Domestic stock markets started Wednesday's session on a lacklustre note, extending losses to a second day running, despite a bounce-back in Asian peers.
The S-P BSE Sensex index fell as much as 129.99 points to 36,432.92 in early deals, and the broader NSE Nifty benchmark slid to 10,757.30 at the day's weakest level, down 40.6 points from the previous close.
Analysts say caution prevailed after concerns about slowing economic growth spooked investors.
Wednesday's fall came a day after the Sensex ended 2.06 per cent lower and the Nifty sank 2.04 per cent in their worst percentage drop since October 11 and July 8."Nifty Has Strong Support At 10,600""The Nifty seems to have strong support at 10,600.
The current decline in the markets is based on a combination of factors.
The currency (rupee), which has gone for a toss, is the most important factor Secondly, concerns remain on the economic growth front.
Thirdly, real concerns are still not addressed," AK Prabhakar, head of research at IDBI Capital, told TheIndianSubcontinent.
"There is a need to rationalise taxes to bring the economy back on track.
Auto and consumption sectors continue to face a tough environment in terms of regulation."Markets Reverse Direction At Least Twice But Fail To Stay PositiveAfter opening lower, both the benchmark indexes - Sensex and Nifty - turned positive on at least two occasions but failed to sustain those gains.
The Sensex rose to as much as 36,635.87, up 0.20 per cent from its previous close of 36,562.91.
The 50-scrip benchmark index touched an intraday high of 10,823.55, but remained in the negative territory for most part in the first hour of trade.Advance-Decline Ratio Points To Losses; Auto, Media, Pharma Sectors Worst HitMarket breadth favoured declines with 622 stocks trading higher on the Bombay Stock Exchange (BSE) and 657 moving lower.
On the National Stock Exchange (NSE), 743 stocks advanced while 776 declined.
At 9:46 am, seven out of 11 sectoral indices on the NSE traded in the negative zone, with the Nifty Media, Pharma and Auto gauges down 1.69 per cent, 1.32 per cent and 0.65 per cent respectively.Markets At 9:27 am -- Sensex Down Over 100 PointsAt 9:27 am, the Sensex traded 105.43 points - or 0.29 per cent - lower at 36,457.48 while the broader Nifty was down 21.85 points - or 0.20 per cent - at 10,776.05.
Top percentage laggards on the 50-scrip index at the time wereSun Pharma, IndusInd bank, Indiabulls Housing Finance, Reliance Industries, Tata Motors and Bharat Petroleum, trading between 1.04 per cent and 3.80 per cent lower.Reliance Industries, IndusInd Bank, Sun Pharma and Kotak Bank were the top drags on Sensex.Sensex, Nifty Open Lower; Financial, Pharma Stocks Worst HitDomestic stock markets started Wednesday's session on a lower note, a day after the S-P BSE Sensex index and the broader NSE Nifty benchmark suffered their worst single-day fall since July 8.
The Sensex and Nifty briefly turned positive for the day but could not sustain those gains within the first few minutes of trade, as weakness in financial, pharmaceutical and energy stocks offset gains in consumer goods and information technology shares.
The rupee rose by as much as 21 paise against the US dollar on Wednesday.
After opening higher at 72.20 against the greenback, the rupee climbed to as high as 72.18 within first few minutes of trade.
At 9:16 am, the rupee traded at 72.27 against the greenback, as against its previous close of 72.39.Sensex, Nifty In Pre-Open Market SessionIn pre-open trade, the S-P BSE Sensex index climbed more than 50 points to move above the 36,600 mark, as against its previous close of 36,562.91, and the broader NSE Nifty benchmark crossed 10,800.
At 9:04 am, the Sensex traded 29.90 points - or 0.08 per cent - higher at 36,592.81 while the 50-scrip index Nifty was up 9.70 points - or 0.09 per cent - at 10807.60.
Coal India, State Bank of India, TCS, Indian Oil and Hindustan Unilever - trading between 0.98 per cent and 1.46 per cent higher - were among the top percentage gainers on the 50-scrip index at the time.Concerns About Economic Growth Spooked Domestic Markets On TuesdayWeakening economic growth along with escalating US-China trade frictions hurt the market sentiment, according to analysts.Official data released on Friday showed that India's GDP or gross domestic product expanded 5 per cent in the quarter ended June 30, marking the slowest pace since March 2013.
The GDP data highlighted concerns about a downturn in the economy amid production cuts and lakhs of estimated job cuts in the auto sector.What SGX Nifty Indicates And Trend In Other Asian MarketsDomestic stock markets are set to start Wednesday's session on a higher note, as indicated by the Nifty futures traded on Singapore Exchange.
The SGX Nifty futures - an early indicator of the NSE Nifty in India - were last seen trading 30.00 points higher at 10,849.50 ahead of the opening of capital markets in India.
On Tuesday, the Sensex and Nifty benchmark indices had ended 770 points or 2 per cent and 225 points (2 per cent), amid a panic sell-offs after government data indicated the country's economic growth fell to a six-year low in the first quarter of the current financial year.
Tuesday's plunge wiped off Rs.
2.56 lakh crore worth of investors' wealth.Equities in other Asian markets bounced on Wednesday, with MSCI's index of Asia-Pacific shares outside Japan gaining 0.5, after two days of losses.
The rebound was led by Chinese markets after a report showed growth in the country's service sector accelerating despite broader economic headwinds, while the pound halted its decline on hopes a no-deal Brexit may yet be averted.
The Shanghai Composite Index added 0.45 per cent while the blue-chip CSI300 index gained 0.5 per cent after activity in China's services sector expanded at the fastest pace in three months in August, according to a business survey.