Key share indices have extended the losses tracking weakness in IT, Auto and Metal shares. However, buying among index heavyweight Reliance Inds has capped the downside.
At 11:30, the 30-share Sensex was down 59 points at 17,573 and the 50-share Nifty was down 20 points at 5,315.
Meanwhile, the rupee rose marginally by 3 paise to 55.64 against the dollar in early trade on the Interbank Foreign Exchange today as the American currency weakened against euro overseas.
On the global front, the euro remained firm while Asian shares steadied on Wednesday as investors awaited U.S. Fed chairman Ben Bernanke's Friday speech for signs of whether the bank will opt for more monetary stimulus and a European Central Bank policy meeting next week.
Back home, BSE IT, Auto and TECk indices have slipped by almost 1% each followed by counters like PSU, Capital Goods, Metal, Oil & Gas and Realty, all declining marginally.
Technology majors like Infosys and TCS have slumped by nearly 1% each. Software exporters continued to witness profit taking at higher levels after gains last week and ahead of key US economic data due for release this week. Infosys, Wipro and TCS earn most of their revenues from exports to the US.
From the Auto space, Bajaj Auto is the top Sensex loser, down nearly 3%. Tata Motors, Hero Moto and M&M have slipped between 0.1-1%. Auto shares declined on concerns that sales growth in August would remain subdued on account of high interest on auto loans and rising fuel prices.
Oil and Natural Gas Corporation (ONGC) is trading lower by 2% at Rs 277, extending its previous day’s 2% fall after the Comptroller and Auditor General (CAG) damned the state-owned oil exploration firm for lack of focus on exploration, inefficient operations and tardy pace of developing new oil and gas finds.
Other notable losers include BHEL, Sterlite, HDFC, NTPC, L&T, Tata Steel, Coal India, Bharti Airtel and SBI.
On the gaining side, Tata Power is the top Sensex gainer, up almost 3% in otherwise subdued market after the Maharashtra Electricity Regulatory Commission increased fuel adjustment cost ceiling to 20% from 10%.
Jindal Steel, Cipla, HDFC Bank, Wipro and Hindalco have gained between 1-2%.
Among other shares, Mastek has dipped 8% at Rs 131 extending its previous day’s fall, after the Bombay Stock Exchange (BSE), on Monday, moved the stock to the T group segment as a surveillance measure.
United Breweries has rallied 4.5% at Rs 657, extending its yesterday’s 9% surge after the company said that it is considering amalgamation with Scottish & New Castle (India).
Jaiprakash Associates has tanked 8% to Rs 64.85 after the infrastructure company said that it has launched foreign currency convertible bond (FCCB) issue of $150 million for repayment of the exiting FCCBs.
Pantaloon Retail (India) is trading lower by 3% at Rs 140 on reports that Aditya Birla Nuvo is set to rework its deal for a controlling stake in the company due to valuation concerns.
Meanwhile, BSE Midcap and BSE Smallcap indices are trading flat. The market breadth in BSE remains unhealthy with 1,188 shares declining and 1,090 shares advancing.