Markets extend losses

Heavyweights dragged the markets lower in trades after a firm opening. Markets had opened in the green on cues from US peers. However, as selling pressure increased in heavyweights- ICICI Bank and Reliance, and auto stocks, the indices dropped into red.

Markets have been volatile in a narrow range. The Sensex was down 40 points at 17,996.

Nifty was at 5382 - down 14 points.

Asian indices were trading on a mixed note. Hang Seng dropped 109 points at 23,444 while Nikkei added 53 points to 10,645. Taiwan, Seoul and Straits markets were trading subdued.

The government on Monday estimated GDP growth for the fiscal year ending March 2011 at 8.6%. The actual figures are likely to come in later in the day. The net direct tax collection went up to Rs 3.17 lakh crore for the first 10 months of this fiscal between April 2010 and January 2011, registering a growth of more than 20%.

BSE mid and small cap indices underperformed. The mid-cap index was down 0.5% at 6,662. Small-cap index shed 0.5% at 8,217.

BSE realty index slumped 1.7% to 2,198. Unitech shed 4% to Rs 42.60. Sobha Developers, SuntecK Realty, HDIL and Indiabulls Real Estate were the other losers.

Capital goods, oil & gas, auto and metal stocks were in red.

Mahindra & Mahindra tumbled 2.6% to Rs 651. Hero Honda, Maruti Suzuki and Tata motors were trading in red.

ONGC slipped 2.5% to Rs 291 after going for a stock split and a 1:1 ex-bonus.

Jaiprakash Associates, DLF, Tata Steel were in red.

Market heavyweights - ICICI Bank and Reliance dropped 1% each to Rs 969 and Rs 920, respectively.

Meanwhile, Tata Power, Cipla, Bajaj Auto and Bharti Airtel gained over 1% each.

Market breadth on the BSE was negative. Out of 2,245 stocks traded, 1,369 declined while 786 advanced.