Sensex slides 111 points, Nifty tad below 10,100

Mumbai: The BSE Sensex dropped by over 111points 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.