Nifty slips below 5,700, Rupee breaches 61/$ mark

Markets have started the trading session on a lower note tracking weak Asian cues.

Meanwhile, the rupee approached a record low on Wednesday on doubts about whether the central bank can defend the currency with its existing cash-draining measures unless policy makers take additional steps.

The rupee fell to as low as 61.12 to the dollar, not far from its record low of 61.21 hit on July 8. It closed trade at 60.47/48 on Tuesday.

By 9:35, the Sensex was lower by 182 points at 19,169 mark and the Nifty slipped by 57 points at 5,698 levels.

On the global front, the S&P 500 and Nasdaq ended higher on Tuesday, lifted by gains in the technology sector, while potash shares were the day's big losers.

 
The tech sector index rose 0.7%, leading the S&P 500's advance. Facebook's stock jumped 6.2% to close at $37.63, within striking distance of its $38 IPO price.

The stock - the most actively traded on Nasdaq - rose as much as 7% to a session high of $37.96. Facebook's stock has gained 42% since the company reported blowout quarterly results last Wednesday.

 Japan's Nikkei share average fell on Wednesday morning, as most investors adopted a wait-and-see stance ahead of another batch of key domestic earnings and the outcome of a Federal Reserve policy meeting for clarity on US economic stimulus.

The benchmark Nikkei declined 1% to 13,736.76 in midmorning trade, erasing much of its 1.5% advance on Tuesday, but was still on course for a first monthly gain in three months. The broader Topix fell 0.8% to 1,141.69.

Back home, BSE Realty, Metal, PSU, Power, Bankex indices have slumped by 2% each. Apart from IT, all the major BSE sectoral indices are trading in red zone.

The main losers on the Sensex at this hour include Jindal Steel, GAIL, ONGC, NTPC, Sterlite and Tata Steel, all falling down between 2-3%.

Jindal Steel is the top Sensex loser, domn 3%. The company’s  consolidated net profit rose 28.27% to Rs 494.28 crore on 2.65% decline in total income to Rs 4593.55 crore in Q1 June 2013 over Q1 June 2012.

Bharti Airtel is trading flat post the announcement of Q1 numbers. The company has reported a 9.6% drop in net income at Rs 689 crore during April-June quarter.

The result marks the 14th consecutive quarter of decline in net profit for the country’s largest telecom operator by subscriber base.

On the gaining side, TCS, Wipro and Infosys have surged by 1% each.

Among other shares, HCL Tech has gained by nearly 2%. HCL Technologies, India's No. 4 IT services exporter, beat expectations with a 41.6% rise in quarterly profit, after order wins boosted earnings.

Consolidated net profit for the fiscal fourth quarter ended June 30 rose to Rs 1,210 crore from Rs 854 crore a year earlier, HCL Technologies said on Wednesday.

The market breadth in BSE remains weak with 696 shares declining and 224 shares advancing.