Markets crack in noon deals

Markets extended their losses in noon deals on the back of selling pressure in capital goods, realty and metal stocks. The Sensex is down 142 points at 15,236 and the Nifty is at 4,574, lower by 38 points.

The markets had opened in the red and the Sensex has touched a low of 15,280 thus far.

According to Ranak Merchant, technical analyst, Sushil Financial Services, "As we have been forming new 52-week lows, the markets are now definitely trading in an oversold condition. A pullback can be on the cards; 4640 should be eyed on the Nifty spot for a corrective pullback."

J P Associates is the top loser among the Sensex stocks, down 5.2% at Rs 55. Hero MotoCorp is down 3.6% at Rs 1,840. Jindal Steel, Tata Steel, Larsen & Toubro, Hindalco, Tata Motors, SBI and NTPC are also trading in the red, down 2-3% each.

On the other hand, ONGC, HDFC Bank, ITC and HDFC are among the notable gainers.

Among the individual stocks, BEML is trading higher by 2% to Rs 471, bouncing back over 4% from the day’s low of Rs 452, on bagging Rs 318 crore Jaipur metro orders.

Shares of Network18 Group companies - Network18 Media and Investments and TV18 Broadcast have rallied more than 10% each on reports that Mukesh Ambani, promoter of Reliance Industries, is in talks to buy stake in Network 18.

Mahindra Satyam is trading higher by 4% at Rs 65.40 on reports of a merger with group company Tech Mahindra.

Selling pressures visible across the board. Metal, capital goods and realty stocks are among the worst hit. BSE Metal index has shed 2.5% or 238 points to 9,371 levels. Capital Goods and Realty indices are also weaker by over 2% each. Auto, Consumer Durables, Power, Bankex, IT and Oil & Gas indices have also shed 0.4-1.9% each.

From the metal pack, NMDC is the top loser. The stock has shed 4% to Rs 139. JSW Steel, Jindal Steel, Sesa Goa, Coal India and Sterlite Industries are also trading weaker by 1.6-4% each. Among the capital goods stocks, Crompton Greaves is the top loser. It is followed by BGR Energy, L&T, Punj Lloyd, Praj Industries and havells India.

The mid-cap and small-cap indices are weaker by 1% each.

The overall market breadth is extremely negative as 1,648 stocks are declining while 817 are advancing.