 "Markets remain under pressure; Sun Pharma, Tata Steel down 3%")
Benchmark shares indices weakened further in late noon trades to hit their lowest level intra-day amid selling pressure in financials and pharma shares.
At 2:35 pm, the S&P BSE Sensex was down 387 points at 24,946 and the Nifty50 was down 117 points at 7,598 levels.
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In the broader market, the BSE Midcap and Smallcap indices were down over 1% each.
Market breadth was weak with 1,816 losers and 725 gainers on the BSE.
However, foreign institutional investors continued to remain buyers with net purchases of Rs 977 crore on Wednesday, as per provisional stock exchange data.
Sectors & Stocks
BSE Metal index was the top loser down 3.6% followed by Consumer Durables among others.
In the financial segment, HDFC, SBI and ICICI Bank were the top losers 1%-2.8% each on profit booking after recent gains.
Pharma stocks continued to remain pressure amid observations from the US FDA and the recent ban on over 300 combination drugs by the government. Sun Pharma and Lupin were down 1.8%-4% each. Natco Pharma was down over 5% after the company said it has received “minor” observations by US Food & Drug Administration (USFDA) following recent inspections at its two facilities and they will not have an adverse impact on its current or future products.
Metal shares were also the top losers with Hindalco was down over 5% while Tata Steel eased 3%.
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(Updated at 1pm)
Markets continued their southward journey dragged down by selling pressure in metal shares amid profit booking across the board.
At 1 pm, the S&P BSE Sensex is down 173 points to quote at 25,164 and the Nifty50 is down 43 points to quote at 7,673.
Shares of metal companies were trading lower on the bourses on profit booking. Vedanta, Hindalco Industries, Steel Authority of India (SAIL) and Bhushan Steel were down more than 2% each, while Tata Steel, Jindal Steel & Power, JSW Steel and NMDC down 1%-2% on the National Stock Exchange (NSE). BSE Metal Index has dropped over 2%.
Oil prices rose today recovering slightly from last week's decline but analysts say traders will likely hold off making any big moves ahead of next month's meeting of key producers.
Hopes for an agreement between Russia, Saudi Arabia and other crude giants to at least freeze output sent both main contracts racing above $40 earlier this month, helped by a dive in the strength of the dollar.
KEY STOCKS
The biggest losers on the Sensex are Tata Motors, SBI, ICICI Bank, Tata Steel, and Sun Pharma, all down between 1% and 3% each.
Individually, drug major Dr Reddy's Laboratories has entered into a US licensing pact with XenoPort for the development and commercialisation of latter's clinical-stage oral new chemical entity XP23829. The stock has gained 0.3% in a weak market.
ITC has acquired the entire equity share capital of Technico Agri Sciences, India, from Technico, Australia, for Rs 121 crore. The stock is trading flat.
Tata Steel, in a board meeting on Tuesday, would decide the fate of two of its loss making plants on which at least 18,000 jobs in the UK is dependent. The stock has slipped over 2.5%
Tata Motors has said it has signed a follow-on contract with the Indian Army to supply 619 units of its 6X6 HMV (high-mobility vehicle) multi-axle truck. However, the stock has slipped 1.5%
Natco Pharma has plummeted 13% on the BSE after the drug maker said it has received “minor” observations by US Food & Drug Administration (USFDA) following recent inspections at its two facilities and they will not have an adverse impact on its current or future products.
India's Defence Procurement Policy (DPP) would be launched online during Defence Expo (DefExpo) India-2016, to be held in south Goa from today, Defence Minister Manohar Parrikar said. Reliance Defence, Walchandnagar Industries have gained between 1-2% each.
When most cement players have stuck to the acquisition route for expansion, Shree Cement, the fourth largest in the sector, is looking to ramp up capacity by another 10 million tonnes (mt) in the coming three years.
The ongoing strike by jewellers is set to impact March 2016 quarter numbers for listed companies such as Titan, PC Jewellers (PCJ) and Tribhovandas Bhimji Zaveri (TBZ), among others. Shares of the mentioned jewellers are down between 0.4-5% each.
Kesoram Industries has rallied 8% on the BSE after the company announced plans to transfer the rayon and transparent paper business to unlisted Cygnet Industries through a slump sale.
