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Indices decline as pivotals fall

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Capital Market
Last Updated : Feb 14 2019 | 4:04 PM IST

Key indices logged modest losses as index pivotals declined. The barometer index, the S&P BSE Sensex, fell 157.89 points or 0.44% at 35,876.22. The Nifty 50 index fell 47.60 points or 0.44% at 10,746.05. Shares of Yes Bank jumped over 30%. The market breadth, indicating the overall health of the market, was negative.

Domestic stocks drifted lower in early trade on selling pressure in index pivotals. Key indices extended decline in morning trade. Stocks hovered in negative zone in mid-morning trade. Weakness persisted on the bourses in early afternoon trade. Key equity indices trimmed losses after hitting fresh intraday low in afternoon trade. Key indices cut losses in mid-afternoon trade as European stocks rose in early trade.

The S&P BSE Mid-Cap index rose 0.52%. The S&P BSE Small-Cap index rose 0.17%.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 1176 shares rose and 1357 shares fell. A total of 121 shares were unchanged.

Yes Bank jumped 30.73% after the bank announced after market hours yesterday, 13 February 2019, that the Reserve Bank of India (RBI) assesses compliance by banks with extant prudential norms on income recognition, asset classification and provisioning (IRACP) as part of its supervisory processes. As part of this process, Yes Bank has received the Risk Assessment Report for FY2018. The report observes NIL divergences in the bank's asset classification and provisioning from the RBI norms.

L&T rose 0.61%. L&T Construction said that the company was awarded significant contracts for the Power Transmission & Distribution and Water & Effluent Treatment Businesses. The announcement was made during market hours today, 14 February 2019.

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Mahindra & Mahindra (M&M) fell 1.08%. M&M today launched new SUV, the XUV300 at an ex-showroom starting price of Rs 7.90 lakh for the Petrol W4 variant and Rs 8.49 lakh for the Diesel W4 variant (one price applicable across India). The announcement was made during market hours today, 14 February 2019.

ONGC dropped 1.12% ahead of its Q3 results today, 14 February 2019.

Eicher Motors fell 0.63% after the company informed that a certain section of workforce has resorted to an illegal strike at Royal Enfield's Oragadam plant in Chennai. The firm said that it working closely with the workforce and have undertaken various constructive and confidence building initiatives. Currently, a majority of the workforce continues to report for work at the Oragadam plant. The company's other manufacturing facilities, including its plants at Vallam Vadagaland and Tiruvottiyur, continue to remain fully operational. The company added that it is focused on resolving all issues in an amicable manner while keeping the best interests of the organization and its workforce in mind. The announcement was made during trading hours today, 14 February 2019.

Tata Power Company rose 3.76%. Tata Power Company, The AES Corporation and Mitsubishi Corporation inaugurated India's first grid-scale battery-based energy storage system in Rohini, Delhi. This 10 MW project is located at Tata Power Delhi Distribution's (Tata Power-DDL) sub-station in Rohini, Delhi and will provide grid stabilization, better peak load management, add system flexibility, enhance reliability and protect critical facilities for 2 million consumers served by the company. The announcement was made after market hours yesterday, 13 February 2019.

On the data front, India's wholesale price inflation (WPI) cooled to 2.76% in January from 3.8% in December, data released on Thursday showed. It was 3.02% in January last year.

Overseas, European stocks were higher on Thursday amid a flurry of earnings results. Meanwhile, lawmakers in the U.K. are set to debate and vote on the next steps in the Brexit process later in the session.

Most Asian stocks edged lower Thursday as investors awaited the outcome of high-level trade talks between the U.S. and China, and data on the Chinese economy. A third day of bilateral trade negotiations were under way in Beijing, with Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer expected Thursday for more high-level discussions.

On the data front, China's exports unexpectedly accelerated last month, official data released on Thursday showed. The country's exports surged 9.1% from a year earlier in January, reversing a 4.4% decline in December. Imports dropped 1.5% in January, following a 7.6% decrease in December. China's trade surplus with all trading partners stood at $39.16 billion in January, much smaller than the $57.06 billion surplus recorded in December.

The Japanese economy rebounded in the final quarter of 2018 due to solid spending by households and companies. The economy expanded at an annualized rate of 1.4% in the October-December period following a 2.6% contraction in the previous quarter, government data showed Thursday. The economy grew 0.3% from the quarter before.

U.S. stocks closed higher Wednesday, trimming gains but with the S&P 500 and Nasdaq rising for a fourth straight session, on hopes that negotiators will come close to a deal after trade talks. US President Donald Trump said Tuesday that he would allow for flexibility on the timeline for a deal with China if an agreement looks close. Meanwhile, Chinese President Xi Jinping is reportedly expected to meet key members of the U.S. delegation on Friday.

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First Published: Feb 14 2019 | 3:41 PM IST

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