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Benchmark indices have extended losses in noon trades and are at day’s low, amid weak Asian cues, weighed down by profit taking in metal and bank shares.
By 11:55 AM, Sensex plunged by 303 points at 19,138, and the Nifty down 90 points at 5,788 levels.
The Sensex and the Nifty reached an intra-day low of 19,134 levels and 5,786 mark, respectively. The Nifty is trading below 200 DMA.
The US dollar slipped against the yen after the Bank of Japan held off from taking fresh steps to curb bond market volatility, while Asian shares sagged to a fresh 2013 low as China growth worries and continued uncertainty over the US. bond-buying programme depressed sentiment.
The Bank of Japan kept monetary policy steady and held off on taking further steps to curb any future spike in bond yields on Tuesday, judging that the recent market turbulence has yet to pose severe damage to the economy's recovery prospects.
Back home, BSE Metal index has slumped by almost 5%. Infact, all the major BSE sectoral indices are trading in deep red zone.
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Update at 11:15
Benchmark indices have extended the losses and are trading near day’s low weighed down by weak Asian cues along with metal, banking and auto shares leading the fall.
By 11:15 AM, Sensex plunged by 212 points at 19,229, and the Nifty down 63 points at 5,815 levels.
On the global front, the Nikkei share average fell as much as 1.5 percent on Tuesday afternoon after some investors were disappointed that the Bank of Japan did not announce a new long-dated funding operation to calm the bond market some had expected.
The Nikkei was down 0.5 percent at 13,441.55 after trading as low as 13,310.50. It ended the morning session flat at 13,513.28 before the BOJ's lunchtime announcement that it kept its monetary policy steady.
Back home, rupee has touched a record low of 58.30 per dollar in opening trade Tuesday due to heavy dollar buying, as against previous day's closing of 58.15 per dollar.
On the sectoral front, BSE Metal index has plunged by almost 4% followed by counters like Realty, Consumer Durable, Auto, Banks, Power, PSU, Capital Goods and Oil & Gas, all declining between 1-3%. However, BSE IT index is trading marginally higher.
Jindal Steel and Power Limited (JSPL) have nose dived by almost 20% at Rs 216, its lowest level since May 2009 on the Bombay Stock Exchange (BSE).
The stock has declined 8% in past two trading days on reports that the government has issued show cause notice to the company for not developing the mines allotted to them.
“The Coal Ministry on Friday issued show cause notices to 11 coal firms in the so-called coal scam case, including Jindal Steel and Power Ltd for not developing the mines allotted to them and sought an explanation for delays in production, failing which mines would be deallocated,” the PTI report suggests.
Other metal shares like Hindalco, Tata Steel, Coal India and Sterlite have declined between 2-4%.
Auto majors like M&M, Maruti Suzuki, Tata Motors and Bajaj Auto have slipped between 0.4-2%.
Car sales in India fell an annual 12.3% in May, an industry body said on Tuesday, dropping for the seventh straight month, as weak consumer sentiment in a slowing economy continued to weigh on demand.
Automakers sold 143,216 cars in India last month, according to data from the Society of Indian Automobile Manufacturers (SIAM). Sales of motorcycles fell 0.7% in May to 881,288 vehicles, SIAM said, while truck and bus sales were down 10.6 % at 55,458 vehicles. 881,288 vehicles, SIAM said, while truck and bus sales were down 10.6 % at 55,458 vehicles.
Banking and financial majors like ICICI Bank, HDFC and HDFC Bank have fallen between 1-3%.
Shares of ICICI Bank and Axis Bank have fallen more than 2% each on the Bombay Stock Exchange (BSE) after the Reserve Bank of India (RBI) imposed a fine on these banks for violating its instructions.
The RBI on Monday said it had imposed penalties on Axis Bank, HDFC Bank and ICICI Bank for violating guidelines related to details of customer identity known as "know your customer" (KYC) rules.
Other notable losers are Bharti Airtel, Tata Power, ONGC, L&T and ITC.
On the gaining side, Hero Moto, Wipro, Cipla, GAIL and NTPC have gained by nearly 1% each.
The market breadth in BSE remains dismal with 1,278 shares declining and 392 shares advancing.
