Market turns range bound

Key benchmark indices were trading in a narrow range near flat line in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex, was up 13.30 points or 0.04% at 36,649.40. The Nifty 50 index was down 8.85 points or 0.08% at 11,044.15.

Indices rose in early trade and advanced further to hit fresh intraday high in morning trade. Benchmarks reversed gains in mid-morning trade. Indices were trading near flat line in early afternoon trade.

Among secondary barometers, the BSE Mid-Cap index was up 0.02%. The BSE Small-Cap index was up 0.16%.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1241 shares rose and 1104 shares fell. A total of 151 shares were unchanged.

Engineering and construction major Larsen & Toubro was up 2.41% to Rs 1,346.60. The construction arm of L&T has secured orders from prestigious clients across varied states in India. The announcement was made during trading hours today, 7 March 2019.

Most cement shares declined. UltraTech Cement (down 0.81%) and ACC (down 0.25%), edged lower. Ambuja Cements was up 0.61%.

Grasim Industries was down 0.89%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

Auto shares were mixed. Mahindra & Mahindra (up 2.02%), Tata Motors (up 1.78%), Ashok Leyland (up 1.10%), Escorts (up 0.39%) and Eicher Motors (up 0.25%), edged higher. Maruti Suzuki India (down 0.41%), Hero MotoCorp (down 0.64%), Bajaj Auto (down 0.66%) and TVS Motor Company (down 1.37%), edged lower.

Overseas, most Asian shares declined on Thursday, following a third consecutive day of losses on Wall Street as investors tracked US-China trade negotiations.

US stocks slid for a third consecutive session on Wednesday, as investors continue to wait for news of a trade deal between the US and China.

Payroll-service company ADP estimated that the US private sector added 183,000 jobs in February, according to FactSet.

US data released Wednesday showed the country's trade deficit soaring to a 10-year high of $59.8 billion in December. The US trade deficit soared to a 10-year high in 2018 of $621 billion, the Commerce Department said.

Meanwhile, the Organisation for Economic Co-operation and Development (OECD) in its latest interim economic outlook yesterday, 6 March 2019, said that the global economy is slowing and major risks persist, with growth weakening much more than expected in Europe. The OECD projects that the global economy will grow by 3.3% in 2019 and 3.4% in 2020. The outlook and projections cover all G20 economies. Downward revisions from the previous Economic Outlook in November 2018 are particularly significant for the euro area, notably Germany and Italy, as well as for the United Kingdom, Canada and Turkey.

Indian economic growth is seen improving to 7.2% in 2019 and 7.3% in 2020 after growing by 7% in 2018. However, the projections for 2019 and 2020 have been trimmed by 0.10% compared to the November estimate by the OECD. Business confidence and investment remain strong, and activity should benefit from easing financial conditions, lower oil prices, accommodative fiscal policy and recent structural reforms, OECD said in its report.

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