Sensex slides 111 points, Nifty tad below 10,100

The BSE Sensex dropped by over 111

points to trade 32,289.17 in afternoon session following

sustained bouts of profit-booking in realty, metals,

utilities, capital goods, banks, FMCG, and power.

Meanwhile, broader Nifty was testing the key 10,100-level

trading at 10,098.35.

The US Federal Reserve indicated another interest rate

hike by year-end and disclosed timing for reducing its balance

sheet, affecting domestic sentiment.

HealthCare stocks witnessed hectic buying interest on

weak rupee which dropped to over a two-month low against the

US dollar.

The Sensex resumed flat at 32,406.42 and moved in a

range of 32,462.61 and 32,164.42 before quoting at 32,289.17,

at 1235 hrs, down by 111.34 points or 0.34 per cent.

Among major losers, ICICI dropped by 2.29 per cent, Axis

Bank by 1.79 per cent, Coal India and ONGC by 1.7 per cent.

Losses in Reliance Industries, ITC and HDFC Bank dragged the

barometer into the negative.

Bucking the trend, pharma stocks rose with Dr Reddy

gaining 5.08 per cent, Cipla by 3.94 per cent, Lupin by 3.28

per cent and Sun Pharma by 2.67 per cent.

The NSE 50-share Nifty fell 42.80 points or 0.42 per

cent at 10,098.35.

Foreign portfolio investors (FPIs) sold shares worth

Rs 1,185.44 crore yesterday, as per provisional data. While,

domestic institutional investors (DIIs) bought shares worth a

net Rs 946.23 crore.

Overseas, Asian markets were trading mixed after the

dollar and US Treasury yields spiked following big news out of

the Federal Reserve.

US stocks closed at record highs yesterday after the

Federal Reserve indicated another rate hike this year was

possible and that it would begin the unwinding of its balance

sheet next month.

-- Rupee drops by 23p to 2-month low against US dollar --

The rupee dropped to pared its initial losses, but was

still quoting over two months lows, down by 23 paise

to 64.50 against the American currency in afternoon deals on

sustained bouts of dollar demand from importers and banks amid

bullish dollar overseas.

The rupee resumed lower at 64.50 per dollar as against

yesterday's closing level of 64.27 per dollar at the Interbank

Foreign Exchange (Forex) Market.

It hovered in a range of 64.55 per dollar and 64.45 per

dollar before quoting again at its 64.50 per dollar at 1300

hrs.

"Lower domestic equities also affected the rupee

sentiment," a currency dealer said.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)