Markets extend losses

Markets have extended losses in the noon deals led by the intense selling pressure visible in the IT and banking stocks. The Sensex is down 154 points at 17,312 and the Nifty has shed 48 points to 5,270 levels.

According to Hormuz Maloo, Technical Analyst, Geojit BNP Paribas Securities, " We are currently in a short term decline. The nearest short-term supports for the Nifty are between 5,240 and 5,160 points, so I guess we will be testing these levels soon."

"5,160 is currently the 200 day moving average of the Nifty. On a slightly longer term horizon, it is possible that we are within a medium term downtrend - in which case it is quite possible that we may slip below the 200dma in some time," adds Maloo.

The other Asian markets were trading marginally higher. The Nikkei was up 13 points at 10,142, Hang Seng and Shanghai also advanced nearly 0.2% each.

Back home, TCS is the top Sensex loser, down nearly3% at Rs 1,135. HDFC, BHEL, tate Bank of India, HDFC Bank, Gail India, Coal India, ONGC, Infosys, Jindal Steel and Bajaj Auto are also trading lower by nearly 1-2% each.

On the other hand, Mahindra & Mahindra, ITC, HUL, Sun Pharma, Tata Motors, Tata Steel and Jindal Steel are among the notable gainers.

Technology, realty and banking sector stocks are amongst the worst hit in trades so far. The BSE IT index is the top sectoral loser down 119 points or 2% at 5,950 levels. Realty and Bankex indices are also trading weaker by 1.5% each.

Capital Goods, Oil & Gas, Power and PSU stocks are also facing the heat of the selling pressure.

At the same time some buying is witnessed by FMCG, consumer durables, healthcare, metal and auto stocks.

Bicycle makers such as Atlas Cycle (Haryana), Tube Investments of India and Hercules Hoists are trading higher by more than 3% each on second consecutive day in otherwise weak market, after the Union Budget 2012-13 bestowed additional pricing power to the Indian bicycle sector.

The broader markets are trading with a negative bias. The BSE mid-cap index is down 0.3% or 22 points at 6,380 and the small-cap index has shed 29 points at 6,675 levels.

The overall breadth is negative as 1,517 stocks are declining while 1,063 are advancing.