Rate-sensitives trade weak in noon trades

Markets dropped further as rate sensitives slipped in noon trades. Investors await the government's announcement of key inflation data which will come out later today.

Corporate earnings will be deciding the direction of the markets. India Inc will start reporting its quarterly numbers from Monday.

Sensex dropped to a low of 20,196 in late morning trades. The index recovered thereafter and was down 70 points at 20,231.

Nifty slipped 14 points at 6,066.

Rate sensitive sectors - realty, auto and bankex slipped in trades ahead of inflation numbers. Realty and auto indices shed 1% each to 2,756 and 9,880, respectively.

However, the IT index was up 0.2% at 6,857.

HDFC Bank and Bharti Airtel were up 1% each. Other telecom stock - Reliance Communications added 1% to Rs 141.

Reliance Infrastructure, NTPC and HDFC were among the other gainers.

TCS and Infosys among IT stocks were in green. Market heavyweight, Reliance was up 0.3% in trades.
Sterlite tumbled 4% to Rs 183. Bajaj Auto slipped 3% to Rs 1,334.

Cipla, SBI, ONGC and Jaiprakash Associates dropped 1-2% each. Among other losers, Mahindra & Mahindra, ITC and Larsen & Toubro were down over 1% each.

Hero Honda, Hindustan Unilever, Maruti Suzuki and ICICI Bank were also in red.