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The frontline indices traded in a narrow range with deep cuts in mid-morning trade. The Nifty slipped below the 17,700 level. PSU Bank stocks their extended losses for the fifth straight session
The barometer index, the S&P BSE Sensex, was down 534.51 points or 0.88% to 60,138.21. The Nifty 50 index lost 166.15 points or 0.93% to 17,660.55.
In the broader market, the S&P BSE Mid-Cap index slipped 1.03% while the S&P BSE Small-Cap index declined 0.86%.
Sellers outnumbered buyers. On the BSE, 897 shares rose and 2,343 shares fell. A total of 149 shares were unchanged.
Domestic sentiment was dented amid negative global cues. After the strong US economic data announced last week, speculations are high about rise in US inflation that may prompt US Fed to further hike interest rate. Traders look ahead to the minutes from the U.S. Federal Reserve's latest monetary policy meeting due later today.
Buzzing Index:
The Nifty PSU Bank index slipped 1.73% to 3,637, extending losses for the fifth session. The index tumbled 6.23% in five trading sessions.
Union Bank of India (down 2.66%), Punjab National Bank (down 2.14%), Bank of Baroda (down 2%), Canara Bank (down 1.94%), Central Bank of India (down 1.54%), Indian Overseas Bank (down 1.41%), Bank of Maharashtra (down 1.34%), State Bank of India (down 1.23%), Bank of India (down 0.92%) and Indian Bank (down 0.79%) slumped.
Global Markets:
Asian stocks tumbled on Wednesday as investors digested key economic data across the region. Japan's producer prices index rose 1.6% on an annualized basis, slightly higher than December's figure of 1.5%. The PPI measures the average movements of prices received by domestic producers for goods and services sold.
New Zealand's central bank has raised interest rates by 50 basis points from 4.25% to 4.75, in line with expectations. In a release, the Reserve Bank of New Zealand indicated that interest rates could still rise, to ensure inflation returns to its target range over the medium term.
U.S. stocks dropped Tuesday as higher rates continue to pressure market sentiment, and the latest batch of retail earnings raised concerns about the state of the consumer.
The Fed on Wednesday is scheduled to release the minutes from its January 31-February 1 meeting. The central bank hiked rates by 25 basis points at that gathering.
US business activity unexpectedly rebounded in February, reaching its highest level in eight months, according to a survey on Tuesday. S&P Global said its flash US Composite PMI Output Index, which tracks the manufacturing and services sectors, increased to 50.2 this month from a final reading of 46.8 in January.
