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Markets extended losses to end 1.5% down on Tuesday, amid weak global cues, after investors turned cautious ahead of key economic data and booked profits in rate sensitive shares while the further fall in the rupee continued to weigh on investor sentiment. Metal shares also witnessed profit taking after a sharp sell-off in Jindal Steel.
The 30-share Sensex ended down 298 points or 1.5 % at 19,143 and the 50-share Nifty ended down 89 points or 1.5% at 5,789.
The Central Statistics Office will release data on industrial output for April 2013 and consumer price index for May 2013 on Wednesday.
Industrial output and inflation data assumes significance in wake of the rupee dropping to a record low which would direct the central bank's policy stance on Monday.
Asian shares fell to a fresh 2013 low as China growth worries and continued uncertainty over the US. bond-buying programme weighed on market sentiment. The Nikkei share average fell 1.5% on Tuesday after the Bank Of Japan did not offer new measures to calm the bond market, while real estate stocks stumbled as investors who had expected a programme to buy J-Reits sold to take profits. Shanghai Composite and Hang Seng ended down 1.2-1.4% each. Straits Times ended down 1% while KOSPI and Taiwan Weighted ended down 0.5-0.6% each.
Major European indices were trading over 1% down ahead of a two-day public hearing by Germany's constitutional court over the legality of European Central Bank's bond-buying programme. The CAC-40, DAX and FTSE-100 were down over 1% each.
Consumer Durables index was the top loser among sectoral indices on the BSE down 6.4% followed by Metal, Realty, Bankex, Power, Oil and Gas and Auto indices among others.
Rate sensitive shares such as financials, auto and realty ended lower after the weakening rupee has dashed hopes of a rate cut by the central bank at its policy meet early next week.
In the Sensex, SBI, HDFC Bank, HDFC and ICICI Bank ended down 0.7-3.8% each. The penalty by RBI on select banking majors also weighed on the sector. ONGC ended nearly 4% down while Reliance Industries ended with marginal losses on profit taking.
Mahindra & Mahindra was the top loser in the auto pack down 3.1% followed by Maruti Suzuki and Hero MotoCorp. However, Bajaj Auto ended nearly 1% up.
Jindal Steel was the top Sensex loser down 15% after the Central Bureau of Investigation (CBI) registered a case against the company over coal block allocations. Other metal shares which ended lower include, Hindalco down 6%, Tata Steel 3% while Sterlite Ind ended down 2.6%.
Among other shares, Shares of frontline jewellery companies are under hammer and trading lower by up to 12% on concerns that a frequent rises in gold import duty and the sustained depreciation of the rupee against the dollar may dampen the growth of the sector. Titan Industries, Shree Ganesh Jewellery House, Tara Jewels, Gitanjali Gems and Tribhovandas Bhimji Zaveri (TBZ) ended down in the range of 2-17% .
Shares of public sector undertakings (PSU) oil market marketing companies (OMCs) are under pressure on concerns of rising under-recovery due to the fall in rupee. Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) ended down 2-4.5% each on BSE.
