Nifty breaks 8,100; Sensex plunges over 400 points

Markets have extended losses and are trading near day’s low weighed down by metal and index heavyweight shares.

By 11:10 AM, the Sensex was lower by 424 points at 26,896 mark and the Nifty slipped by 121 points at 8,098 levels.


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Updated at 10:20 AM

Benchmark share indices have slipped further tracking global cues along with consistent selling pressure in metal and index heavyweight shares like ITC and HDFC.

Further, selling by foreign funds in the previous sessions continue to weigh on investor sentiment.

By 10:20AM, the Sensex was lower by 303 points at 27,014 mark and the Nifty slipped by 87 points at 8,132 levels.

The broader markets are trading weak in line with the benchmark indices- BSE Midcap and Smallcap indices are down 0.8-1.1%.

There are 1,408 shares declining and 468 shares advancing on the BSE as at 1020hrs.

Foreign institutional investors were net sellers in Indian equities worth Rs 455.72 crore on Monday, as per provisional stock exchange data.

The rupee weakened to its lowest level in 13 months on Tuesday as markets in the region tumbled after a sharp rate hike in Russia further raised concerns about the global economy at a time when India's trade deficit is already widening. By 10:05 am, the partially convertible rupee was at 63.33 per dollar versus its Monday's close of 62.94/95.

Among Asian markets, Sliding oil prices and a downbeat China factory survey weighed on Asian shares on Tuesday, while the rouble jumped against the dollar after Russia sharply increased its benchmark interest rate in a bid to halt a collapse in its currency.

Activity in China's factory sector shrank in December for the first time in seven months as new orders declined, adding to a spate of data showing more fatigue in the world's second-largest economy and heightening expectations that more stimulus will be needed to avert a sharper economic slowdown.

Back home, BSE Metal index and BSE Bankex have slumped by almost 2%. Sectors like Auto, Consumer Durables, FMCG, Healthcare Oil & Gas, Power and Realty have slipped between 0.8-1.5%.

The main losers on the Sensex are Hindalco, Sesa Sterlite, ICICI Bank, Dr Reddy’s Labs, ONGC, Tata Motors, ITC and HDFC.

Shares of metal companies are under pressure with the National Stock Exchange (NSE) CNX Metal index hits its lowest level since May this year.

Hindalco Industries and Sesa Sterlite are down 4-6%, while, Hindustan Copper, Jindal Saw, Tata Steel, Jindal Steel and Power and MOIL are down 1-2% on NSE.

At 0939 hours, CNX Metal index, the largest loser among secotral indices, was down 2% at 2,565, its lowest level since May 13, 2014. In past three trading sessions, the metal index was down almost 4% after the latest data showed factory production in China slowed in November 2014.

Shares of ONGC turn ex-dividend today for an interim dividend of Rs 5 per share for the year ending 31 March 2015. The stock is down over 2%.

On the gaining side, IT shares are witnessing some buying demand on account of rupee depreciation. TCS, Infosys and Wipro have gained between 0.4-1.5%.

Among other shares, Mastek has rallied 9% to Rs 354, extending its previous day’s 20% rally on National Stock Exchange (NSE), after Sundaram BNP Paribas Simple Fund bought nearly 200,000 shares of software services company through open mark.

Shares in Motherson Sumi Systems were trading higher by 3% at Rs 417 on BSE in otherwise weak market after the company said that it is acquiring assets of Scherer & Trier group, Germany at around Euro 36 million (approx Rs 284 crore).