BSE Sensex ends 233 pts down; Midcaps, smallcaps crack

3:56 pm: Market closing: The Sensex is down 233.35 points at 18540.89, and the Nifty is down 77.40 points to be at 5590.25.

3:40 pm Losers of the day: BSE Midcaps (down 2.6 percent), BSE Smallcaps (down 2.2 percent) saw deeper cuts today. Sterlite Industries (3.9 percent), Bharti Airtel (3.2 percent), BHEL (down 3 percent) and ONGC (down 3 percent) are major losers in the Sensex.

3:30 pm Market closing: The Sensex ends 206.60 points down at 18567.64 (provisional) and the Nifty closes at 5590.25, down 77.40 points. About 655 shares have advanced, 1616 shares declined, and 128 shares are unchanged.

3:25 pm Buzzing: Mahindra Financial Services shares extended its losses after the company management hinted at not applying for a new banking licence. At 15:00 hours, the stock tanked more than 7 percent to trade at around Rs 239 on the NSE.

The non-banking finance arm of the Mahindra & Mahindra group was seen as a strong contender for the new private sector banking licence for which, the Reserve Bank of India (RBI) has already issued the guidelines. The last date for application is July 01, 2013. RBI is believed to be issuing 3-7 licences.

3:20 pm Alert: The Mahindra Satyam is likely to meet today to finalise details of its merger with parent Tech Mahindra . CNBC-TV18 learns from sources that both the companies have begun restructuring post the Andhra Pradesh High Court (HC) approval for the merger. The management plans to overhaul the business for the merged entity.

Sources say Anand Mahindra is likely to be named chairman of the merged entity. Vineet Nayyar is likely to be vice chairman, while CP Gurnani is expected to take over post of CEO. However, a decision on CFO is still pending with sources naming Vasant Krishnan as the front-runner. He is currently the CFO of Mahindra Satyam . 

Don't miss: One in seven stocks traded on BSE hit 52-week low

The market is still bleeding in the last trading hour of day. The Sensex is down 241.18 points or 1.28% at 18533.06, and the Nifty down 80.55 points or 1.42% at 5587.10.

Most of the stocks are under heavy selling pressure. Sterlite Industries, BHEL, L&T, ONGC and Bharti Airtel are top losers in the Sensex. Meanwhile, Jindal Steel , Tata Power , ICICI Bank , HDFC and Hindalco are major gainers.

02:55pm National Fertilisers ( NFL ) divestment is likely within a week, reports CNBC-TV18 quoting finance ministry's sources. The stock lost 3.7 percent.

The government will divest 7.64 percent stake in the company. Inter ministerial group will meet on Tuesday to discuss NFL's divestment.

02:40pm Indian equities recouped some of the losses, supported by ICICI Bank , HDFC and Reliance Industries .

The BSE Sensex is down 243.27 points or 1.30 percent at 18530.97, and the Nifty is down 81.20 points or 1.43 percent at 5586.45.

ITC shares lost 2.7 percent as YC Deveshwar sold 10.7 lakh shares in open market.

02:30pm SREI Infrastructure rallied 2.5 percent as the company will apply for banking license.

Jaiprakash Power Ventures shares crashed 17 percent after the company halted power generation at its 400 MW Vishnuprayag Hydro-power plant due to unprecedented flood of very high intensity with excessive silt, boulders and other materials in the Alakananda river.

02:15pm The fall in equity benchmarks extended on weakness in global markets. European markets are under pressure as mining stocks tumbled after liquidity fears in China pushed Shanghai Composite 5.3 percent down.

France's CAC and Germany's DAX lost over 1 percent while Britain's FTSE declined 0.7 percent.

The BSE Sensex is down 288.46 points or 1.54 percent at 18485.78, and the Nifty is down 97 points or 1.71 percent at 5570.65.

More than three shares declined for every share advancing on the Bombay Stock Exchange.

Shares of L&T, ONGC , ITC and BHEL plunged 3 percent while State Bank of India , Bharti Airtel and Hero MotoCorp lost 2.5 percent each.

Kotak Mahindra Bank , Cairn India , Ranbaxy Labs and DLF are biggest losers among Nifty 50 stocks, falling 4.5-7 percent.

Mahindra & Mahindra Financial Services slipped 5 percent, after the company said it would not apply for banking license under current RBI guidelines.

1:55 pm Management speaks: While acknowledging that power companies need to raise tariffs to absorb high coal import prices, VS Verma, member, CERC says the price transmission is a complex process and isn't  a one-size-fit-all solution. He added that it is a temporary measure and if coal prices come down, there would not be any need for giving any compensatory price.

In an interview to CNBC-TV18 , VS Verma, member, CERC says the pass-through mechanism, however, comes with a rider. "If the calorific value of the coal which they would import is the same as that of the indigenous coal, around 3,000-4,000 calorific value then there is not much difference in the cost of the imported coal and indigenous coal and hence it may not have any impact on the price of electricity," adds Verma.

1:50 pm Outperformers: Tata Power , Sun Pharma and NTPC are top gainers in the Sensex.

1:45 pm Weaklings: Stocks that have hit 52-week low are Andhra Bank , Ashok Leyland , Bank of India , BHEL , Central Bank, Century Textiles, Corporation Bank , Crompton Greaves , Dena Bank , Dish TV , DLF , Future Retail , Gail, HPCL , IOB , IOC , Jindal Steel among others.

1:37 pm Market check: The market slips below 5600 for first time since April 16, 2013. The Nifty is at 5597, down 70.45 points while the BSE Sensex is down 208.65 points to be at 18565.59. India VIX breaches 21, first time since June 26, 2012.

1:25 pm Rupee view: Bank of America-Merrill Lynch (BofA-ML) estimates that the Reserve bank of India (RBI) can sell up to USD 30 billion to support the rupee, though adding every dollar sold would further raise concerns about India's foreign exchange reserves.

The rupee last week fell to all-time low of 59.98 against the US dollar. On Monday it fell to 59.83 amid concerns that it may touch the psychological 60-mark.

BofA estimates a round of FX volatility typically costs RBI, whether via forwards and/or spot market interventions, about USD 15 billion.

1:20 pm Macro outlook: Strengthening dollar and rising US treasury yields are giving a tough time to emerging markets like India, Indonesia, Thailand, Singapore and Hong Kong, says Chetan Ahya, Asia Pacific Economist, Morgan Stanley.

The strengthening of US dollar, which has seen 11 years of weakness, is a systematic trend. The US economy is expected to perform well ahead, so one should brace up for another 14-15 percent rise in dollar until end 2014, he told CNBC-TV18 in an interview.

"It is kind of trend. I wouldn't say that this is going to be a reversal from here and that we are going to go back to the old levels of rupee. If the dollar is on a systematic rise that we have to build certain amount of inflation differentials reflecting in the currency," he added.

Given the current global economic environment, the real interest rates are rising, so the property markets in Asia are likely to remain under pressure.

Don't miss: 4 reasons why government may not scrap SEZ policy

Selling pressure in the market continues as the Sensex is down 135.22 points at 18639.02, and the Nifty down 47.60 points at 5620.05. About 549 shares have advanced, 1428 shares declined, and 134 shares are unchanged.

The cuts are way deeper in the broader markets. The midcap index is down over Future Retail, JSW Energy , Dish TV and Punj Lloyd are all down between 4 and 10 percent.

It is a negative session across Asia. The Chinese market is the hardest hit, down over 5 percent amid concerns about a severe strain in liquidity conditions. Europe is muted in early trade.

12:55pm On the National Stock Exchange, nine shares declined for every two shares advancing. Bank Nifty lost more than one percent.

BSE Smallcap Index lost 1.5 percent and CNX Midcap 100 declined 2 percent.

HDFC and ICICI Bank shares recouped early losses, rising 0.6 percent each.

PSU stocks extended losses; GAIL and BHEL plunged 3 percent while State Bank of India and ONGC fell over 2 percent.

12:45pm China's Shanghai Composite fell 5.3 percent to close below the 2000 level on liquidity woes.

Official news reports at the weekend suggested Beijing would continue to address the risks of shadow banking, which was behind the central bank's withholding of funds to the money market last week.

The People's Bank of China bank exacerbated nervousness by saying that liquidity in the country's financial system is "reasonable." It has also pledged to "fine tune" existing "prudent" monetary policy, reports Reuters.

12:35pm Equity benchmarks are reeling under pressure due to fall in rupee and weakness in Asian markets while European markets opened marginally higher on Monday.

Back home, the BSE Sensex is down 141.97 points at 18632.27, and the Nifty is down 49.60 points at 5618.05.

Declining shares outpaced advancing ones by 1408 to 560 on the Bombay Stock Exchange.

12:25pm Mahindra Satyam and Tech Mahindra have started restructuring process after Andhra Pradesh high court nod, reports CNBC-TV18 quoting sources.

It is learnt that Anand Mahindra will be chairman of merged entity and Vineet Nayyar will become vice chairman while CP Gurnani would be a CEO. Both shares are marginally higher.

ITI shares rallied 10 percent after Board for Industrial & Financial Reconstruction (BIFR) is seeking PSU Recast Board view for company's revival plan, reports CNBC-TV18 quoting cogencis.

Department of Telecommunication and BIFR have cleared Rs 4,160 crore ITI pevival plan.

12:15pm Equity benchmarks remain under pressure in afternoon trade due to weak Asian cues; even precious metals and rupee slip. The BSE Sensex is down 172.46 points at 18601.78, and the Nifty is down 60.95 points or 1.08 percent at 5606.70.

Indian rupee extended its depreciation, losing by 49 paise to 59.76 on dollar buying by foreign institutional investors.

Asian markets fell further; Shanghai tanked 4.6 percent on liquidity concerns and Hang Seng lost 2.3 percent. Nikkei, Straits Times and Kospi slipped more than one percent.

Gold prices declined another one percent in international market today, after losing nine percent last week while silver dropped over 2 percent.

11:50 am Gold update: Gold extended last week's 7 percent drop on Monday, hurt by a stronger dollar, worries over an early end to Federal Reserve stimulus and fears of a cash crunch in China, reports Reuters.

But the fall in prices failed to revive physical demand as much as when bullion tumbled its most in 30 years in April.

Investors also continued to dump holdings in gold exchange-traded funds, despite the metal's usual appeal as a so-called safe-haven asset.

"The market is very bearish at the moment and we continue to see more liquidation," said a trader in Hong Kong. "We can see some physical buying interest but not enough to support prices."

11:40 am: Fresenius Kabi rallies 12 percent after it gets a green signal for delisting from the Securities Appellate Tribunal (SAT). SAT said Fresenius has complied with 15 out of the 25 conditions for delisting.

11:35 am Buzzing: JP Power collapses 10 percent after the company says its Uttarakhand generation unit has stopped production after the flash floods.

11:25 am Macro outlook: In a CNBC-TV18 exclusive interview, C Rangarajan, Chairman of the Economic Advisory Council to the Prime Minister says he expects GDP growth of over 6 percent in FY14 and current account deficit at around 4.7 percent. He says increasing domestic production of coal is government's first priority, while on the crucial gas pricing issue, a decision is likely soon.

11:20 am Expert talk: Despite the recent steep fall in key benchmarks, Sanjeev Prasad, senior executive director & co-head of Kotak Institutional Equities believes that quality stocks still remain expensive.

"Most of the consumer staple names are still above 30 times on 2014 basis; more than 25 times on 2015 basis. So, you have seen like 2-3 percent correction in the some of the names so nothing much to go by over there," he told CNBC-TV18.

However, the constant niggle for the market has been the relentless fall in the domestic currency, which has led to mass exodus of FII money.

Though Prasad see the case for rupee depreciation in the mid to long-term, he expects to see some FII inflows if the currency stablises at current levels.

He says Indian companies had taken too much leverage and are exposed to big balance sheet risks.

Don't miss: Nifty to break 5500 if FII outflow continues, says Emkay

It is not a great start to the week as the market continues to reel under pressure. The Sensex is down 134.08 points to be at 18640.16, and the Nifty slips 47.75 points to be at 5619.90.

It is the Midcap index (down 1.7 percent) which is hurting the most. GAIL (down 3.2 percent), Bajaj Auto (down 2.7 percent), L&T (down 2.5 percent) are among losing stocks in the Sensex.

Top gainers in the Sensex include Hindalco , ITC , Tata Steel and TCS . 

Meanwhile, Asian markets are downbeat with China down 3 percent on cash crunch woes. Hang Seng is down 1.5 percent, Nikkei is trading flat getting support from the weakness in yen, though it has come off from its morning gains of more than 1 percent.

Brent crude notches biggest two-day drop since September, down to USD 100/barrel. Gold is trading sideways but sees biggest weekly drop in almost two years of more than 7 percent.

Dollar index surges above 82.5, yen weakens to 98.3 while euro stays above 1.31. The rupee opened lower and is trading about half a percent lower on continued dollar purchases by FIIs who are probably selling equities. PSU banks were seen selling dollars at 59.70 levels.

Government bonds are lower as sentiment weakens on higher US treasury yields and fears that foreign investors may sell more of their Indian debt. The disappearance of rate cut hopes is adding to the selling pressure.

10:55am Stocks continue to trade lower on weakness in major Asian markets. China's Shanghai Composite extended losses to 3.4 percent on liquidity concerns.

The BSE Sensex is down 126.06 points at 18648.18, and the NSE Nifty is down 43.25 points at 5624.40.

Dish TV shares crashed more than 6 percent after the promoter pledged 1.24 crore shares.

10:50am Devesh Kumar, India Head, CIMB believes that the current sell-off by foreign institutional investors (FIIs) may not continue in the near-term. "FIIs looking to bet on India from a long-term perspective are sitting on the sidelines, leaving the Indian market under-owned; so given the way currency has moved, we do not expect big sell-off ," he said.

FIIs have bought around Rs 7,500 crore worth of equity shares in nine consecutive sessions since June 11.

Devesh Kumar sees the Nifty trading in the broad range of 5,600 - 6,300 till the market gains some confidence on either rupee's movement or macroeconomic.

According to him, the worst for powers sector is over. The recent measures announced by the government to deal with coal and power issues will play out over the next 12-24 months, he added.

10:40am India Volatility Index breached 20 for the first time since June 29, 2012.

Shares of jewellery retailers  - Gitanjali Gems , TBZ " target="_blank" title="Tribhovandas Bhimji Zaveri">Tribhovandas Bhimji Zaveri (TBZ), PC Jeweller and Titan Industries slumped on Monday amid continued pressure on gold prices.

Gitanjali Gems led the plunge, down 20 percent in morning trade on NSE. TBZ also tumbled as much as 13 percent and PC Jeweller declined near 10 percent. Titan Industries was down 2.5 percent.

Spot gold prices touched near three-year lows last week and remained under pressure on Monday on the back of an appreciating US Dollar, and worries over early end to the stimulus by the US Federal Reserve. Gold demand has also slowed in India following measures taken by the government to curb gold imports as it battles a high current account deposit (CAD).

10:30am Jewellery stocks lost shine today due to weakening gold prices. Gitanjali Gems plunged 20 percent.

Ranbaxy Labs lost 4 percent on media reports that the company's Mohali unit appears to be under USFDA scanner.

10:20am The BSE Sensex recovered about 60 points from day's low to trade at 18645.21, down 129 points. The NSE Nifty is down 40.70 points or 0.72 percent at 5626.95.

Cigarette major ITC bounced back quite sharply, rising 0.67 percent, after falling more than one percent earlier.

Index heavyweight  Reliance Industries trimmed losses to 0.4 percent from 1.6 percent.

10:05am Equity benchmarks extended fall to one percent in morning trade Monday, weighed down by financials, oil & gas, capital goods, FMCG and technology stocks.

The BSE Sensex is down 183.15 points or 0.98 percent at 18591.09, and the Nifty is down 56.15 points or 0.99 percent at 5611.50.

Declining shares outnumbered advancing ones by 873 to 370 on the Bombay Stock Exchange.

Indian rupee fell by 40 paise to 59.67 per dollar today as against Friday's closing of 59.27 per dollar.

The broader markets too are under pressure; the BSE Midcap Index fell 1.6 percent  and Smallcap lost nearly one percent.

Index heavyweights Reliance Industries and ITC are down 1.6 percent and 1.1 percent, respectively.

Country's largest lenders State Bank of India and ICICI Bank slipped more than one percent. Capital goods majors Larsen & Toubro and BHEL lost 1-2 percent.

Jaiprakash Associates plunged nearly 10 percent and Cairn India tumbled more than 4 percent.

Ranbaxy Labs lost 4 percent on media reports that the company's Mohali unit appears to be under USFDA scanner.

Meanwhile, Hindalco Industries outperformed others among largecaps, gaining 2 percent.

Gold extended last week's 7-percent drop today, hurt by a stronger dollar, worries over an early end to Federal Reserve stimulus and fears of a cash crunch in China. Comex gold fell USD 2 to USD 1,290.10.

9:50 am Buzzing: Shares of state-owned commodities and trading company MMTC hit 52-week low of Rs 126.15 once again as investors continued to sell shares that were acquired at a  discount of 72 percent during the offer for sale (OFS).

9:45 am Losers: Among the weak midcaps, gems and jewllery stocks are battered the most.  Gitanjali Gems is down around 20 percent, Shree Ganesh Jewellery House (I) is down 9 percent, TBZ " target="_blank" title="Tribhovandas Bhimji Zaveri">Tribhovandas Bhimji Zaveri (TBZ) is down 11.31 percent while Titan Industries slips 1.84 percent on the BSE.

9:40 am Index check: Midcap index is down 1.1 percent, Oil and Gas index is down 1.5 percent, Realty index is down 1.5 percent, Power index is down 1.2 percent while Consumer Durables index is down 3.2 percent from the previous close.

9:36 am Market update: The Sensex is down 119.82 points to be at 18654.42 while the Nifty slips 39.30 points to 5628.35.

9:25 am Buzzing: Orchid Chemicals is up 2.3 percent as the company has initiated debt recast due to liquidity constraints. In an interview to CNBC-TV18, K Raghavendra Rao, CMD of the Chennai-based company said that it has approached SBI for restructuring of balance.

9:20 am Winners and losers: Hindalco , Sun Pharma and  Dr Reddys Labs are key gainers in the Sensex. Some top losers are GAIL , Jindal Steel,  NTPC , Bharti Airtel and RIL .

Read what Udayan Mukherjee says about the market

The market has once again kick-started the week on a weak note. The Sensex opens 103.44 points down at 18670.80, and the Nifty is down 29.60 points to be at 5638.05. About 120 shares have advanced, 175 shares declined, and 39 shares are unchanged.

"No great pullback along expected lines was seen in US equities on Friday. The global environment still remains wishy-washy. It is unlikely for our market to start a major process of re-construction,'' says CNBC-TV18 managing editor Udayan Mukherjee. However, the only silver lining is that Brent crude is down to USD 100 per barrel, he added.

Ranbaxy will be in focus today. The Supreme Court will hear the plea against company for allegedly manufacturing and selling adulterated medicines.

Agency sources indicate there could be new bidding norms for power projects in a month's time. The power minister may release new standard bidding documents in next three-four weeks. This is the last lap of finalisation.

The unions are against the 5 percent stake sale in Neyveli Lignite divestment. The company is likely to issue a notice to management today and begin an indefinite strike.

HCL Tech is in a multi-year pact to provide IT consultancy services to Vestas.

Indian rupee fell by 33 paise to 59.60 per dollar in early trade Monday as against previous day's closing of 59.27 per dollar.

Rajeev Malik of CLSA expects the rupee to depreciate further, but the trajectory won't be a straight line.

"Given the recent outsized rupee move, it will find some near-term respite because of more measures to encourage capital inflows and the anticipated improvement in the CAD (current account deficit)," he added.

According to him, the rupee could break above 60/USD in early 2014 and possibly depreciate to 62-65/USD.

Globally, Asian markets were very quiet in the morning trade on Monday, just exhibiting some fatigue after last weeks selling rout. Further weakness in the dollar yen provided some relief for exporter companies; also the market was upbeat after the Ruling Party's victory in Tokyo metropolitan elections.