Markets slump on L&T nos, global cues

Markets extended recent losses as it dropped on a dissapointing Q3 performance by construction major, Larsen & Tourbo.

The Sensex opened flat at 17,474 on weak cues from Asian markets.The index moved in a range till noon. However L&T's quarterly numbers dragged markets to a low of 17,025. The Sensex finally ended with a huge loss of 423 points (2.4%) at 17,051.

The Nifty dropped 128 points (2.4%) to 5,094.

Asian markets shed on worries that China will tighten policies. The Hang Seng dropped 1.99% to 20,863. The Jakarta Composite dropped 1.08%.

All sectoral indices were in the red. BSE capital goods index slumped 5% to 13,501. The power, PSU, realty, healthcare and metal indices followed.

IT index pared early gains. Stock in the sector had gained in morning trades following re-ratings as companies reported robust earnings.

Larsen & Toubro was responsible for more than a 80 points drop in the index. The stocks crashed 6.8% to Rs 1,524. Earlier in the day, the company posted a 50% decline in net profit after tax at Rs 758.82 crore for the quarter ended December 2009. Net sales were down 6% at Rs 8,071 crore.

However, excluding extra ordinary income from the net profit results into a 15% jump at Rs 696.27 crore for Q3FY10 versus Rs 604.11 crore in Q3FY09.

Tata Power slumped 4.5% to Rs 1,357. BHEL dropped 4% in spite of a 35% jump in Q3 net. Sterlite tumbled 4%.

HDFC, Reliance Infrastructure, Tata Motors and Jaiprakash Associates NTPC, ICICI Bank and Bharti Airtel declined 2-3% each.

The other losers in the market today were HDFC Bank, DLF, Wipro and index heavyweight, Reliance.

However, Raymond jumped 9.2% to Rs 251 on net profit of Rs 42.57 crore in Q3FY10 as against a loss of Rs 15.20 crore in Q3FY09.

LIC, which often becomes a buyer on days when the market is falling was absent today due to a nationwide strike by its employees.

The BSE market breadth was extremely negative. Out of 2,962 stocks traded 2,356 declined while 557 advanced.