Markets change track again, Sensex slips 200pts

The markets after a brief rebound into the positive territory, have slipped back into the negative terrian in line with the European markets. The IT stocks and Reliance remain the chief draggers in noon deals. The Sensex which touched a high of 17,135, is now down 181 points at 16,809.

The NSE Nifty has declined 50 points to 5,068.
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(Updated at 1255 hrs)

Markets rebounded smartly on the back of strong cues from European markets. The BSE Sensex recovered 660 points from the days low, thanks to recovery in realty and auto sectors. The index, however, is unchanged at 16,939. The Nifty is up 14 points at 5,131.

Global markets recovered following a positive opening for the European indices. Shanghai Composite is down marginally at 2,526. Taiwan Weighted was down 0.8% at 7,493.

According to provisional data, FIIs sold shares worth Rs 1,385.78 crore on Monday. Till Friday, FIIs have sold shares worth Rs 2,640 crore this month.

ITC, HDFC and HDFC Bank were leading the recovery - contributing over 70 points to the Sensex's upmove.

ONGC recovered and was up 1.6% at Rs 287 on hopes that the fall in crude oil prices will lessen the subsidy sharing burden on the company.

The decline in crude prices hit offshore oil services firm. Aban Offshore and Hindustan Oil Exploration dropped 2% each while Dolphin Offshore and Great Offshore recovered and were up around 1% each.

Mahindra & Mahindra remained in the green - up 4.6% at Rs 697 after posting a strong outlook for following quarters. The auto major posted 7.5% jump in standalone net profit for the quarter ended June 30 to Rs 604.88 crore on the back of good sales and expenditure control measures.

IT stocks continued to slide post the S&P downgrade of US from AAA to AA+. BSE IT index slipped 1.7% to 5,133.TCS was down 2.6%, followed by Wipro, Patni Computers, Infosys and MhpasiS.