Amidst choppy trade, the Indian equities continued to trade in negative terrain as investors remained nervous over China as the country"s slowdown continued to fuel a rout in emerging market assets and commodities, dimming the lure for risky assets. Selling pressure was visible in auto, IT, banking and capital goods stocks, but strong gains in FMCG and healthcare stocks, limited downtrend.
At 12:20 hours, the BSE SENSEX was trading at 27899.31, down by 32.33 points or by 0.12 per cent, and the NSE Nifty was quoting 25.4 points lower at 8469.75.
In the choppy trade, the BSE Sensex touched an intraday high of 27964.6 and intraday low of 27820.5, while the NSE Nifty touched high and low of 8501.35 and 8453.6, respectively, during the day"s trade so far.
Fears that a further depreciation of the rupee may delay an interest rate cut by the Reserve Bank of India (RBI) which meets next on the 29th of September also spoil the mood at Dalal Street, clouding the outlook for Asia"s third biggest economy.The domestic bourse remained under pressure as concerns about slowing growth in china coupled with dimming hopes of a US rate hike in mid-September weighed on market sentiment. In the Fed"s latest meet, the agency stressed that conditions which warrant rate tightening are approaching, policymakers are seeking more evidence of a pickup in economic growth and labour markets and need more confidence that inflation is moving towards the required goal.
Leading the decline on the D-Street were Infosys Ltd. (Rs. 1132.70,-3.60%), Vedanta Ltd. (Rs. 99.40,-3.12%), Tata Steel Ltd. (Rs. 243.85,-2.42%), GAIL (India) Ltd. (Rs. 322.90,-2.23%), Tata Motors Ltd. (Rs. 343.75,-2.09%), among others.
However, some buying were witnessed in stocks Lupin Ltd. (Rs. 1912.00,+6.50%), ITC Ltd. (Rs. 330.00,+4.22%), Sun Pharmaceutical Industries Ltd. (Rs. 960.00,+3.53%), Hindustan Unilever Ltd. (Rs. 896.50,+2.38%), Dr. Reddy's Laboratories Ltd. (Rs. 4300.00,+1.61%), among others.
On the sectoral front, IT and metal indices were among top losers on BSE, dropping 1.91 per cent and 1.63 per cent, respectively.
The Market breadth, indicating the overall strength of the market, was weak. On BSE out of total shares traded 2525, shares advanced were 919 while 1506 shares declined and 100 were unchanged.
On the global front, the Asian equities continued to trade under pressure as investors remained nervous over China as the country"s slowdown continued to fuel a rout in emerging market assets and commodities, dimming the lure for risky assets. China"s Shanghai Composite stayed in bear terrain, shedding nearly 3 per cent as a weaker yuan and a slowing economy threatened to spur capital outflows, Hang Seng plunged while Japan"s Nikkei 225 was also down as a stronger yen dimmed the appeal of exporter stocks.