Relentless selling drags sensex nearly 500 points

The markets have slipped deeper in the red on sustained selling pressure in scrips across sectors led by auto, banking and capital good stocks.At 14.00 pm the sensex is trading at 12566, down by 505 points and Nifty is trading at 3665 down by 156 points.

All stocks of the BSE Sensex, with the exception of Ranbaxy Laboratories, were mired in the red.Ranbaxy Laboratories was up 1.53% to Rs 358, after saying on Monday it would conduct tests for a new compound to treat respiratory inflammation. In February 2007, Ranbaxy Laboratories had announced a research and development pact with GlaxoSmithKline. Ranbaxy said on Monday, it will be responsible for subsequent tests of the new compound and clinical studies, while GSK would have the option to commercialise it.