Witnessing heavy selling pressure in almost all the sectors, the benchmark BSE Sensex dipped below 27,000-mark to hit its lowest levels in almost 2-1/2 weeks, on fears of a drought in the country this year.
Meanwhile, India’s services sector activity contracted for the first time in 13 months in May, largely due to decline in new order flows amid competitive pressure and natural disasters, an HSBC survey said today.
The 30-share Sensex resumed higher at 27,230.68 and hovered in a range of 27,276.22 to 26,975.79 before quoting 26,984.65 at 1115 hrs, showing a sharp fall of 203.73 points or 0.75 per cent.
The NSE Nifty was also quoted lower by 67.05 points or 0.81 per cent at 8,169.40 at 1115 hrs.
Major losers were Tata Motors at 4.22 per cent, ITC 3.48 per cent, Axis bank 1.94 per cent, ICICI Bank 1.82 per cent, HUL 1.80 per cent, SunPharma 1.74 per cent, Tata Power 1.73 per cent, Vedanta 1.64 per cent, Maruti 1.21, Bajaj Auto 1.06 and Hindalco 1.05 per cent.
Meanwhile, Foreign portfolio investors sold shares worth Rs 594.14 crore yesterday, while domestic institutional investors bought shares worth Rs 271.64 crore yesterday, as per provisional data.
Globally, Asian shares were trading mixed. Key indices in China, Hong Kong, Singapore and South Korea were up by 0.16 per cent to 0.61 per cent. Indices in Taiwan, Japan and Indonesia were down by 0.17 per cent to 1.55 per cent.
In New York, the US stocks ticked lower overnight as a jump in bond yields weighed on utilities, but optimism that Greece may be close to a deal with its creditors limited losses.
In restricted activity, the rupee was steady at 63.82 against the American currency in late morning trade owing to alternate bouts of demand and supply transactions of dollars.
The rupee resumed higher at 63.77 from yesterday’s closing level of 63.82 at the Interbank Foreign Exchange (Forex) market on mild selling of dollars by banks and exporters.
However, it failed to maintain initial gains and was stable at its overnight level of 63.82 per dollar at 1100 hrs.
The rupee hovered in a range of 63.75 and 63.84 during the morning deals.
At the overseas, the US dollar was broadly lower in early trade as hopes for progress in Greek debt talks and a huge spike in European yields combined to give the euro its biggest gain in three months.
The dollar index, which measures it against a basket of six major currencies, was down at 95.897 having shed 1.5 per cent yesterday in its biggest one-day drop since July 2013.
Crude oil prices fell in early Asian trade as oversupply weighed on markets, with OPEC not expected to announce a production cut at its meeting on Friday.
Meanwhile, the benchmark BSE Sensex was trading lower by 263.05 points or 0.97 per cent at 26,925.33 at 1130 hours.
PTI