Bears seem to be taken full control of Dalal Street dragging the equities. The Sensex is down 196.32 points or 1.06 percent at 18401.86, and the Nifty slips 67.55 points or 1.23 percent at 5440.30. About 677 shares have advanced, 1124 shares declined, and 121 shares are unchanged.
The Sensex has fallen 1000 points in the last two days. Laurence Balanco of CLSA believes the trading range for the Nifty has scaled down to 4700-5500 levels and he does not rule out a move on the rupee to 67-68 to the dollar if 63 breaks.
Meanwhile, Asian markets are mixed. Japan reversed its earlier losses after the yen resumed its decline against the usd. Japan's trade deficit came in wider than expected for the thirteenth straight month.
The dollar index inched higher to 81.3 gaining against the yen and euro amidst weak us economic data prompting risk aversion.
Commodities saw Brent crude rise to above USD 110 per barrel - up for the 6th straight session on the back of civil unrest in Egypt and Libya while gold rose to three-month highs and silver was up for the 8th consecutive session.
The rupee opened lower with a gap on the back of poor domestic sentiment and dollar strength in Asia. Some fiis bought dollars while sales came from corpraotes and some PSU banks. Volumes are exceedingly thin.
Volumes are even thinner in the bond markets with no one wanting to enter for fear they cant exit. The 10-year bond, which is the only one that traded a little is down over 50 paise, with yields rising 7 basis points to 8.95 percent on a mix of high crude and poor cash liquidity.
The Sensex has fallen 1000 points in the last two days. Laurence Balanco of CLSA believes the trading range for the Nifty has scaled down to 4700-5500 levels and he does not rule out a move on the rupee to 67-68 to the dollar if 63 breaks.
Meanwhile, Asian markets are mixed. Japan reversed its earlier losses after the yen resumed its decline against the usd. Japan's trade deficit came in wider than expected for the thirteenth straight month.
The dollar index inched higher to 81.3 gaining against the yen and euro amidst weak us economic data prompting risk aversion.
Commodities saw Brent crude rise to above USD 110 per barrel - up for the 6th straight session on the back of civil unrest in Egypt and Libya while gold rose to three-month highs and silver was up for the 8th consecutive session.
The rupee opened lower with a gap on the back of poor domestic sentiment and dollar strength in Asia. Some fiis bought dollars while sales came from corpraotes and some PSU banks. Volumes are exceedingly thin.
Volumes are even thinner in the bond markets with no one wanting to enter for fear they cant exit. The 10-year bond, which is the only one that traded a little is down over 50 paise, with yields rising 7 basis points to 8.95 percent on a mix of high crude and poor cash liquidity.
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