Weak market breadth

Indian equity benchmarks hovered in negative zone in early afternoon trade. At 12:18 IST, the barometer index, the S&P BSE Sensex, was down 257.30 points or 0.71% at 35,956.08. The Nifty 50 index was down 61.85 points or 0.57% at 10,818.25. Metal and mining stocks declined. Negative Asian stocks weighed on the sentiment.

Foreign Secretary Vijay Gokhale in a press conference said that surgical strikes were carried out by the Indian Air Force in Pakistan on Tuesday morning. India struck the biggest training camp of a Pakistan based terrorist organization Jaish-e-Mohammad in Balakot. In this operation, a very large number of JeM terrorists, trainers, senior commanders and groups of jihadis who were were being trained for fidayeen action were eliminated.

Trading was volatile. Domestic stocks dropped in early trade weighed by reports that Indian Air Force has struck and destroyed a major terrorist camp across the Line of Control early on Tuesday. Key indices extended slide and hit intraday low in morning trade. Stocks cut losses in mid-morning trade after an intrday slide.

The S&P BSE Mid-Cap index was down 0.51%. The S&P BSE Small-Cap index was down 0.84%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 591 shares rose and 1557 shares fell. A total of 125 shares were unchanged.

Metal and mining stocks declined. Vedanta (down 1.4%), JSW Steel (down 1.63%), Tata Steel (down 0.37%), Steel Authority of India (Sail) (down 2.16%), National Aluminium Company (down 0.31%), Jindal Steel & Power (down 0.82%), Hindalco Industries (down 0.92%) and Hindustan Copper (down 2.15%) edged lower. Hindustan Zinc (up 0.06%) and NMDC (up 0.31%) rose.

Eicher Motors rose 0.97%. In relation to the company's announcement on 14 February 2019 relating to illegal strike at its plant at Oragadam, Chennai, Eicher Motors during market hours today said that the entire workforce at Royal Enfield's Oragadam, Chennai facility is reporting to work effective Saturday, 23 February 2019, leading to resumption of normal manufacturing operations. All three plants of the company are now fully operational.

Overseas, Asian stocks are trading lower Tuesday as investors awaited more details on the outcome of U.S.- China trade talks. U.S. stocks came off earlier highs but still closed higher Monday after President Donald Trump said that he would delay additional China tariffs, and that there had been substantial progress in trade talks over the weekend.

Trump said late Sunday that he would extend a March 1 deadline for increasing tariffs on Chinese imports. He cited substantial progress across key topics such as intellectual property, technology transfers, agriculture and currency, and said if that continues, he will meet with President Xi Jinping at Mar-a-Lago to wrap up a deal.

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