Benchmark share indices ended lower after a volatile trading session on Wednesday, amid a weakening rupee and global cues, with telecom major Bharti Airtel leading the fall.
The 30-share Sensex provisionally ended down 98 points at 15,929 and the 50-share Nifty down 29 points at 4,832.
(Updated at 14:27 hrs)
Markets continue to reel under selling pressure amid volatility with the Sensex and the Nifty dipping by nearly 1% each. At 1430, the Sensex plunged by 101 points at 15,926, and the Nifty down 32 points at 4828 levels.
Meanwhile, the rupee slumped to a new record low of 56 to the dollar on Wednesday weighed down by global risk aversion, with the Reserve Bank of India's intervention earlier in the day seen as too mild to prevent further falls.
On the global front, Japan's Nikkei share average shed 2% on Wednesday to a four-month closing low as exporters took a beating on a firmer yen after the Bank of Japan's latest statement raised doubt about its commitment to easing monetary policy.
The BOJ dropped from its latest statement a line that the central bank will pursue powerful monetary easing, saying instead it will conduct appropriate policy, sending the yen higher against the dollar.
European markets too are trading weak with CAC, DAX and FTSE declining between 1-2%.
Back home, BSE Consumer Durable index has tumbled by over 2% followed by counters like Auto, Metal, Capital Goods, Oil & Gas and Banks, all declining by almost 1% each. However, BSE IT index is trading marginally in green zone.
Telecom major Bharti Airtel is the top Sensex loser, down over 4%. Shares of telecom services companies are under pressure on the bourses on concerns of increase in the debt burden due to the Telecom Regulatory Authority of India (Trai)’s recommendations on spectrum auction. Indian mobile operators’ financial performance will be impacted by the recommendations due to the proposed heavy spectrum costs, according to a report by accounting firm PricewaterhouseCoopers (PwC).
Tata Power has declined by almost 3% extending its previous day’s over 5% fall, on reporting a consolidated loss of Rs 629 crore for the fourth quarter ended March 2012, due to impairment provision related to Mundra project. The company had a consolidated profit after tax of Rs 625 crore in the previous year quarter.
Metal shares like JPL, Sterlite and Tata Steel have slipped between 0.5-3%.
Auto stocks like Hero Moto, Maruti Suzuki, Bajaj Auto and Tata Motors have declined by almost 2% each.
Banking and financial shares like HDFC, HDFC Bank and ICICI Bank have plunged by nearly 1% each.
Index heavyweight Reliance Industries have slipped over 1% on reports that its partners BP and Canada's Niko Resources have abandoned the D4 oil and gas block off east coast, further raising production concerns from the location.
Meanwhile, BSE Midcap index has slipped by 0.59% whereas BSE Smallcap index is down by 0.68%.
The market breadth in BSE remains weak with 1,621 shares declining and 943 shares advancing.