Market extends early losses

Key benchmark indices extended early losses and hit fresh intraday low in morning trade. At 10:19 IST, the barometer index, the S&P BSE Sensex, was down 215.49 points or 0.57% at 37,306.13. The Nifty 50 index was down 60.95 points or 0.54% at 11,285.25. Weak cues from other Asian indices spoiled investors sentiment.

Among secondary barometers, the BSE Mid-Cap index was down 0.26%. The BSE Small-Cap index was down 0.35%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was negative. On BSE, 819 shares rose and 1147 shares fell. A total of 91 shares were unchanged.

Metal shares declined after base metal prices dropped on Shanghai Exchange. Vedanta (down 2.31%), Jindal Steel & Power (down 1.86%), Tata Steel (down 1.82%), NMDC (down 1.64%), Hindalco Industries (down 1.06%), Steel Authority of India (down 0.78%), National Aluminium Company (down 0.73%), Hindustan Zinc (down 0.61%) and JSW Steel (down 0.49%), edged lower. Hindustan Copper was up 0.08%.

Most FMCG shares declined. Tata Global Beverages (down 1.72%), Nestle India (down 1.16%), Jyothy Laboratories (down 0.78%), Bajaj Corp (down 0.66%), Marico (down 0.65%), Britannia Industries (down 0.48%), Colgate Palmolive (India) (down 0.3%) and Dabur India (down 0.01%), edged lower. Procter & Gamble Hygiene & Health Care (up 0.71%), Godrej Consumer Products (up 0.78%), Hindustan Unilever (up 0.80%) and GlaxoSmithKline Consumer Healthcare (up 1.27%), edged higher.

Overseas, Asian stocks declined as renewed US-China trade concerns offset strong gains in technology stocks. US stocks closed mostly lower Wednesday after the Federal Reserve left interest rates unchanged but signaled another imminent rate increase. Fresh worries over US-China trade friction dampened sentiment although positive results from Apple buoyed the tech sector and helped the Nasdaq buck the weak trend.

The Trump administration announced it is looking at the possibility of slapping a 25% tariff on $200 billion worth of imported Chinese goods from the initial 10% announced earlier.

Meanwhile, the US Federal Reserve concluded a two-day meeting on monetary policy and left its main interest rate unchanged at 1.75% to 2%, as widely expected, and indicated that it is likely to raise rates next month as the economy remains strong.

On the US data front, the latest data on private-sector employment showed 219,000 jobs added in July. Separately, the Markit manufacturing purchasing managers index came in at 55.3 in July. The Institute for Supply Management's July manufacturing index was 58.1%.

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