MUMBAI: Markets continued to reel under selling pressure as global sentiments turned bearish after Standard & Poor’s cut Greece’s rating to junk and lowered Portugal two notches. With April series F&O expiry due on Thursday, volatility is expected to be high during the day.

“Risk appetite has taken a beating amid concerns that the financial mess in “PIIGS” could spread to more European nations. The Goldman Sachs fraud case and worries about more tightening in China are among the other pressure points.

To add to the volatility we have the F&O expiry on Thursday. The Fed will keep rates steady later today. Still, the markets will be eager to know if there is any change in its language.

One will also have to keep a close tab on the latest developments in the region. The Nifty has a good support at 5200 but may fall below it if there is any further deterioration in the global sentiment,” said India Infoline report.

At 11 am, National Stock Exchange’s Nifty was at 5261.90, down 46.45 points or 0.88 per cent. The index touched a low of 5234.35 and high of 5308.25 in trade so far.

Bombay Stock Exchange’s Sensex was at 17538.21, down 152.41 points or 0.86 per cent. The index touched intraday low of 17461.35 and high of 17643.59.

BSE Midcap Index was down 0.94 per cent and BSE Smallcap Index moved 0.91 per cent lower.

Amongst the sectoral indices, BSE Realty Index fell 2.12 per cent and BSE Metal Index slipped 1.67 per cent. BSE FMCG Index was up 0.34 per cent.

Jaiprakash Associates (-3.27%), Unitech (-2.36%), Hindalco Industries (-2.23%), SAIL (-2.11%) and Tata Power (-2.09%) led the Nifty decline.

ITC (0.54%) were the only index gainers.

Market breadth was negative on the NSE with 1946 declines against 1022 advances.

Meanwhile, The Dow Jones Industrial Average dropped 213.04 points, or 1.90 per cent, to 10,991.99. The Standard & Poor's 500 Index slid 28.34 points, or 2.34 per cent, to 1,183.71. The Nasdaq Composite Index lost 51.48 points, or 2.04 per cent, to 2,471.47.