Market extends losses, Nifty below 11,000 level; PSU banks, media stocks fall

Indian shares extended losses in the afternoon session on Thursday, hurt by a selloff in lenders such as YES Bank, ICICI Bank and State Bank of India.

Market sentiment was subdued amid weak global cues and the expiry of August derivatives contract later in the day.

At 12:25 pm, the S&P BSE Sensex was trading lower by 368.42 points, or 0.97 percent, at 37,087.63 while the Nifty50 was at 10,943.90, down by 102.20 points or 0.93 percent.

All Nifty50 sectoral indices are trading in the red except Nifty Pharma. Nifty PSU Bank remained the worst performer followed by Nifty Financials, Nifty Private Bank and Nifty Media.

Sun Pharma, Bharti Infratel, Vedanta, Eicher Motors and Coal India were the top gainers while YES Bank, Indiabulls Housing Finance, ICICI Bank, State Bank of India and Tata Motors were the top laggards.

Indiabulls Housing Finance shares plunged over 7 percent on reports that the stock will be replaced by Nestle India on the Nifty50 index next month.

Shares of sugar firms advanced after the Union Cabinet approved a subsidy worth Rs 6,268 crore to sugar exports in order to support struggling sugar mills and farmers. Shares of Shree Renuka Sugars rose 6.66 percent and Bannari Amman Sugars was up 5.98 percent. Bajaj Hindusthan Sugars and Mawana Sugar jumped 4.58 percent and 4.73 percent, respectively.

Meanwhile, most emerging Asian currencies slipped on Thursday, as global recession worries and anxiety over the Sino-U.S. trade tussle capped risk appetite while higher oil prices weighed on India's rupee.

Global bond yields clung near record lows, while the inverse U.S. yield curve, in which long-date yields are lower than their short-dated counterparts, stoked fears of a future recession.