Selling intensifies, Sensex down 270pts

The markets continued to extend losses in late-morning trades. The Sensex touched a low of 15,801.01 in intraday deals while the Nifty broke the 4800 levels to touch 4,758.85 in trade thus far.

"Today's selling is due to global turmoil backed with couple of negative domestic news flow. A close below 4800 can take us to 4600-4650 for the September Expiry," said Nandish Patel, Derivative Analyst, Sharekhan.

In other Asian markets, Japan's Nikkei share average fell 1.7% to a six-month low on Monday as it caught up with Wall Street losses after a three-day weekend, and amid declines for other risk assets on worries about a Greek default.

Back home, among the sectoral indices, BSE Consumer Durables and Metal indices are leading the losses, down 4-5% each. Metal companies have been battered at the bourses in the last couple of days after the US Federal Reserve's warning of significant dangers to the economy dampened investor sentiment and on weak economic data in China.

NMDC, Sterlite Industries, Coal India and Sesa Goa, down 5-6% each, are the top losers among the Metal stocks.Titan Industries, Rajesh Exports, VIP Industries and TTK Prestige, down 2-7% each, are the major losers from the Consumer Durables' space.

On the Sensex, Sterlite Industries, Coal India, Hindalco Industries, HDFC Bank and Bajaj Auto, down 4-5%, are the prominent losers. The only gainers in an otherwise weak market are Tata Power and Wipro, up marginally.

Among individual stocks, Eveready Industries India has soared more than 8% at Rs 40.60 on reports that the company is looking to sell land to cut its debt.

EIH and its group company EIH Associated Hotels have rallied more than 5% after the Securities and Exchange Board of India (Sebi) notified the new law governing takeover of listed firms with effect from on October 22, 2011.

The overall market breadth is negative as 1,865 stocks have declined against 498 advancing ones, on the BSE.