Key benchmarks further extended losses and hit fresh intraday low in mid-morning trade. At 14:26 IST, the barometer index, the S&P BSE Sensex, was down 497.57 points or 1.27% at 38,589.50. The Nifty 50 index was down 153.10 points or 1.32% at 11,435.10.
Selling was triggered by the Asian Development Bank (ADB) today cutting India's GDP growth to 6.5% for this year compared with 7% estimated in July 2019. It, however, maintained India's 7.2% growth projection for next year, supported by proactive policy interventions.
Political uncertainty in the United States following an impeachment inquiry into President Donald Trump also dented sentiment. Democrats in the U.S. House of Representatives on Tuesday launched a formal impeachment inquiry into President Trump, accusing him of seeking foreign help to smear Democratic rival Joe Biden ahead of next year's election.
Selling was wide spread. The S&P BSE Mid-Cap index was down 1.96%. The S&P BSE Small-Cap index was down 1.52%.
The market breadth was weak and titled in favour of bears. On the BSE, 658 shares rose and 1729 shares fell. A total of 125 shares were unchanged. In the Nifty, 10 stocks advanced while 40 stocks declined.
Metal stocks slumped. The S&P BSE Metal was down 2.66% at 9,012.26.
Vedanta (down 2.6%), Jindal Steel & Power (down 5.12%), Tata Steel (down 3.09%), Steel Authority of India (down 4.23%), Hindustan Zinc (down 3.48%), National Aluminium Company (down 5.78%), and NMDC (down 4.19%) declined. Hindalco Industries (down 3.36%) and Hindustan Copper (down 3.05%) tumbled.
Realty stocks witnessed selling. The S&P BSE Realty was down 3.02% at 2,009.28.
DLF (down 7.23%), Indiabulls Real Estate (down 4.78%), Oberoi Realty (down 4.18%), Sunteck Realty (down 3.11%), Sobha (down 2.02%) and Prestige Estates Projects (down 1.69%) tumbled.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 71.10, compared with its close of 71.01 during the previous trading session.
Meanwhile, the yield on 10-year benchmark federal paper fell to 6.755% at 14:19 IST compared with 6.775% at close in the previous trading session.
In the commodities market, Brent crude for November 2019 settlement was down 96 cents at $62.14 a barrel. The contract edged 2.58% lower to settle at $63.1 a barrel in the previous trading session.
MCX Gold futures for 4 October 2019 settlement rose 0.19% at Rs 38,180.
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