Markets trading weak, HDFC sheds 5%

Markets are trading near their day’s low dragged by financial shares with HDFC leading the fall. The Sensex and Nifty are trading below 18,000 mark and 5,450 levels respectively. 

By 1120 hrs, the Sensex was down 93 points at 17,952 and the 50-share Nifty slashed down 35 points at 5,448.

On the global front, Asian markets are trading on a mixed note. Nikkei, Strait Times, Hang Seng, Taiwan and Kospi are trading marginally higher. Jakarta and SGX Nifty are trading weak.

Back home, financial and banking shares led the decline. HDFC is the top Sensex loser, down 5% after about 14.50 million shares of India's top mortgage lender, changed hands on the counter in block deals today. According to media reports, Citigroup Inc which holds around 145 million shares, or a 9.9% stake, in the company sold its entire stake at an average market price of Rs 670 per share via block deals.

Among banking shares, SBI, ICICI Bank and HDFC Bank have plunged between 1-2% on profit taking after recent gains on hopes of rate cut by the central bank as concerns over rising inflation eased.

Index heavyweight Reliance Industries have extended early losses and are down by nearly 2%. 

In the capital goods sector, stocks like L&T and BHEL have plummeted between 1-2% after gains over the past few sessions.

From the realty pack, DLF has dropped by almost 2%.

Auto shares like Bajaj Auto, Hero MotoCorp and Tata Motors have slipped by nearly 1% each.

ONGC has declined by nearly 1% after the stock gained post the government's announcement that it will divest stake in the exploration major through auction.

The broader indices are trading marginally weak with BSE Midcap and Smallcap indices declining between 0.2-0.4%.

ABB has dipped 5% on reporting 11.3% quarter-on-quarter drop in order flow at Rs 22,093 crore for the quarter ended December 2011 (Q4). The Indian arm of Swiss automation and power firm had bagged orders worth of Rs 24,926 crore in Q3.

The market breadth in BSE turns weak with 1355 shares declining and 1,020 advancing.