Indian shares traded sharply lower on Thursday afternoon dragged by sustained selling in metal and energy stocks amid tepid global sentiments.
Investor sentiment remained subdued for a third straight day ahead of the Organization of the Petroleum Exporting Countries (OPEC) meeting at Vienna to discuss crude oil output policy and lingering fears of slowdown.
Further, chances of a peaceful trade negotiation between the US and China took another hit after Huawei's chief financial officer (CFO) Meng Wanzhou was held in Canada. The Huawei CFO faces extradition to the US over alleged breach of Iran sanctions by his firm.
The 30-share Sensex traded a little over 35,500 at noon, down by 378 points, or 1.05 percent. The Nifty was also down by 123 points or 1.15 percent, to trade at 10,659.
Broader markets also remained subdued dragged by non-banking financial firms after the Reserve Bank of India (RBI) maintained status quo in its monetary policy review meeting on Wednesday. The Nifty MidCap was down by 1.42 percent, while the BSE MidCap slipped 1.3 percent.
Sectoral indices traded lower with all 43 indexes on both bourses seeing sell-off. The Nifty Realty, Auto and PSU Banks were under maximum pressure.
On the NSE, only 3 stocks advanced with Sun Pharma leading with nearly a percent gains. NTPC and Power Grid were the other two gainers. Indiabulls Housing Finance dipped 5 percent, leading the losers, while Maruti Suzuki also fell more than 4 percent.
Tech Mahindra, HCL Technologies, Tata Motors, Grasim, ONGC, Kotak Bank, Asian Paints were other major losers.
The rupee traded at 71.11 against the US dollar at 12.10 pm. The home currency was back above 71 per US dollar levels after six sessions. The rupee had earlier opened at 70.79, after Wednesday's close of 70.46.
In Asia, Hong Kong's Hang Seng slipped nearly 3 percent, while Taiwanese index was down 2.35 percent. Japan's Nikkei dipped 2.45 percent.
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