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Benchmark indices continue to trade under pressure on heavy selling by the fund investors amid global growth concerns. Further, a weakened rupee along with widened trade deficit data dampened the sentiments of the market participants.
At 12.50 PM, the 30-share Sensex is down 395 points at 26,925 and the 50-share Nifty has dropped 112 points to trade at 8,107.
The rupee hit 13-month lows and bonds fell sharply as markets in the region tumbled on fears about the global economy.
On the macro- economic front, at $16.86 billion, India's trade deficit widened to 18-month high driven by over six-fold jump in gold imports. In November last year, trade deficit was $9.57 billion.
Further, the Wholesale Price Index (WPI)-based inflation fell to zero in November, compared with 1.77% the previous month, primarily on account of a sharp fall in global commodity prices.
Meanwhile, foreign institutional investors were net sellers in Indian equities worth Rs 455.72 crore on Monday, as per provisional stock exchange data.
On the global front, concerns about the Russian economy kept global investors on the edge, after its central bank raised its key interest rate to 17 per cent from 10.5 per cent to prevent the rouble from crashing further. Also, a slowdown in the Chinese economy is dampening the sentiments.
Sectors & Stocks:
On the sectoral front, 10 out of 12 sectoral indices are trading in the negative territory with BSE Metal index being the top loser down 3%. On the other hand, NSE IT index is the top gainer up 2% followed by the Teck index up 1.4%.
Metal sharesare reeling under pressure on the back of weak China factory growth. Sesa Sterlite, Hindalco, Tata Steel and Coal India are down between 1.6-6%.
Hindalco fell sharply after the Special Court rejected CBI closure report and ordered further investigation into the coal block allocation case.
Financials declined across the exchange. ICICI Bank, HDFC twins, Axis Bank and SBI are down between 1.6-3%.
Tata Motors has shed2% after retail volumes of its UK-based subsidiary Jaguar and Land Rover dropped for the second straight month. Volumes fell after the two Tata Motors-owned brands reported production issues related to transition to new models and stock clearance in its biggest market China.
Oil prices sank further to new multi-year lows in Asia today, with analysts weighing the possible political and economic fallout in oil-producing countries with little respite in the selling. ONGC and GAIL have dropped 2% and 1% each while RIL is trading with marginal losses.
On the flip side, shares of information technology (IT) companies are trading firm in otherwise weak market after the Indian rupee hit its lowest level in 13-month in early trade on Tuesday.
Tata Consultancy Services (TCS), Inofsys, HCL Technologies, Tech Mahindra, Mindtree, CMC and Hexaware Technologies from the CNX IT index are up 1-3% on the National Stock Exchange (NSE).
In the broader market, the BSE Mid-cap is down over 2% while the Small-cap index is down nearly 3%.
Market breadth has weakened further with 2,139 losers and 450 gainers on the BSE.
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