Indices off day's low

Key indices cut losses in early afternoon trade. At 12:22 IST, the barometer index, the S&P BSE Sensex, was down 115.93 points or 0.32% at 35,658.95. The Nifty 50 index was down 43.80 points or 0.41% at 10,719.60. IT stocks dropped. Local indices were weighed down by negative Asian stocks.

Domestic stocks opened on a negative note tracking lower Asian stocks. Stocks hovered in negative zone in morning trade. Fresh selling in index pivotals pulled the key benchmark indices to intraday low in mid-morning trade.

The S&P BSE Mid-Cap index was off 0.3%. The S&P BSE Small-Cap index was down 0.16%.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 952 shares rose and 1308 shares fell. A total of 136 shares were unchanged.

IndusInd Bank (up 1.71%), Adani Ports & Special Economic Zone (up 1.54%), Tata Motors (up 1.17%), M&M (up 1.17%) and Coal India (up 0.61%) edged higher from the Sensex pack.

IT stocks dropped. HCL Technologies (down 2.48%), Oracle Financial Services Software (down 1.32%), Tech Mahindra (down 3.29%), L&T Infotech (down 3%), TCS (down 0.81%), Infosys (down 1.27%), Wipro (down 1.12%) and Mphasis (down 2.25%) declined. Hexaware Technologies (up 0.11%) rose.

Meanwhile, the Reserve Bank of India's (RBI) Central Board met yesterday, 19 November 2018 in Mumbai and discussed the Basel regulatory capital framework, a restructuring scheme for stressed MSMEs, bank health under Prompt Corrective Action (PCA) framework and the Economic Capital Framework (ECF) of RBI. The board decided to constitute an expert committee to examine the ECF, the membership and terms of reference of which will be jointly determined by the Government of India and the RBI.

The board also advised that the RBI should consider a scheme for restructuring of stressed standard assets of MSME borrowers with aggregate credit facilities of up to Rs 25 crore, subject to such conditions as are necessary for ensuring financial stability. The board, while deciding to retain the CRAR at 9%, agreed to extend the transition period for implementing the last tranche of 0.625% under the Capital Conservation Buffer (CCB), by one year, i.e., up to 31 March 2020. With regard to banks under PCA, it was decided that the matter will be examined by the Board for Financial Supervision (BFS) of RBI.

On the political front, second phase of assembly elections with 72 seats is being held in Chhattisgarh today, 20 November 2018. Chhattisgarh held its first phase of polls on 12 November 2018 when 18 seats were contested. Assembly elections in Madhya Pradesh and Mizoram will be held on 28 November 2018. Polling in Rajasthan and Telangana will be held on 7 December 2018. Counting of votes will be held across all the five states on 11 December 2018.

Overseas, most Asian stocks declined on pessimism about escalating trade tensions. US stocks dropped Monday, with shares of technology and internet-related companies dragging the market lower. US financial markets will be closed Thursday for the Thanksgiving Day holiday.

On the data front, the National Association of Home Builder's monthly confidence index fell 8 points to 60 in November, the largest decline in more than four years, and the lowest overall reading in more than two.

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