Market extends losses; breadth negative

Equity market barometers extended decline and hit fresh intraday low in afternoon trade. The Nifty slipped below the 11,950 level. At 13:28 IST, the barometer index, the S&P BSE Sensex, was down 170.84 points or 0.42% at 40,504.61. The Nifty 50 index was down 47.60 points or 0.40% at 11,946.60.

Selling was triggered by negative global cues after U.S. President Donald Trump said a trade deal with China might have to wait until after the 2020 presidential election. Fresh U.S. tariffs on Argentina and Brazil as well as threatened duties on French goods also spoiled trading sentiment. Investors awaited the Reserve Bank of India's policy statement on Thursday and details of the Union cabinet meeting today.

The S&P BSE Mid-Cap index was down 0.13%. The S&P BSE Small-Cap index fell 0.24%.

The market breadth was negative. On the BSE, 1021 shares rose and 1104 shares fell. A total of 154 shares were unchanged. In Nifty 50 index, 24 stocks advanced while 26 stocks declined.

Economy:

The Union Cabinet has reportedly approved a total of six bills, including Citizenship (Amendment) Bill, extension of reservation for SC/STs and Personal Data Protection Bill. The Bills will be introduced in the Parliament.

The Cabinet also approved the launch of Bharat Bond Exchange Traded Fund (ETF). Bharat Bond ETF would be the first corporate bond ETF in the country. It will provide additional money for CPSUs, CPSEs & other government organizations.

Further, the government is looking into the issue of unpaid GST compensation to certain states, said Finance Minister Nirmala Sitharaman. The finance ministers of Delhi, Punjab, Puducherry and Madhya Pradesh and representatives Kerala, Rajasthan, Chattisgarh and West Bengal attended the meeting over delay in payment of compensation.

Buzzing Index:

The Nifty Auto index slipped 0.08% to 7,957.90. Escorts (down 1.64%), Ashok Leyland (down 1.42%), TVS Motor Company (down 1.25%), Maruti Suzuki India (down 0.81%), Bajaj Auto (down 0.65%) and Mahindra & Mahindra (down 0.16%) declined.

Hero MotoCorp (up 0.33%) and Eicher Motors (up 0.07%) advanced.

Tata Motors surged 4.43% to Rs 165.15. Jaguar Land Rover total November U.S. sales reached 12,472 units, up 6% from November 2018. For the calendar year, Jaguar Land Rover achieved 1.11 lakh units, up by 3% from 1.08 lakh units in 2018.

The auto stocks have been under pressure this week after weak auto sales in November. The Nifty Auto index has fallen 2.98% in five sessions to 7,957.90 from its recent closing high of 8,202.85 on 27 November 2019.

Stocks in Spotlight:

Bajaj Finance slipped 0.43% to Rs 3950.35. The Securities Appellate Tribunal (SAT) suspended the transfer of shares from the depository account of Karvy Stock Broking (KSBL) and asked the Securities and Exchange Board of India (Sebi) to hear the company's plea which had challenged the market regulator's share-shift order.

Larsen & Toubro (L&T) was trading 1.80% lower at Rs 1289.90. L&T announced that the construction arm of the company has "significant" secured orders from prestigious clients across various Indian states for its varied businesses. As per the company's classification, the valuation of the significant orders received lies between Rs 1,000 to Rs 2,500 crore.

Foreign Markets :

European markets opened slightly higher while Asian markets continued to trade in the red on Wednesday after an overnight fall in US stocks. US stocks fell on Tuesday after President Donald Trump reportedly said it may take until after the 2020 US elections to complete a trade deal with China.

Speaking to reporters in London on Tuesday, Trump said he had "no deadline" for striking a deal with Beijing. It had previously been expected the world's two largest economies could sign a so-called "phase one" trade deal before the end of 2019.

Trade tensions escalated on other fronts, including Brazil, Argentina and France after Trump said he was bringing back tariffs on Brazilian and Argentinian steel, while the administration also proposed tariffs of up to 100% on $2.4 billion in French imports.

In the U.K., several world leaders have gathered in London to mark the 70th anniversary of NATO.

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