Markets trade weak, Sensex down 240 points

The markets traded on a weak note in the noon trades with the BSE Sensex at 16,810, down 241 points and the S&P CNX Nifty at 5,062, down 77 points. Strong IIP data failed to help the bourses sustain their firmness.

Earlier in the day, the BSE benchmark index had opened nearly 200 points higher at 17,247. However, thereafter the markets succumbed to a fresh round of selling in the IT and banking stocks.

The BSE IT index is at 5,000, down 2.5%. Wipro, TCS and Infosys, down 2-4% each, are the major losers among the pack.

BSE Bankex is at 11,638, down 1.6%. The prominent losers among the Bankex stocks are Federal Bank, HDFC Bank, Canara Bank. Yes Bank and Kotak Mahindra Bank, down 2-4% each.

Jindal Steel soared 2% at Rs 523 on the Sensex. Other prominent gainers include Hero Motocorp, ONGC, Mahindra & Mahindra and Cipla, up nearly a per cent each.

On the other hand, Tata Motors is the top loser among the Sensex 30 stocks, down 5.4% at Rs 800, after reporting a marginal 0.5% year-on-year rise in its consolidated net profit at Rs 2,000 crore, despite of 24% growth in net sales for the quarter ended June 30, 2011. It is closely followed by Wipro, TCS, DLF and HDFC Bank, down 3-4% each.

The overall market breadth is negative as 1,400 stocks decline as against 1,189 advancing ones.