Mumbai: The BSE benchmark Sensex dropped by 110 points in the late morning trade due to selling pressure ahead of the railway budget amid weak global cues. (Agencies)
Shares of companies whose fortunes are linked to orders from Indian Railways dropped ahead of the rail budget 2013-14, which will be presented in Parliament on Tuesday.
Volatility may remain high on bourses ahead of the expiry of February futures and options contract on coming on Thursday.
The BSE benchmark Sensex resumed lower at 19,290.66 and dropped further to 19,186.02 before quoting 19,222.16 at 1025 hrs, showing a loss of 109.53 points, or 0.57 per cent, from its last close.
The NSE 50-share Nifty also moved down by 31.60 points, or 0.54 per cent, to 5,823.15 at 1025hrs.
Major losers were Maruti Suzki (2.03 pct), Tata Motors (2.02 pct), ICICI Bank (1.80 pct), Gail India (1.78 pct) and L&T (1.73 pct).
Asian stocks dropped in the early trade after signs of an inconclusive general election in Italy sparked worries that another chapter in Europe's debt crisis could be opening.
Key indices in Taiwan, Hong Kong, Japan, Singapore and South Korea fell by 0.39 per cent to 1.56 per cent while China's Shanghai Composite rose 0.35 per cent.
US stocks fell sharply yesterday with the Dow Jones Industrial Average having its worst session this year, as Italian elections and looming spending cuts in the US hit sentiment.
Mumbai: The BSE benchmark Sensex dropped by 110 points in the late morning trade due to selling pressure ahead of the railway budget amid weak global cues.