Markets extend losses, IT stocks fall

Markets have slipped further into red on weakness in select sectors.

The Sensex opened in the red this morning following Tuesday's spectacular post-Budget rally. The index dropped to a low of 18,253. The Sensex was down 175 points at 18,271.

Nifty was down 47 points at 5,475.

The mid and small-cap indices outperformed. The indices were down 0.3% each at 6,553 and 7,977, respectively.

BSE IT index dropped 2% to 6,139 as government did not extend tax exemption for software technology parks under Section 10 A/10 B which is due to expire in March 2011.

HCL Tech, among IT stocks, was the biggest loser - down 2.5% at Rs 456. Heavyweights - Infosys and Wipro shed 2% each at Rs 3,022 and Rs 436, respectively. Oracle Financial Technologies, TCS and Patni Computers dropped 1% each.

Metal, oil & gas and banking stocks were also in red.

ICICI Bank was the biggest dragger among Sensex stocks - down 2.3% to Rs 1,002. Sterlite, Tata Motors, Tata Steel and Reliance Communications dropped 1-2% each.

Maruti Suzuki, Reliance, NTPC and Larsen & Toubro were down in red.

However, Tata Power advanced 3% to Rs 1,188. DLF gained 2% at Rs 227.

Hindustan Unilever, HDFC and HDFC Bank added 1% each. Bajaj Auto and Hero Honda advanced 1% each on good sales numbers.

BSE market breadth was marginally negative. Out of 2,293 stocks traded, 1,224 declined while 989 advanced in trades.