Negative market breadth

Key benchmark indices were hovering near flat line with tiny losses in morning trade. At 10:26 IST, the barometer index, the S&P BSE Sensex, was down 20.93 points or 0.06% at 35,721.14. The Nifty 50 index was down 14.90 points or 0.14% at 10,739.10. Gains were capped amid mixed cues from other Asian markets. IT shares advanced while most metal shares declined.

Among secondary barometers, the BSE Mid-Cap index was down 0.45%. The BSE Small-Cap index was down 0.59%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was negative. On BSE, 764 shares rose and 1105 shares fell. A total of 102 shares were unchanged.

Metal shares declined. JSW Steel (down 3.52%), Jindal Steel & Power (down 1.7%), Steel Authority of India (down 1.61%), Vedanta (down 1.17%), NMDC (down 1.06%), Tata Steel (down 1.05%), Hindalco Industries (down 1.01%), Hindustan Zinc (down 0.35%) and National Aluminium Company (down 0.24%), edged lower. Hindustan Copper was up 0.10%.

Most IT shares rose. MphasiS (up 2.40%), Wipro (up 1.30%), TCS (up 1.29%), Persistent Systems (up 1.10%), Infosys (up 1.08%), Oracle Financial Services Software (up 0.83%), Tech Mahindra (up 0.32%) and Hexaware Technologies (up 0.19%), edged higher. MindTree (down 0.44%) and HCL Technologies (down 1.75%), edged lower.

On the economic front, India's GST Council in the thirty-first meeting held on Saturday, 22 December 2018, at New Delhi announced reduction in GST rates/exemptions on 23 goods and services, including movie tickets, TV/monitor screens and power banks, and exempted frozen and preserved vegetables from the levy. Of the 23 goods and services on which rates have been slashed, tax rate on seven items in the 28% slab has been brought down. With this, only 28 goods are left in the highest 28% tax bracket. The new GST rates will be effective from 1st January 2019.

Overseas, Asian stocks were mixed, following last week's market turmoil in the US. US stocks closed steeply lower Friday, as investors digested the implications of a tighter US monetary policy, flagging global growth and uncertainty surrounding US-China trade relations. US equity market on Monday will end early as it is Christmas Eve and will be closed on Tuesday for the Christmas holiday.

Meanwhile, the US federal government partially shut down for the third time this year early Saturday as lawmakers in Washington continued to wrangle over funding for President Donald Trump's proposed border wall.

Key lawmakers and Trump administration officials returned midday Saturday to resume negotiations over Trump's border-wall funding demand of at least $5 billion. By the middle of the afternoon, Republican Senate Majority Leader Mitch McConnell announced his chamber would adjourn for the Christmas holiday, not returning until 27 December 2018.

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