Benchmarks hit fresh intraday low

Key equity barometers extended intraday losses and hit fresh intraday low in mid-afternoon trade. Negative opening in European markets triggered fresh selling pressure. At 14:25 IST, the barometer index, the S&P BSE Sensex, was down 214.79 points or 0.56% at 38,171.96. The Nifty 50 index was down 22.70 points or 0.20% at 11,498.35. The Nifty was hovering a tad below the 11,500 mark after moving above and below that mark in intraday trade.

Shares opened slightly higher and extended gains in morning trade. Trend reversed in mid-morning trade as sudden selling pressure emerged. Indices trimmed losses after hitting fresh intraday low in early afternoon trade. Shares succumbed to fresh selling pressure in mid-afternoon trade.

Among secondary barometers, the BSE Mid-Cap index was down 0.48%. The BSE Small-Cap index was down 0.39%.

The market breadth, indicating the overall health of the market, was negative. On BSE, 983 shares rose and 1415 shares fell. A total of 127 shares were unchanged.

Auto shares declined. Maruti Suzuki India (down 1.78%), TVS Motor Company (down 1.58%), Tata Motors (down 1.25%), Escorts (down 1.08%), Ashok Leyland (down 0.55%), Hero MotoCorp (down 0.44%) and Mahindra & Mahindra (down 0.29%), edged lower. Eicher Motors was up 0.79%.

Bajaj Auto was up 0.04%. The company and Pierer Industrie have started discussions on assessing the possibility of transferring Bajaj's 48% stake in Austrian motorcycle brand KTM AG to its parent company KTM Industries AG. Pierer Industrie AG now holds approximately 62% of KTM Industries AG shares. The listed company KTM Industries AG holds approximately 51.7% of the shares of KTM AG while Bajaj Auto International Holdings BV holds the remaining 48% stake in KTM AG. The announcement was made after market hours on Wednesday, 20 March 2019.

Reliance Industries (RIL) was down 1.79%. The company has invested Rs 5,00,000 in cash in 50,000 equity shares of Rs 10 each of 'Reliance Navi Mumbai Infra' (RNMIL), a newly incorporated entity. RNMIL is incorporated with the purpose of undertaking real estate and related infrastructure activities. RNMIL is yet to commence its business operations. The announcement was made after market hours on Wednesday, 20 March 2019.

Infosys was up 0.14%. Infosys Finacle, part of EdgeVerve Systems, a product subsidiary of Infosys announced on 21 March 2019, that its customer MeDirect Bank Belgium, an online bank offering savings, investments and wealth management since 2013, has successfully launched its Regulated Savings Product on Finacle's core banking solution. The product will help the bank extend services to a new segment of savers that are looking to save and receive basic interest, in addition to a fidelity premium. Finacle's core banking solution provided MeDirect Bank a flexible technology foundation to enable speed-to-market with this new offering.

Separately, Infosys and Roland-Garros, announced after market hours on Wednesday, 20 March 2019, a strategic three-year technology partnership. The collaboration is aimed at enriching the game by providing fans, players and coaches with a completely new experience, leveraging Infosys' expertise in digital technologies such as artificial intelligence, big data & analytics, mobility, virtual and augmented reality.

Tata Steel was up 1.13%. The company announced on 21 March 2019, that it has acquired 1070,00,00,000 - 11.09% non-convertible redeemable preference shares (NCRPS) of face value Rs 10 each, of Tata Steel BSL, aggregating to Rs 10,700 crore, in two tranches.

Meanwhile, the International Monetary Fund (IMF) reportedly said that India has been one of the fastest growing large economies in the world. The country has carried out several key reforms in the last five years, but more needs to be done, it added. IMF communications director Gerry Rice reportedly said India has of course been one of the world's fastest growing large economies of late, with growth averaging about 7% over the past five years. Important reforms have been implemented and more reforms are needed to sustain this high growth, including to harness the demographic dividend opportunity, which India has, he added.

Overseas, European stocks were trading lower Friday as concerns over the US Federal Reserve's subdued outlook and ongoing Brexit uncertainty weigh on sentiment.

The European Union proposed an extension of the Brexit deadline to May 22 on the condition that the UK Parliament support Prime Minister Theresa May's withdrawal deal, which will be put to vote next week.

Most Asian shares bounced back from early lows and settled higher. US stocks closed higher Thursday a day after the Federal Reserve signaled that it was unlikely to raise interest rates this year amid worries over slowing economic growth.

On Wednesday, the US Fed said it does not expect to raise rates at all in 2019. The central bank had forecast at least two rate hikes for this year back in December. The Fed added that it expects to end its balance-sheet reduction process by the end of September. The US central bank, however, lowered its economic growth forecast for 2019, raising concerns over a possible slowdown in the economy.

On the trade front, US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will visit China on March 28-29 for more discussion on trade, while Chinese Vice Premier Liu He will travel to Washington early next month to continue the negotiations.

On the US data front, the Labor Department said the number of laid-off workers who applied for first-time unemployment benefits fell by 9,000 in the week ended March 16 to 221,000a one-month low.

The Philadelphia Fed's business activity index rebounded in March to a seasonally adjusted reading of 13.7 from -4.1 the previous month. A reading above zero indicates improving conditions. The Conference Board's leading economic index rose 0.2% in February, its first uptick since September.

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