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Benchmark indices are trading lower weighed down by weak global cues, with capital goods and financial shares leading the fall.
By 13:00, the Sensex was at 19,093 down 77 points and the Nifty was at 5,807 down 27 points.
On the global front, Asian shares and other riskier assets lost ground on Tuesday after a preliminary reading showed manufacturing growth in China slowed in April, highlighting recent market concerns about global growth prospects. The flash HSBC Purchasing Managers' Index for April fell to 50.5 in April from 51.6 in March, but was still stronger than February's reading of 50.4.
Back home, improvement in performance of agriculture and manufacturing sectors is expected to push the economic growth rate to 6.4% in 2013-14 from 5% in the previous fiscal, PM's economic advisory panel said today.
"Economy will grow at higher rate from now. We projected growth rate of 6.4% in the current fiscal", Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan said while releasing the Economic Review for 2012-13 here.
Economic growth rate had slipped to decade's low of 5% in 2012-13 mainly on account of the impact of the global financial woes.
The rupee trimmed its early losses against the American currency but was still quoted down by 18 paise to 54.32 per dollar on month-end dollar demand from importers despite weakness of dollar in overseas.
On the sectoral front, BSE Capital Goods index has declined by nearly 2% followed by counters like Banks, Realty, PSU, Consumer Durable, Auto, FMCG and Power, all falling down between 0.1-1%. However, BSE IT index has gained by nearly 1%.
The main losers on the Sensex at this hour include Jindal Steel, L&T, Tata Motors, SBI, BHEL, ONGC, HDFC Bank, Cipla, Tata Power and HDFC, all slumping between 1-2%.
Standard & Poor's Ratings Services assigned its 'BBB-' long-term corporate credit rating to ONGC Ltd. The outlook on the company is negative, said a press release issued by S&P.
In its first overseas funding raising in nearly three years, Tata Steel has begun roadshows to raise $750 million in Singapore.
On the gaining side, Bajaj Auto, RIL, Wipro, Hero Moto and Dr Reddy’s Lab gained between 1-2%.
Among other shares, Kesoram Industries has surged over 18% to Rs 114, extending its past three days rally on back of heavy volumes on the Bombay Stock Exchange (BSE).
The stock of B.K Birla group diversified company has rallied 48% from Rs 77 in past four trading sessions compared to 1.8% rise in benchmark Sensex.
The market breadth in BSE remains negative with 1,115 shares declining and 965 shares advancing.
