The Sensex and the Nifty continued trading with small losses in afternoon trade. At 13:17 IST, the barometer index, the S&P BSE Sensex, was down 62.15 points or 0.16% at 38,877.07. The Nifty 50 index was down 6.40 points or 0.05% at 11,665.55.

Trading sentiment was dented by the International Monetary Fund (IMF) lowering global economic growth outlook. Investors were also cautious ahead of Q4 March 2019 earnings beginning later this week.

Local stocks drifted lower in early trade on negative Asian stocks. Stocks hovered in negative zone in morning trade. Key indices continued to trade with weakness in early afternoon trade.

Broader market was trading higher. The S&P BSE Mid-Cap index was up 0.28%. The S&P BSE Small-Cap index was up 0.45%.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1230 shares rose and 1055 shares fell. A total of 182 shares were unchanged.

HDFC Bank (down 1.58%), HDFC (down 1.51%), HCL Technologies (down 1.17%), Asian Paints (down 1.2%) and ITC (down 0.46%), were the major Sensex losers.

Tata Motors (up 3.86%), Sun Pharmaceutical Industries (up 1.71%), Kotak Mahindra Bank (up 1.67%), Hindustan Unilever (up 1.21%), Yes Bank (up 1.16%) and Mahindra & Mahindra (up 1%), were the major Sensex gainers.

Tata Consultancy Services (TCS) fell 1.14%. TCS during market hours today announced the world's first successful cross-border securities settlement between two central securities depositories (CSDs) - Maroclear, the CSD of Morocco, and Kuwait Clearing Company, the CSD of Kuwait - using cash coins on the BaNCS Network, powered by Quartz Blockchain.

IndusInd Bank rose 0.01%. IndusInd Bank priced its maiden USD bond issuance in the offshore public markets. The bank raised $400 million at a coupon rate of 3.875% per annum, payable semi-annually. Notes will be listed on Singapore SGX and the India INX, Gift City. The announcement was made after trading hours yesterday, 9 April 2019.

Overseas, European shares were trading higher Wednesday. Market focus is largely attuned to global trade developments, after the U.S. and Europe locked horns over tariffs in the previous session. Meanwhile, policymakers at the European Central bank (ECB) will meet in Frankfurt on Wednesday, to decide on interest rates.

Asian shares were mixed as the IMF lowered its global growth outlook and as tensions over tariffs between the United States and Europe escalated.

U.S. stocks closed lower Tuesday, with the S&P 500 snapping its eight-day winning streak, on fears over escalation of trade tensions with the European Union and a weaker global outlook from IMF.

The office of the U.S. Trade Representative threatened to levy tariffs on many European goods late Monday. The threat is a retaliation against European companies' subsidies for aircraft manufacturer Airbus. If the U.S. follows through, the proposed tariffs would affect about $11 billion in imports to the U.S., including helicopters, bicycles, cheese and wine. Lighthizer said the Trump administration would wait for World Trade Organization clearance to implement the duties.

The IMF lowered the outlook for global economic growth in 2019 to 3.3% from 3.5% projected in January, marking its third reduction of growth expectations in six months. The decline has been broadly felt, with all advanced economies, including the U.S., and most major emerging-market economies seeing deterioration in their outlook.