The market hit fresh intraday low in early afternoon trade as selling pressure intensified. At 12:18 IST, the barometer index, the S&P BSE Sensex, was down 83.07 points or 0.21% at 39,666.66. The Nifty 50 index was down 21.85 points or 0.18% at 11,906.90.
Auto shares tumbled. Ashok Leyland (down 1.81%), Bajaj Auto (down 1.7%), Eicher Motors (down 1.17%), Escorts (down 1.63%), Hero MotoCorp down 1.47%), Mahindra & Mahindra (down 1.15%), Tata Motors (down 2.32%) and TVS Motor Company (down 1.79%), edged lower.
Car major Maruti Suzuki India was down 1.44%. The company announced today that it recently laid the foundation stone for a 5 MW Solar Power plant at the Gurugram facility. The captive Solar Power plant is expected to be commissioned in FY 2019-20. The company will invest around Rs 24 crore, and will offset Co2 emissions to the tune of over 5390 tonnes annually, for the next 25 years. This is the second grid based Solar Power plant for Maruti Suzuki. The 1st Solar Power plant was set up in 2014 at Manesar, with 1 MW capacity. In 2018, this solar power plant was further expanded to 1.3 MW.
Telecom shares declined. Reliance Communications (down 3.4%), Vodafone Idea (down 2.93%), MTNL (down 2.69%) and Bharti Airtel (down 1.91%), edged lower. Tata Teleservices (Maharashtra) was up 2.69%.
Negative leads from other Asian markets spoiled investors sentiment back home. There are worries over the outlook for global growth with trade tensions between US and China showing no signs of waning.
Japan's Nikkei 225 was down 1.22%. South Korea's KOSPI was down 1.25%. Chinese shares started on the back foot but bounced off early losses to be marginally higher. China's Shanghai index was up 0.20%.
A decline in interest rates also sparked worries about a possible slowdown in the US economy. The yield on the benchmark 10-year note fell to around 2.26%, the lowest level since September 2017. That put it below the 2.35% yield on the three-month Treasury bill. Yields move inversely to prices.
In US, the Dow Jones Industrial Average declined 0.93%, while the S&P 500 index declined 0.84%, and the NASDAQ Composite index fell 0.39% on Tuesday.
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