At 1.00pm, the Sensex was at 28,327, down 135 points or 0.5% and Nifty was at 8,562, down 47 points.
In the broader markets, the midcap and smallcap indices are trading flat with a positive bias at 11,235 and 11,726 respectively.
Also Read
The market breadth on the BSE is positive as about 1,345 shares have advanced as against 1,173 declines.
RUPEE
The US dollar held broad gains in Asia on Monday as investors looked ahead to higher interest rates from the Federal Reserve, while gold slumped to five-year lows as a lack of global inflation left little to hedge against.
GOLD
Gold plunged 4% to $1,088.05 an ounce, its lowest level in more than five years, as sellers in China sold off the metal in a matter of minutes, just as bullion's safe-have status takes a fresh knock from mounting expectations of a US rate hike.
SECTORS AND STOCKS
BHEL, Axis Bank, SBI and ICICI Bank have shed 1-2% each to emerge as the losers among the BSE Sensex scrips. Tata Motors and Hindustan Unilever are the other significant losers among the index heavyweights.
On the sectoral front, the BSE Banking index has shed more than 1% to emerge as the top loser on the BSE on apprehensions that the RBI would keep the interest rate unchanged in its next fiscal policy review for 2015-16 in the view of sub-normal monsoons, weak IIP numbers for May and the increase in retail inflation data for June. Axis Bank, SBI and ICICI Bank have slipped 1-2% each, while the midcap banking names such as PNB, Federal Bank and Bank of Baroda have lost 2-7% each.
On the other hand, Hindalco, M&M and Bharti Airtel are bucking the weak trend with gains of around 1% each. Gold stocks have also gained across the board, with Gitanjali Gems, TBZ, Shree Ganesh Jewellery, Renaissance Jewellery, PC Jeweller and Rajesh Exports surging by 2-15%, on the back of a decline in gold prices.