Market slips into red

Key indices slipped into the red after opening marginally higher. At 9:20 IST, the barometer index, the S&P BSE Sensex, was down 6.30 points or 0.0.2% at 40,481.13. The Nifty 50 index was down 6.85 points or 0.06% at 11,930.65.

The S&P BSE Mid-Cap index was up 0.08%. The S&P BSE Small-Cap index was up 0.17%. Both indices outperformed the BSE Sensex.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 396 shares rose and 333 shares fell. A total of 34 shares were unchanged.

Among stocks, Hero MotoCorp rose 0.34%. Hero MotoCorp said it will make an upward revision in the ex-showroom prices of its motorcycles and scooters, effective 1 January 2020. The price increase across its range of two-wheelers will be upto Rs 2000, although the exact quantum of the increase will vary on the basis of the model and the specific market.

HDFC rose 0.36%. HDFC said it is proposing to acquire 1,14,70,000 shares representing 9.12% of the equity share capital of its subsidiary HDFC Credila Financial Services from its other promoters for amount not exceeding Rs 395 crore. Post acquisition, HDFC Credila Financial Services will become wholly owned subsidiary of HDFC.

Bank of Baroda rose 0.67%. Bank of Baroda said the Investment Committee of Bank has approved the participation of the Bank in the proposed IPO of equity shares of UTI Asset Management Company Limited by way of an offer for sale of up to 1,04,59,949 Equity Shares held by it.

PC Jeweller fell 3.43%. PC Jeweller said CRISIL has downgraded its long term and short terms ratings to the bank loan facilities of the Company to CRISIL D. The downgrade in the rating factors in the instances of devolvement of Letter of Credits (LC) and overutilization in working capital limits for more than 30 days.

South Indian Bank fell 1.02%. South Indian Bank said India Ratings and Research has given IND A+ rating with a negative outlook on the company's Tier II bonds and Lower Tier II bonds from IND A+/Stable before. The downgrade reflects higher proportion of stressed assets to net worth, subdued profitability along with lower provision coverage compared to peer banks, thereby increasing the importance of raising tier I capital in the medium term.

Overseas, Asian markets were trading lower on Tuesday as investors refrained from making major bets before 15 December, when the next round of US tariffs on Chinese imports is due to take effect.

In US, stocks ended lower on Monday following economic reports that pointed to weakness in China's economy. Investors also kept a close eye on trade negotiations ahead of Sunday's tariff deadline for 15% import duties on $156 billion of annual consumer imports.

Reports out of China indicate that trade tensions have hurt the world's second-largest economy, as China's exports unexpectedly dropped 1.1% in November from a year earlier, while shipments to the US fell 23%.

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