Key indices continued to trade with weakness in mid-morning trade. At 11:25 IST, the barometer index, the S&P BSE Sensex, was down 66.67 points or 0.17% at 38,872.55. The Nifty 50 index was down 19.15 points or 0.16% at 11,652.80. Realty stocks gained.
Local stocks drifted lower in early trade on negative Asian stocks. Stocks hovered in negative zone in morning trade.
The S&P BSE Mid-Cap index was up 0.12%. The S&P BSE Small-Cap index was up 0.38%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1112 shares rose and 962 shares fell. A total of 135 shares were unchanged.
Hindalco Industries fell 1.11%. Hindalco Industries announced that there was an incident in the red mud (bauxite residue) storage area connected to the alumina plant situated at Muri in Jharkhand on 9 April 2019. The incident involved a spillage in the red mud cake storage area.
As a precautionary measure, operations have been temporarily suspended to assess the situation. Preliminary investigations indicate no material impact on the surrounding environment or to property. Efforts are ongoing to clear the spillage. Four persons with minor injuries have been treated, and one contract workman is missing. This incident is not expected to have any material impact on the company's performance, the company said.
Realty stocks gained. Indiabulls Real Estate (up 11.1%), Housing Development and Infrastructure (up 0.37%), DLF (up 0.51%), Sobha (up 0.95%), Godrej Properties (up 3.15%), Prestige Estates Projects (up 0.15%) and Oberoi Realty (up 4.18%) gained. D B Realty (down 3.78%) fell.
Vodafone Idea rose 0.59% to Rs 17. Vodafone Idea opens on 10 April 2019, an issue of up to 2,000 crore fully paid up equity shares (face value Rs 10 each) at a price of Rs 12.50 per share aggregating up to Rs 25,000 crore by way of rights issue to the eligible equity shareholders as on the record date of 2 April 2019. The rights entitlement is determined as 87 equity shares for 38 equity shares held by the eligible equity shareholders. The last date for request of split application forms is 17 April 2019. The rights issue will close on 24 April 2019.
The promoter shareholders, Vodafone Group and Aditya Birla Group confirmed their participation of up to Rs 11,000 crore and up to Rs 7,250 crore respectively in the rights issue. Furthermore, certain promoter and promoter group shareholders have also indicated that, in case the rights issue is undersubscribed, they reserve the right to subscribe to part or the whole amount of the unsubscribed portion, subject to applicable laws. 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.