Metal, banking stocks drag markets

Markets have extended losses in the noon deals on the back of widespread selling pressure visible across the sectors. The Sensex has slipped 260 points to 17,377 and the S&P CNX Nifty is down 83 points at 5,277.

According to Hormuz Maloo, Technical Analyst, Geojit BNP Paribas Securities, "In the medium term, the markets will move lower. However, currently we seem to be moving sideways after the steep fall witnessed on Feburary 27. There is no clear short-term trend evident on the charts, though the bias seems to be on the downside. I think it might be best to await a clear signal before taking a position for the short term."

Ther Asian markets were also trading in the red. The Nikkei closed lower by 78 points at 9,698, Hang Seng shed 274 points to 21,287. Shanghai and Taiwan were also trading lower.

Back home, Jindal Steel is the top Sensex loser, down 4.4% to Rs 565. Hindalco, DLF, Tata Steel, ICICI Bank, Hero MotoCorp, SBI, BHEL, Gail India, Larsen & Toubro, Sterlite Industries, Bajaj Auto, Reliance Industries, HDFC Bank and NTPC are also among the losers, down 2-4% each.

However, Bharti Airtel, Tata Motors, Cipla and Wipro are among the notable gainers.

Metal, banking, realty and capital goods stocks are amongst the worst hit in trades so far. Shares of metal companies are under pressure and trading lower by 2-4% on reports that the China, the world's largest consumer of copper and aluminum, scaled down its GDP growth target to 7.5% this year from last year's 8%. The BSE Metal index has also slipped 3% or 338 points to 11,630 levels.

Bankex is down 2.4% or 291 points at 11,731 levels. Canara Bank is the top loser among the banking stocks, down 5% to Rs 468. Indusind Bank, Union Bank, Yes Bank, IDBI Bank, PNB Bank of India and Axis Bank are alos facing the selling pressure.

Realty, Capital Goods, Consumer Durables, PSU, Oil & Gas, Power, IT, Auto and Healthcare indices have also shed 0.5-2.5% each.

The Anil Dhirubhai Ambani Group (ADAG)-promoted companies shares are in limelight in otherwise weak market on reports that the Comptroller and Auditor General (CAG) softens stand over the issue of the government allowing windfall gains to Anil Ambani led - Reliance Power to divert surplus coal from Sasan and Tilaiya ultra-mega power projects' captive mines to fuel its other plants.

The broader markets are also under pressure. The BSE mid-cap index has shed 1.3% or 84 points at 6,275 and the small-cap index is down 53 points at 6,799 levels.

The overall breadth is extremely negative as 1,687 stocks are declining while 912 are advancing.