Stocks extended initial losses and hit fresh intraday low in morning trade. At 10:24 IST, the barometer index, the S&P BSE Sensex, was down 343.57 points or 0.96% at 35,540.84. The Nifty 50 index was down 122.25 points or 1.13% at 10,660.65. Realty stocks declined.
Trading for the day began on a subdued note as the key benchmark indices saw a gap-down opening on negative Asian stocks.
Provisional data released by the stock exchanges showing that local and foreign funds, both, were net sellers of Indian stocks yesterday, 5 December 2018, also weighed on the sentiment. The trading activity on that day showed that the foreign portfolio investors (FPIs) sold shares worth a net Rs 357.82 crore. Domestic institutional investors (DIIs) sold shares worth a net Rs 791.59 crore.
The S&P BSE Mid-Cap index was down 1.23%. The S&P BSE Small-Cap index was down 1.16%.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 454 shares rose and 1365 shares fell. A total of 89 shares were unchanged.
Overseas, Asian stock prices fell Thursday amid growing uncertainty about the global economy and President Donald Trump's tariff policies on China.
Meanwhile, Bank of Japan Governor Haruhiko Kuroda said economic risks from abroad could be severe. The US Federal Reserve's Beige Book report showed there were concerns about higher tariffs from a widening trade war, rising interest rates and tight labor markets. Trump's get-tough approach to trade was causing rising costs for manufacturers and weaker sales at companies, it said.
Trading in US index futures indicated that the Dow could slump 376 points at the opening bell today after Canada arrested a top executive of Chinese telecom giant Huawei Technologies at the request of the US, a move that is seen as exacerbating tensions between the US and China.
The US New York Stock Exchange and Nasdaq were both closed on Wednesday to mark the day of mourning for the late former President George H.W. Bush, who died on November 30 at age 94.
Back home, realty stocks declined. DLF (down 4.19%), Indiabulls Real Estate (down 2.88%), Housing Development and Infrastructure (down 0.69%), D B Realty (down 2.24%), Unitech (down 2.56%), Sobha (down 1.89%), Godrej Properties (down 4.87%), Prestige Estates Projects (down 2.82%), and Oberoi Realty (down 3.25%) declined.
Elecon Engineering Co fell 1.62%. Elecon Engineering Co announced that its board will meet on 10 December 2018 to consider issuing non-convertible debentures upto Rs 150 crore on private placement basis. The announcement was made after market hours yesterday, 5 December 2018.
Lemon Tree Hotels fell 0.44%. Lemon Tree Hotels announced the opening of hotel under brand name 'Lemon Tree Premier' on Connaught Road, Pune. This is its second owned hotel in the city. The hotel has 201 rooms with a multi cuisine coffee shop, bar, spa, pool, fitness center, banquet spaces including a conference room. With opening of this hotel, the company presently operate 52 hotels including managed properties across 31 cities in India. The announcement was made after market hours yesterday, 5 December 2018.
On the political front, state assembly elections are being be closely watched. Polling in Rajasthan and Telangana is underway today, 7 December 2018. Assembly elections in Madhya Pradesh and Mizoram were held on 28 November 2018. The election to the 90-member Chhattisgarh Assembly was held in two phases 12 and 20 November 2018. Counting of votes will be held across all the five states on 11 December 2018.