The market has tumbled down in the opening trade weakened by rate sensitive stocks. The Sensex opens 331.73 points down at 19702.7 while the Nifty slips 108.00 points to 5922.80. The marginal standing facility and the bank rate have been raised to 10.25% from 8.25%. The RBI has decided to lower rupee liquidity in the system by capping the liquidity adjustment facility at (LAF) Rs 75,000 crore from Wednesday. Bonds saw a free fall as the central bank has decided to conduct open-market sales of government securities worth Rs 12,000 crore on July 18 which will further suck rupee liquidity out of the system. On international front, US markets finished modestly higher in lackluster trading as investors digested a handful of mixed economic data and ahead this week's slew of earnings reports. Asian markets were trading lower. China's Shanghai Composite shed 0.23 percent or 4.71 points at 2,054.68. Hong Kong's Hang Seng was down 0.14 percent or 30.17 points at 21,273.14. On domestic bourses, BSE Midcap and Small cap were seen lower by 1.12% and 0.66% respectively while on Sectoral category, prices were mixed with FMCG performing the best by a lead of 0.54%, followed by BSE IT while Bankex and Realty are the worst performing sectors, lower by 4.15% and 3.55% respectively.
Further the market breath was negative as 61 shares have advanced, 299 shares declined, and 21 shares are unchanged.