Market drifts lower in early trade

Key indices drifted lower in early trade on negative Asian stocks. At 9:30 IST, the barometer index, the S&P BSE Sensex, was down 37.04 points or 0.1% at 38,902.18. The Nifty 50 index was down 2.45 points or 0.02% at 11,669.50.

The S&P BSE Mid-Cap index was up 0.19%. The S&P BSE Small-Cap index was up 0.22%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 777 shares rose and 505 shares fell. A total of 84 shares were unchanged.

Overseas, Asian shares are trading lower as the IMF lowered its global growth outlook and as tensions over tariffs between the United States and Europe escalated.

U.S. stocks closed lower Tuesday, with the S&P 500 snapping its eight-day winning streak, on fears over escalation of trade tensions with the European Union and a weaker global outlook from the International Monetary Fund.

The office of the U.S. Trade Representative threatened to levy tariffs on many European goods late Monday. The threat is a retaliation against European companies' subsidies for aircraft manufacturer Airbus. If the U.S. follows through, the proposed tariffs would affect about $11 billion in imports to the U.S., including helicopters, bicycles, cheese and wine. Lighthizer said the Trump administration would wait for World Trade Organization clearance to implement the duties.

The IMF lowered the outlook for global economic growth in 2019 to 3.3% from 3.5% projected in January, marking its third reduction of growth expectations in six months. The decline has been broadly felt, with all advanced economies, including the U.S., and most major emerging-market economies seeing deterioration in their outlook.

Among stocks, IndusInd Bank rose 0.1%. IndusInd Bank priced its maiden USD bond issuance in the offshore public markets. The bank raised $400 million at a coupon rate of 3.875% per annum, payable semi-annually. Notes will be listed on Singapore SGX and the India INX, Gift City. The announcement was made after trading hours yesterday, 9 April 2019.

Praj Industries surged 7.4%. Praj Industries announced that it has signed a construction license agreement (CLA) with Gevo, Inc, USA dated 4 April 2019, to commercialize technology for the production of lsobutanol using sugary-based feedstocks, such as juice, syrup and molasses. Pursuant to the CLA, Praj will provide engineering procurement and construction (EPC) services to 3rd parties using a process design package developed by Praj. This package uses Gevo's proprietary lsobutanol biocatalyst on sugary-based feedstock. lsobutanol derived from said proprietary process is high energy renewable intermediate product that finds application in aviation and racing cars. The announcement was made after trading hours yesterday, 9 April 2019.

Lakshmi Vilas Bank fell 2.86%. Lakshmi Vilas Bank said that its board will meet on 12 April 2019, to consider fund raising by preferential allotment of equity shares. Additionally, the board will also consider raising capital through the issuance and allotment of BASEL III compliant additional tier-1 debt instruments in the nature of bonds. The announcement was made after trading hours yesterday, 9 April 2019.

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