Market drops in early trade

Local stocks drifted lower in early trade after posting strong gains on Tuesday. At 9:25 IST, the barometer index, the S&P BSE Sensex, was down 260.20 points or 0.87% at 29,807.01. The Nifty 50 index was down 83.25 points or 0.95% at 8,708.95. Asian stocks were mixed.

The S&P BSE Mid-Cap index was up 0.61%. The S&P BSE Small-Cap index was up 1.2%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 735 shares rose and 378 shares fell. A total of 47 shares were unchanged.

Domestic shares had surged on Tuesday, amid positive global cues, buoyed by tentative signs the coronavirus crisis could be slowing. The barometer index, the S&P BSE Sensex, spurted 2,476.26 points or 8.97% at 30,067.21. The Nifty 50 index added 708.40 points or 8.76% at 8,792.20.

Stocks in news: Hero MotoCorp fell 1.2%. Hero MotoCorp has extended the duration of all its warranty and free services in view of the nationwide COVID-19 lockdown.

Wipro fell 0.89%. Wipro said that the meeting of the board of directors will be held on 15 April 2020, to consider and approve financial results for the quarter and year ended 31 March 2020.

Deepak Nitrite gained 4.56%. Deepak Nitrite commenced production of 2 Ethyl Hexyl Nitrate (2EHN) at its Nandesari, Vadodara, Gujarat facility effective 6 April 2020.

Galaxy Surfactants advanced 4.22%. Galaxy Surfactants said it has partially resumed operations at its plants with effect from 6 April 2020.

VA TECH WABAG jumped 5%. VA TECH WABAG has secured 4.5 Million Bahraini Dinar (approx. Rs 90 crore) order from Ministry of Works, Municipalities Affairs and Urban Planning (MoW) in Kingdom of Bahrain towards Operation, Maintenance and Management of the Madinat Salman Sewage Treatment Plant (STP) and Long Sea Outfall for a period of 5 years.

Global Markets:

Overseas, Asian stocks were mixed Wednesday as countries in the region continued to put measures in place to battle the coronavirus pandemic.

Japanese Prime Minister Shinzo Abe declared Tuesday a state of emergency to combat coronavirus infections in major population centers. Singapore also passed a set of laws that bans social gatherings of any size in both private and public areas, as per reports. Meanwhile, China lifted travel restrictions in Wuhan, the virus epicenter in mainland China, effective from Wednesday, marking the end of a lockdown that began on January 23.

In US, stocks finished lower Tuesday, far from session highs, thwarting a second session of gains despite signs that the COVID-19 pandemic may be leveling off in parts of the world. Markets also kept an eye on further planned U.S. measures to help dampen the recessionary impact of shutdowns and business closures intended to limit the epidemic.

In economic news, the NFIB survey, a monthly snapshot of small businesses, found that the optimism index fell in March to 96.4, an 8.1-point decline and the largest monthly decline in the survey's history.

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