The benchmark BSE Sensex continued to showcase a bearish trend as trading was down by over 50 points in pre-noon session as investors indulged in squaring off their positions to avoid losses and safeguard their outstanding trades.
Below par macroeconomic data and weak trend in Asian markets have been cited as the main reasons behind this sluggish downturn in the Indian markets off late.
As per the financial brokers the market mood took a plunge after a dismal IIP data, which was released after trading hours on Monday, The industrial output decreased by 2.4 per cent in July, registering the worst performance in eight months mainly due to declining output in manufacturing and capital goods sectors.
The brokers also said that weak market trend in Asian bourses, in line with overnight losses at the US market following fall in global crude oil prices, also dampened the traders sentiment.
Retail inflation stooped to a five-month low of 5.05 per cent in August.
At 11.35 a.m this morning, the 30-share BSE index Sensex was down 54.46 points or 0.19 per cent at 28,299.08 and the 50-share NSE index Nifty was down 9.35 points or 0.1 per cent at 8,706.25.
Among BSE sectoral indices, metal index fell the most by 0.73 per cent, auto 0.33 per cent, capital goods 0.3 per cent and IT 0.18 per cent. On the other hand, infrastructure index was up 0.39 per cent, realty 0.36 per cent, consumer durables 0.33 per cent and banking 0.25 per cent.
Top five Sensex gainers were NTPC (+1/89%), Cipla (+1.85%), Adani Ports (+1.29%), Asian Paints (+1.2%) and State Bank of India (+1.09%), while the major losers were Coal India (-2.00%), Tata Steel (-1.91%), (-1.57%), Tata Motors (-1.42%) and (-1.24%).
SMC Global said: "Asian stocks extended a global slump and volatility soared after a report showed fund managers are hoarding more money in cash amid uncertainty over the trajectory of central bank stimulus globally.
Meanwhile US stocks closed sharply lower Tuesday as investors had to face the brunt for a spike in volatility and falling oil prices.