Indices trade on a weak note

Stocks traded with weakness in mid-afternoon trade as European stocks opened lower. At 14:29 IST, the barometer index, the S&P BSE Sensex, was down 316.37 points or 0.88% at 35,575.15. The Nifty 50 index was down 108.75 points or 1.01% at 10,683.75. Selling was triggered by weak global cues.

Sentiment was impacted after provisional data showed that domestic and foreign funds, both, were net sellers of Indian equities yesterday, 2 January 2019. The trading activity showed that the foreign portfolio investors (FPIs) sold shares worth a net Rs 621.06 crore. Domestic institutional investors (DIIs) sold shares worth a net Rs 226.18 crore.

Intraday volatility was high. Key benchmark indices edged lower in early trade. Indices cut early losses to regain positive zone in morning trade. Fresh selling in index pivotals derailed a brief intraday pullback in mid-morning trade. Indices hit fresh intraday low in afternoon trade.

The S&P BSE Mid-Cap index was off 0.76%. The S&P BSE Small-Cap index was off 0.35%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 920 shares rose and 1527 shares fell. A total of 161 shares were unchanged.

ONGC (down 3.66%), Mahindra & Mahindra (down 3.03%), Vedanta (down 2.64%), HDFC (down 2.2%) and Tata Steel (down 2.06%) were the major Sensex losers.

Index heavyweight and engineering & construction major Larsen & Toubro fell 2.07% to Rs 1,396.90.

Bank of India rose 1.15%. Bank of India announced that its board approved hiking authorized capital from Rs 3000 crore to Rs 6000 crore. The board also approved obtaining approval of the shareholders through postal ballots for issuing shares to Government of India through preferential issue in respect of share application money of Rs 10,086 crore received on 31 December 2018. Further, the board also approved capital raising plan for issue of equity shares and tier-I and tier-II capital bonds to be raised at appropriate times in future. The announcement was made after market hours yesterday, 2 January 2019.

Info Edge (India) rose 3.55% to Rs 1,486 on bargain hunting after a recent slide. Shares of Info Edge (India) fell 8.87% in seven trading sessions to settle at Rs 1,435 yesterday, 2 January 2019, from its close of Rs 1,574.70 on 21 December 2018.

Overseas, trading in US index futures indicated that the Dow Jones Industrial Average could slide 306 points at the opening bell today, 3 January 2019.

European and Asian stocks fell after Apple Inc. added to global growth concerns by cutting its guidance. Apple lowered its first-quarter revenue guidance to $84 billion, down from the $89 billion to $93 billion that had previously been forecast. Apple blamed a number of factors for the climbdown in guidance, including weakness in China's economy and disappointing iPhone revenue.

US stocks closed the first session of the year on a positive note after volatile trading Wednesday, as crude oil prices rebounded.

Market participants are watching a partial US government shutdown that is nearing its second week as President Donald Trump mets with top lawmakers to discuss reopening the government by resolving a dispute over funding for the expansion of the US-Mexico border wall.

On the data front, a survey of American manufacturers showed the slowest growth in December in 15 months. IHS Markit said its manufacturing PMI slipped to 53.8 in December from an initial reading of 53.9, and it was down from 55.3 in the prior month.

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