Markets languish as banks and FMCG stocks drop

Broader markets also decline in line with benchmark; metal shares among key losers

Markets continued on their downwards journey with the Sensex touching a low of 19,448. The BSE benchmark index is now down 161 points at 19,482. Nifty is down 46 points at 5,896.

The rupee today depreciated by 25 paise to 54.32 against the dollar in early trade on the Interbank Foreign Exchange due to renewed demand for the US currency, amid weak equities.

Overnight in US, stocks fell the most in three months and a key gauge of market volatility spiked on Wednesday after minutes from the U.S. Federal Reserve's most recent meeting suggested the central bank may slow or stop buying bonds sooner than expected.

The minutes from the Fed's January meeting showed many officials voiced concern last month over potential costs of more asset purchases, suggesting that the program, known as QE, may slow before the pickup in hiring it was intended to deliver.

On Wall Street, the Dow Jones industrial average dropped 0.77 percent, to 13,927 at the close. The Standard & Poor's 500 Index fell 1.24 percent, to 1,512. The Nasdaq Composite Index lost 1.53 percent, to end at 3,164.

European shares fell as surprise dividend cuts by British insurer RSA and Lufthansa and weak results from the likes of Accor, Europe's biggest hotelier, and miner BHP Billiton weighed on sentiment.

Asian shares fell as risk sentiment was shaken by talk in global markets overnight that a hedge fund had been liquidating large positions in commodities, as well as worries the Federal Reserve could slow its bond buying programme.The MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.5 percent, snapping a three-day rising streak whilewhile Tokyo's Nikkei stock average opened 0.6 percent lower.

All the sectoral indices, barring consumer durables index, have dropped into the red. BSE metal index has slipped 1.8% at 9,747. Capital goods, FMCG, realty and bankex are down 1-2% each.

Sterlite, Hindalco and Jindal Steel are among the key losers this morning. Tata Motors, Tatat Steel are down 2% each. Among key draggers are ICICI Bank, ITC and Larsen & Toubro.

Madras Cements gained 1% in opening trades and touched a yearly high at Rs 254 today. The southern cement company had an impressive Q3 earnings as compared to its peers like ACC and Ambuja.

SKS Microfinance has slumped 2.39% at Rs 143.20 as insurance regulator IRDA imposed Rs 50 lakh penalty on the company which collected extra funds, apart from the premium, as a corporate insurance agent without proper disclosure to policy-holders.