Sensex, Nifty sluggish; Tata Motors down 4%, Hindalco slips

Moneycontrol Bureau11:55 am Pictorial warnings: The Supreme Court told the tobacco industry to adhere to rules requiring stringent health warnings on cigarette packs, but ordered a state high court to hear all pleas challenging the same.

The tobacco industry "should not violate any rule prevailing as of today," the two-judge bench said, and added that the Karnataka high court should hear all pleas challenging the new rules.

Last month, Indian tobacco companies, some backed by foreign "Big Tobacco", shut down production in protest against requirements that 85 percent of a cigarette pack's surface be covered in health warnings, up from 20 percent.

11:30 am Market outlook: Markets globally had been looking for a reason to correct -- which they got thanks to the Bank of Japan's move to stand pat on monetary policy -- but any fall only accentuates the appeal of Indian shares, says Nilesh Shah, Managing Director of Kotak Mahindra Asset Management Company. In an interview with CNBC-TV18, Shah said there were many positives going for the Indian economy that would lift stocks. He, however, a conceded that a bad monsoon, unlikely as it looks currently, would be an upset for markets. "The government has adopted fiscal prudence while the Reserve Bank has decided to ease liquidity conditions," he said. "This is a reversal of six years of policy."Don't miss: Cash cow? Analysts bullish on Parag Milk Foods IPO

The market is still reeling under pressure as the Nifty continues to struggle below 7750. The 50-share index is down 19.85 points or 0.3 percent at 7727.15. The Sensex is down 57.28 points or 0.2 percent at 25172.42.

HDFC twins, NTPC, Hero and ITC are gainers while Adani Ports, Tata Motors, Hindalco, Tata Steel and Coal India are losers in the Sensex.

Amid a weakening global trend and profit-booking by speculators, gold futures traded lower by Rs 136 at Rs 30,318 per 10 gram today.

Analysts said the fall in gold futures was mostly in tandem with a weak trend overseas where the precious metal fell for a third day as the dollar rebounded on prospects of the US interest-rate increase next month, dimming the metal's appeal as an alternative investment.

Meanwhile, prices have rallied 21 percent in 2016 after three years of losses, as investors returned to haven assets amid concerns that a deteriorating global economy may delay the end of low borrowing costs in the US.