Markets turned negative in noon trades on selling pressure in select index heavyweights as the weakening rupee continued to weigh on investor sentiment.
At 1:13PM the 30-share Sensex was down 27 points at 16,156 after touching an intra-day low of 16,121 and the 50-share Nifty was trading down 8 points at 4,898 after touching an intra-day low of 4,889 so far.
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(Updated at 12:49 hrs)
Markets continued to move in a lacklustre fashion as the Rupee declined to touch a new low of 55.09 this morning. The sensex is trading at 16,260 - up 77 points. Nifty is up 26 points at 4,932.
In Asian markets on Tuesday, Japan's benchmark Nikkei average added 1% to 8,729, following gains in the US markets. Shanghai Composite and Hang Seng also moved up smartly.
The rupee fell to a new record low of 55.09 to the dollar, its fifth consecutive all-time low, as arbitrage measures taken by the RBI late on Monday provided only a brief sentiment boost.
BSE PSU index has gained 1% this afternoon to 6,753. Oil & gas, IT and metal shares have added 1% each. However, some weakness can be seen in healthcare and realty shares.
Tata Power has dipped 2.2% to Rs 93. Sun Pharma is down 2% at Rs 581. From the auto pack - Maruti Suzuki has slipped 1.2% to Rs 1193, followed by Hero MotoCorp and Bajaj Auto.
On the other hand, Tata Motors is the top contributor to the Sensex's upmove and is up 2.6% at Rs 269. BHEL, GAIL India, ONGC have moved up 1-3% each. From the Tata Group - TCS and Tata Steel have added 1.4% each. ICICI Bank, BHarti Airtel and Reliance are also trading in green.
Among individual stocks, Thomas Cook India has surged 3% to Rs 63 on reports that Canada-based Fairfax Financial Holdings will buy Thomas Cook Group Plc's 77% stake in its India operations for about $150 million.
Biocon is down marginally at Rs 215 on reports that Portuguese investment bank Espirito Santo has raised concerns over the accounting processes of the company.
Pfizer has registered net profit of Rs 48.10 crore in the quarter ended March 2012 as against Rs 63.14 crore in the previous corresponding period. The stock is down 1.5% at Rs 1,179.
Zee Entertainment Enterprises has reported 18.6% decline in its consolidated net profit for the quarter ended March 2012. Shares of Zee are up 1% at Rs 124.
BSE market breadth is fairly positive. Out of 2,451 shares traded, 1,310 shares have advanced while 1,001 shares have declined in trades.