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Benchmark indices have trimmed losses in the noon session although gains in heathcare and banking scrips are unable to offset losses in realty and metal stocks. Further, easing of WPI data has failed to bring cheer the markets.
At 1.30 hrs, the Sensex is down 18 points at 26,366 and the Nifty has dropped 13 points to trade at 7,871.
Sept WPI inflation:
Wholesale Price Inflation (WPI) rate for September fell to a 5-year low of 2.38%, the lowest since October 2009 as prices across key categories declined.
It was 3.74% in the previous month. Meanwhile, July WPI inflation rate has been revised upwards to 5.41% from 5.19%.
Global Markets:
Japanese stocks skidded to two-month lows on Tuesday as heightened concerns about the health of the world economy unnerved investors, triggering a shift in funds to safe-havens such as U.S. bonds.
Japan's Nikkei share average fell 1.5%, hitting levels last seen in mid-August, while the 10-year U.S. debt yield hit a 16-month low of 2.238% following a market holiday on Monday.
MSCI's broadest index of Asia-Pacific shares outside Japan, which had fallen more than 10% since early September, managed to nudge up 1.0% thanks to bargain-hunting but was still within sight of its 6 1/2-month low hit on Monday.
Rupee:
The rupee reversed its direction to trade at 61.17/18 versus Monday's close of 61.0950/1050. The Indian unit had earlier hit 60.90, its highest level since September 23.
Sectors & Stocks:
On the sectoral front, BSE Realty index is the top loser down over 7% followed by Metal, FMCG and IT indices trading lower between 0.5-1%. However, BSE Power, Healthcare indices are up between 0.5-1%. Bankex has gained 0.5%.
The metal pack which surged yesterday on the back of positive china data is down on account of profit booking.
Shares of Sesa Sterlite fell 3% after the Supreme Court reiterated a prior ruling that all iron ore mined in Goa before 2007 belonged to the state. Tata Steel and Hindalco have lost 0.5% each.
Cigarette maker and Index heavyweight ITC has lost 1.5% on concerns regarding weaker sales and profits from the cigarette division.
The technology stocks have declined on profit taking.TCS is trading over 1% lower on caution ahead of the Q2 results due on friday. Also, Wipro and Infosys are trading with marginal losses.
Shares of Hero Motocorp are down nearly 1% on caution of the Q2 results due on Friday.
DLF has tanked 26% to Rs 109, also its 52-week low on National Stock Exchange NSE) after the market regulator the Securities and Exchange Board of India (Sebi) barred the real estate major and six of its top executives, including Chairman K P Singh, from accessing the capital market for three years.
Tata Motors, HDFC Bank and ONGC are some of the notable names in red and have lost between 1-1.5%.
On the flip side, rate sensitives have gained on the back of easing consumer price inflation. SBI, Bajaj Auto, Axis Bank, ICICI Bank, Maruti Suzuki, M&M are up between 0.2-2.5%.
Bajaj Auto has gained around 3% after Bank of America-Merrill Lynch upgraded its stocks from "underperform" to "buy", citing higher volume and average selling prices, and increased contribution from dirt-bike making affiliate KTM.
Capital Goods shares also rebounded from their recent lows. L&T and BHEL are up between 0.3-2.6%.
Pharma shares are also trading higher with Cipla, Sun Pharma and Dr Reddy's Labs up 0.2-1.5% each.
Reliance Industries is up nearly 1% after it beat analysts’ expectations during the July-September quarter, with its profit increasing 1.7 per cent over the year-ago period. At Rs 5,972 crore, however, its net profit was 1.7 per cent higher than Rs 5,873 crore in the same period last year.
Tata Power, Bharti Airtel and Coal India are some of the notable names in green among others.
However, there is some buying in the broader markets as both the BSE Mid and Smallcap indices gained 0.2% each.
The market breadth is negative on BSE. 1,456 stocks declined while 1,240 stocks advanced.
