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Benchmark share indices extended losses for the third straight session dragged by financials while oil shares slipped after global crude oil prices resumed their downward trend.
The S&P BSE Sensex ended down 316 points at 24,223 and the Nifty ended down 94 points at 7,362.
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Updated at 1;45pm)
Markets have pared some of their losses; however, they continue to remain under pressure dragged down by rate sensitive and capital goods shares.
At 13:45 pm, the S&P BSE Sensex was down 198 points at 24,340 and the Nifty was down 60 points at 7,396.
Meanwhile, markets shrugged off the PMI services’data that rose at its fastest pace in 19 months in January as demand picked up, a business survey showed today. The Nikkei/Markit Services Purchasing Managers' Index (PMI) surged to 54.3 in January from December's 53.6, marking a seventh month above the 50-level that separates growth from contraction.
Asian shares dropped as oil prices tumbled for the third straight day. Japan’s Nikkei closed down over 3% while Hang Seng was 2.4% down.
European markets also opened on a cautious note with major indices trading flat with negative bias.
KEY STOCKS
Energy shares continue to reel under pressure as oil prices slip further. ONGC, RIL, Cairn India, OIL have all dropped between 1.5-3%.
Metal shares also took a hit on account of falling commodity prices. Tata Steel, Vedanta and Hindalco, and Jindal Steel have lost between 2-8%.
The banking and financial shares are reeling under pressure after the RBI maintained status quo on interest rates in its sixth bi-monthly monetary policy yesterday. Bank Nifty has slipped 1.3%.
Sun Pharmaceuticals and Lupin have launched the generic versions of top selling drugs with 180 days’ sale exclusivity in the US market. Sun Pharma has gained 1.3% while Lupin is trading flat.
Recent approvals for the two new drug applications (NDAs) received from the US FDA by Dr Reddy's Laboratories have evoked considerable interest among the analysts over the long term prospects of the company's US sales performance. However, the stock has slipped over 1%.
Coal India is likely to buy back shares worth at least 25 billion rupees ($368 million) from the government, as the finance ministry looks to state firms for cash ahead of the budget, said a media report. The stock has gained 0.7%.
SMART MOVERS
Shares of Crompton Greaves has tanked 24% to Rs 128, also its 52-week low on the BSE, after the company registered consolidated net loss of Rs 107 crore for the quarter ended December 31, 2015 (Q3FY16) against profit of Rs 274 crore in the same quarter last fiscal.
Aurobindo Pharma has said that the company has received final approval from the US Food and Drug Administration (US FDA) to manufacture and market Isosulfan Blue Injection, 1% single-dose vials, used in a lymphography procedure. The stock has gained 1%
Shares of Tata Communications were down over 5% after the company reported 91% drop in consolidated net profit for the quarter ended December 2015 at Rs 6.86 crore compared with Rs 175.63 crore in the same quarter last fiscal.
