hang Seng index ended at 22,422, the Shanghai Composite index ended at 2,679, down 1% while the Nikkei ended at 9,845, having shed 1%, each.

European indices CAC, DAX and FTSE100 were down, between 0.2-0.5% each in the first half of the day.

Among individual stocks, Bajaj Auto, the country's second-largest two-wheeler, ended flat after having reported a 14% jump in total sales in July, 2011, to 3,63,712 units. The company sold 3,18,415 units in the corresponding month last year, Bajaj Auto Ltd (BAL) said in a statement. Exports grew by 35% during July this year to 1,43,996 units from 1,06,794 units in the same month last year, it said.

Ashok Leyland announced bonus shares in the ratio of 1:1, i.e. one free share for every shareholder who holds a share. The record date for deciding the eigibility of a shareholder has been decided as August 3, 2011. The stock touched a high of Rs 27, before settling with a gain of 1% at Rs 26 on going ex-bonus.

Cipla moved up 2% at Rs 313 and was the top gainer among the Sensex 30 stocks. It was followed by NTPC, ONGC, Reliance Indusries and Hero Motors. On the other hand, JP Associates was the top loser among the pack, having shed 5% at Rs 65. Other prominent losers include Reliance Communication, SBI, Sterlite Industries and Wipro, down 2-4%.

Among the sectoral indices, the shares of real estate companies, including DLF, Orbit Corporation, HDIL, Sobha Developers, Ackruti City and Indiabulls Real Estate, traded lower by 2-3%. This development took place amid reports that Mumbai’s residential sales dropped to a 30-month low in the quarter ended June due to record home prices and higher interest rates.The BSE Realty index continued to sag and ended down 2% at 2,008. The sector is still harboring losses post RBI's rate hike by 50 bps.

Metal, Bankex, TECk, and IT indices were down nearly 2% each.

The market breadth was fairly bearish, with over 2,000 shares declining as against 850-odd shares advancing on the BSE.