Markets continued to trade in the negative zone on account of heavy selling action seen across bluechip stocks.
 
The benchmark indices had opened positive but in not time fell into the red zone because of mixed signals from the Asian markets.

Some buying was seen in the metal sector but other indices were under selling pressure. Auto stocks seemed to be losing the most along with consumer durables and realty stocks.

BSE Midcap and Smallcap index fell 0.51% and 0.57% respectively.

For the week ended Jan 24, 2009, India’s benchmark wholesale price index (WPI), inflation declined to 5.07%, as against 5.64% a week ago mainly because of declining costs of fruit and vegetables and manufactured goods.

During the corresponding week a year ago, inflation was 4.78%.

At 12:54 p.m., the 30-share index Sensex was trading down 112.91 points at 9,088.94. It also hit a high of 9,247.09 and a low of 9,069.64.

In the meantime, the broad based Nifty lost 33.20 points at 2,769.85 after touching a high of 2,816.80 and a low of 2,767.55.

The overall market breadth was negative. Out of the total 2,263 stocks traded at BSE, 904 posted gains, 1,260 recorded losses while 99 remained unchanged.

Auto industries were suffering huge sell off because of drop in sales.

The top gainers in the 30-share index were Tata Steel (2.60%), and Grasim Industries (0.39%).

The major losers in the Sensex were Sterlite Industries (India) (6.21%), Mahindra & Mahindra (4.86%), Maruti Suzuki India (3.90%), DLF (3.83%), Tata Motors (2.77%), and Housing Development Finance Corporation (2.56%).