Indices trade lower after opening positive

Key indices opened higher buy swiftly fell into the negative territory on select selling in index stocks. At 9:22 IST, the barometer index, the S&P BSE Sensex, was down 50.180 points or 0.13% at 38,573.52. The Nifty 50 index was down 13.65 points or 0.12% at 11,289.65.

The S&P BSE Mid-Cap index was down 0.74%. The S&P BSE Small-Cap index was down 0.55%. Both these indices underperformed the BSE Sensex.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 415 shares rose and 633 shares fell. A total of 58 shares were unchanged.

Stocks in news:

Hindustan Aeronautics fell 3.56%. Hindustan Aeronautics (HAL) has informed that the company has received a notice from International Court of Arbitration of the International Chamber of Commerce (ICC) on request for Arbitration from RUAG Aerospace Services GMBH. The company has initiated necessary action w.r.t. arbitration process. The amount in dispute partially quantified by the opponent party is US$ 21,872,500 (i.e. EUR 20,000,000) against alleged damages on breach of agreement regarding supply of structural parts for production of Dornier-228, by HAL.

Tech Mahindra rose 0.48%. Tech Mahindra said the company's subsidiary Comviva Technologies has agreed to sell its 100% shareholding in Terra Payment Services (Netherlands) BV along with its subsidiaries.

HFCL was up 1.73%. HFCL said the company has received the purchase order worth Rs 196 crore from Larsen & Toubro for supply of Optical Fibre Cables (OFC) for construction of Telangana Fiber Grid (T-Fiber) by them under Bharat Net Phase-II Programme of the Government of India, in the State of Telangana.

Newgen Software Technologies added 1.71%. Newgen Software Technologies announced that the US Patent Office has issued a patent for its mark detection system and methodology. The mark detection system is used to identify marks, like tick and cross marks, on document images.

Canara Bank shed 1.27%. Canara Bank said CARE Ratings has assigned 'AAA' rating (Credit watch with developing implications) to the bank's Tier-II bonds.

Global Markets:

Overseas, most Asian stocks were trading lower on Wednesday as an emergency rate cut from the US Federal Reserve did little to soothe investor fears over the coronavirus's widening fallout.

In US, stocks finished sharply lower on Tuesday, after a volatile trading session, and Treasury yields fell to historic lows, with Wall Street deeming a surprise inter-meeting interest-rate cut from the Federal Reserve insufficient to restore confidence in a market that has been rocked by worries about the spread of coronavirus world-wide.

The decline for markets came as the Fed announced a half-a-percentage-point rate cut, reportedly saying that while the economy's fundamentals remain strong, the coronavirus-poses evolving risks to economic activity.

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