Markets further down led by banks

Benchmark Indices have dropped further tracking weak Asian cues with bank shares leading the fall. Asian markets are trading weak with Nikkei, Hang Sensex, Kospi, Shanghai and Strait Times falling down between 0.4-2%. Asian shares have fallen on worries that the euro zone debt crisis is crippling European banks.

At 1115 hrs, the Sensex was down 157 points at 15,700 and the Nifty fell 33 points to 4,697.

Back home, all the sectoral indices are trading in red zone.

The issue of NPAs (non-performing assets) has battered the sentiment of banking sector. BSE Bankex has plunged by nearly 2%.Several banks have exposure to debts of airline companies. SBI’s Chairman Pratip Chaudhuri says, Kingfisher Airlines (KFA) outstanding loan is an NPA for us. SBI, ICICI Bank, Axis Bank and PNB have fallen between 1-3%. HDFC is down 2%.

From the Metal segment, Sterlite, Jindal Steel, Tata Steel, Hindalco and Coal India have dropped between 1-3%. BSE Metal index is down 1%.

Telecom major Bharti Airtel is the top Sensex loser, down 4%.

Among Capital Goods sector, L&T and BHEL have plummeted between 2-3% on concerns of slowdown in order inflows.

Other key frontline shares like ONGC, Ranbaxy Labs, Wipro, JP Associates and Hero Motocorp are down between 1-3%.

However, Maruti Suzuki and index heavyweight Reliance industries have gained by nearly 0.5% each.

The broader markets too are performing weak in line with benchmark indices, dropping between 0.4-1%.

Kingfisher Airlines has declined 9% on concerns over company's debts and shortage of funds for running operations. Group company, United Spirits has lost 4%.

Media stocks are also under pressure. TV Today and Network 18 have fallen by nearly 4% each. TV18 Broadcast is down 1%.

PG Electroplast has slipped 5% to Rs 122, its lowest level since its listing on September 2011, after four non executive independent directors of the company resigned from the board, over the allegations contained in the exparte order passed by market regulator, Securities Exchange Board of India (SEBI).

Among other midcap shares, Jet Airways, VIP Industries, IRB Infra and GVK Power are down 2-3%.

Other banking shares like IDBI Bank, UCO Bank, Bank of Baroda, Union Bank of India and Allahabad Bank are down over 1%.

The market breadth in BSE turns unhealthy with 901 shares advancing and 1,251 shares declining.