Markets extend losses

Sensex continues to trade in a short range of 100 points below the psychological level of 20,000 while the Nifty too is below the important 6,000 level mark. The market is currently at 19,888, shedding 421 points while the Nifty lost 130 points at 5,990.

In the broader markets, the smallcap has reacted sharply and is down 2.4% as compared to the midcap index shedding 1.8%. The benchmark index too is down 2%

All the sectoral indices on the BSE are trading in the red. Metal and Realty lead the downfall, losing 3% and 2.7% respectively. The downfall in the metal stocks can be attributed to the monetary tightening in China which is the world's largest consumer of aluminium and copper.The auto sector is down due to the heavy profit booking in this space. The least affected is the Health Care index losing 0.7%

Globally, the Asian markets closed in the red.Hang Seng lost 1% while Nikkei closed down 0.3%. Among all the indices, Shanghai Composite had the sharpest fall, declining nearly 4%.

After opening in the negative, the European indices continue to extend losses. CAC is down 1% while DAX and FTSE is lower by 0.5% and 0.8% respectively.

Back home, the only gainer among the Sensex -30 stocks is Bharti Airtel gaining 1%

Apart from the metal and auto stocks, Reliance Communications, Tata Power and SBI shedding 3% each are the major losers. ITC, Wipro,DLF and ICICI Bank losing 2% each are the other signifcant losers.

The market breadth is extremely negative. 2489 stocks have declined while 499 have advanced on the BSE