 "Nifty hits below 5,600 mark, Midcaps hammered")
Benchmark indices have extended the losses weighed down by consistent slide in rupee against the dollar along with financials, metals and capital goods shares leading the fall. Weakness in Asian markets has also dampened the sentiments among investors.
By 13:00 PM, the 30-share Sensex slumped 240 points at 18,945 and the 50-share Nifty fell 83 points at 5,602 levels. The Sensex and the Nifty have hit an intra-day low of 18,896 and 5,587 levels, respectively.
The broader markets continue to underperform the benchmark indices. BSE Midcap index has declined by 2.34% whereas BSE Smallcap index is down 1.58%.
INDIAN RUPEE
The rupee fell to a record low on Tuesday, on what traders said was dollar demand from importers, raising prospects for the RBI to take fresh steps to bolster a currency that has lost 12.6 percent since the start of May.
Rupee has hit an all-time low of 61.78, breaching its previous record of 61.21 last seen on July 8. The INR has slipped around 9.6% this year, making it the weakest emerging market currency in Asia against the dollar.
Analysts say that is very difficult to take a call on where the currency is headed as it has become very vulnerable to the heightened imbalances in the balance of payment (BoP) account.
“There was some dollar demand in the morning due to which the rupee has seen a sharp slide,” said N S Venkatesh, chief general Manager & head - Treasury at IDBI Bank.
The sub-committee of Financial Stability Development Council (FSDC) will meet in Mumbai tomorrow to assess the impact of liquidity tightening steps taken by the central bank in the last few weeks. The meet will discuss further measures to arrest fall of the rupee.
Business activity across emerging economies contracted for the first time in over four years in July, driven mainly by a drop in manufacturing while services activity stagnated, a survey showed on Tuesday.
ASIAN MARKETS
Asian shares fell to a two-week low on Tuesday, with Japan a notable exception as it reversed early losses, while the Australian dollar pushed away from a three-year trough after the central bank cut official rates to a record low.
Japanese stocks rose more than 2.5 percent from their lows to end up 1 percent on talk the central bank was buying exchange-traded funds and a Reuters report a massive public pension fund was considering increasing its allocation mix to buy more stocks.
SECTORS & STOCKS
BSE Consumer Durables index has crumbled by over 5% followed by counters like Realty, Banks, Metal, Capital Goods, PSU, Oil & gas and Power, all falling down between 2-4%.
The main losers on the Sensex at this hour include Sterlite, Tata Steel, Tata Power, HDFC Bank, Bajaj Auto, ICICI Bank and JSPL, all declining between 3-6%.
Banking shares are under hammer and trading lower by up to 7% after the rupee touched a record low 61.66 against the dollar in noon deals today.
Union Bank of India, Corporation Bank, Oriental Bank of Commerce, Karnataka Bank, Uco Bank, Canara Bank and YES Bank are down in the range of 5-7% on the National Stock Exchange (NSE).
Shares of real estate companies are under pressure with most of them trading at their historic lows on concerns that there will be no chance of the interest costs declining in the near future as rupee hit new low against dollar today.
DLF, Housing Development and Infrastructure (HDIL) and Oberoi Realty have hit record low, while, Peninsula Land, Anand Raj Industries and Godrej Properties are trading at 52-week lows on the Bombay Stock Exchange (BSE). Most of these stocks are down in the range of 1-10%.
On the gaining side, Hero Moto, Wipro, Maruti Suzuki and NTPC have gained between 1-2%.
Among other shares, Orbit Corporation’s share price dipped sharply by 9% a day after LIC Housing Finance Ltd sent a notice to Mumbai-based real estate company to recover dues.
The share was trading at to Rs 10.8 per share on the Bombay Stock Exchange.
By 13:00 PM, the 30-share Sensex slumped 240 points at 18,945 and the 50-share Nifty fell 83 points at 5,602 levels. The Sensex and the Nifty have hit an intra-day low of 18,896 and 5,587 levels, respectively.
The broader markets continue to underperform the benchmark indices. BSE Midcap index has declined by 2.34% whereas BSE Smallcap index is down 1.58%.
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The market breadth in BSE remains weak with 1,443 shares declining and 505 shares advancing.
INDIAN RUPEE
The rupee fell to a record low on Tuesday, on what traders said was dollar demand from importers, raising prospects for the RBI to take fresh steps to bolster a currency that has lost 12.6 percent since the start of May.
Rupee has hit an all-time low of 61.78, breaching its previous record of 61.21 last seen on July 8. The INR has slipped around 9.6% this year, making it the weakest emerging market currency in Asia against the dollar.
Analysts say that is very difficult to take a call on where the currency is headed as it has become very vulnerable to the heightened imbalances in the balance of payment (BoP) account.
“There was some dollar demand in the morning due to which the rupee has seen a sharp slide,” said N S Venkatesh, chief general Manager & head - Treasury at IDBI Bank.
The sub-committee of Financial Stability Development Council (FSDC) will meet in Mumbai tomorrow to assess the impact of liquidity tightening steps taken by the central bank in the last few weeks. The meet will discuss further measures to arrest fall of the rupee.
Business activity across emerging economies contracted for the first time in over four years in July, driven mainly by a drop in manufacturing while services activity stagnated, a survey showed on Tuesday.
ASIAN MARKETS
Asian shares fell to a two-week low on Tuesday, with Japan a notable exception as it reversed early losses, while the Australian dollar pushed away from a three-year trough after the central bank cut official rates to a record low.
Japanese stocks rose more than 2.5 percent from their lows to end up 1 percent on talk the central bank was buying exchange-traded funds and a Reuters report a massive public pension fund was considering increasing its allocation mix to buy more stocks.
SECTORS & STOCKS
BSE Consumer Durables index has crumbled by over 5% followed by counters like Realty, Banks, Metal, Capital Goods, PSU, Oil & gas and Power, all falling down between 2-4%.
The main losers on the Sensex at this hour include Sterlite, Tata Steel, Tata Power, HDFC Bank, Bajaj Auto, ICICI Bank and JSPL, all declining between 3-6%.
Banking shares are under hammer and trading lower by up to 7% after the rupee touched a record low 61.66 against the dollar in noon deals today.
Union Bank of India, Corporation Bank, Oriental Bank of Commerce, Karnataka Bank, Uco Bank, Canara Bank and YES Bank are down in the range of 5-7% on the National Stock Exchange (NSE).
Shares of real estate companies are under pressure with most of them trading at their historic lows on concerns that there will be no chance of the interest costs declining in the near future as rupee hit new low against dollar today.
DLF, Housing Development and Infrastructure (HDIL) and Oberoi Realty have hit record low, while, Peninsula Land, Anand Raj Industries and Godrej Properties are trading at 52-week lows on the Bombay Stock Exchange (BSE). Most of these stocks are down in the range of 1-10%.
On the gaining side, Hero Moto, Wipro, Maruti Suzuki and NTPC have gained between 1-2%.
Among other shares, Orbit Corporation’s share price dipped sharply by 9% a day after LIC Housing Finance Ltd sent a notice to Mumbai-based real estate company to recover dues.
The share was trading at to Rs 10.8 per share on the Bombay Stock Exchange.