Key benchmark extended initial losses to hit fresh intraday low in morning trade as the rupee extended Monday's steep slide to hit record low against the dollar. Weakness in Asian stocks weighed on sentiment as the S&P BSE Sensex hit its lowest level in over six weeks. The 50-unit CNX Nifty hit 7-week low. The Sensex was down 119.01 points or 0.61%, off close to 100 points from the day's high and up about 10 points from the day's low. The market breadth, indicating the overall health of the market, was weak. Metal stocks extended Monday's losses triggered by weak Chinese economic data released over the weekend. Some pharma stocks extended initial gains on defensive buying. Telecom stocks declined. Auto stocks also edged lower.
The market edged lower in early trade. The Sensex extended initial losses to hit fresh intraday low in morning trade.
The partially convertible rupee was trading at 58.68 after hitting record low of 58.70 versus Monday's close of 58.15/16 per dollar. The rupee had lost 1.9% on Monday, 10 June 2013, weighed down by broad gains in the dollar. A weak rupee makes imports costlier, stoking inflation concerns, thereby capping the Reserve Bank of India's scope to extend monetary easing and counter the slowest economic growth in a decade.
Foreign institutional investors (FIIs) sold shares worth a net Rs 114 crore on Monday, 10 June 2013, as per provisional data from the stock exchanges.
At 10:20 IST, the S&P BSE Sensex was down 119.01 points or 0.61% to 19,322.06. The index declined 127.88 points at the day's low of 19,313.19 in morning trade, its lowest level since 29 April 2013. The index fell 22.33 points at the day's high of 19,418.74 in early trade.
The CNX Nifty was down 37.60 points or 0.64% to 5,840.40. The index hit a low of 5,839 in intraday trade, its lowest level since 23 April 2013. The index hit a high of 5,868.05 in intraday trade.
The market breadth, indicating the overall health of the market, was weak. On BSE, 858 shares fell and 378 shares rose. A total of 68 shares were unchanged.
Among the 30-share Sensex pack, 20 stocks fell and rest of them rose. Infosys, Wipro and Hero MotoCorp rose by 0.48% to 0.91%. ICICI Bank, Coal India and Tata Power Company dropped by 1.2% to 2.84%.
Auto stocks edged lower. M&M, Maruti Suzuki India and Tata Motors fell by 0.57% to 1.72%.
Car sales in India fell 12.3% to 1.43 lakhs in May 2013 over May 2012, an industry body said on Tuesday, dropping for the seventh straight month, as weak consumer sentiment in a slowing economy continued to weigh on demand.
Telecom stocks declined. MTNL, Tata Teleservices (Maharashtra), Reliance Communications, Idea Cellular and Bharti Airtel dropped by 0.04% to 2.81%.
Metal stocks extended Monday's losses triggered by uninspiring Chinese economic data released over the weekend. China is the world's largest consumer of copper and aluminum. Sterlite Industries, Hindalco Industries, Sail and Tata Steel shed by 0.18% to 3.17%.
Jindal Steel & Power slumped 3.5%, with the stock extending Monday's 4.46% losses.
Some pharma stocks extended initial gains on defensive buying. Cipla and Dr Reddy's Laboratories gained by 0.86% to 1.31%.
Asian stocks edged lower on Tuesday after the Bank of Japan kept its policy unchanged. Key benchmark indices in Taiwan, Hong Kong, Indonesia, Japan, Singapore and South Korea shed by 0.19% to 2.51%. Mainland Chinese markets are closed from Monday, 10 June 2013 till tomorrow, 12 June 2013, for the Dragon Boat Festival.
The Bank of Japan (BOJ) on Tuesday kept monetary policy steady and revised up its assessment of the economy, unfazed by recent market turbulence which has yet to inflict severe damage on a gradually improving economy. As widely expected, the central bank voted unanimously to maintain its pledge of increasing base money, or cash and deposits at the BOJ, at an annual pace of 60 trillion to 70 trillion yen.
Trading in US index futures indicated that the Dow could fall 20 points at the opening bell on Tuesday, 11 June 2013. US stocks ended a choppy session little changed on Monday after Standard & Poor's Ratings Services revised its US credit-rating outlook to stable from negative and consumer shares lost ground.
Global credit rating agency Standard & Poor's revised its credit-rating outlook for the US to stable from negative citing receding fiscal risks, indicating the likelihood of a near-term downgrade is less than one in three. S&P also affirmed its AA+/A-1+ sovereign-credit ratings for the US.
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