Barometers reverse intraday gains

Key benchmarks indices wiped off intraday gains in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex, was up 5.54 points or 0.01% at 38,369.01. The Nifty 50 index was down 9.85 points or 0.09% at 11,522.55. Mixed cues from other Asian market dented investors sentiments.

Trading kicked off on a negative note. Shares, however, gained vigor in morning trade amid broad based buying support. Indices pared gains in mid-morning trade as profit booking emerged at higher levels.

Among secondary barometers, the BSE Mid-Cap index was down 0.26%. The BSE Small-Cap index was down 0.14%.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1,014 shares rose and 1,355 shares fell. A total of 157 shares were unchanged.

Cement shares declined. ACC (down 0.49%), UltraTech Cement (down 0.42%) and Ambuja Cements (down 0.33%), edged lower.

Grasim Industries was down 0.66%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

Most auto shares declined. Eicher Motors (down 1.24%), Bajaj Auto (down 1.18%), Ashok Leyland (down 0.93%), Maruti Suzuki India (down 0.93%), TVS Motor Company (down 0.89%), Tata Motors (down 0.79%) and Mahindra & Mahindra (down 0.51%), edged lower. Hero MotoCorp (up 0.58%) and Escorts (up 0.78%), edged higher.

Overseas, Asian shares were mixed as investors adopted a cautious stance prior to the Federal Reserve's policy decision and further news on US-China trade talks.

US stock benchmarks on Tuesday closed mostly lower in a volatile session, as investors digested news on trade and awaited a policy decision by the rate-setting Federal Open Market Committee due Wednesday. Investors will focus on the statement issued by policy makers.

Chinese officials have reportedly shifted their stance on trade because after agreeing to changes to their intellectual-property policies, they have not received assurances from the Trump administration that tariffs imposed on their exports would be lifted, curbing hopes of a deal.

US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin reportedly plan to travel to China next week for another round of trade talks with Chinese Vice Premier Liu He.

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