The markets have extended losses in mid-morning trades on the back of significnat weakness in capital goods stocks. Energy shares too are facing severe selling pressure.
The Sensex has now shed 198 points at 16,684. The NSE Nifty has dropped 64 points to 5,004.
Among the index stocks, BHEL has slumped 5.5 per cent to Rs 294. Larsen & Toubro has plunged over 4 per cent to Rs 1,235. Jaiprakash Associates too has dropped nearly 4 per cent to Rs 67.65.
Wipro, Hero MotoCorp, Reliance, Coal India, Maruti and Sun Pharma are the other major losers.
On the other hand, Mahindra & Mahindra has advanced nearly 2 per cent to Rs 773. Bharti Airtel, Cipla and SBI are the other notable gainers.
Among sectors, the BSE Capital Goods index has plunged over 4 per cent to 9,790. The Power and the Oil & Gas indices have dropped over 2 per cent each to 2,041 and 8,512, respectively.
BHEL, Thermax and Suzlon Energy are the major losers in the capital goods space. Punj Lloyd, BGR Energy, Siemens, Larsen & Toubro, Crompton Greaves and ABB are the other major losers.
In the oil & gas sector, oil marketing companies are bleeding following a cut in petrol prices. HPCL has plunged 7 per cent to Rs 281. BPCL had tumbled 5.5 per cent and IOC has shed 5.5 per cent. Gail India and Petronet LNG are the otehr prominent losers.