The domestic equity barometers tumbled as they traded at the day's low in mid morning trade. The Nifty was trading below the 17,350 mark. Bank shares extended losses for second consecutive session.

At 11:27 IST, the barometer index, the S&P BSE Sensex, was down 212.99 points or 0.36% to 58,277.94. The Nifty 50 index lost 63.30 points or 0.36% to 17,333.60.

In the broader market, the S&P BSE Mid-Cap index slipped 0.84% while the S&P BSE Small-Cap index declined 1.53%.

The market breadth was weak. On the BSE, 863 shares rose and 2159 shares fell. A total of 132 shares were unchanged.

Global shares slumped amid concern about China's crackdown on the real-estate sector and the debt crisis at developer China Evergrande Group.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 229,049,749 with 4,699,564 deaths. India reported 309,575 active cases of COVID-19 infection and 445,385 deaths according to the data from the Ministry of Health and Family Welfare, Government of India.

A total of 81,78,68,213 COVID-19 vaccine doses have been administered in the country so far, with over 96.18 lakh doses being given yesterday, according to the Co-WIN dashboard.

Primary Market:

Paras Defence and Space Technologies IPO opened for subscription from Tuesday (21 September) and it will close on Thursday (23 September).

The offer comprises of a fresh issue of up to Rs 140.60 crore and an offer for sale of up to 17,24,490 equity shares (including anchor portion of 29,27,485 equity shares) in the price band of Rs 165 to Rs 175 per share.

As on 11:12 IST, the IPO received bids for 3.46 crore shares as against 71.40 lakh shares on offer. The issue was subscribed 4.85 times so far.

The company intends to utilize the net proceeds from the fresh issue towards purchase of machinery and equipment amounting Rs 34.657 crore, funding incremental working capital requirements amounting Rs 60 crore, repayment or prepayment of all or certain borrowings amounting Rs 12 crore and for general corporate purposes. As of 31 July 2021, its aggregate outstanding indebtedness was Rs 115.827 crore.

Paras Defence and Space Technologies is primarily engaged in designing, developing, manufacturing and testing of a wide range of defence and space engineering products and solutions.

Buzzing Index:

The Nifty Bank index slipped 1.51% to 36,585. The index has declined by 3.24% in two sessions.

Axis Bank (down 2.93%), AU Small Finance Bank (down 2.55%), Bandhan Bank (down 2.20%), ICICI Bank (down 2.15%), RBL Bank (down 1.93%) and HDFC Bank (down 1.91%) were the top index losers.

Stocks in Spotlight:

Larsen & Toubro shed 0.16% to Rs 1701. The company's wholly owned subsidiary, L&T Hydrocarbon Engineering received 'significant' order in the construction services segment - one each from GAIL India and Air Products Middle East Industrial Gases. According L&T's classification, the value of the said contracts lies between Rs 1,000 crore to Rs 2,500 crore.

SBI Cards and Payment Services slumped 4.08% to Rs 1028, after series of bulk deals in early trade.

On the BSE, 13.49 lakh shares were traded on the counter compared with the average daily volume of 2.24 lakh shares in the past two weeks. On the NSE, 3.73 crore shares were traded on the counter compared with the average daily volume of 88.62 lakh shares in the past one quarter.

The media reported that US private equity fund CA Rover Holdings, an affiliate of Carlyle Asia Partners, is selling 3.2 crore shares, or 3.4% stake, in SBI Cards and Payment Services worth $443 million or Rs 3,267 crore through the stock exchange platform on Tuesday. As of 30 June 2021, CA Rover Holdings held a 6.50% stake in the company.

Global Markets:

Asian stocks were trading mostly lower on Tuesday as investors continue to monitor the situation surrounding embattled developer China Evergrande Group. Japanese stocks declined as they returned to trade following a Monday holiday.

Markets in mainland China and South Korea are closed on Tuesday for a holiday.

Wall Street fell in a broad sell-off on Monday, as fear of contagion from potential collapse of China's Evergrande drove investors out of equities in a flight for safety.

The US Federal Reserve is due to meet on Tuesday and Wednesday as investors look for cues on when it will begin pulling back on its bond purchases.

Fed Chair Jerome Powell will hold a press conference Wednesday at the conclusion of the two-day meeting. Powell has said the so-called tapering could occur this year, but investors are waiting for more specifics, particularly after mixed economic data released since Powell's last comments.

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