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Markets continued to trade lower, amid mixed European cues, with leading the decline on the back of government's decision to sell partial stake in the state-owned exploration major via offer-for-sale.
At 2:50PM, the 30-share Sensex was down 52 points at 26,385 and the 50-share Nifty was down 20 points at 7,886.
The Indian rupee was trading at 60.52 per US dollar compared to the previous close of 60.56. Asian currencies were marginally up on hopes the the ECB would infuseo expand liquidity to boost the European economy.
Major Asian markets were trading lower with Chinese shares declining the most. Japanese shares which had rebounded yesterday failed to extend gains after investors booked profits as the weakening yen was seen stable against the dollar. Losses were led by exporters stocks such as SoftBank Corp and global car major Honda Motor Co. Shanghai COmposite was down 1%, Hang Seng slipped 0.4% and Straits Times was down 0.2%.
European shares were trading flat as investors booked profits at higher levels post the sharp gains seen on Monday on hopes of further monetary stimulus measures from the European Central Bank to boost the economy. The FTSE-100 was up 0.4%, DAX fell 0.3% and the CAC-40 was trading flat with positive bias.
Capital Goods, Power, Realty, Oil and Gas indices were the top sectoral losers on the BSE down over 1% each along with Auto, Bankex and IT indices. However, FMCG and Healthcare indices were up 0.8-1% each.
ONGC was the top Sensex loser down over 3% after the Government decided to divest 5% stake in the company via offer for sale (OFS) mechanism. The Government currently holds 69% stake in the company. Index heavyweight Reliance Industries was down 0.7%.
In the capital goods segment, power equipment makers L&T and BHEL were down over 1.5% on concerns that the recent apex court verdict would hamper fresh order inflows from power generators.
Banking stocks which have exposure to metal and power stocks also witnessed profit taking. SBI was down 1.3%, ICICI Bank ease 1%, Axis Bank was down 0.5% and Punjab National Bank was down 2%.
Jindal Steel and Power was the top Sensex loser after investors pressed sales on concerns that the profits from the existing operational Gare-Palma coal blocks and also Utkal-B1 block.
Thermal-based power companies continued to be impacted with the SC verdict on coal allocation. Tata Power was down 3% and NTPC slipped 1%.
However, select metal shares rebounded on short covering after sharp losses in the previous session. Tata Steel was up 2% after analysts said that the company will not be impacted by the apex court verdict on coal block allocation.
Auto shares declined after the Competition Commission of India slapped a penalty of Rs 2,545-crore penalty on automotive companies for alleged indulgence in unfair practices. M&M, Maruti Suzuki and Tata Motors were down 0.1-1.3% each. Honda Cars, Volkswagen, Fiat, BMW, Ford, General Motors, Hindustan Motors, Mercedes-Benz, Nissan Motors, SkodaAuto, Toyota complete the list of 14 companies which have been penalised by the CCI.
In the broader market, the BSE-Mid-cap and Small-cap indices were down 0.5-1.1% each.
Market breadth was weak with 1,933 losers and 941 gainers on the BSE.
