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Key benchmark indices were trading lower in early trade due to poor global cues. At 9:20 IST, the barometer index, the S&P BSE Sensex, was down 487.08 points or 1.37% at 35,186.17. The Nifty 50 index was down 158.70 points or 1.48% at 10,535. The Nifty slipped below 10,600 mark.

Among secondary barometers, the BSE Mid-Cap index was down 1.55%. The BSE Small-Cap index was down 1.22%.

The market breadth, indicating the overall health of the market, was weak . On BSE, 162 shares rose and 949 shares fell. A total of 49 shares were unchanged.

Overseas, Asian shares traded lower Monday following weaker-than-expected Chinese trade data released over the weekend.

China's November exports only rose 5.4% from a year earlier, Chinese customs data showed on Saturday. The customs data showed that annual growth for exports to all of China's major partners slowed significantly. Exports to the United States rose 9.8% in November from a year earlier, compared with 13.2% in October. Import growth was 3%, the slowest since October 2016. Imports of iron ore fell for a second time, reflecting waning restocking demand at steel-mills as profit margins narrow.

US stocks closed sharply lower on Friday as a lack of concrete progress toward reducing US-China trade tensions bolstered risk-off sentiment and overshadowed the November employment report.

Nonfarm payrolls increased by 155,000 for the month while the unemployment rate again held at 3.7%, its lowest since 1969, the Labor Department reported Friday.

Meanwhile, the University of Michigan consumer sentiment index came in at 97.5. Further, consumer credit grew at its fastest pace in 11 months in October, the Federal Reserve reported.

Oil producer club OPEC and some non-affiliated producers agreed a supply cut of 1.2 million barrels per day (bpd) from January. Despite this, the outlook for next year remains muted on the back of an economic slowdown. International Brent crude oil futures were at $62.10 per barrel, up 43 cents.

Back home, Indian Oil Corporation was up 0.96%. The company said that its board will meet on 13 December 2018 to consider and approve buyback of the fully paid-up equity shares of the company. The announcement was made on Saturday, 8 December 2018.

Escorts was down 2.38%. The company has executed the Business Transfer Agreement for transferring the existing RT Crane Business of the company as a going concern on a slump sale basis to the JV for an amount not exceeding Rs 35 crore. The announcement was made after market hours on Friday, 7 December 2018.

Tata Sponge Iron was up 0.33%. The company said that the Ministry of Environment, Forest and Climate Change, Government of India (the “MoEFCC”), has considered the company's application and subject to certain conditions, decided to accord environmental clearance for the enhancement of DRI production from 4,25,000 TPA to 4,65,000 TPA in the company's existing facility located at Village Bileipada, Tehsil Barbil, District Keonjhar, Odisha. The announcement was made after market hours on Friday, 7 December 2018.

Capital India Finance was down 4.98%. The company said that its board has approved the issue of upto 3,45,48,560 equity shares at Rs 72 on rights basis, aggregating up to Rs 248.75 crore. The announcement was made on Sunday, 9 December 2018.

On the economic front, India's current account deficit (CAD) increased to US$ 19.1 billion (2.9% of GDP) in Q2 of 2018-19 increased from US$ 6.9 billion (1.1% of GDP) in Q2 of 2017-18 and US$ 15.9 billion (2.4% of GDP) in the preceding quarter. The widening of the CAD on a year-on-year (y-o-y) basis was primarily on account of a higher trade deficit at US$ 50.0 billion as compared with US$ 32.5 billion a year ago.

On the political front, market participants are awaiting poll results of five state elections due on 11 December 2018. The outcomes of the assembly elections will likely set the tone for the general elections next year. Voting in Rajasthan and Telangana took place on 7 December 2018. Assembly elections in Madhya Pradesh and Mizoram were held on 28 November 2018. The election in Chhattisgarh Assembly was held in two phases on 12 and 20 November 2018. The counting of votes in all the states will be done on 11 December 2018.

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