Markets slip, rate sensitives weigh

Key share indices have erased early gains and have turned negative on account of profit booking among rate sensitive sectors. Subdued Asian markets have further dampened the sentiments among local investors.

By 1130, the Sensex was down 13 points at 18,660 and the Nifty slipped 10 points to 5,658.

On the global front, Asian shares eased on Tuesday after sentiment was weakened by data showing Germany's business confidence dropped in September, and a weak earnings forecast from Caterpillar Inc , both of which underscored worries about a global growth slowdown. Nikkei, Hang Seng, Taiwan, Kospi and Shanghai have declined between 0.1-0.5%.

Back home, the rupee declined by 8 paise to 53.55 against the dollar in early trade on the Interbank Foreign Exchange today following increased month-end demand for the American currency from importers.

On the sectoral front, Auto, Metal, Realty, Banks and Oil & Gas segments have declined by almost 1% each. However, BSE FMCG and Healthcare indices have gained by nearly 1% each.

From the Auto sector, Tata Motors, Maruti Suzuki, Hero Moto and Bajaj Auto have slipped between 0.4-2%.

Maruti Suzuki India will raise prices within a week to offset impact of adverse foreign exchange fluctuation and rising input costs.

India's monthly car sales fell in August for the first time in ten months, as a gloomy economic outlook and high interest rates dampened demand.

Among Metal segment, JSPL is the top Sensex loser, down nearly 3% on reports that the company has raised a bridge loan of Rs 660 crore to fund its CIC Energy acquisition. Tata Steel, Sterlitea and Hindalco have melted between 1-2%.

Banking shares like SBI, HDFC Bank and ICICI Bank have plunged between 0.2-1%.

Other notable losers include ONGC, Coal India, Bharti Airtel and RIL.

On the gaining side, shares of power companies such as Adani Power, JSW Energy, Lanco Infra, BHEL, Torrent Power, Reliance Power, Tata Power, NHPC and NTPC are trading higher by 1-4% after the central government announced a debt restructuring package for distribution companies. The package comes a decade after the Union government extended a similar one-time settlement of state electricity boards’ dues.

Cipla, HDFC, ITC, TCS, HUL, M&M, NTPC, GAIL and L&T have surged between 0.5-2%.

Among other shares, shares of Hotel Leelaventure were up nearly 2% on reports that the consortium of lenders have agreed for a two-year moratorium on the outstanding loans.

Meanwhile, Meanwhile, BSE Midcap index has slipped by 0.1% whereas BSE Smallcap index is marginally up.

The market breadth in BSE remains almost neutral with 1,125 shares advancing and 1,189 shares declining.