)
Markets continue to trade in the negative territory with the Sensex down 35 points at 20,862 and the Nifty slipped 13 points to trade at 6,204. Losses in heavyweights like ITC, HDFC and HDFC Bank weighed on the indices.
In the broader markets, the mid and smallcap indices were up 0.3% each and continued to outperform the BSE benchmark index which was down nearly 0.2%.
At 1300 hrs, the rupee was trading at Rs 62.36 compared to previous close of Rs 62.32 per dollar.
According to currency dealers, there is dollar buying from oil marketing companies. However, dollar sale by state-run banks on behalf of Reserve Bank of India helped the rupee recover.
In Asia, shares hit the skids as a batch of upbeat U.S. economic data confirmed the Federal Reserve's inexorable tilt towards reducing its stimulus soon, while the yen sank on talk of further central bank easing.
With the prospect of more cheap BOJ funds in the offing and a weakened currency firing up the export sector, Japanese stocks raced towards a six-year high.
MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.6 percent, breaking below its 50-day moving average.
The yen's weakness helped lift Tokyo's Nikkei benchmark, which hit its highest closing level in six years.
Back home, among the sectoral indices, Metal, Oil & Gas, IT, Teck, Realty and Power up 0.1-0.6% were the only indices in the positive territory.
On the other hand, FMCG, Auto, Bankex, PSU, Health Care, Consumer Durables and Capital Goods indices were down 0.1-0.7%.
Jindal Steel up 5% was the top gainer among the Sensex-30 followed by Gail India, Hindalco, BHEL, Tata Power and Reliance Industries which added 1-2%.
TCS, Wipro, Maruti Suzuki, Infosys and ICICI Bank up 0.3-0.7% were the other prominent gainers.
Among the ones in the red, Dr Reddys Lab down 2%, NTPC, Mahindra & Mahindra, HDFC, ITC and Coal India down 1-1.5% were the major losers.
ONGC, Sun Pharma, Bharti Airtel, HDFC Bank, Bajaj Auto, L&T, Sesa Sterlite, Tata Motors, Cipla and HUL down 0.5-0.8% were the other losers.
The market breadth was marginally positive. 1,110 stocks advanced while 1,087 stocks declined on the BSE.
