Benchmark indices opened the day tentative as US bond yields surged, after US Fed Chairperson, Janet Yellen hinted at an interest rate hike soon. Most analysts are expecting a rate hike at the US Fed's December policy meet and believe there could be one or two hikes later next year.
The dollar shot to a 13 year high, against a basket of currencies, which pushed Asian markets lower.
The Sensex was last seen trading with losses of 30 points and the Nifty dipped 2 points in trade. PSU Banking stocks, which have been seeing strong buying support in the last few days, finally managed to see some selling pressure. Among the losers in trade were Infratel, Adani Ports, Tata Motors and Bank of Baroda. On the other hand stocks that gained were BPCL, IndusInd Bank and Kotak Mahindra Bank.
Among non index stocks, Bharat Forge gained ground after the board of the company is set to meet to consider acquisition of a North American company. Shares in Petronet LNG surged after the company reported a growth in net profit of almost 82 per cent.
Meanwhile, the rupee breached the 68 levels, after the US dollar strenghthened against a basket of currencies.
The currency lost 28 paise and was last trading at 68.08 to the US dollar.