Sensex sheds over 200 pts; broader markets down 2.5%

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The Sensex shed more than 200 points in afternoon trade, weighed down by SBI, Reliance Industries, ICICI Bank and Bharti. Metals, realty, capital goods and power stocks too were down. The BSE benchmark was down 243 points to 18,185.39 and the NSE benchmark slipped 88 points to 5,519.25.

Market veteran Sanjay Dutt, director of Quantum Securities believes the risk-reward ratio is not favourable for investing in markets right now. He feels the market is likely to see 5% downside from current levels after the recent sharp upmove.

SBI, Sterlite Industries and DLF were top losers among the largecaps, falling 6-7%. Shares of country's largest telecom operator Bharti tanked 4%.

Index heavyweights ICICI Bank and Reliance Industries plunged 2.5% & 1.3%, respectively. Metals stocks melted down - Hindalco, Tata Steel and Jindal Steel fell 3-4%.

Among others, Tata Power, BHEL, NTPC, M&M and GAIL were down 2-3%. HDFC and L&T tumbled 1-1.6%.

However, Infosys, TCS, ITC and Wipro bucked the trend, gaining 0.5-1%.

Infrastructure stocks were under pressure today - IVRCL, Adani Power and Indiabulls Power tanked over 8%.

The broader markets like BSE Midcap and Smallcap indices were down over 2.5%.

At 13:53 hours IST: Nifty in narrow range; Sterlite, SBI top sell list

The Nifty was moving a narrow range of 5580-5600 since morning trade due to lack of major news globally as well as locally. Even European markets were flat in an early trade. The BSE benchmark declined 33 points to 18,395.46 and the NSE benchmark fell 17 points to 5,590.10.

Brent crude was trading near to USD 122 a barrel. It seems, however, that the market is not so much worried about rising crude oil prices.

Among technology stocks, Infosys gained 1.6% and TCS rose 2.3%; Wipro climbed just 0.5%. Index heavyweights Reliance and ONGC were up 0.4% & 1.8%, respectively.

In the capital goods space, BHEL surged over 2% while L&T moved up just 0.7%.

Sterlite Industries, a Vedanta Group company, topped the selling list, falling over 5% after yesterday's reports that the Sesa Goa may be merged with the company as a part of restructuring. In the metal space, Jindal Steel, Tata Steel and Hindalco were down 0.7-2.5%.

Meanwhile, shares of country's major lenders SBI and ICICI Bank tumbled 4.6% and 1.3%, respectively. Investors are more worried about asset quality of SBI post reports that the bank is likely to provide loan to debt laden Kingfisher Airlines for running its operations.

Index heavyweight Bharti Airtel fell nearly 2% and realty major DLF tanked 3.5%.

Stocks in news

Corporate Affairs Ministry says cement companies cartelisation case is under review. Ambuja Cements and ACC were down 1-1.5%.

Jubilant Life Sciences rose 3.5% as its arm received 4 orders worth USD 90 million

Rohit Ferro Tech gained 2.5% as the company alloted 2 crore shares to promoters on preferential basis at Rs 60/share.

BPCL jumped 3% after Shell made offer to buy Cove Energy at USD 1.5 billion. Cove Energy has 8.5% stake in Mozambique block, wherein BPCL holds 10% stake that now valued at Rs 248/share.