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Indices sink in negative zone

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Capital Market
Last Updated : Mar 27 2019 | 2:50 PM IST

Stocks reversed intraday gains and hit intraday low in negative zone. At 14:25 IST, the barometer index, the S&P BSE Sensex, was down 67.83 points or 0.18% at 38,165.58. The Nifty 50 index was down 23.50 points or 0.2% at 11,459.75. Cement stocks saw mixed trend.

Local indices drifted higher in early trade on buying demand in index pivotals. Key benchmark indices hovered near day's high in morning trade. Firmness prevailed on the bourses in mid-morning trade. Indices trimmed gains in early afternoon trade.

The S&P BSE Mid-Cap index was up 0.74%. The S&P BSE Small-Cap index was up 0.34%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, turned negative from positive. On the BSE, 1138 shares rose and 1476 shares fell. A total of 161 shares were unchanged.

Cement stocks saw mixed trend. ACC (up 1.53%), Ambuja Cements (up 0.73%) rose. UltraTech Cement (down 0.16%) and Shree Cement (down 0.32%) fell.

Grasim Industries was off 0.64%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.

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Tata Power Company rose 1.01% after the company said that MERC has approved 700 MW power purchase arrangement between distribution and generation business of Tata Power for the next five years. The announcement was made during trading hours today, 27 March 2019.

Meanwhile, Prime Minister Narendra Modi on Wednesday, 27 March 2019, announced successful launch of the country's Anti Satellite Missile System (ASAT). India is the fourth country to achieve this feat. In an address to the Nation, PM announced that India struck down a live test satellite in Low Earth Orbit (LEO) thus successfully testing its ASAT system. This operation is named as Mission Shakti. This system was developed by DRDO - the research wing of Indian Defence services. This test will now make India the fourth nation with anti satellite capability.

Overseas, European stocks were trading lower, with investors unnerved over fears of a potential U.S. recession. Asian stocks were mixed after US stocks finished broadly higher on Wall Street.

Brexit uncertainty continues to weigh on sentiment. U.K. Prime Minister Theresa May is set to address lawmakers of her own Conservative Party Wednesday. British lawmakers are due to hold a round of so-called indicative votes - essentially votes on what the course of Brexit should look like - later in the day. This comes after parliamentarians took control of the Brexit process from May's government.

US stocks closed higher Tuesday as the energy and financial sectors buoyed the market, but main indexes came off their intraday highs on tepid housing and consumer-confidence data as well as lingering uncertainties over global growth and Brexit.

US-China trade negotiations resumed, reigniting some optimism that the high-stakes dispute was coming to a close. Cabinet-level trade negotiations between Beijing and Washington were scheduled to kick off, with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin due in China later this week to help conclude long-running discussions between the world's two largest economies.

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First Published: Mar 27 2019 | 2:27 PM IST

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