Sensex, Nifty Turn Negative; Tata Motors Shares Tank 13%

After a higher opening in early trade on Tuesday, the stock markets turned negative led by losses in FMCG, auto, banks and realty stocks. At 11:04 am, the S&P BSE Sensex traded at 34,397, down 77.38 points or 0.22 per cent, and the Nifty50 index of the National Stock Exchange (NSE) at 10,318.20, with a loss of 29.85 points or 0.29 per cent. At the time of writing this report, the Sensex had touched day's low at 34,317.88 and the Nifty at 10,292.90.

Losing between 1.68 and 13.28 per cent, the key Sensex laggards were Tata Motors, Bharti Airtel, Asian Paints, ICICI Bank, and Bajaj Auto.

Thirty out of 50 Nifty stocks declined in trade.

Nifty Auto - the index of auto stocks lost 1.86 per cent, Nifty FMCG - the index of consumer stocks - was down 1.04 per cent, and Nifty Realty - the index of real estate shares - slipped 1.09 per cent. Nifty Bank - the index of banking shares - traded 0.14 per cent lower.

Ritesh Ashar, Chief Strategy Officer, KIFS Trade Capital, said that Nifty may test 10,000. "The volatility indecisiveness remains in the market but it is getting cooled off. The USD-INR is getting towards the 75 mark and is also sustaining above the 74 level which is a very painful area. The key benchmark index Nifty may test the level of 10,000 in the coming weeks. So cautiousness is advised," he said.

Meanwhile, Asian shares hit 17-month lows as China allowed its currency to slip past a psychological bulwark. MSCI's broadest index of Asia-Pacific shares outside Japan eased another 0.2 per cent after ending Monday at its lowest point since May last year, reported news agency Reuters.

On Monday, foreign portfolio investors (FPIs) and domestic institutional investors sold and purchased net equities of Rs 1,805.07 crore and Rs 1,973.97 crore respectively, according to NSE's provisional data. The Sensex had closed at 34,474.38 and the Nifty at 10,348.05. (With agency inputs)