Market set for a weak close on profit booking

The senitment was also hit as activity in the largest segment of the Indian economy -- services -- failed to pickup in March

Benchmark indices extended losses in noon deals dragged down by Reliance Industries, infrastructure major Larsen & Toubro and lenders State Bank of India and ICICI Bank.

The sentiment was also hit as activity in the largest segment of the Indian economy -- services -- failed to pickup in March as contraction continued for the ninth straight month, HSBC Purchasing Managers' Index data showed today.

The PMI services stood at a three-month low of 47.5 points in March compared to 48.8 points in February -- indicating a contraction. In February, the index had inched up from 47.7 points in the previous month.

At 1440 hrs, the 30-share BSE Sensex was down 136 points at 22,415 levels and NSE Nifty slipped 41 points at 6,711 levels.

Among index heavyweights, BHEL, Reliance, Larsen & Toubro and Axis Bank, SBI plunged over 1-4% lower in noon deals.

On the sectoral front, BSE Capital Goods, Oil & Gas indices and BSE Bankex have slumped by over 1% each followed by counters like Power and Auto, all falling by nearly 1% each. However, BSE Consumer Durables and Healthcare indices have surged by nearly 1%.

On the global front, Asian shares hovered near four-month highs on Thursday as upbeat US data underpinned risk appetite, while news China is taking steps to stimulate its economy spurred Tokyo's Nikkei to a three-week peak.

The yen languished at 10-week lows as equity markets rose, denting safe-haven demand for the currency.

MSCI's broadest index of Asia-Pacific shares outside Japan added 0.1% to brush a new four-month high. The index has rebounded about 6% from a five-week low hit on March 20, supported by receding tensions in Ukraine and hopes China will take steps to stimulate its sagging economy.

Tokyo's Nikkei outperformed to gain 1.2% while South Korea's KOSPI rose to three-month highs.

Back home, FIIs bought shares worth a net Rs 594.67 crore on Wednesday, 2 April 2014, as per provisional data from the stock exchanges.

The rupee is trading at 59.90/91 compared to its previous close, tracking largely unchanged domestic sharemarket with mixed Asian currencies failing to provide any clear direction.

L&T has fallen on a media report that the company is likely to trim its Rs 1.7-lakh crore order book by about 10%.

Stocks of pharmaceutical companies continued to gain in trade today with counters like Wockhardt, Strides Arcolab, Dr Reddy’s Laboratories and Ranbaxy Laboratories moving up between 1 – 13%.

The BSE pharmaceutical index, S&P BSE Healthcare index is the largest gainer among sectoral indices has gained nearly 1%

Among other shares, GMR Infrastructure lost 1.7% to Rs 23 in noon deals on BSE, with the stock sliding on profit booking after recent rally.

Hindustan Motors has lost 3.63% to Rs 7.44 after the company said its total vehicle sales declined 73.87% to 232 units in March 2014 over March 2013.

The market breadth in BSE remains weak with 1,435 shares declining and 1,145 shares advancing.