Markets extend losses; Sensex down over 300pts

Markets extended losses on selling pressure in select sectors as political uncertainty continued to dampen investor sentiments.

The Sensex opened at 18,361. Thereafter it declined to a low of 18,152. The index recovered partially thereafter and was down 288 points at 18,197.

Nifty was down 88 points at 5450.

Crude oil prices continued to rise following doubts that the Libyan unrest could spread to other Middle Eastern countries.

"Crude will continue to go higher, though there can be intermittent corrections. However, the price of oil is going to continue to rise for years to come," said Jim Rogers, Investment Expert.

Back home, DMK's threat to pull out support from the ruling UPA effected the political sentiments. The congress which is already beset by corruption charges will face another set back if it loses its key ally DMK.

All the sectoral indices were in red. BSE realty and auto indices dropped 2.5% each to 2,026 and 8,701, respectively.

Tata Motors dropped 3.2% to Rs 1,132. Mahindra & Mahindra shed 3% at Rs 655. Maruti Suzuki dropped 2.6% to Rs 1,279.

Reliance Communications slipped 3.2% to Rs 90. Jindal Steel, SBI, Jaiprakash Associates dropped 2% to Rs 82.

TCS, HDFC Bank, Tata Steel and Reliance Infrastructure dropped 2% each. ITC, Bharti Airtel, BHEL and Larsen & Toubro were down nearly 2% each.

Other losers included NTPC, HDFC, HUL and DLF. Market heavyweights - ICICI Bank and Reliance - dropped over 1% each.

BSE market breadth was fairly negative. Out of 2301 stocks traded, 1,588 declind 637 advanced.