Weak trades continue

The markets continued to trade weak in late morning trades with the BSE Sensex at 17,126, down 118 points and the Nifty at 5,209, down 35 points.

Earlier in the day, the BSE benchmark index touched the day's high at 17,152 and the day's low at 17,076.

In Asia, Japan's Nikkei share average fell and appeared on track to log its seventh consecutive session of losses as rising bond yields of indebted Spain and Italy spooked investors amid slowing global growth concerns. The index is at 9,458, down 1%. The Hang Seng index is down 1% while the Shanghai Composite index is up marginally.

On the sectoral front, all the indices are in the red except for BSE Healthcare, up marginally. BSE Metal, Capital Goods, Consumer Durables, Oil & Gas and Bankex indices are leading the losses, having shed 1% each.

Sterlite Industries has shed 3% at Rs 102 and is the top loser on the Sensex. Other prominent losers include Jindal Steel, Tata Steel, BHEL and Reliance Industries, down 1-2% each. Cipla and Mahindra & Mahindra, up marginally, are the only gainers from the pack.

Shares of Vijay Mallya promoted UB Group companies are in limelight, with most of them trading higher by 3-9% in otherwise weak market in morning trades on the National Stock Exchange. Reports suggest that the Bangalore-based alcoholic beverages conglomerate is undertaking a major debt restructuring through sale of assets. According to market buzz, the Mukesh Ambani-owned Reliance Industries may be close to buying the ailing Kingfisher Airlines.

Strides Arcolab has rallied 4% to Rs 622.40, its lifetime high market price, after the company said it has received approval from the US FDA for Vancomycin Hydrochloride Capsules, an antibacterial indicated to treat infections that include C. difficile-associated diarrhea and enterocolitis caused by Staphylococcus aureus.

Coal India is trading lower by 0.11% at Rs 323 after the Comptroller and Auditor General of India (CAG) said the company had overstated its manpower productivity. The report mentioned that the company overstated its manpower productivity for five years between April 2006 and March 2011, according to the leaked draft report CAG on the allocation of blocks and augmentation of production by the company.

The overall market breadth is negative as 1,170 stocks have declined against 1,117 advancing ones, on the BSE.