Sensex extends fall; banks, tech, capital goods down

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The market extended its fall in the afternoon trade, led by profit booking in banks, metals (barring Tata Steel), technology and capital goods stocks. Index heavyweight Reliance Industries too dragged the market, falling 1.4%.

The Sensex tumbled 179 points to 17,651.75 and the Nifty tanked 61.5 points to 5,350.90. European markets started off with 0.5-1% loss due to doubts over Greek debt deal that approved yesterday.

Anil Manghnani, Modern Shares & Stock Brokers feels this is a good time to book profits as lot of the good news is in the price already.

Among banks, SBI and HDFC Bank fell 1% each; ICICI Bank tanked 2%. Auto stocks like M&M, Maruti and Hero Motocorp were down 1-2.4% while Bajaj Auto gained 0.7%.

Major largecaps like Infosys, TCS, L&T, BHEL and HDFC dropped 0.5-1.5%. Hindalco was the biggest loser, falling 3.8%.

Metal stocks like Sterlite Industries, Hindalco, Coal India and Jindal Steel declined 1-2.7% whereas Tata Steel shot up 4%.

The market breadth was marginally negative; about 1223 shares advanced while 1540 shares declined on the BSE.

At 12:13 hours IST: Asian cues drag Nifty below 5400, IIP data snubbed

The Nifty slipped below the 5400 mark due to weak Asian cues. It was weighed down by ICICI Bank, Reliance Industries and Infosys. However, significant slowdown of December industrial output growth at 1.8% as against 5.9% month-on-month did not see much reaction in the market. The CNBC-TV18 poll had estimated the IIP number at 3.45%.

The Sensex was down just 80 points at 17,751. Meanwhile, the Nifty fell 27 points to 5,385. Asian markets too were down 0.6-1.2%; only Shanghai falls just 0.3%.

Major contributors to the IIP - capital goods and mining sectors growth came in negative in December. However, growth in other sectors like consumer durables, non-durable consumer goods, consumer goods and electricity was lower than last month.

Deputy chairman of Planning Commission Montek Singh Ahluwalia sees pick up in the industrial activity in January-March. However,Samiran Chakrabarty, Head of Research, Standard Chartered Bank is not expecting any sign of industrial recovery.

Back in the market, ICICI Bank and HDFC Bank were down 0.7-1.6% while SBI was down just 0.2%.

Technology stocks like Infosys and TCS lost 0.6-1.4%. Index heavyweight Reliance Industries declined 1% while ONGC rose 0.55%.

In the metal space, Sterlite Industries and Hindalco dropped nearly 2% wheras Tata Steel shot up nearly 4%.

Among others, L&T and Bharti Airtel were up 0.3% and 0.9%, respectively.