Sensex down over 100pts

Markets extended losses in mid-morning trades. The Sensex dropped to a low of 18,120 on selling pressure in index heavyweight, Reliance Industries. The index thereafter, recovered marginally and was down 111 points at 18,157. Nify was down 36 points at 5,449.

Among the sectoral indices, oil & gas recovered from the day's low of 9,292 and was trading at 9,337 - down 0.9%. However, metal and realty stocks declined further in trades.
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(Updated at 1026 hrs)

Markets continued to languish in red as all the sectoral indices dropped into the negative zone. The Sensex touched a low of 18,138 and was down 108 points at 18,160. Nifty slipped 38 points at 5,448.

"June series, nifty range is paning out with strong support at 5400 to upside of 5600 at this point of time. Where we have seen some significant options writing activity," said Navneet Daga, Derivative Analyst, KR Choksey Securities.

Asian markets slipped. Nikkei shed 1% at 9,434. Shanghai Composite dropped 1% to 2,675. Taiwan Weighted dropped 1.5% in morning trades.

Oil & gas index shed over 1% at 9,321 - led by Reliance. RIL is in talks to buy stakes in two insurance joint ventures with France's AXA, but has not disclosed the financial terms of the deal. The stock was down 2% at Rs 925.

Metal index was down 1%. Realty and banking stocks shed ahead of the RBI mid-term policy review later this week. Analysts feel that the central bank is likely to raise the key policy rates to tackle inflation.

Hindalco shed 1.7% to Rs 181. Tata Steel and Jindal Steel dropped 1% each in trades. DLF, Maruti Suzuki, SBI and BHEL shed 1% each.

Among other losers, Reliance Infra, Jaiprakash Associates, TCS and ICICI Bank and Wipro also declined.

In other stocks, HPCL was up 0.8% at Rs 369 on reports that it will start a Rs 150 crore upgradation of one of its two distillation units at its Mumbai refinery two months after the monsoons.

Kingfisher Airlines rose 1% to Rs 41.50 as the carrier looked at alternative funding routes such as private equity, leasing more planes and consolidating its offices into a single centre at Mumbai airport to reduce rent.

BSE market breadth was negative. Out of 2,201 stocks traded, 1,185 declined while 931 advanced in trades.