Broad market depicts weakness

Key benchmark indices hovered in negative zone in mid-morning trade as index pivotals remained gripped in selling pressure. At 11:20 IST, the barometer index, the S&P BSE Sensex, was down 171.05 points or 0.5% at 33,839.71. The Nifty 50 index was down 63 points or 0.6% at 10,389.30. Metal and mining stocks declined. Telecom stocks saw mixed trend.

The Sensex was trading below the psychological 34,000 mark after drifting below that level in early trade. A bout of volatility was seen in early trade as the key benchmark indices opened higher but quickly erased gains to sink in the negative zone. Stocks extended slide and hit fresh intraday low in morning trade.

The S&P BSE Mid-Cap index was down 0.8%. The S&P BSE Small-Cap index was down 0.76%. Both these indices underperformed the Sensex.

The broad market depicted weakness. There were more than two losers against every gainer on BSE. 1,737 shares fell and 698 shares rose. A total of 115 shares were unchanged.

Overseas, Asian shares were trading higher as sentiment improved gradually from a recent shakeout that stemmed from fears of creeping inflation and higher borrowing costs. Markets in China, Hong Kong and Taiwan remain closed for the holiday. US markets will be closed today, 19 February 2018 in observance of Presidents Day.

Japanese exports rose for a 14th straight month in January 2018, helped by continued demand from Asia for equipment to make semiconductors, data from Japan's finance ministry showed today, 19 February 2018. Exports grew 12.2% in January from a year earlier, following a 9.3% year-on-year gain in the previous month.

In US, the Dow industrials and S&P 500 logged their sixth straight advance on Friday, 16 February 2018 but the Nasdaq lagged its peers, as political drama sparked turbulent trade late in the session. Special Counsel Robert Mueller announced the indictments of 13 Russian nationals and three Russian entities, accusing them of interfering in the 2016 US presidential election. The indictment said the defendants were supporting Donald Trump's campaign and disparaging Hillary Clinton.

Back home, among the key losers from the Sensex pack, L&T lost 2.82%, State Bank of India 2.48% and IndusInd Bank fell 1.53%.

Metal and mining stocks declined. JSW Steel lost 3.38%, Steel Authority of India (Sail) 2.32%, Hindustan Copper 1.77%, National Aluminium Company 1.57%, Jindal Steel & Power 1.07%, NMDC 0.84%, Hindalco Industries 0.51% and Hindustan Zinc fell 0.11%. Vedanta rose 0.49%.

Tata Steel lost 4.58% while Bhushan Steel surged 20%. Tata Steel has reportedly emerged as the highest bidder for debt-ridden Bhushan Steel and Bhushan Power and Steel. Bhushan Steel is one of the 12 large corporate accounts identified by the Reserve Bank of India (RBI) that accounted for almost 25% of exposure to bad loans for the entire banking sector, reports added.

Telecom stocks saw mixed trend. MTNL lost 2.69%, Tata Teleservices (Maharashtra) 2.47% and Bharti Airtel declined 1.91%. Reliance Communications rose 0.7%. Idea Cellular rose 0.12%.

Shares of Bharti Infratel rose 1.48%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.

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