 "Markets tumble after yuan devaluation; Nifty breaks 8,400")
Markets have extended losses in the morning trades after China allowed the yuan to fall sharply for a second straight day weighed down by financials coupled with weakness in Tata Motors as the depreciating yuan is affecting the JLR sales.
At 10 AM, the 30-share Sensex was down 206 points at 27,660 and the 50-share Nifty was down 70 points at 8,392.
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(updated at 9:40 AM)Benchmark share indices were trading lower, amid weak global cues after China devalued the yuan, with financials leading the decline. Further, traders are likely to remain cautious ahead of the key macroeconomic numbers, July CPI and June IIP data to be released later during the day.
At 9:40AM, the 30-share Sensex was down 132 points at 27,734 and the 50-share Nifty was down 45 points at 8,418.
"The trend deciding level for the day is 27,966 / 8,487 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 28,106 – 28,345 / 8,532 – 8,602 levels. However, if NIFTY trades below 27,966 / 8,487 levels for the first half-an-hour of trade then it may correct towards 27,726 – 27,586 / 8,417 – 8,372 levels," Angel Broking said in a note.
Meanwhile, the rupee extended losses and slumped to its lowest level since September 2013 and was trading 56 paise lower at Rs 64.75 to the US dollar after China's surprise move to devalue its yuan.
Movement of rupee and crude coupled with Parliament proceedings over the GST Constitutional Amendment Bill, 2014 is likely to dictate the trend on the exchanges.
In the financials segment, HDFC, ICICI Bank and HDFC Bank were down 0.7-1.5% each.
SBI extended losses and was down 1.5% after it reported lower-than-expected net interest income and sequential rise in non-performing assets. The bank reported a net interest income of Rs 13,732 crore in the quarter ended June 30, 2015 compared to analysts estimate of Rs 15,344 crore. Gross NPA rose to 4.29% from 4.25% on a quarter-on-quarter basis. Net NPA too rose to 2.24% from 2.12% in the previous quarter.
Among index heavyweights, Reliance Industries and ITC were down 0.6-0.7% each.
Hindalco was down over 2.5% after its overseas subsidiary Novelis reported a net loss of $60 million for the first quarter ended June 30, 2015.
However, IT shares Infosys and TCS were trading 1-2% higher on reports that they were in the race for the GST Bill IT contract.
RESULTS TODAY
Coal India, Ashok Leyland, Aurobindo Pharma, Cadila Healthcare, JSPL, NALCO and Voltas are among some of the prominent companies due to post their results today.
GLOBAL MARKETS
Asian stocks fell after China allowed the yuan to fall sharply for a second straight day, forcing investors to seek refuge in safe-haven government debt. Nikkei, Hang Seng, Straits Times and Shanghai Composite slipped between 0.7-2.5%.
US stocks closed sharply lower Tuesday with the Dow sliding more than 200 points in the wake of a surprise devaluation of the yuan by China—the world’s second-largest economy raising fears of interst rate hike by the Fed.