Recovery in key benchmark indices proved short lived as selling pressure resumed in mid-afternoon trade. At 14:20 IST, the barometer index, the S&P BSE Sensex, was down 156.54 points or 0.41% at 37,712.69. The Nifty 50 index was down 48.40 points or 0.42% at 11,381.10. Trading sentiment took a hit as global cues turned weak on back of rout in Turkish currency.
The indices opened lower and hit fresh intraday low in early trade. Indices came off day's low and were trading with modest losses in morning trade. Indices recovered sharply in afternoon trade. Indices once again turned weak in mid-afternoon trade as selling resumed. The Sensex fell 69.69 points, or 0.18% at the day's high of 37,799.54 in afternoon trade. The index fell 309.97 points, or 0.82% at the day's low of 37,559.26 in early trade. The Nifty fell 23.20 points, or 0.20% at the day's high of 11,406.30 in afternoon early trade. The index fell 89.20 points, or 0.78% at the day's low of 11,340.30 in early trade.
Among secondary barometers, the BSE Mid-Cap index was down 0.23%. The BSE Small-Cap index was down 0.38%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On BSE, 998 shares rose and 1606 shares fell. A total of 156 shares were unchanged.
Most auto stocks declined. TVS Motor Company (down 1.83%), Eicher Motors (down 1.67%), Tata Motors (down 1%), Ashok Leyland (down 0.39%), Maruti Suzuki India (down 0.16%) and Escorts (down 0.12%), edged lower. Hero MotoCorp (up 0.37%), Bajaj Auto (up 0.76%) and Mahindra & Mahindra (up 2.11%), edged higher.
Most realty shares fell. Sobha (down 3.84%), Peninsula Land (down 2.88%), D B Realty (down 2.33%), Anant Raj (down 2.15%), Phoenix Mills (down 1.09%), Unitech (down 0.98%), Parsvnath Developers (down 0.93%), DLF (down 0.92%), Indiabulls Real Estate (down 0.66%), Mahindra Lifespace Developers (down 0.27%) and Godrej Properties (down 0.19%), edged lower. Prestige Estates Projects (up 0.02%), Sunteck Realty (up 0.33%), Housing Development and Infrastructure (HDIL) (up 0.87%) and Oberoi Realty (up 1.3%), edged higher.
On the economic front, India's industrial production growth rebounded to five month high of 7% in June 2018, while recovering from a seven-month low of 3.9% in May 2018. The industrial production growth for May 2018 has been revised upwards from 3.2% increase reported provisionally.
Overseas, European equities extended last week's retreat as banking shares tumbled amid concerns about the Turkish economic crisis affecting liabilities of the region's lenders. The turmoil in Turkish markets continued as President Recep Tayyip Erdogan showed no signs of backing down in a standoff with the US administration, with the lira's decline spurring concern about European lenders' exposure to the nation.
Asian shares tumbled on Monday after investor sentiment took a hit amid the slump in the Turkish currency, lira, on geopolitical developments. US stocks dropped on Friday, triggered by fears over the sell-off in the lira after US President Donald Trump said he had approved the doubling of metals tariffs against Turkey on Friday.
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