Markets continued to trade weak in late morning trades amid profit taking in select rate sensitive and capital goods shares.
Annual growth in production of the eight key infrastructure industries declined to a three-month low of 2.4 per cent in December, compared with 6.7 per cent the previous month and four per cent in December 2013. This is likely to have a negative impact on the industrial growth numbers for the month, as these industries have a weight of 38 per cent on the Index of Industrial Production (IIP).
Meanwhile, foreign institutional investors continue to remain net sellers to the tune of Rs 264 crore, as per provisional stock exchange data.
Asian share markets followed Wall Street higher on Wednesday as revived risk sentiment dented the US dollar and sovereign bonds, though it was far from clear how long the sudden mood swing would last. The Nikkei was up 1.8% while Shanghai Composite, Hang Seng and Straits Times were up 0.4-0.7% each.
Capital goods index was the top sectoral loser down 1% followed by Bankex, Auto and Power indices. Metal and Realty indices were among the top gainers up over 1.3% each.
Banking shares have extended losses for thwe second straight session on National Stock Exchange (NSE) after the Reserve Bank of India (RBI) Governor Raghuram Rajan decided to leave repo rate unchanged at its credit policy meet yesterday.
Shares of NTPC turn ex-dividend today for an interim dividend of Rs 0.75 per share for the year ending 31 March 2015. The stock is down nearly 1%.
Other prominent losers are BHEL, Tata Motors, TCS, Maruti Suzuki, HUL and L&T.
Sesa Sterlite extended gains and was up 2.7% after global iron ore prices bounced back.
Among other shares, Force Motors were up 13% on media reports that Germany-based global auto major Bayerische Motoren Werke AG(BMW) will source auto components from the Pune-based company.
In the broader market, the BSE Mid-cap and Small-cap indices were trading mixed.
Market breadth was slightly positive with 1,226 gainers and 1,187 losers on the BSE.