Key benchmarks came off early lows in morning trade. Shares opened with steep losses after Iran fired shots at the US military bases in Iraq. The US President's refrain from the immediate reaction, coupled with no major loss in the attack, supported the recovery in Asian shares.
Early on Wednesday, Iran fired more than a dozen missiles at two US military targets inside Iraq in response to the United States' killing of senior Iranian military commander Qassem Soleimani last week. In a reaction, US diplomats said to take all necessary measures to protect and defend. Though, the US President later-on tweeted, "All is well!" and "so far so good!"
At 10:26 IST, the barometer index, the S&P BSE Sensex, was down 136.28 points or 0.33% at 40,733.19. The Nifty 50 index was down 41.65 points or 0.35% at 12,011.30.
The broader market outperformed the benchmarks. The S&P BSE Mid-Cap index was down 0.21%. The S&P BSE Small-Cap index was up 0.12%.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 712 shares rose and 1040 shares fell. A total of 89 shares were unchanged. In Nifty 50 index, 13 stocks advanced while 37 stocks declined.
Economy:
The National Statistical Office on Tuesday forecast India's GDP growth to be 5% in 2019-20, slower than the previous year's 6.8% and in line with the RBI estimate. Real GVA growth is estimated 4.9% in 2019-20 as against 6.6% in 2018-19.
Buzzing Index:
State-run oil marketing firms declined. HPCL (down 0.58%), Indian Oil Corporation (down 1.32%) and BPCL (down 1.87%) fell.
In the commodities market, Brent crude for March 2020 settlement was up 92 cents at $69.19 a barrel. Higher crude oil prices could increase under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.
Stocks in Spotlight:
Yes Bank gained 2.11% after the bank said its board will meet on 10 January 2020 to consider fund raising. Meanwhile, Yes Bank is banned from trading in NSE's F&O segment after the security crossed 95% of market wide position limit.
Shares of Tata Steel were trading 0.7% lower at Rs 472.3. The steel major announced that its arm TS Alloy has received a letter of intent for grant of mining lease by Odisha Government for the chromite mine. The mining lease given is for 50 years.
Navin Fluorine gained 2.97% after the company reported that it has commenced commercial production at Dewas Plant in Madhya Pradesh after successfully completing and plant trials and mechanical completion. Navin Fluorine hit an intraday high of Rs 1083.95 which is also a 52-week high for the counter.
Shares of Goa Carbon were locked in an upper circuit of 5% at Rs 230.4 after the company reported its December 2019 production numbers. Production of Calcined Production Coke surged 76.69% higher to 11,111.800 MT in December 2019 as against 6289 MT in December 2018. Production declined 28% sequentially in December 2019 as against November 2019.
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