Market drops in early trade

Key indices were trading lower in early trade on selling pressure in index pivotals. At 9:25 IST, the barometer index, the S&P BSE Sensex, was down 182.47 points or 0.5% at 36,381.41. The Nifty 50 index was down 41.20 points or 0.38% at 10,799.45.

The S&P BSE Mid-Cap index was down 0.2%. The S&P BSE Small-Cap index was down 0.14%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 427 shares rose and 568 shares fell. A total of 38 shares were unchanged.

Yes bank (down 4.84%), ICICI Bank (down 2.04%), Tata Steel (down 2.01%), IndusInd Bank (down 1.7%) and Tech Mahindra (down 1.31%) were the key losers from the Sensex pack.

RITES rose 1.25%. RITES has signed the contract for supply of two additional fully air-conditioned Diesel Multiple Unit train sets, for $22.4 million (Rs 160 crore) with the Ministry of Transport and Civil Aviation, Government of Sri Lanka, on 17 September 2019. The supply under the new contract will be done in FY 2020-21. The announcement was made after market hours yesterday, 18 September 2019.

Laurus Labs slipped 0.23%. Laurus Labs has agreed to acquire 100% shares of Phekolong Pharmaceuticals Pty, a wholly owned subsidiary company of Pharmacare Limited t/a Aspen Pharmacare, South Africa, by way of cash consideration of ZAR 75,000 (Seventy-five thousand South African Rand). At the conclusion of the transaction, all residual assets and liabilities that are within the target company immediately prior to completion will be for Pharmacare Limited's account and accordingly all such assets and liabilities will be transferred from the target company to Pharmacare immediately prior to completion. The announcement was made after market hours yesterday, 18 September 2019.

Overseas, Asian stocks are trading mixed Thursday after the U.S. Federal Reserve cut interest rates as widely expected. The Bank of Japan (BoJ) is in focus on Thursday, with the central bank set to announce its interest rate decision and monetary policy statement.

U.S. stocks ended mixed Wednesday after Fed cut rates but cast doubt on future stimulus.

The Fed announced it would cut the benchmark federal funds rate a quarter percentage point to a range of 1.75% to 2% Wednesday, but said in an accompanying statement that sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee's symmetric 2% objective are the most likely outcomes.

The Fed also released a survey of Fed Board members and regional Fed bank presidents, which showed that the median respondent believes the Fed funds rate would be at present levels through the end of 2020.

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