Metal and mining stocks decline

Key indices cut some losses in mid-morning trade. At 11:28 IST, the barometer index, the S&P BSE Sensex, was down 176.71 points or 0.48% at 36,307.62. The Nifty 50 index was down 58.05 points or 0.53% at 10,909.25. Shares of index heavyweights HDFC and Reliance Industries dropped. Metal and mining stocks declined. Profit booking after seven straight days of gains and negative Asian stocks weighed on the sentiment.

Domestic stocks opened on a subdued note as the key benchmark indices dropped on negative Asian stocks. Stocks extended fall in morning trade.

The S&P BSE Mid-Cap index was up 0.12%. The S&P BSE Small-Cap index was up 0.18%.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1068 shares rose and 1050 shares fell. A total of 128 shares were unchanged.

Back home, Bharti Airtel (down 1.46%), Axis Bank (down 1.17%) and Power Grid Corporation of India (down 1.16%) edged lower from the Sensex pack.

Index heavyweights HDFC (down 1.26%) and Reliance Industries (down 1.33%) dropped.

Metal and mining stocks declined. Vedanta (down 2.22%), JSW Steel (down 0.95%), Tata Steel (down 0.63%), Steel Authority of India (Sail) (down 1.1%), National Aluminium Company (down 3.59%), Hindustan Zinc (down 1.97%), Jindal Steel & Power (down 0.78%) and Hindalco Industries (down 2.51%) edged lower. NMDC (up 0.26%) and Hindustan Copper (up 1.59%) rose.

Overseas, Asian stocks declined Thursday following an overnight slide in US equities. US stocks dropped on Wednesday after Jerome Powell failed to quell investor angst that the Federal Reserve's tightening policy will throttle economic growth. Investors had anticipated a less aggressive approach amid concern that global growth is slowing.

The US Federal Reserve raised interest rates on Wednesday, as expected, but forecast fewer rate hikes next year and signaled its tightening cycle is nearing an end in the face of financial market volatility and slowing global growth. The rate hike, the fourth of 2018, lifted the target range for the Fed's benchmark overnight lending rate by a quarter of a percentage point to a range of 2.25% to 2.50%.

In economic data, the Commerce Department reported that the US trade deficit increased to $124.8 billion in the third quarter, up from $101.2 billion the second quarter of 2019.

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