Sensex down 206 points; Nifty trades 0.55% lower

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At 12.01 p.m, the Sensex was trading down 206.87 points or 0.64% at 32,066.80 with 23 components falling.

The NSE Nifty50, which closed above the psychologically important 10,000-point mark for the first time on July 26, slipped to below that level by the day's close.

Motilal Oswal in its daily Market Outlook report said, "Nifty index managed to hold 9980-10000 zones and witnessed a sharp recovery from lower levels led by short covering activities in last one hour of the session". But, soon the bourses slipped into the red with Sensex losing as much as 358.47 points to hit the day-low of 31,915.20 in intra-day trade.

The BSE market breadth was skewed in favour of bears - with 1,808 declines and 626 advances.

On Monday, the benchmark indices traded on a flat-to-negative note. On Tuesday, BSE Sensex opened 67 points up or 0.21% at 32,341.05 points while the wider NSE Nifty opened 10 points up or 0.11% at 10,068.35 points. Sectoral indices on the NSE were trading majorly in the negative territory wherein Nifty Realty is the top loser and Nifty Metal index is the top gainer.

On Tuesday, the stock markets saw a major downturn as bank stocks took serious blows after Sebi directed bourses to initiate action against 331 suspected shell companies on Monday.

The Indian rupee weakened against the United States dollar, tracking mixed Asian currencies market. Investors booked profit in recent out-performers.

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