Barometers extend intraday losses

Key equity indices extended losses and hit fresh intraday low in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex, was down 93.54 points or 0.26% at 36,119.37. The Nifty 50 index was down 31.40 points or 0.29% at 10,823.75. Investors booked profits after market gained in past four trading session.

Indices were trading with small losses in early trade. Benchmarks firmed up and hit fresh intraday high in morning trade. Indices reversed trend and traded near day's low in mid-morning trade. Indices extended losses and hit fresh intraday low in early afternoon trade.

Among secondary barometers, the BSE Mid-Cap index was up 0.26%. The BSE Small-Cap index was up 0.22%.

The market breadth, indicating the overall health of the market, was almost even. On BSE, 1156 shares rose and 1052 shares fell. A total of 159 shares were unchanged.

Cement shares were mixed. ACC was down 0.06%. Ambuja Cements (up 0.09%) and UltraTech Cement (up 0.08%), edged higher.

Grasim Industries was down 1.27%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

Telecom shares were mixed. MTNL (up 0.99%), Vodafone Idea (up 0.81%) and Reliance Communications (up 0.51%), edged higher. Bharti Airtel (down 0.33%) and Tata Teleservices (Maharashtra) (down 1.51%), edged lower.

Overseas, most Asian shares were trading lower. China's Producer Price Index (PPI), which measures price increases before they reach the consumer, in December rose 0.9% on-year. That compares with the a 2.7% year-on-year increase in November. China's December consumer inflation (CPI), a gauge of prices for goods and services, rose 1.9% on year. The CPI rose 2.2% in November.

US stocks closed higher for a fourth session Wednesday, on reports that the US and China have narrowed differences over trade. Minutes from the December's Federal Open Market Committee meeting, which indicated caution on future interest rate hikes, also helped to buoy sentiment.

The US and China wrapped up their first face-to-face trade negotiations since a temporary tariff truce was declared last month. In a statement released after talks concluded, the US trade representative's office said officials had discussed making any deal "subject to ongoing verification and effective enforcement." The statement added that negotiators had "conveyed President Trump's commitment to addressing our persistent trade deficit and to resolving structural issues in order to improve trade between our countries."

China's commerce ministry said on Thursday trade talks with the United States this week were extensive and detailed, and established a foundation for the resolution of each others' concerns.

Meanwhile, the release of Fed minutes revealed that some central-bank officials hard reservations about an interest-rate increase last month due to market volatility, though policy makers voted unanimously in favor of the move. They also recommended the Fed should be "patient" and stressed that "a relatively limited amount of additional tightening" is appropriate.

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