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Benchmark indices have extended losses with the Nifty falling below the 8,000 mark for the first time since October, 28.
Profit taking in bank shares and the falling rupee have dampened market sentiments,
At 10:05AM, the 30-share Sensex was down 230 points at 26,550 and the 50-share Nifty was down 79 points at 7,988.
In the broader market, both BSE midcap and smallcap indices, have performed worse than the front-liners with losses of over 1% each. Market breadth in BSE is negative with 754 declines against 678 advances.
The rupee fell a 13-month low against the dollar on Wednesday while benchmark bond yields hit their highest level in two weeks as the brewing financial crisis in Russia continued to raise concerns about foreign fund outflows.
The partially convertible rupee was trading at 63.88 per dollar, after hitting as weak as 63.89, its lowest level since Nov. 13, 2013. It had closed on Tuesday at 63.53.
Meanwhile, foreign institutional investors were net sellers in Indian equities worth Rs 1,247.24 crore on Tuesday, as per provisional stock exchange data.
Buzzing Stocks
BSE Consumer Durables index, down around 3% has lost the most followed by BSE Healthcare index, down over 2%, BSE Bankex, down around 1.5%, and BSE Capital Goods and Auto indices, down 1.2% each.
BSE IT and Teck indices are the only secotrs in the green.
Tata Steel has gained as the Odisha government has issued orders to restart operations of four captive iron ore mines of Tata Steel following an interim order of the Odisha High Court (HC)
Dr Reddys Lab has lost more than 2% on concerns over currency devaluation in Venezuela and Russia’s emergency support to rouble. Also, the company has launched anti viral drug Valganciclovir in the US market on Monday after the US Food and Drug Administration (US FDA) granted the approval.
Pharma shares are under pressure. Cipla and Sun Pharma have lost 2.5% and 0.5% each.
Among bank stocks, ICICI Bank and SBI have declined more than 2% each while Axis Bank has shed more than 1%.
Global Markets
Japanese stocks rose on Wednesday as hopes of a continuation of the US Federal Reserve's dovish stance on rates helped exporter shares brush off a stronger yen, and chart support staunched the Nikkei's recent losses.
The Nikkei benchmark ticked up 0.5% to 16,834.53, after quickly recouping slim losses at the open.
On the global front, US stocks rose in a volatile Tuesday session as energy shares rallied and investors bet the Federal Reserve will be cautious in removing support in the face of a more fragile global economy.
Brent crude fell as much as 4.2% but was last down 1.2% at $60.36 a barrel. US crude, which fell as much as 4.1%, was recently up 0.2% at $56.04 a barrel after gaining as much as 2.2%.
The S&P 500 was posting 10 new 52-week highs and 39 lows; the Nasdaq Composite was recording 22 new highs and 154 lows.
