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Benchmark indices continue to reel under pressure weighed down by capital goods, and metal shares ahead of the CPI and IIP numbers, which are set to be released tomorrow. The weakness in rupee after the devaluation of Chinese yuan has also dampened the sentiment of the market participants.
At 1 PM, the Sensex has slipped below the 28,000 mark at 27,909, down 192 points and the Nifty had slipped 61 points to trade at 8,465.
The broader markets are also weak, with the Midcap and Smallcap indices losing 0.6% and 0.9% respectively. The market breadth is strongly negative with 1,783 declines against 869 advances.
Meanwhile, the government has listed the GST bill for consideration and passing in Rajya Sabha today.
RUPEE
The rupee fell to the lowest against the dollar in two weeks on Tuesday after China devalued the yuan by nearly 2%. The rupee fell sharply by 21 paise to 64.08 against the dollar at the Interbank Foreign Exchange due to a rise in the dollar against other currencies overseas.
SECTORS & STOCKS
Sectorally, BSE Capital Goods index is down by 1.5% while BSE Metal index is down by 2.1%. The trend in IT sector is upwards with BSE IT gaining 1.3%.
The metal pack has slipped in today’s trade after Beijing decided to devalued its currency, yuan post poor economic data. Vedatana (1%), NMDC(1.4%), Hindalco (3%), Tata Steel(3.3%), Coal India (1.6%) are all trading in red.
Capital Goods stocks are weak ahead of June IIP numbers. BHEL and L&T have dropped 1.7% each on the Sensex.
On the flip side, technology stocks are surging on the back of a weakening rupee. Infosys, TCS, HCLTech have all gained between 0.7-2% each.
Among the individual stocks, Tata Motors has continued its downturn post its Q1 results. The stock is down by 2.3%
Shares of SBI were down over 3% after the state-owned banking major reported lower-than-expected net interest income while rising non-performing assets also weighed on sentiment. The bank reported a net interest income of Rs 13,732 crore for the quarter that ended June 2015 while gross non-performing assets were higher at 4.29%
Sun Pharma is down by 0.6% ahead of its Q1 results. From the pharma pack, Cipla has gained 1.3% while Lupin has slipped 0.5%
Other notable losers on the Sensex are Reliance (0.5%), ONGC(0.5%) ITC (0.4%), HDFC (1%)
Among other shares, India Glycols surged nearly 13% after the company's net profit for the quarter ended June 30, 2015 surged nearly five-fold to Rs 7.7 crore compared with Rs 1.3 crore in the corresponding quarter last fiscal on the back of lower expenses.
