Indices decline further; breadth turns negative

The Sensex and the Nifty hit fresh intraday low in mid-afternoon trade. At 14:27 IST, the barometer index, the S&P BSE Sensex, was down 111.67 points or 0.31% at 36,101.24. The Nifty 50 index was down 48 points or 0.44% at 10,807.15. Investors booked profits after market gained in past four trading sessions. Negative global cues also spoiled sentiment.

Indices were trading with small losses in early trade. Benchmarks firmed up and hit fresh intraday high in morning trade. Indices reversed trend and traded near day's low in mid-morning trade. Indices extended losses in afternoon trade and hit fresh intraday low in mid-afternoon trade.

Among secondary barometers, the BSE Mid-Cap index was up 0.32%. The BSE Small-Cap index was up 0.11%.

The market breadth, indicating the overall health of the market, turned negative from positive. On BSE, 1194 shares rose and 1265 shares fell. A total of 160 shares were unchanged.

Most IT shares declined. MindTree (down 1.27%), Wipro (down 0.82%), HCL Technologies (down 0.49%), Hexaware Technologies (down 0.44%), MphasiS (down 0.41%) and Tech Mahindra (down 0.21%), edged lower. Oracle Financial Services Software (up 0.02%) and Persistent Systems (up 0.27%), edged higher.

IT major TCS was up 0.73%. The company announces its Q3 December 2018 result today, 10 January 2019.

IT major Infosys was down 0.13%. The company announced that its board will consider proposals, including but not limited to, buyback of fully paid-up equity shares of the company, payment of special dividend, for implementation of the Capital Allocation Policy at its meeting to be held on 11 January 2019. The outcome of the board meeting will be disseminated to the stock exchanges after conclusion of the board meeting on January 11, 2019. The announcement was made after market hours on 8 January 2019.

Infosys will announce Q3 December 2018 results on Friday, 11 January 2019.

Pharmaceutical shares were mixed. Divi's Laboratories (up 2.76%), Aurobindo Pharma (up 2.28%), Wockhardt (up 1.41%), Glenmark Pharmaceuticals (up 0.86%), Strides Shasun (up 0.68%), Cadila Healthcare (up 0.55%), IPCA Laboratories (up 0.35%), Cipla (up 0.34%), Lupin (up 0.21%) and GlaxoSmithKline Pharmaceuticals (up 0.18%), edged higher. Alkem Laboratories (down 0.01%), Dr Reddy's Laboratories (down 0.52%), Sun Pharmaceutical Industries (down 1.15%) and Piramal Enterprises (down 1.29%), edged lower.

Overseas, European shares were trading lower as investors focused on trade war developments and monetary policy in the US.

Most Asian shares were trading lower. China's Producer Price Index (PPI), which measures price increases before they reach the consumer, in December rose 0.9% on-year. That compares with the a 2.7% year-on-year increase in November. China's December consumer inflation (CPI), a gauge of prices for goods and services, rose 1.9% on year. The CPI rose 2.2% in November.

US stocks closed higher for a fourth session Wednesday, on reports that the US and China have narrowed differences over trade. Minutes from the December's Federal Open Market Committee meeting, which indicated caution on future interest rate hikes, also helped to buoy sentiment.

The US and China wrapped up their first face-to-face trade negotiations since a temporary tariff truce was declared last month. In a statement released after talks concluded, the US trade representative's office said officials had discussed making any deal "subject to ongoing verification and effective enforcement." The statement added that negotiators had "conveyed President Trump's commitment to addressing our persistent trade deficit and to resolving structural issues in order to improve trade between our countries."

China's commerce ministry said on Thursday trade talks with the United States this week were extensive and detailed, and established a foundation for the resolution of each others' concerns.

Meanwhile, the release of Fed minutes revealed that some central-bank officials hard reservations about an interest-rate increase last month due to market volatility, though policy makers voted unanimously in favor of the move. They also recommended the Fed should be "patient" and stressed that "a relatively limited amount of additional tightening" is appropriate.

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