Weak European cues drag market; Sensex down over 300 points, Nifty slips below 7,750

Benchmark share indices extended losses in late noon trades, amid weak global cues following fresh developments in Paris, with financials and IT major leading the decline.

At 2:25pm, the Sensex was down 344 points at 25,520 and the Nifty was down 97 points at 7,741.

"Markets are tracking weakness in European shares amid fresh developments in Paris. Meanwhile, selling by foreign funds in the previous sessions is also weighing on the markets. Overall, the sentiment is weak," says Alex Mathew, Head of Research at Geojit BNP Paribas Financial Services.

Among IT majors Infosys and TCS were the top losers amid a weakening rupee and concerns of H1-B visa issues.

Financials also witnessed profit taking with HDFC, ICICI Bank, HDFC Bank and SBI among the top Sensex losers.

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(Updated at 1:25pm)

Benchmark share indices continued to trade weak, amid weak global cues, weighed down by selling pressure in IT majors and sllect financials. Foreign funds have remained net sellers in blue chip counters in November so far.

At 1:25pm, the 30-share Sensex was down 283 points at 25,581 and the 50-share Nifty dropped 75 points to 7,761

The broader market outperformed the benchmark indices with both the BSE Midcap and Smallcap indices up 0.2% each. Market breadth was positive with 1,264 gainers and 1,140 losers on the BSE.

Foreign portfolio investors were net sellers in equitis worth Rs 492.45 crore on Tuesday as per provisional stock exchange data.

The rupee was trading 13 paise lower at 66.15 to the US dollar compared to the previous close on demand from importers for the US currency.

GLOBAL MARKETS

Asian markets were trading lower amid Weak commodity prices. Japan's Nikkei ended up 0.1% while Straits Times was down 1%. Chinese shares failed to sustain gains despite encouraging data which showed that Chinese home prices firmed up for first time in over a year in Octobe 2015. The benchmark Shanghai Composite ended down 1% while Hang Seng eased 0.3%.

European shares retreated after sharp gains in the previous session and were trading lower as investors turned cautious amid fresh developments in Paris. The CAC-40, DAX and FTSE were down 0.4-0.7% each. 

SECTORS & STOCKS

BSE IT index was the top loser down 1.7% followed by Metal index among others. However, BSE Consumer Durables, Capital Goods and Power indices were up 0.4-1% each.

Infosys was down 3.4% tracking overnight losses of its ADR price on the NYSE which dropped 5%. The IT major is now looking at significantly improving its win rates of large deals, apart from increasing its employee utilisation rates, as part of its growth execution strategy in the medium term. Among others, TCS was down 1.2% and Wipro eased 0.4%.

Dr Reddy’s Laboratories slipped nearly 2^%. The pharma major said in a notice to BSE that it has closed Fondaparinux Intellectual property purchase and paid $17.5 million to Alchemia as deal consideration.

Metal shares have extended losses due to fall in commodity prices across the globe. According to Reuters report, copper continued to suffer, hitting a 6-1/2-year low of $4,590 a tonne CMCU3, a decline of 27 percent year-to-date. Hindalco, Vedanta and Tata Steel was down 2.4-3.9% each.

In the financial space, HDFC, ICICI Bank and SBI were down 0.8-1.6% each.

Among other shares, Gammon India was up nearly 9% at Rs 13.15 on the Bombay Stock Exchange after the company's board at its meeting held today approved the transfer of Civil Engineering ,Procurement and Construction (EPC) business to Gammon Retail Infrastructure Pvt Ltd.

Mahindra Lifespace Developers rose nearly 2% after the company said it has acquired land parcel in Palghar District of Maharashtra.

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