Markets slip further; Oil & Gas, IT stocks weigh

Markets opened higher on back of positive global cues but soon slipped into the red. The Sensex opened at 18,251 higher by 100. The markets slipped further on back of selling witnessed by oil & Gas, IT and banking stocks. From the morning highs the Sensex has droped 300 points.

At 1030 hrs the Sensex slipped 185 points to 17,964 and the S&P CNX Nifty lost 50 points 5397.

Index heavyweight Reliance Industries with market weightaige of 13% was the top loser on the Sensex. The stock dropped 3.6% to Rs 994. It  was trading lower on back of a reports that the production of natural gas and crude oil could drop further. The company also reported that gas sales from the KG D1 and D3 could drop to 38 mmscmd. BHEL, TCS, HDFC, Reliance Infrastructure, Cipla, HDFC Bank and Mahindra & Mahindra, were also trading lower by around 1.5% each.

On the other hand Maruti Suzuki was the top gainer, the stock zoomed 1.4% to Rs 1186. Reliance Communication, Hero Honda, Hindalco, Bharti Airtel and Sterlite Industries were also among the gainers.

The BSE Oil & Gas index was the top loser on the sectoral front, the index had shed 2.3% or 230 points to 9724. IT, PSU and Bankex indices were also in the red, lower by 0.5-1% each. Power, healthcare, FMCG, realty and capital goods stocks also witnessed a mild selling pressure. Meanwhile, Metal, auto and consumer durable stocks witnessed some buying.

BPCL, HPCL, ONGC, Indian Oil, GAIL, Oil India and Petronet LNG were also among the losers on the oil & gas charts.

Among the IT stocks TCS was the top loser, the stock slipped 1.77% was trading at Rs 1080 followed by Tech Mahindra, Wipro, Infosys, HCL Technologies and Mphasis.

The broader markets were trading on a flat note, the BSE mid-cap index was marginally in the red, down 3 points to 6534 while the small-cap index added 2 points to 7861.

The market breadth turned marginally negative as 1137 stocks declined while 1020 stocks advanced.