New Delhi: Markets closed in the red. The Sensex ended down 130 points at 17,374. Nifty was also down by 42 points at 5,291.

Equities were ruling in the red intra-day Friday after a key index opened lower, following a rise of more than 400 points this week largely due to the favourable monetary policy announced by the central bank three days ago. The sensitive index (Sensex) of the Bombay Stock Exchange (BSE) opened at 17,459.72 points, against the previous close of 17,503.71 points.

BSE capital goods index was down nearly 2 percent to 9,874. Power, realty and oil & gas indices also dipped lower in trades. However, BSE auto index maanged to end flat at 10,753.

"We are bullish upon auto shares such as Tata Motors, Maruti Suzuki, M&M, Hero MotoCorp. Tata Motors is the top pick from this space. One can go long with stop loss at Rs 302 and target price of Rs 345. Marut Suzuki can be purchased with a target of 1,470,"says Salil Sharma, Technical Analyst, Partner,

In the auto stocks, M&M moved up by 3 percent at Rs 727 on the report that the government approved the foreign direct investment (FDI) proposal worth of Rs 25.99 crore for company’s radar systems.

Maruti Suzuki ended flat at Rs 1,391. The company has started a campaign on "Live life with LUV (Life Utility Vehicle)" adverts as it promotes its new Ertiga model, and stock investors appear to have responded in kind.

Among the  big stocks, Reliance dropped 1.4 percent at Rs 731 ahead of its quarterly results on Friday.

Larsen & Toubro saw a fall of 2 percent at Rs 1,292 after the announcement that the SUN Group has commissioned one of the fastest executed solar projects in India at the Gujarat Solar Park. 

ICICI Bank dropped 2 percent to Rs 861 and along with RIL and L&T, accounted for a 62 point fall in the Sensex. Among other losers were Hindalco, ONGC, BHEL and DLF.