Broader market trades firm; breadth positive

Key equity barometers extended losses and hit fresh intraday low in mid-morning trade. Large-cap stocks corrected on worries of slower economic growth in the September quarter. Rising uncertainty over a US-China trade deal also hurt sentiment. The Nifty descended towards its support zone of 12,050. Mid and small-cap stocks, however, bucked weak market trend.

At 11:20 IST, the barometer index, the S&P BSE Sensex, was down 331.25 points or 0.81% at 40,798.92. The Nifty 50 index was down 91.40 points or 0.75% at 12,059.75.

In the broader market, the S&P BSE Mid-Cap index was up 0.24%. The S&P BSE Small-Cap index was up 0.49%.

The market breadth was positive. On the BSE, 1037 shares rose and 1028 shares fell. A total of 135 shares were unchanged. In Nifty 50 index, 13 stocks advanced while 37 stocks declined.

Buzzing Index:

The Nifty Metal index was down 0.84% at Rs 2,634.40 after surging 2.96% in last two trading sessions.

Hindalco Industries (down 2.11%), NMDC (down 2.1%), Tata Steel (down 1.57%), National Aluminium Company (down 1.54%), Jindal Steel & Power (down 1.48%), Vedanta (down 0.81%) and Steel Authority of India (down 0.5%) were top losers in metal segment.

Stocks in Spotlight:

Aurobindo Pharma rose 1.13% after the company announced that Auro Vaccines LLC, 100% subsidiary of Aurobindo Pharma USA Inc., USA has entered into a definitive agreement to acquire certain business assets from Profectus BioSciences Inc., USA., a clinical-stage vaccine development company.

HDFC Bank slipped 0.07%. The board of directors of the bank has constituted a search committee to identify a successor to Aditya Puri, the current managing director of the bank, whose tenure ends on 26 October 2020. The search committee, over the next few months, shall evaluate internal and external candidates to ensure smooth transition.

Macro:

India's GDP data for September quarter is scheduled to be published after market hours today, 29 November 2019. While Care Ratings, ICRA, Edelweiss expects the economy to have expanded at 4.7% in Q2, DBS and Nomura are on the lower band of the forecasts with projections of 4.3% and 4.2% respectively.

Foreign Markets:

Overseas, Asian markets were trading lower as investors worried that a new US law backing Hong Kong protests could derail Washington's and Beijing's efforts to end their trade war. China will announce its PMI Manufacturing data today.

Hang Seng tumbled 2% after US President Trump signed a bill supporting Hong Kong protestors. Hong Kong has been rocked by months of civil unrest initially sparked by a since-withdrawn extradition bill. The bill is in favour of pro democracy and might have grave implications on US China Trade Deal.

Japan's industrial output slipped at the fastest pace since early last year in October. Factory output fell 4.2% in October from the previous month, trade ministry data showed on Friday, swinging from a 1.7% rise the previous month.

The Bank of Korea announced on Friday its decision to keep the benchmark interest rate steady at 1.25%, in line with expectations.

U.S. financial markets were closed Thursday for Thanksgiving Day and will have an abbreviated trading schedule on Friday.

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