Market drifts lower in early trade; breadth positive

Key benchmark indices are trading lower in early trade on selling pressure in index pivotals. At 9:25 IST, the barometer index, the S&P BSE Sensex, was down 69.33 points or 0.12% at 58,180.93. The Nifty 50 index was down 33.85 points or 0.2% at 17,319.65. Asian stocks are trading lower.

The S&P BSE Mid-Cap index was down 0.12%. The S&P BSE Small-Cap index was up 0.16%.

The market breadth, indicating the overall health of the market, is positive. On the BSE, 1353 shares rose and 1014 shares fell. A total of 120 shares were unchanged.

Stocks in news:

Tata Consultancy Services (TCS) rose 0.47%. TCS has been selected by Avianca, one of the leading airlines in South America, as a strategic partner in its cloud transformation journey.

Infosys fell 0.37%. Infosys and The Economist Group, a leading global media company, announced a new strategic partnership designed to enable and accelerate sustainability solutions and drive world-changing impact through a new business-to-business model.

JSPL rose 0.18%. JSPL through its step down subsidiary, Jindal Steel & Power (Australia) Pty Ltd, made a pre-payment of 105.66 million USD (approx.777.4 crores INR). The prepayment has helped reduce the Australian debt by approx. 50%.

UCO Bank jumped 11.4%. UCO Bank said that Reserve Bank of India has lifted Prompt Corrective Action restrictions on the bank.

Global Markets:

Asian stocks are trading lower on Thursday as investors continue to fret over a slowdown in the recovery from the pandemic.

China's consumer price index rose 0.8% year-on-year in August. Meanwhile, the producer price index jumped 9.5% from a year ago.

Wall Street ended lower on Wednesday, spooked by worries that the Delta coronavirus variant could blunt the economy's recovery and on uncertainty about when the US Federal Reserve may pull back its accommodative policies.

Meanwhile, the Federal Reserve said in its latest Beige Book that U.S. businesses are experiencing rising inflation that is being intensified by a shortage of goods and likely will be passed onto consumers in many areas.

The Fed also reported that growth overall had downshifted slightly to a moderate pace amid rising public health concerns during the July through August period that the report covers. The deceleration in economic activity was largely attributable to a pullback in dining out, travel, and tourism in most Districts, reflecting safety concerns due to the rise of the Delta variant, and, in a few cases, international travel restrictions, the report said.

Back home, key equity indices ended flat after a volatile trade on Tuesday, tracking negative global cues. The S&P BSE Sensex, dropped 29.22 points or 0.05% at 58,250.26. The Nifty 50 index fell 8.6 points or 0.05% to end at 17,353.50.

Foreign portfolio investors (FPIs) sold shares worth Rs 802.51 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 0.60 crore in the Indian equity market on 8 September, provisional data showed.

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