Sensex falls over 100 points; Hindalco, Axis Bank down 2%

Benchmark indices have erased early gains and are trading in a negative zone weighed down by auto, IT and select bank shares.

By 10:30, the Sensex was lower by 104 points at 28,827 and the Nifty slipped 37 points at 8,740.

However, BSE Midcap and Smallcap indices are trading marginally in positive zone. Market breadth in BSE has turned marginally negative with 1,047 declines against 1,017 advances.

Higher level profit booking can be expected by noon. Later in the second half further buying can continue. For the Sensex resistance is seen at 28,980 above 29,119 and more. Support is at 28,877 below 28,829, 28,818 and 28,791. In case of the Nifty resistance is seen at 8790 above 8,819 and more while support is at 8759 below 8,744 and 8,700," Geojit BNP Paribas Financial Services said in a technical note.

The rupee is trading at 62.46 per dollar vs previous close of 62.50.

On the global front, Japanese shares extended gains on Friday as industrial robot maker Fanuc jumped more than 10% on a report that it will consider raising its dividend and buying back stock.

The market, looking set to log its eight straight weeks of gains based on broad Topix index, was also underpinned by fresh fund inflows unleashed by the European Central Bank's quantitative easing.

The Nikkei share average rose 1.3% to 19,242.17 points by late morning, a level last seen in 2000, while the broader Topix rose 0.9% to 1,560.52, a seven-year high.

Back home, BSE IT, Metal and TECk indices are down nearly 1% each. Sectors like Auto, Banks, Consumer Durables, Capital Goods, FMCG, Oil & Gas and Realty are trading marginally in negative zone.

The top losers from the Sensex pack are Bharti Airtel, Hindalco, Sun Pharma, GAIL, Axis Bank, Maruti Suzuki, Bajaj Auto and HDFC Bank.

Hindalco and Axis Bank have slumped nearly 2% each.

On the gaining side, HDFC, ICICI Bank, NTPC, Cipla and ONGC have gained between 1-2%.

Shares of companies having insurance subsidiaries were trading higher on the bourses after the Upper house of parliament passes insurance bill that proposes increase in insurance FDI limit to 49%.

Max India, Reliance Capital, Aditya Birla Nuvo, Exide Industries, Bajaj Finserv and Edelweiss Financial Services are up 2-6% on the National Stock Exchange (NSE).

Shares of INOX Leisure were trading higher by 4% at Rs 182 on the BSE after the foreign institutional investors (FIIs) bought the company’s equity shares through open market.