Weakness persisted on the bourses in mid-morning trade as pivotals remained gripped in selling pressure. At 11:28 IST, the barometer index, the S&P BSE Sensex, was down 211.46 points or 0.59% at 35,922.85. The Nifty 50 index was down 79.60 points or 0.73% at 10,789.90. Metal and mining stocks dropped.
Provisional data released by the stock exchanges showing that local and foreign funds, both, were net sellers of Indian stocks yesterday, 4 December 2018, also weighed on the sentiment. The trading activity on that day showed that the foreign portfolio investors (FPIs) sold shares worth a net Rs 55.89 crore. Domestic institutional investors (DIIs) sold shares worth a net Rs 521.38 crore.
The outcome of the Reserve Bank of India's (RBI) monetary policy meeting will be closely watched. The Monetary Policy Committee (MPC) will conclude its two-day meet today, 5 December 2018.
Domestic stocks edged lower in early trade as key index pivotals dropped. Key benchmark indices traded with weakness in morning trade after a subdued start to the day's trading session.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 620 shares rose and 1498 shares fell. A total of 119 shares were unchanged.
Back home, metal and mining stocks dropped. Vedanta (down 3.23%), JSW Steel (down 3.03%), Tata Steel (down 2.75%), Steel Authority of India (Sail) (down 3.87%), National Aluminium Company (down 2.94%), Hindustan Zinc (down 1.56%), Jindal Steel & Power (down 5.87%), Hindalco Industries (down 3.58%), NMDC (down 2.99%) and Hindustan Copper (down 1.95%) edged lower.
Oil India (OIL) lost 1.55%. Oil India successfully commissioned the cyclic steam stimulation (CSS) technology in the well BGW - 8 in Baghewala PML of Rajasthan for extraction of heavy crude oil for the first time in India. The project was commissioned under the guidance of Dr. John Belgrave of Mis Belgrave Oil & Gas Corporation, a Canada based consulting agency. As part of the pilot project, CSS will be implemented in 2 (two) more wells followed by field scale implementation and will also be applied to assess the potential of other similar reservoirs. This technique will ensure enhancement of production from this field. The announcement was made after market hours yesterday, 4 December 2018.
Hinduja Global Solutions rose 2.88%. Hinduja Global Solutions announced that it will be creating up to 150 brand new permanent jobs and investing into its site in Selkirk (UK) over the course of 2019. The company has purchased the site from its lease holder, has recruited a new management team and is about to embark on a 12-month site-investment programme giving further security to the 265 existing employees based there. The announcement was made after market hours yesterday, 4 December 2018.
On the political front, state assembly elections will be closely watched. Polling in Rajasthan and Telangana will be held tomorrow, 7 December 2018. Assembly elections in Madhya Pradesh and Mizoram were held on 28 November 2018. The election to the 90-member Chhattisgarh Assembly was held in two phases 12 and 20 November 2018. Counting of votes will be held across all the five states on 11 December 2018.
Overseas, Asian stocks dropped in the wake of the biggest slide in stocks on Wall Street. Activity in China's service sector expanded at a faster pace in November, a private gauge showed Wednesday. The Caixin China services purchasing managers' index rose to 53.8 in November from a 13-month low of 50.8 in October, Caixin Media Co. and research firm Markit said.
US financial markets will remain closed Wednesday for a national day of mourning to honor former President George H.W. Bush. US stocks finished sharply lower Tuesday, logging their worst day in nearly a month, as skepticism mounted over the significance of an agreement reached by the US and China to postpone new tariffs.
Doubts surrounding the US and China's ability to achieve a concrete deal to avoid new, or expanded, bilateral tariffs are rising, as investors focused on the lack of specific concessions made by China at last weekend's G-20 meeting in Argentina, where President Donald Trump and Chinese President Xi Jinping met.
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