Markets slump to lows of the day

Metal, power, realty and capital goods slump

Markets have suddenly extended losses and is at the day's low. The Sensex has slipped 175 points at 17,346. Nifty is down 50 points at 5,267.

"From the day's perspective one should keep a stop loss at 5,280. But from a positional point of view the breakout happened at 5,200. So as long as 5,200 holds on the positional players will hold on to long positions. But 5,280 should be kept as a stop loss," said Anil Manghnani, Chairman, Modern Shares & Stock Brokers.

In Asia, market dropped lower on fears of a slowdown in global growth. Nikkei dropped 1.4% to 8,897. Shanghai Composite slumped 2.4% to 2,171.

BSE metal index has slipped 2% to 10,777. Power, realty and capital goods have dropped 1-2% each in trades.

Jindal Steel has slipped 3% to Rs 441. From the metal pack - Tata Steel and Hindalco have shed around 2% each. Bajaj Auto has slipped 2.6% to Rs 1,498. Maruti Suzuki and Hero MotoCorp have dropped 2% each.

Among other losers are HDFC Bank, Bharti Airtel and Wipro.

Power generation stocks fell for the second straight day on profit booking after recent strong gains. Adani Power and JSW Energy have dropped 5.2% each. Lanco Infratech, KSK Energy and Reliance Infra have dipped 3-4% each.

Shares of tyre firms extended recent gains triggered by decline in prices of natural rubber over the past few weeks. Modi Rubber added 9% to Rs 32.80.

BSE market breadth is negative. Out of 2,666 stocks traded, 1,651 shares have declined while 918 shares have declined.