Sensex falls over 200 points, Nifty tests 9,200 in noon deals

The broader market pared entire gains to slip in red

The benchmark indices on Friday extended losses taking cues from lower opening in European markets after the United States launched cruise missiles against an airbase in Syria, while back home expectations of no further rate cuts by Reserve Bank of India (RBI) this year, also impacted the sentiment. 

At 2:56 pm, the S&P BSE Sensex was trading at 29,725, down 201 points, while the broader Nifty50 was ruling at 9,204, down 57 points. 

The broader market pared gains, yet outperformed the frontline indices. The S&P BSE Midcap and the S&P BSE Smallcap indices were down 0.2%.

The breadth, indicating the overall health of the market, turned negative. On the BSE, 1,299 shares rose and 1,543 shares declined. A total of 127 shares were unchanged.

Meanwhile, the rupee surged to 20-month high, by extending gains to as much as 64.32 per dollar, its highest since August 2015.

Bonds, however, extended falls, with sentiment also hit after the RBI said it would start curbing excess liquidity after the government's move to withdraw higher-value bank notes from circulation led to a surge in bank deposits.

The benchmark 10-year bond yield rose 5 basis points to 6.82% after rising 12 basis points on Thursday.

Telecom stocks Bharti Airtel and Idea Cellular rose up to 3% after rival Reliance Jio Infocomm, a unit of Reliance Industries, withdrew its summer surprise offer to subscribers.

The Nifty Realty index rose as much as 1.14% to its highest in nearly two years after the central bank on Thursday said it has allowed banks to invest in real estate investment trusts (REITs) and infrastructure investment units (InvITs) within regulations prescribed by the Sebi.

Among losers, IT stocks edged lower as rupee strengthened against the dollar. Infosys (down 1.01%), Wipro (down 0.78%), HCL Technologies (down 0.21%) and Tech Mahindra (down 0.27%) declined. 

A firm rupee adversely affects operating profit margins of IT firms as the sector derives a lion's share of revenue from exports.

Sun Pharmaceutical Industries fell as much as 3% to its lowest since February 22 after the US drug regulator found storage and logistics lapses during a surprise visit to Dadra facility, a media report stated. 

Overseas, Asian markets slipped as geopolitical concerns grew after the United States launched cruise missiles against an air base in Syria.