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Benchmark indices continue to remain in negative zone amid volatility. Markets have recovered from day’s low led by buying among banking and metal shares. Indian rupee has also recovered from day’s low.
At 3PM, 30-share Sensex fell 69 points to trade at 18,238 and the 50-share Nifty shed 20 points at 5,395 levels.
European shares fell to a two-week low on Tuesday, as expectations hardened that the U.S. Federal Reserve will start to scale back monetary stimulus next month.
World shares sank to their lowest level in more than a month on Tuesday as unease about an expected cut in US stimulus and a related rise in bond yields left markets on edge.
Europe's main stock markets opened down 1% following a fourth straight day of falls on both Wall Street and in Asia to leave MSCI's global index, which tracks shares in 45 countries, at its lowest level since July 12.
Wednesday's minutes from the most recent Fed meeting could offer fresh hints on when the US central bank will start winding down its $85 billion-a-month support programme, a tricky process markets have been nervous about for months.
India's benchmark 10-year bond yield down 6 basis points on the day at 9.17 percent and 31 bps off its session high of 9.48 percent reached in early trade, the highest in over five years.
Traders say the recovery in the rupee following the central bank intervention earlier in the session aiding bonds.
Volumes, however, continue to remain low, triggering much larger moves even with small traders.
The partially convertible rupee at 63.66/67 per dollar compared with its close of 63.13/14 on Monday but off the record low of 64.13 reached in early trade.
On the sectoral front, BSE Metal, Realty and Bankex indices have surged between 1-4%. However, Consumer Durables, Auto, Healthcare and IT indices have declined between 2-4%.
The main losers on the Sensex at this hour include Tata Motors, Wipro, Sun Pharma, ONGC and M&M.
On the gaining side, Sterlite, Tata Steel, CIL, ICICI Bank and SBI have gained between 1-11%.
The market breadth in BSE remains almost neutral.
