Weakness in financial and metal sectors pulled the markets lower

Domestic stock markets extended losses to a second day running on Thursday, with the Nifty sliding below the 11,850 mark, amid weakness in Asian peers. The S&P BSE Sensex index fell as much as 228.04 points to 39,528.77, and the NSE Nifty index moved to 11,835.20, down 71 points from the previous close. Weakness in financial and metal sectors pulled the markets lower, a day after official data showed consumer inflation rose to its highest level recorded in seven months.

The benchmark indexes were off the day's weakest points as the markets entered the second hour of trade.

At 10:18 am, the Sensex traded 175.03 points - or 0.44 per cent - lower at 39,581.78 while the Nifty was down 54.50 points - or 0.46 per cent - at 11,851.70.

Top percentage laggards on the index at the time were Yes Bank, IndusInd Bank, Vedanta, Grasim and HCL Tech, trading between 1.35 per cent and 8.91 per cent lower.

Infosys, IndusInd Bank and HDFC were the biggest drags on the Sensex.

Government data showed after market hours on Wednesday that retail inflation - determined by Consumer Price Index (CPI) - picked up to 3.05 per cent in May, the highest level recorded since October last year.

Equities in other Asian markets stuttered amid uncertainty over the US-China trade dispute. MSCI's broadest index of Asia-Pacific shares outside Japan ticked down 0.1 per cent, slipping from a one-month high touched earlier this week, while Japan's Nikkei lost 0.3 per cent. On Wall Street, the S&P 500 lost 0.20 per cent on Wednesday.

The rupee edged lower against the dollar to 69.38 in morning deals.

The Sensex and Nifty had ended 0.48 per cent and 0.5 per cent lower respectively on Wednesday, halting a three-day winning streak as auto, telecom, capital goods and banking sector shares came under selling pressure.

(With inputs from Reuters)