Nifty slips below 8,400; Sensex slumps 400 points

Markets have extended losses with Nifty slipping below its crucial level of 8,400 on worries over Chinese economic slowdown amid persistent Greece worries. The downward trend in the benchmarks is weighed down by a vertical decline in the metal shares coupled with drop in Tata Motors tracking weakness in the Chinese equities.

At 11:10 AM, the Sensex was at 27,762 levels, down by 410 points while Nifty fell was at 8,377, down by 133 points. 

Vedanta, Tata Motors, Hindalco, Tata Steel and BHEL are trading lower between 4-7% on the BSE.

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(updated at 10:45 AM)

Benchmark indices continue to trade on a downward spiral in the morning trades tracking negative cues from the global markets. Metal stocks are weighing on the indices following the crash of base metal prices on Tuesday.

At 10:45 AM, the Sensex was at 27,876 levels, down by 295 points or 1% while Nifty fell below 8,500 to open at 8,418, down by 92 points.

The broader markets are, however, outperforming their larger peers with BSE Midcap and Smallcap indices down by 0.83% and 0.42% respectively. The market breadth is negative with 1,174 declines against 928 advances on the BSE.

The Chinese stock market crisis would be in focus today with Greece woes lingering in the background. There has been a selloff in China following a move by the Chinese regulator to tighten margin trading and short selling rules, thereby making it difficult for investors to borrow money to play the market.

Meanwhile, the Greek saga continues with the Greek government getting another lifeline. Athens now has to submit a set of proposals by Sunday, failure of which could make ‘Grexit’ a more likely scenario.

On the home front, the first quarter results season, which will start this Thursday and the Index of Industrial Production data (IIP) scheduled for this Friday would be in focus.

On the currency front, the rupee opened at 63.58, depreciating by 12 paise against the US dollar.

CRUDE OIL

Oil futures steadied early on Wednesday on an expected drop in US inventory, but worries over the Greek debt crisis and China's stock market turmoil dragged on prices. The crises are weighing on the oil prices that are already burdened by oversupply in the market

GLOBAL MARKETS

Asian markets tumbled due to a plunge in the Chinese stocks thus rattling investors’ confidence that is already wary about Greece crisis.

Shanghai's benchmark composite index was down 6.4% despite of support measures from Beijing.

The drop in China extended in today’s trading session that has clipped 30% off Chinese shares since mid-June, threatening a new blow to the country's already slowing economy.

Chinese media reported that possibly more than half of China's listed companies have suspended or will seek trading suspensions in an attempt to escape the market rout.

Japan's Nikkei stock index fell 1.5% while SGX Nifty was down by 1% in the morning trades.

Meanwhile, investors are wary of the Greece crisis. The euro was down about 0.2%. US stock futures were down 0.6% but Wall Street’s major indices closed higher amid the Greek and Chinese crisis.

SECTORS & STOCKS

Sectorally, BSE Metal has taken a major hit as it dips 2% followed by BSE Auto and Bankex indices, down by 0.8-1.2%. BSE Oil & Gas index is rallying with 0.4% gains.

Base Metal prices have crashed on Tuesday as the dollar became stronger following Greece cues. Copper prices dived 6% while Nickel plunged 10% on London Metal Exchange. Aluminium was down to a six year low.

Vedanta has slumped 5.4% on the Sensex while Tata Steel is down by 2.9%. Hindalco has slipped 4%.

From the Auto pack, Tata Motors has shed 4.1% as its luxury-arm JLR is dependent on China.  Maruti, M&M and Hero Motocorp have shed between 0.1-0.6% each.

Banking shares are trading down with Bank Nifty shed 136 points amid Greece and Chinese crisis. HDFC twins, SBI, Axis Bank, ICICI Bank have all shed between 0.3-1.3% on the Sensex.

From the IT space, TCS will be announcing the Q1 results on Thursday, thus kicking off the corporate earnings results season. The stock is down by 0.48%. Wipro has gained 0.5% while Infosys is down by 0.8%

Other major laggards are ITC, NTPC, BHEL, all down between 1.3- 1.5% each on the Sensex.

On the flip side, HUL has gained 1.9% on the Sensex and is the highest gainer. ONGC has logged with 0.86% gains as oil prices steadied on Wednesday. Index Heavyweight Reliance Industries has gained 0.37% on the Sensex.

Among other shares, Titagarh Wagons has surged 7% on the NSE after the company announced that it has received an industrial license for manufacturing defence items.

Shares of Crompton Greaves were up nearly 4% on the BSE, after the company announced that it has signed a global supply agreement with cement major Lafarge for electrical motors.

Shares of Vascon Engineers surged nearly 9% on the BSE after the company in a release said that it has won orders worth Rs 286.11 crore.

With Reuters input