Sensex ends down 133 pts

Sensex ends down (provisional) 133 points at 18,336. Nifty ends down 36 points at 5,495.
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(Updated at 1432 hrs)

Markets continued to languish in red, albeit off the day's lows. The Sensex had dropped to a low of 18,261 on weak cues from the global markets. It recovered thereafter to trade at 18,304 - 166 points lower.  Meanwhile, the NSE Nifty was down 47 points at 5,484.

Asian markets slipped in trades as crude prices rose again after easing on Wednesday. Continuing unrest in Libya and Middle East put pressure on crude prices. Organization of the Petroleum Exporting Countries (OPEC) has reportedly said that there is no pressure on the supply side as of now and therefore there will be no need to hold an emergency meeting. China also posted a dissapointing trade deficit of $7.3 billion. Shanghai Composite shed 1.5% to 2,958 as investors took to booking profits in banking shares. Nikkei fell 1.5% to below a key support level to 10,434.

Markets are looking towards the RBI policy review on March 17 and the fourth advance tax payment installment on March 15 for direction, now that the Union Budget is over.

Banking stocks dropped on inflation concerns. Meanwhile, food inflation dropped marginally in February, but remained at elavated levels, giving rise to fears of further monetary tightening. The RBI would be holding its mid-quarter policy review later this month.

Bankex was down 1.3% at 12,292. ICICI Bank was down 2% at Rs 1,013. Yes Bank, Canara Bank, SBI, Axis Bank and Federal Bank slipped 1.2% each.

Metal stocks dropped, mirroring cues from the LME.  BSE metal index tumbled 1.5% to 15,637. Sensex stocks fell. JSW Steel shed 3% to Rs 937. Hindalco dropped 2.6% to Rs 207. Tata Steel and Sesa Goa slipped 2% each. Among other losers were Jindal Saw, Hindustan Zinc and Jindal Steel.

Among other Sensex stocks, Tata Power dropped 2.3% to Rs 1,200. NTPC and TCS dropped 1.5% each to Rs 175 and Rs 1,108, respectively.

Bharti Airtel, Bajaj Auto, Jaiprakash Associates and Larsen & Toubro were among the other losers.

On the other hand, DLF gained 1.5% at Rs 229. Hero Honda continued Wednesday's good run and edged up 1% at rs 1,551. Reliance Infra, Reliance Communications and ONGC were down marginally.