Markets continue to languish;FMCG weigh

Meanwhile, Wipro, SBI, BHEL, ONGC, ICICI Bank and Hero MotoCorp gain

Negative trades continued in the morning deals with the Nifty around the 5,500 level and the Sensex slipped 113 points to trade at 18,620.

The smallcap index continued to trade up 0.1% while the midcap was down 0.1%, both outperforming the Sensex which was down 0.6%.

Rupee

The rupee weakened in early trades on Wednesday due to persistent dollar demand by importers. According to currency dealers there is also dollar demand from foreign banks on behalf of Foreign Institutional Investors who were selling stocks.

At 10:30 hrs, the rupee was quoting at Rs 61.41 compared with previous close of Rs 60.80. It had opened at Rs 61.25.

The RBI and the Finance Ministry is set to review the situation arising out of the weakening rupee and the widening current account deficit at a meeting of the sub-committee of Financial Stability and Development Council today afternoon.

The rupee is expected to weaken further and near the all-time-low level today unless state-run banks step in by way of dollar sale.

Sectors & Stocks

Realty, PSU, Oil&Gas, Power and Bankex were the only indices to trade in the green, adding 0.3-1.5%.

FMCG, Auto, Capital Goods indices down 1-2% were the major sectoral losers.

The only gainers among the Sensex-30 were Wipro, SBI, BHEL, ONGC, ICICI Bank and Hero MotoCorp up 0.4-2%.

Among the top losers were Tata Motors down nearly 4% ahead of its April-June quarter earnings today.

L&T, ITC, Hindalco, Maruti Suzuki, Sun Pharma, Cipla, Hindustan Unilever, Bajaj Auto and HDFC down 1-2% were ten top losers.

Among other stocks, Bosch was up 3% at Rs 8,525 after reporting 2% year-on-year  growth in net profit at Rs 252 crore for the second quarter ended June 30, 2013. The auto parts and equipment maker had profit of Rs 247 crore in a year ago quarter.

The market breadth was negative. 844 stocks declined while 804 stocks advanced on the BSE.