After a weak start and a subsequent smart recovery, the market has faltered and slipped deeper into the red now due to heavy selling in several stocks from metal, realty, capital goods, power and banking sectors.
Shares from consumer durables, automobile and oil sectors too have declined sharply FMCG and information technology stocks are also off their earlier highs. Select healthcare stocks are trading firm with notable gains.
Besides weak global markets, the likely defeat of the Congress Party in the Gujarat State Assembly Elections appear to be weighing on sentiment.
The Sensex, which rose to 19,520.51 in early trades, tumbled to a low of 19,335.72 and is currently at 19,363.47, down 112.53 points or 0.58% from its previous closing mark. The Nifty index of the National Stock Exchange is down 32.30 points or 0.55% at 5897.30.
Among the stocks in the Realty index, Anant Raj Industries, DLF, Indiabulls Real Estate, Godrej Properties, HDIL, Parsvnath Developers and Unitech are down 1% - 3%. Prestige Estates and Sobha Developers are bucking the trend and trading notably higher.
Among key metal stocks, Tata Steel, Sterlite Industries, Sesa Goa, SAIL, Bhushan Steel, Hindalco, NMDC and JSW Steel are trading lower by 1% - 2%. Hindustan Zinc and Jindal Steel & Power are also trading weak.
In the capital goods space, Larsen & Toubro, BHEL, AIA Engineering, Crompton Greaves, FAG Bearings, Jindal Saw and Praj Industries are trading weak, while Havells India, Sadbhav Engineering, SKF India and Suzlon Energy are up in positive territory with smart gains.
Ambuja Cements, Jaiprakash Associates, Bank of Baroda, Axis Bank, IDFC, ITC, Reliance Infrastructure, ACC, Bharti Airtel, HDFC Bank and Cairn India are down 1% - 2.4%.
Mahindra & Mahindra, Kotak Bank, Reliance Industries, BPCL, Grasim Industries, Bajaj Auto, Hero Motocorp, Tata Motors, State Bank of India, Punjab National Bank, NTPC and HCL Technologies are also trading weak.
Lupin rose to Rs 622 following the company getting the approval from the US Food and Drug Authority for its oral contraceptive tablets. Lupin will be launching the generic version of Yasmin, a brand of Bayer Healthcare. Lupin’s drospirenone and ethinyl estradiol tablet is a combined oral contraceptive, used to prevent pregnancy. In the US, Yasmin generates annual sales of $275 million. The stock is currently trading at Rs 618.
Adani Enterprises is down sharply following an announcement from the company that its promoters propose to sell 23 million shares of the company through Offer for Sale on Friday.
“Adani Agro Private Limited, Adani Commodities, Vinod S. Adani, Rajesh S. Adani, Pranav V. Adani, Priti G. Adani and Shilin R. Adani has propose to sell 23 million equity shares of the face value of Re 1 each of Adani Enterprises, by promoters through a sale on the separate window provided by the BSE for this purpose,” Adani Enterprises said in a filing to the exchanges.
The sale shall take place on the separate window of the stock Exchange and shall commence on December 21, 2012 at 9.15 a.m. and shall close on the same day at 3.30 p.m., it added.
In the currency market, the rupee eased to 54.67 against the dollar in early trades, recording a loss of 12 paise. Besides the greenback's rise against the euro and the yen, a weak stock market too contributed to the rupee's decline. On Wednesday, the partially convertible Indian currency had ended at 54.55 against the dollar, recording a gain of 30 paise.