Selling pressure emerged in banking stocks despite the wholesale inflation data released today was lower than estimates. Wholesale inflation, as measured by wholesale price index, inched up by 0.11 per cent in December, against analyst estimates of 0.40 per cent.
The Bank Nifty was down 0.80 per cent with ICICI Bank, PNB and Axis Bank down 1-2 per cent. Metal stocks were hit hard amid a global selloff in commodities. The BSE metal index was down over 2.5 per cent. Hindalco fell nearly 6 per cent while Sesa Sterlite fell 4.5 per cent and Tata Steel 2.7 per cent.
Also weighing on markets was a 3.5 per cent loss in ITC amid fears of tougher anti-tobacco laws.
At 12:56 pm, Sensex was down 183 points at 27,242 while Nifty fell 50 points to 8,249.