Sensex drops 200 pts as autos decline

Markets extended losses on cues from Asian markets and declining auto and banking stocks.

The Sensex dropped to a low of 17,974. The index was down 200 points at 17,978.

The Nifty slipped below 5,400 and was down 60 points at 5,377.

BSE small and mid-cap indices shed in line with the benchmark indices. BSE mid-cap index was down 1% at 6,495. Small-cap index dropped 07% at 7,979.

Meanwhile, all sectoral indices dropped in the negative zone. BSE capital goods index was down 1.6% at 12,664.

The auto and bankex slipped 1.3% each to 8,373 and 11,948, respectively.

Among auto stocks, Tata Motors and Maruti Suzuki shed 2.5% each to Rs 1,115 and Rs 1,163, respectively. Bharat Forge dropped 2% to Rs 309. Mahindra & Mahindra, Bajaj Auto and Apollo Tyres were down over 1% each.

Banking stocks were also in red. Kotak Mahindra Bank slipped 3% to Rs 396. Yes Bank, Axis Bank, IDBI Bank were down nearly 2% each. ICICI Bank and SBI were down 1% each. HDFC Bank was also in red.

Among Sensex stocks, Larsen & Toubro dropped 2.3% to Rs 1,564.

Sterlite, Jaiprakash Associates, ONGC, Tata Power and BHEL were in red.

However, Hero Honda gained 2.5% at Rs 1,502 on reports that the Foreign Investment Promotion Board (FIPB) cleared the proposal of the Indian promoter to raise Rs 4,500-crore from overseas investors. Bharti Airtel added 1.5% to Rs 333.

DLF, Wipro, Hindustan Unilever and ITC were in green.