Leading exchange BSE will auction Monday investment limits for foreign investors to buy government debt securities worth Rs 654 crore.

The auction will be conducted on BSE's e-bidxchange platform from 1530 hours to 1730 hours after close of normal market hours on June 8, the exchange said in a circular today.

Volatility ruled as benchmark BSE Sensex struggled to recover from the day’s low in morning trade. The benchmark BSE Sensex wiped off its initial gains and was trading marginally down 5.93 points to 26831.27 at 11:40 am. While NSE Nifty too regained 10.80 points to 8145.90.

The Sensex failed to maintain initial gains and was trading lower in late morning trade as it came marginally under pressure due to selling at FMCG, healthcare, auto and consumer durable counters.

Shares of Nestle have dropped 7% to Rs 6,310 on the Bombay Stock Exchange (BSE) after the Delhi government summoned officials of Nestle India claiming that the samples of Maggi noodles fail to meet food safety norms and are unsafe.

The samples of Maggi noodles tested in Delhi were found dangerous for consumption carrying lead more than the permissible limit. The Delhi government is likely to impose a heavy fine against Nestle for selling unsafe products.

Markets continue their sharp downfall weighed down by rate-sensitive stocks after the Reserve Bank of India (RBI) at its monetary policy review indicated that the further rate cuts depend on the monsoon and inflation data.

At 1:05 PM, the 30 share Sensex shed 375 points or 1.31%, to 27,483 levels while the Nifty 50 slipped below 8,350 to 8,309 levels, down by 125 points or 1.5%.

In a volatile trade, the benchmark BSE Sensex snapped its last 3-week gaining streak, ending lower 129 points at 27,828.44 due to selling pressure in view of May futures and options expiry and ahead of RBI’s policy meet next week.

The Nifty, too, fell 25.30 points, or 0.30 per cent, to settle at 8,433.65.

In a volatile market, the benchmark BSE Sensex washed out initial gains and was quoted lower by 27 points at 27,537.61 in the late morning session due to fresh selling pressure, mainly in healthcare and metal, on the back of fresh foreign capital outflows. Stocks may remain volatile today in view of expiry of May contracts in the futures and options (F&O) segment today.

Continuing its weakness for the third straight day, the rupee dropped below the 64 mark, falling 17 paise, to quote at 64.15 against the dollar in early trade today at the Interbank Foreign Exchange as the American currency firmed up overseas on strong economic data.

Besides, increased demand for the dollar from importers and a lower opening in the domestic equity market weighed on the local currency, forex dealers said.

Shares of Tech Mahindra have tanked 13.4% to Rs 554, the sharpest intra-day fall since February 2011 on the NSE, after the company reported a nearly 500 basis points (bps) decline in EBITDA margins at 15.2% for the fourth quarter ended March 31, 2015 (Q4) against 20.2% in the December 2014 quarter.

Meanwhile, the company had reported a 39% sequential fall in consolidated net profit (prior to special adjustments) to Rs 472 crore, due to higher employee expenses and cross-currency fluctuations. The company had posted a profit of Rs 777 crore in the previous quarter.

Bharat Heavy Electricals (BHEL), the country’s largest power equipment manufacturer, has posted a 52 per cent drop in net profit during the fourth quarter ended March on slowdown in project execution. The company reported net profit of Rs 888.35 crore during the quarter against Rs 1,844 crore in the corresponding quarter in the previous financial year.

The major decline in profit came despite a 10.2 per cent cut in expenses to Rs 11,286 crore during the quarter. The company managed to pull down employee benefit expense by 31 per cent to Rs 915 crore from 1,320 crore in the corresponding quarter in the previous financial year.

The benchmark BSE Sensex fell further by over 40 points in early trade today, extending its yesterday's slide due to continued selling by participants amid mixed Asian cues.

The 30-share index was trading lower by 40.86 points, or 0.14%, at 27,603.02, with stocks of oil & gas, power, realty, PSUs, auto and IT sectors pulling it down.

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