Sensex ends 171 pts down; cap goods, IT, FMCG outperform

3:55 pm Gold update: Gold imports fell 80.56 percent to 31.5 tonnes in June from the previous month, a government source familiar with the data said on Monday, lower than the trade body's estimate, reports Reuters.

However, the source said gold imports are expected to increase in coming months due to a fall in prices. All India Gems and Jewellery Trade Federation had estimated gold imports for June to be at 37-40 tonnes.

3:45 pm Gainers and losers: BHEL (up 2.3 percent), Wipro (up 1.50 percent), ITC (up 1.39 percent), Sun Pharma (up 0.78 percent) and Infosys (up 0.70 percent) are top gainers in the Sensex. ONGC (down 3.5 percent), HDFC (down 3 percent), Tata Motors (2.7 percent) are major losers in the Sensex.

3:42 pm Market closing: The Sensex ends the day at 19324.77, down 171.05 points while the Nifty closes 54.05 points down, at 5813.85. About 1051 shares have advanced, 1247 shares declined, and 127 shares are unchanged.

3:25 pm Management speaks: Steel companies had a tough time in 2012 on muted demand scenario. However, markets have started improving of late, believes CS Verma, chairman, SAIL .

In an interview to CNBC-TV18 , Verma said that in the year-to-date period global crude steel production has gone upto 2.1 percent from 1.2 percent in preceding year, indicating likely growth in the sector. "In India also growth over 3 percent and will grow more as the government is likely to spend USD one trillion in the 12th five year plan (2013-2017) in various sectors. And this would further boost demand," said Verma.

3:20 pm Buzzing: Havells India shares surged nearly 4 percent intraday Monday as Morgan Stanley is overweight on the stock with a target price of Rs 878.

The foreign brokerage house believes that the electrical products manufacturer is in a sweet spot with its leading dealer franchise, strong brand, and diversified product lineup. The stock surges around 4 percent on the BSE.

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It has been an extremely weak trading session today. Though the market managed to recover losses intraday, it is still reeling under selling pressure. The Sensex is down 153.59 points at 19342.23 while the Nifty is down 53.50 points at 5814.40. About 985 shares have advanced, 1211 shares declined, and 120 shares are unchanged.

Except for IT, capital goods and FMCG, all other indices are in the red terrain. BHEL, ITC, Wipro, Sun Pharma and Dr Reddys Labs are major laggards in the Sensex.

02:59pm Indian rupee continues to hover around the 61 level, which lost 74 paise to 60.96 per dollar.

Foreign institutional investors, going forward are likely to reduce their debt (bonds) selling compared to last month, says Brijen Puri, JPMorgan. However, if the global factors continue to remain the way they are and the fundamentals deteriorate from India perspective, then the selling may pick up again, he adds.

Also Read: Rupee to stay in 58-62/$ range now; CAD may dip: StanChart

In the coming month, he does not expect the rupee to fall much below 59/USD and sees a short-term range of 59-62/USD.

02:50pm European markets are trading above 100 daily moving average ahead of a meeting of eurozone finance ministers of 17 nations in Brussels today on Greece package. Germany's DAX rallied 2 percent while France's CAC gained 1.7 percent and Britain's FTSE is up 1.1 percent.

China's Shanghai fell 2.44 percent at close on growth concerns.

Back home, Indian equities cut more than half of losses in late trade on recovery in banks and index heavyweights. The BSE Sensex recovered 190 points from day's low, falling just 118.66 points to 19377.16, and the Nifty is down 40.10 points to 5827.80 that recovered from 50 points from day's low.

Bank Nifty cut losses by 1.3 percent from day's low. HDFC Bank is flat and ICICI Bank is down just 0.9 percent.

02:40pm ITC and Reliance Industries led recovery in afternoon trade, and even Bank Nifty came off day's low that cut losses from 2 percent o 1.3 percent. Cigarette major ITC gained 1.3 percent and Reliance trimmed losses from 2.4 percent to 1 percent.

Maruti and Hero MotoCorp turned higher while Sun Pharma and Dr Reddys Labs gained one percent each.

Meanwhile, shares of HDFC, Tata Motors and ONGC topped the selling list, falling 3 percent each while ICICI Bank, Coal India and NTPC fell over 2 percent.

02:30pm The BSE Sensex and NSE Nifty remain under pressure on weak Asian cues and sharp fall in rupee, though they recovered from day's low. ONGC and HDFC are lead losers, falling 3.5 percent each.

The Sensex is down 167.49 points or 0.86 percent at 19328.33, and the Nifty is down 55.75 points or 0.95 percent at 5812.15. Declining shares outpaced advancing ones by 1269 to 896 on the Bombay Stock Exchange.

Saurabh Mukherjea of Ambit Capital says the foreign institutional investors (FIIs) will pull out more money from the debt and equity market in the coming months but will have to return to India eventually.

Indian rupee depreciated by 85 paise to 61.08 per dollar.

Bharti Airtel shares lost 0.7 percent after the Zambia Information and Communication Technology Authority instituted criminal proceedings against the local units of India's Bharti Airtel, South Africa's MTN and the state-owned Zamtel due to deteriorating levels of quality of service, reports Reuters.

2:00 pm Losers: ONGC , HDFC are down around 3 percent on the BSE.

1:52 pm Market update: The Sensex is down 185.78 points at 19310.04, and the Nifty is down 61.35 points at 5806.55.

1:45 pm  Current affairs: A Delhi court today fixed July 31 for further hearing in the additional 2G spectrum allocation case in which Bharti Cellular CMD Sunil Mittal, Essar Group promoter Ravi Ruia and others have been summoned as accused.

Special CBI Judge O P Saini deferred the proceedings after lawyers appearing for Mittal and Ruia informed the court that the matter is pending in the Supreme Court.

1:40 pm FII view: Six months after the downgrade, HSBC continues to remain `underweight' on India. Speaking to CNBC-TV18 , Herald Van Der Linde, head of Equity Strategy, Asia-Pacific, HSBC said for the first time, valuations are in line with what is reasonable for the country and India may appear attractive once again.

He expects more outflows from the Asian region. But says, in comparison to the rest of the region, outflows from India has been relatively less. He believes there will be a slowdown in terms of FII outflows from hereon, which is a positive. According to him, most FIIs do not have many options in Asia, as China, Korea, Hong Kong and Taiwan no longer look that attractive.

He warned that current account deficit will continue to remain a major concern for India.

1:35 pm Management speaks: Narendra Murkumbi, MD, Shree Renuka Sugars doesn't see much impact from import duty hike on sugar . He told CNBC-TV18 that the company is currently not too much into imports infact it is focusing on more exports. He informed that the company has recently started exporting from its Haldia refinery.

The government on July 4 decided to raise the import duty on sugar to 15 percent from 10 percent , to discourage overseas buying.

1:30 pm Alert: Rakesh Jhunjhunwala buys 6.47 lakh shares in NCC from June 28-July 1. The stock is down 0.6 percent.

1:20 pm Update: Tata Motors owned British luxury arm Jaguar Land Rover launched its F-Type two-seater sports car in India on Monday.

The F-Type starts at a price of Rs 1.37 crore for the S model and Rs 1.61 crore for the V8S, ex-showroom, Mumbai (pre-octroi). The car will be available in two engine variants - 3 litre V6 supercharged petrol and 5 litre V8 supercharged petrol.

The V8S has a top speed of 300 km/hr and can go from 0 to 100 km/hr in 4.3 seconds, Jaguar says. The V6 will touch 100 km/hr in 4.9 seconds.

1:15 pm Gainers: Wipro, Sun Pharma , Dr Reddys Labs , Infosys and Bharti Airtel are gainers in the Sensex.

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The market has cut some losses in afternoon trade and the Nifty is trading around 5800. The Sensex too recovers 150 points from day's low. The Sensex is down 168.10 points or at 19327.72, and the Nifty is down 55.10 points at 5812.80.About 851 shares have advanced, 1180 shares declined, and 110 shares are unchanged.

Commodities and rate sensitives under pressure even as pharma and tech hold up.

Meanwhile, the Greek parliament is expected to vote on a number of additional austerity measures under "express procedures" this morning in order to secure new bailout money from the Eurogroup which meets on Monday in Brussels.

Christine Lagarde will also deliver the concluding statement to the IMF Article IV consultation on the euro area to the Eurogroup on Monday.

The 28-nation EU and the United States are expected to begin negotiations on a transatlantic free-trade agreement. Following Snowden's revelations that the US has been spying on European Union offices, France has been the most vocal country in calling for a delay in these talks, but the EU says they will still go ahead.

12:55pm European markets gained 1-1.5 percent on strong gains in US markets. The Eurozone finance ministers will meet in Brussels today to decide on an 8.1 billion euro worth of aid for Greece.

Mawana Sugars shares rose nearly 5 percent as the company sold entire stake in Mawana Foods to Usha International.

Gujarat Fluorochemicals' subsidiary Inox Wind has filed draft red herring prospectus (DRHP) with SEBI for Rs 700 crore IPO. The stock is flat.

Geojit BNP shares gained 2 percent on media reports that BNP Paribas is looking to increase stake in the company by 4 percent.

12:45pm Tata Motors ' subsidiary Jaguar Land Rover (JLR) says strike called by contract workers is belonging to DHL

"We are not directly involved as striking employees are not belong to our company. They are belong to logistics provider," JLR adds. Tata Motors shares lost 3.3 percent.

12:35pm The NSE Nifty trimmed losses from 92 points to 65 points to claw back above 5800 level at 5802.65 on positive opening of European markets. France's CAC, Germany's DAX and Britain's FTSE gained 0.7 percent in early trade on short covering.

The BSE Sensex is down 195.25 points or 1.00 percent at 19300.57 while the broader markets are down just 0.3 percent.

12:25pm Bharti Airtel erased all its gains in noon trade on profit booking. Shares were rallied 4 percent intraday today after the telecom operator retired its debt by Rs 6796 crore.

Jaiprakash Associates topped the selling  list with 5 percent loss followed by BPCL , Tata Motors and HDFC with 3.4-4.6 percent fall.

Reliance Communications , United Spirits , Reliance Capital , Reliance Power , SBI and ICICI Bank are most active shares on exchanges.

12:15pm Indian equity benchmarks remain under pressure with more than one percent loss in noon trade, weighed down by financials, oil & gas, auto and FMCG stocks.

Indian rupee too continues to fall on dollar demand. It lost 86 paise to 61.08 per dollar. Even euro declined to 1.28 per dollar.

The BSE Sensex is down 229.05 points or 1.17 percent at 19266.77, and the Nifty is down 73.90 points or 1.26 percent at 5794.

11:55 am RBI action: The Reserve Bank of India will meet with oil company officials in Mumbai later on Monday to discuss their foreign exchange needs, two sources with direct knowledge of the matter told Reuters.

The meeting with oil companies, which are the biggest buyers of dollars in domestic currency markets, comes as the rupee slid to a record low of 61.21 against he dollar on Monday.

11:50 am Gold check: Gold fell for a third session on Monday on fears the U.S. Federal Reserve could soon begin tapering its bond-buying stimulus after a stronger-than-expected jobs report, reports Reuters.

11:40 am Loser: BGR Energy is down around 3 percent. Its offer for sale was subscribed a little less than 2 times at indicative price of around Rs 119 a share. The management said promoters have sold over 44 lakh shares via OFS.

11:30 am Expert views: The US' stronger-than-expected non-farm payroll in June has made the emerging market (EM) bond outflow inevitable believes Saurabh Mukherjea of Ambit Capital. Mukherjea says the foreign institutional investors (FIIs) will pull out more money from the debt and equity market in the coming months but will have to return to India eventually.

In an interview to CNBC-TV18 , Mukherjea says this negativity, however, isn't India-specific as a frozen exchange rate, as is in the case of China, is a bigger crisis.

However, Mukherjea says FIIs are positive on the Indian equity market. He also adds that he maintains his 2013-end target for the Sensex of 23000 and says global events will play a major role in achieving this target.

"The two factors-resumption of FII equity inflows into India and a further exacerbation of the China problem leading to commodities cracking, are two main layers of hope. I do not think that much will be forthcoming from our own politicians. So, we really are looking to global events to deliver our year-end target of 23000," says Mukherjea.

11:20 am Alert: Tata Motors is down 4 percent on reports that its JLR production line in the UK may grind to a halt within weeks after delivery workers from logistic company DHL voted for a strike, demanding a large pay rise and similar terms and conditions at par with the JLR staff.

11:15 am Buzzing: Equity benchmarks continue to trade sharply lower, but broader markets trimmed losses from one percent to 0.5 percent. Indian rupee recovered from its record low of 61.21, losing 76 paise to trade around 60.98 per dollar.

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The BSE Sensex is down 243.79 points or 1.25 percent at 19252.03, and the Nifty is down 76.95 points or 1.31 percent at 5790.95. Declining shares outnumbered advancing ones by 1010 to 701 on the Bombay Stock Exchange.

Country's second largest software services exporter Infosys will declare its first quarter numbers on Friday. Amisha Vora of Prabhudas Lilladher doesn't expect anything great from IT giant Infosys in Q1 and cautions that cost pressures are likely to remain. But adds that in the next two-three quarters, volatility to reduce. Infy is one of Prabhudas Lilladher's top picks. Shares gained 1 percent today on rupee depreciation.

Rupee falls nearly 1.5 percent to a new low of 61.22 to the dollar on feared exit of stocks and bonds by FIIs. The RBI is believed to have sold dollars, but the Indian unit remains the worst performer even as most emerging market currencies lost heavily against the dollar.

Indian bonds fell hard as the falling rupee and rising crude prices reignited fears of higher inflation. Overnight call rates, however, slipped on a sudden surplus cash in the interbank market.

In commodities, Brent surges to 3-month high of USD 108, while Nymex surges to above USD 103/bbl after a big rally on concerns of rising tension in Egypt. Gold slumped 3.3 percent lower on Friday to intraday low of USD 1212/ounce post jobs report, silver dips 5 percent.

10:50am CLSA has upgraded its rating on Hero MotoCorp to underperform from sell with a target price of Rs 1675. The foreign brokerage house upgraded FY14-15 volumes by 3-5 percent, driving a 6-7 percent upgrade in EPS. The firm, however, stays negative on Hero given continued risk earnings from Honda's onslaught. The stock is flat.

Havells India shares gained nearly 2 percent as Morgan Stanley is overweight on the stock with a target price of Rs 878. The brokerage house believes that it is in a sweet spot with its leading dealer franchise, strong brand, and diversified product lineup. Sylvania's reduced debt is a tailwind.

10:40am Ashok Leyland rose over 1 percent after the company bagged an order for 2610 buses from the Institute of Road Transport in Tamil Nadu. The company has not disclosed details of the value of the order nor has it disclosed the time frame for order execution.

Fresenius Kabi declined 1.6 percent after the USFDA on Friday issued a warning letter to the company asking for more information and implementation of additional corrective and preventive measures regarding non-conformities.

Gitanjali Gems is locked at 5 percent lower circuit. The stock has lost 67 percent of its market cap since the start of 2013. Rating company CARE has downgraded bank facilities and instruments of the jewellery manufacturer and its subsidiaries and step down subsidiaries by one notch 'on account of stressed liquidity position.'

10:30am The BSE Sensex is down 258.53 points or 1.33 percent at 19237.29, and the Nifty is down 83.30 points or 1.42 percent at 5784.60.

Also Read - Sell equity & bond, hold cash as more gloom ahead: Marc Faber

Tata Motors lost 4 percent on reports that its JLR production line in the UK may grind to a halt within weeks after delivery workers from logistics company DHL voted for a strike, demanding a large pay rise and similair terms and conditions on par with JLR staff.

Wockhardt hit a new 52-week low of Rs 732 as UK health regulator has imposed an import alert on Wockhardt's export-oriented unit in Aurangabad. According to chairman Habil Khorakiwala, there will be annual loss of Rs 100 crore due to the MHRA alert on Waluj plant. In the month of May also, the USFDA had made an import alert on Waluj plant, causing annual loss of USD 100 million (Rs 600 crore).

10:20am Maruti Suzuki reported a total production at 61,668 units in June as against 82,626 units in a year ago month.

Goa Carbon's net loss widened to Rs 7.5 crore in first quarter (April-June) from Rs 6.7 crore in a year ago period. Net sales declined 25.7 percent year-on-year to Rs 41.6 crore from Rs 56 crore.

10:05am Indian equities dropped 1.5 percent in morning trade Monday, tracking weak Asian cues after fears that the US may scale back its bond buying progrmame of USD 85 billion a month on strong US jobs data. China's liquidity concerns also added fuel to the fire.

All these reasons pushed the Indian rupee to a record low of 61.21 per dollar. Technology stocks are benefitted the most; Infosys gained 1 percent and Wipro rose 0.7 percent.

The BSE Sensex is down 289.73 points or 1.49 percent at 19206.09, and the Nifty is down 89.15 points or 1.52 percent at 5778.75.

Midcaps and smallcaps outperformed benchmarks, but still are in negative territory. Two shares declined for every share rising on the Bombay Stock Exchange.

Reliance Communications gained 4.5 percent after demerger of realty business into a new company Reliance Properties.

The Bank Nifty dropped 2 percent as country's largest lenders State Bank of India , ICICI Bank and HDFC Bank lost 1-2 percent.

Index heavyweights Reliance Industries and HDFC slipped 2 percent and 3.4 percent, respectively.

Shares of commercial vehicle maker Tata Motors topped the selling list, losing 4 percent.

Meanwhile, healthcare stocks outperformed the market. Sun Pharma , Cipla and Dr Reddys Labs gained 0.3-0.8 percent.

9:55 am Gainer: Neyveli Lignite  (NLC) shares climbed around 2 percent to Rs 59.45 after market regulator Sebi allowed Tamil Nadu state to pick up central government's 5 percent equity in the state run company, provided the acquisition is done by a qualified state entity.

The Centre currently holds 93.56 per cent stake in NLC. The stake sale is being proposed done to meet the minimum public holding norm. Sebi has set a deadline of August 8, 2013, for all listed central public sector units to have a minimum 10 per cent public shareholding.

9:50 am Alert: DLF is down 3.1 percent on the BSE as the realty majo has completed the Rs 325-crore deal to sell 150 MW wind turbine project in Gujarat to Bharat Light and Power. As per the agreement executed with BLP Vayu (Project 1), DLF transferred the 150 MW wind turbines, including related assets and liabilities along with relevant long term loans, "for a lump sum consideration of Rs 325.38 crore".

9:45 am FII view: Investors would be better off reducing their exposure to equity and bonds, and instead keep a sizeable chunk of their portfolio in cash, advises investment guru Marc Faber.

He foresees big downsides in equity markets across the globe, including US, which has been one of the better performing markets in recent times. In an interview to CNBC-TV18 , Faber says he expects the US Federal Reserve to persist with its policy of pumping liquidity into the economy through bond purchases.

He is not too optimistic about India, saying the rupee could weaken further if the twin deficits (fiscal and current account) were not dealt with effectively.

Faber is bullish on crude oil, and sees prices inching up gradually. This spells bad news for India, which is already paying more for oil than when crude was at its peak of USD 145, because of rupee depreciation.

9:40 am Houseview: CLSA has maintained sell rating on HUL for a target of Rs 500. The firm says that the open offer support is now behind the stock and it is likely to trade on fundamentals. Hindustan Unilever is currently at Rs 602.20, down Rs 6.95, or 1.14 percent on the BSE.

9:35 am Buzzer: Reliance Communications is excited in trade today with a gain of around 6 percent on the BSE. The telecom giant is going to demerge its real estate business into a separate listed company called Reliance Properties in an effort to unlock value of its headquarters in Mumbai.

Reliance Communications' shareholders will be allotted Reliance Properties shares for free in the ratio 1:1. Reliance Properties, which is valued around Rs 10,000-12,000 crore is likely to get listed within next three months. The total shares outstanding for Reilance Communication stand at around Rs 200 crore, so the shares of the new entity are likely to be valued at Rs 40-60/share.

9:30 am Movers and losers: Infosys , Wipro , TCS are only gainers in the Sensex. Tata Motors (down 3.5 percent), Hindalco (2.55 percent), ICICI Bank (down 2.43 percent), Jindal Steel (down 2.34 percent) and Sterlite Industries (down 2.2 percent) are top losers in the Sensex.

9:25 am Currency check: Rupee slids further to make another record low at 61.09 per dollar.

Read what Udayan Mukherjee says about the market

The market has kick-started the week with a disappointing opening as rupee hits record low. The Sensex is down 183.17 points at 19312.65 while the Nifty slips 40.95 points to 5826.95. About 104 shares have advanced, 221 shares declined, and 29 shares are unchanged.

The rupee opened at 60.95 per dollar versus closing of 60.22 Friday, hitting an all-time low.  Arvind Narayanan, DBS Bank said, "The rupee is likely to weaken on strong US data. However, the weakness may be capped as RBI may sell dollar at higher levels. The range for the day is seen between 60.30- 60.80/USD."

The dollar hit a fresh three-year high against a basket of major currencies as market expectations grew that the Fed will scale back stimulus as early as September following solid jobs growth. The dollex was firm above 84.

A 2 percent fall in China's benchmark index widened losses in the rest of Asia on Monday on worries of tight liquidity conditions and fears of an early rollback of stimulus.

Brent crude price stood at a three-month high above close to USD 108 level. Strong jobs data and signs of renewed geopolitical risk in Egypt supported prices. From precious metals space, gold slipped 3 percent after positive US jobs data sent the dollar rallying and rekindled worries about Fed tapering.

Meanwhile, US economy added 195,000 new non-farm jobs in June which was much higher than anticipated. However, the unemployment rate remains unchanged at 7.6 percent vs consensus estimate of 7.5 percent.

US treasury prices shot above the 2.70 mark which is the highest levels since the 2.86 percent hit on August 1 , 2011 on the back of growing anticipation that the fed may begin tapering its bond buying programme soon.