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Market drifts lower in early trade

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Capital Market
Last Updated : Nov 22 2019 | 9:50 AM IST

Key indices were trading with small losses in early trade amid initial volatility. At 9:22 IST, the barometer index, the S&P BSE Sensex, was down 22.44 points or 0.06% at 40,552.73. The Nifty 50 index was down 9.50 points or 0.08% at 11,958.90.

The S&P BSE Mid-Cap index was down 0.1%. The S&P BSE Small-Cap index was up 0.12%.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 628 shares rose and 457 shares fell. A total of 52 shares were unchanged.

Among stocks, shares of RITES were trading lower by 2.71% to Rs 297.55. The President of India, acting through and represented by the Ministry of Railways, Government of India, (Promoter) of RITES proposes to sell up to 2.50 crore equity shares, in aggregate representing 10% of the total equity share capital of the company on 22 November 2019 (for non-retail investors only) and on 25 November 2019 (for retail investors and for non-retail investors who choose to carry forward their un-allotted bids), with an option to additionally sell up to 1.25 crore equity shares (representing 5% of the total share capital of the company) through offer-for-sale (OFS). The floor price for the OFS is Rs 293.50 per share.

Bank of Baroda rose 0.51%. Bank of Baroda, South Africa, has not indulged in any activity violating regulatory guidelines knowingly. Transactions were carried out in a professional and transparent manner and the bank is totally committed to comply with rules and regulations laid out by the governing bodies and regulators. The operations of Bank of Baroda in South Africa were governed and conducted in accordance with the regulations and guidelines of the South African Reserve Bank and Reserve Bank of India.

Bajaj Holdings & Investment rose 1.03%. Bajaj Holdings & Investment clarified that as an investment company, the company manages a large investment portfolio and evaluate many companies on a regular basis. No decision has been taken on any investment in RBL.

Bhel fell 0.9%. Crisil downgraded the rating of long-term bank facilities of Bhel to 'AA' from 'AA+' with outlook revised from Negative to Stable due to company's weaker than expected operating performance and the continued decline in net cash levels of the company during the first half fiscal of 2020.

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Laurus Labs advanced 1.76%. Laurus Labs announced that it has completed the USFDA, pre-approval inspection (PAI) for an API manufactured at its Units 1&3, located at J N Pharma City, Parawada, Visakhapatnam, Andhra Pradesh, with three observations, which are procedural in nature and no data integrity issues were observed in the inspection. The inspection was carried out from 18 November 2019 to 21 November 2019.

Meanwhile, trade conflict, weak business investment and persistent political uncertainty are weighing on the world economy and raising the risk of long-term stagnation, according to the OECD's latest Economic Outlook.

World GDP growth is expected to be 2.9% this year - its lowest annual rate since the financial crisis - and remain at 2.9%-3.0% in 2020 and 2021. Global GDP expanded 3.5% in 2018.

Overseas, Asian stocks were trading higher on Friday, but gains were capped by persistent worries over the status of trade negotiations between China and the United States.

U.S. stocks closed modestly lower on Thursday after investors digested mixed headlines on the progress of trade.

Chinese Vice Premier Liu He has reportedly invited U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin to Beijing to sit down for further talks.

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First Published: Nov 22 2019 | 9:28 AM IST

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