Power generation stocks decline

Indices hovered in a small range in early afternoon trade. At 12:28 IST, the barometer index, the S&P BSE Sensex, was down 150.09 points or 0.41% at 36,334.24. The Nifty 50 index was down 50.90 points or 0.46% at 10,916.40. Power generation stocks declined. Telecom stocks saw mixed trend. 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. Key indices cut some losses in mid-morning trade.

The S&P BSE Mid-Cap index was up 0.23%. The S&P BSE Small-Cap index was up 0.27%.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1161 shares rose and 1104 shares fell. A total of 163 shares were unchanged.

Power generation stocks declined. Tata Power Company (down 0.69%), NTPC (down 1.27%), Torrent Power (down 0.89%), Reliance Power (down 1.59%), NHPC (down 0.19%), Jaiprakash Power Ventures (down 0.48%), Adani Power (down 1.52%) and JSW Energy (down 0.84%) edged lower. Reliance Infrastructure (up 0.23%) and CESC (up 3.79%) rose. State-run coal-mining giant Coal India was off 0.62%.

Shares of state-run power transmission major Power Grid Corporation of India lost 1.51%.

Telecom stocks saw mixed trend. Bharti Airtel (down 1.6%) and MTNL (down 0.06%) fell. Tata Teleservices (Maharashtra) (up 7.73%), Vodafone Idea (up 0.66%) and Reliance Communications (up 0.98%) 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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