Sensex, Nifty hit over 13-month low; financials drag

Benchmark indices are trading 1% lower, amid weak global cues,  with financials leading the decline.

According to Reuters report, Governor Raghuram Rajan said today that the central bank will examine how the country's banks are using provisions they were given to help tackle a crippling bad debt burden.  

At 14:35pm, the S&P BSE Sensex was down 286 points at 24,966 and the Nifty50 was down 96 points at 7,585. The S&P BSE Sensex and the Nifty50 have hit their lowest levels in more than 13 weeks.  Among broader markets, BSE Midcap and Smallcap indices are down 1.1-1.3%.

Beside, the government will release the index of industrial production (IIP) data for the month of October and retail inflation numbers for the month of November after market hours today.
 
Indian industrial output is expected to rise 7.8% annually in October, its strongest pace in more than three years and much faster than the 3.6% seen in September.  Retail inflation rate likely rose 5.4% in November as food prices climbed, a Reuters poll found.

In the overseas markets, Asian shares were set for sizable weekly losses, with equities faltering again on Friday as plunging crude oil prices and a tumble in China's Yuan to almost 4-1/2-year lows added to worries about receding global growth.

A supply glut in oil markets and cooling growth in China, the world's biggest commodities consumer, have pressured many asset markets ahead of a widely expected hike to US interest rates by the Federal Reserve next week.

MSCI's broadest index of Asia-Pacific shares outside Japan erased early modest gains and was down about 0.6%, facing a nearly 3% weekly loss.

Back home, rate-sensitive sectors like Banks, Auto and Realty are reeling under maximum selling pressure, all down between 2%-3%.

RBI Governor Raghuram Rajan said today the central bank's policy was to supply markets with "plentiful" liquidity and said it could "perhaps" do more open market purchases of bonds, depending on long-term liquidity needs. Financial shares like ICICI Bank, SBI, Axis Bank, HDFC Bank and HDFC have plunged between 1%-4%.

Auto shares have also decelerated in today’s trade. M&M, Tata Motors, Maruti Suzuki, Eicher Motors and Ashok Leyland are down 1-4%.  According to National Green Tribunal report, no new diesel vehicles will be registered in Delhi.

Capital goods majors L&T and BHEL have lost between 1.7%-2% ahead of the IIP data due later today.

Tata Steel has emerged as a star performer in a weak market. It has gained over 3% after government of India initiated safeguard on imports of hot-rolled plates and sheets on steel. Further, according to media report, Tata Steel wants to sell UK plant.

Among other shares, Texmaco Rail has surged over 5% after a four-company consortium won a contract for design and construction of signal and telecom works from Dedicated Freight Corridor Corporation of India.

Shares of SpiceJet have dropped over 4% after the company has allegedly defaulted on payments towards the Airports Authority of India (AAI).