Markets extend losses, Autos drag

BSE Auto index down by almost 1%

Markets have extended the losses with the Sensex and the Nifty declining by over 0.5% each. By 1030, Sensex plunged by 88 points at 16,134, and the Nifty down 27 points or 0.55% at 4,894 levels.

Meanwhile, the rupee weakened in opening trade on Friday, reversing its previous session of gains, as global risk aversion continued to darken the near-term prospects for the local unit.

On the sectoral front, BSE Auto, Technology, Oil & Gas and PSU indices have declined by nearly 1% each. All the sectoral indices are trading in negative zone.

From the Auto space, M&M, Tata Motors, Bajaj Auto and Maruti Suzuki have slipped over 1%. Auto shares are witnessing selling pressure on concerns that the petrol hike would further slowdown sales of petrol driven vehicles. The hike in petrol price will severely affect the sales of entry level cars, which are mainly petrol driven.

ONGC has declined by over 1%. The stock witnessed significant buying demand yesterday as the subsidy burden on the company would get reduced after the government late Wednesday hiked petrol prices.

IT stocks like Infosys, TCS and Wipro have declined between 0.2-1%.

On the gaining side telecom major Bharti Airtel is trading higher by 1%, extending its previous day’s 6% rally,  on acquisition of 49% stake in US telecom major Qualcomm Inc’s fourth-generation (4G) broadband venture in the country for $165 million (Rs 907 crore).

Among other shares, VA Tech Wabag has surged 8% to Rs 439 after reporting 31% year-on-year (y-o-y) jump in consolidated net profit at Rs 60.36 crore for the quarter ended March 2012. The consolidated revenue grew 32% at Rs 674 crore on y-o-y basis.

Voltas Limited has rallied 8% at Rs 97.50 in morning trades after reporting a better-than-expected 3% year-on-year (y-o-y) growth in consolidated net profit after minority interest at Rs 104 crore for the quarter ended March 2012, due to lower incidence of tax.

The market breadth in BSE remains positive with 1,121 shares advancing and 826 shares declining.