The S&P BSE Sensex fell for the second consecutive day on Wednesday and slipped 106 points in late morning deals due to persistent selling pressure in auto, capital goods, banking, refinery and banking sectors on the back of lower global cues.

Coal India dropped on reports that the competition regulator has imposed a fine of Rs 1,770 crore on the state-run miner for abusing its dominant position and imposing unfair conditions in fuel supply agreements with customers.

The BSE-30 share index, Sensex, resumed lower at 21,191.27 and hovered in a range of 21,200.51 and 21,110.96 before quoting 21,148.77 points at 1030 hours.

It showed a loss of 106.49 points or 0.50 per cent from its last close.

The NSE 50-share barometer Nifty also dropped by 30.60 points or 0.48 per cent to 6,302.25 at 1030 hours. Major losers were Tata Motors (2.69 per cent), Larsen (1.57 per cent), ONGC (1.43 per cent), BHEL (1.36 per cent), Hero MotoCorp (1.15 per cent) and SBI (1.08 per cent).

Asian stocks edged lower in early trade amid caution ahead of next week’s Federal Reserve meeting. Key indices in Taiwan, South Korea, Singapore, China, Japan and Hong Kong were down.

US stocks fell on Tuesday after the Standard & Poor’s 500 Index reached a record, as investors weighed federal budget negotiations and better-than-estimated economic data to gauge the timing of any Federal Reserve stimulus cuts.

Meanwhile, foreign institutional investors (FIIs) bought shares worth a net Rs 395.68 crore on Tuesday, as per the data issued by stock exchanges.

Rupee drops 28 paise, trades at 61.32 against dollar

In line with the stock market, the rupee dropped by 28 paise to 61.32 against the dollar in late morning trade on Wednesday on fresh demand for the US currency from banks and importers.

The rupee resumed lower at 61.23 per dollar as against Tuesday’s closing level of 61.04 at the Interbank Foreign Exchange (Forex) Market.

It dropped further to 61.42 before quoting at 61.32 per dollar at 1040 hours.

It hovered in a range of 61.23 and 61.42 per dollar during the late morning deals.

Banks and importers preferred to increase their dollar position at the current level, a forex dealer said.

Meanwhile, the benchmark BSE-30 share index, Sensex, dropped by 108.99 points or 0.51 per cent to 21,146.47 at 1045 hours.