The domestic bourses succumbed to a severe broad-based selling pressure today as traders fret over the health of the world economy with China mired in a steep slowdown, while tumbling currencies and commodities exasperate investor fears, prompting a flight from equities. However, the market trimmed most of its early losses in afternoon session, as sentiment got a lift as selling momentum by foreign investors wanes. Healthy gains in realty and oil and gas stocks capped market losses.
At 12:20 hours, the BSE SENSEX was trading at 25670.59, down by 70.97 points or by 0.28 per cent, and the NSE Nifty was quoting 59.55 points lower at 7749.45.
In the choppy trade, the BSE Sensex touched an intraday high of 26124.83 and intraday low of 25298.42, while the NSE Nifty touched high and low of 7925.4 and 7667.25, respectively, during the day"s trade so far.
Early today, Indian rupee, which plunged to nearly 67 against US dollar on Monday, recovered slightly but weakness in equity weighed on currency movement. The continued depreciation in the rupee is a major concerns for Indian equities as further depreciation in the local currency may delay an interest rate cut by the Reserve Bank of India (RBI) which meets next on the 29th of September.
Further, concerns about slowing growth in china coupled with dimming hopes of a US rate hike in mid-September also weighed on market sentiment.
Leading the decline on the D-Street were Maruti Suzuki India Ltd. (Rs. 4107.65,-3.36%), Bharat Heavy Electricals Ltd. (Rs. 223.00,-2.87%), Lupin Ltd. (Rs. 1762.00,-2.25%), Sun Pharmaceutical Industries Ltd. (Rs. 874.15,-1.91%), Larsen & Toubro Ltd. (Rs. 1604.00,-1.80%), among others.
However, some buying were witnessed in stocks, such as NTPC Ltd. (Rs. 120.45,+4.83%), Coal India Ltd. (Rs. 346.55,+3.05%), Axis Bank Ltd. (Rs. 493.50,+2.33%), ICICI Bank Ltd. (Rs. 276.00,+2.28%), Vedanta Ltd. (Rs. 82.05,+2.24%), among others.
On the sectoral front, capital goods and consumer durables indices were bleeding in red, losing 1.85 per cent and 1.56 per cent, respectively.
The Market breadth, indicating the overall strength of the market, was weak. On BSE out of total shares traded 2532, shares advanced were 465 while 1991 shares declined and 76 were unchanged.
On the global front, the Asian equities continued to reel under selling pressure, with stocks in mainland China retreating over 7.5 per cent in intra-day trade amid deepening fears surrounding the health of the world"s second biggest economy, while geopolitical tensions surrounding the Korean peninsula are keeping traders edgy.