Benchmarks pare some losses; IT shares decline

The benchmarks indices traded with minor cuts as they pared some losses in mid-morning trade. The Nifty traded above the 16,150 mark. IT shares witnessed some bit of profit booking.

At 11:27 IST, the barometer index, the S&P BSE Sensex, was down 105.01 points or 0.19% to 54,183.60. The Nifty 50 index lost 50.50 points or 0.31% to 16,164.20.

In the broader market, the S&P BSE Mid-Cap index fell 0.56% while the S&P BSE Small-Cap index declined 0.41%.

The market breadth remained weak. On the BSE, 1,134 shares rose and 1,948 shares fell. A total of 136 shares were unchanged.

Investors continued to assess the global macroeconomic outlook as they await the minutes from the last U.S. Federal Reserve meeting, due on Wednesday, which could give clues on whether the monetary tightening would continue.

Results Today:

Adani Ports (up 0.06%), Grasim Industries (down 4.84%), Balrampur Chini (down 1.64%), Ipca Laboratories (down 0.95%), Jyothy Labs (up 4.25%), RITES (up 1.03%), e-Clerx Services (up 1.93%), Bank of India (down 0.75%), Aster DM Healthcare (down 1.60%), Minda Industries (down 3.44%) and Metropolis Healthcare (down 2.03%) are some of the companies that will announce their quarterly earnings today.

Buzzing Index:

The Nifty IT index declined 1.69% to 28,588.35. The index had advanced 2.56% in the past two sessions.

Larsen & Toubro Infotech (down 3.26%), MindTree (down 2.97%), HCL Tech (down 2.09%), Tech Mahindra (down 1.97%), L&T Technology Services (down 1.67%), Infosys (down 1.64%), Coforge (down 1.35%), Mphasis (down 1.18%), TCS (down 0.93%) and Wipro (down 0.87%) declined.

Global markets:

Asian stocks traded lower on Tuesday, as investors weighed a possible thawing of U.S.-China trade relations as U.S. President Joe Biden floated the idea of tariff cuts on Chinese goods.

China announced that it will offer more than 140 billion yuan ($21 billion) in additional tax relief as it seeks to offset the impact of coronavirus lockdowns that have battered the economy.

US stocks ended higher on Monday as gains from banks and a rebound in market-leading tech shares supported a broad-based rally. Sentiment appeared to have gotten a boost after President Joe Biden said he was considering reducing tariffs on some products imported from China.

The United States announced on Monday the Indo-Pacific Economic Framework with Asian partners including Australia, Japan and the Republic of Korea. The group wants to set international rules on the digital economy, supply chains, decarbonization and regulations applying to workers.

U.S. President Joe Biden has said tackling inflation is a priority and this framework is designed to help lower costs by making supply chains more resilient in the longer term.

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