Stocks hovered in negative zone in morning trade. At 10:23 IST, the barometer index, the S&P BSE Sensex, was down 26.97 points or 0.07% at 38,912.25. The Nifty 50 index was down 5.30 points or 0.05% at 11,666.65.
Key indices drifted lower in early trade on negative Asian stocks.
The S&P BSE Mid-Cap index was up 0.19%. The S&P BSE Small-Cap index was up 0.36%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1052 shares rose and 765 shares fell. A total of 114 shares were unchanged.
Tata Motors (up 2.04%), Coal India (up 1.66%), Kotak Mahindra Bank (up 1.03%), ONGC (up 1.02%) and M&M (up 0.8%) edged higher from the Sensex pack.
TCS (down 1.42%), Hero MotoCorp (down 1.07%), Maruti Suzuki India (down 0.97%), HDFC (down 0.82%) and HDFC Bank (down 0.55%) edged lower from the Sensex pack.
Tata Sponge Iron rose 3.29%. Tata Sponge Iron said it has completed the acquisition of steel business undertaking including captive power plants, on 9 April 2019, pursuant to a cash consideration (after adjustment for negative working capital and debt like items) payable to Usha Martin of Rs 4,094 crore, which is subject to further hold backs of Rs 640 crore, pending transfer of some of the assets including mines and certain land parcels. The announcement was made after trading hours yesterday, 9 April 2019.
Mahindra CIE Automotive gained 2%. Mahindra CIE Automotive said it has completed the acquisition of 100% issued and outstanding share capital of Aurangabad Electricals (AEL) from the respective shareholders and AEL has become a wholly owned subsidiary of the company. The announcement was made after trading hours yesterday, 9 April 2019.
Overseas, Asian shares are trading lower 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 the International Monetary Fund.
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.