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Benchmark indices are trading lower weighed down by selling among financials, metal and realty sectors on account of profit booking.
The market sentiment is also weak after stock market regulator SEBI imposed restrictions on issue of Offshore Derivative Instruments (ODIs) by foreign portfolio investors (FPIs).
At 1200 hrs, the Sensex was down 109 points at 28,390 and the Nifty slipped 53 points to trade at 8,478.
The broader markets are under performing the benchmark indices- BSE Mid-cap and Small-cap indices have slipped between 2-2.5%.
The market breadth in BSE remains weak with 1,981 shares declining and 609 shares advancing.
Meanwhile, the provisional data released by the stock exchanges after trading hours on Monday showed that foreign portfolio investors (FPIs) bought shares worth a net Rs 407.42 crore on that day.
The rupee fell to 61.98/99 versus Monday's close of 61.9350/9450.
Among global markets, China's central bank cut the yield for a key short-term money rate on Tuesday for the fourth time this year, as regulators step up efforts to reduce funding pressure on Chinese companies.
The reduction of the yield on the 14-day bond repurchase agreement (repo) to 3.2%, from 3.4%, follows a surprise cut to benchmark lending rates on Friday to support the cooling economy, and follows similar moves in October and July as growth wobbled.
SECTORS & STOCKS
BSE Realty index has slumped by almost 3% followed by counters like Metal, Consumer Durables, Capital Goods, Power and Banks, all slipping between 1-2%.
The top losers on the Sensex are Tata Steel, Hindalco, L&T, Tata Power, ICICI Bank, Axis Bank and Coal India.
Shares of real estate companies are under pressure and trading lower by up to 8% on the National Stock Exchange (NSE).
Indiabulls Real Estate and Unitech have plunged 8% each at Rs 74.65 and Rs 18.20 respectively. National Building Construction Corporation (NBCC) slipped 6% to Rs 714, while Housing Development and Infrastructure (HDIL) and Delta Corp dipped 5% each at Rs 78.50 and Rs 93.20 respectively. Oberoi Realty slipped 4% at Rs 240, while DLF down 3% at Rs 144 on BSE.
Shares of most of the frontline banks are trading lower between 1-4% on profit booking after rallying 20% in past one and half months.
Canara Bank, Bank of India, Federal Bank, Yes Bank, Punjab National Bank, Kotak Mahindra Bank, ICICI Bank and Bank of Baroda are down between 2-4%, while State Bank of India (SBI), IndusInd Bank and Axis Bank are down 1% each on the National Stock Exchange (NSE).
Bank Nifty, the NSE banking share index, has dipped 229 points or 1.25% or 230 points at Rs 18,053 as compared to 0.60% decline in CNX Nifty at 1137 hours. The banking index hit a low of 18,036 so far.
On the gaining side, BHEL, Bharti Airtel, Wipro, HDFC and HUL have gained between 1-2%.
