Markets continue to languish in red

Metals lose sheen, heavyweights ITC, L&T and financials among the top losers on the Sensex

Markets slipped further in early noon trades as selling in heavyweights like ITC, L&T and financials weighed on the index. At 1140 hrs, the Sensex was down 180 points at 19,463 and the Nifty slipped 52 points at 5,891.

The broader markets too were in the red with the smallcap index down 1% and the midcap index losing 0.8%, almost in line with the BSE benchmark index.

In Asia, risk assets broadly extended losses as sentiment was rattled by overnight market talk that a hedge fund had been liquidating large positions in commodities, as well as worries the Federal Reserve could slow its bond buying program. The MSCI's broadest index of Asia-Pacific shares outside Japan tumbled 1.3% dragged down by a 2.5% slump in its materials sector. Tokyo's Nikkei stock average fell 0.8%.

Back home, selling was visible across the sectors with Consumer Durables, up 0.2%, being the only exception. The major draggers among the indices were Metal which tumbled 2% followed by Capital Goods, Realty, FMCG, Bankex and Auto indices, down 1% each.

Sterlite, Hindalco, Jindal Steel and Tata Steel down 2-3% were the top draggers among the metal stocks.

The other notable losers were Tata Motors, ICICI Bank, L&T, Hindustan Unilever, BHEL, ITC, Coal India, ONGC and Maruti Suzuki down 1-2%.

The only gainers among the Sensex stocks were Bajaj Auto up 0.8%, Tata Power, Bharti Airtel and Cipla up 0.3% each.

The market breadth continues to remain negative on the BSE. 1576 stocks declined while 756 stocks advanced.