Indian shares extended losses in late morning trades on Friday tracking weak Asian stocks after US House of Representatives Speaker John Boehner said that a proposal to avert automatic spending cuts and tax increases failed to muster enough support, thereby raising concerns that the world's biggest economy may slip into recession next year.
At 10:20 AM, the Bombay Stock Exchange's Sensex index slumped 133 points and traded at 19,323 while the National Stock Exchange's Nifty-50 index declined 46 points at 5,871.
Global risk appetite remained frail with Asian markets extending losses in late morning trades as talks to avert a year-end fiscal crisis turned sour.
China's Shanghai Composite declined 0.4% to 2,159, Hong Kong's Hang Seng was down 0.77% to 22,484, Singapore's Straits Times declined 0.3% to 3,166 while Japan's Nikkei fell 0.24% to 10,0146.
The MSCI Asia Pacific index outside Japan fell 1.2% to 886.16.
Back home, barring IT and technology index that gained 0.1-0.3%, all sectoral indices are trading down with auto, metal, real-esate, power, fast moving consumer goods indexes leading the fall on BSE.
Among key Sensex stocks, the laggards include Tata Motors declined 2%, Mahindra & Mahindra and Hero MotoCorp fell 1%, Bharti Airtel dropped 1.4%, ITC declined 2% and in metal space, Jindal Steel shed 2% Hindalco and Sterlite Industries declined nearly 1%. Among gainers Cipla rose 1.2%, HUL gained 0.5% and among software makers, Infosys, Tata Consultancy Services and Wipro rose 0.20.-0.60% on BSE.
The other key movers include, Adani Enterprises which has rallied 5% to Rs 285, and recovering from yesterday’s 7% fall, after the promoters have fixed Rs 282 as the floor price for selling the company's 23 million shares through offer for sale (OFS) today.
Persistent Systems is trading higher by 4% at Rs 519, also its record high on the BSE, on the back of heavy volumes.
The BSE mid-cap and small-cap declined 0.5-0.6%.
The overall breadth remains negative as 1,205 stocks declined while 718 stocks advanced on the BSE.