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Sensex drifts below 34,000 in early trade

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Capital Market
Last Updated : Feb 19 2018 | 9:50 AM IST

Trading for the week began on a dull note as the key benchmark indices edged lower in early trade. At 9:19 IST, the barometer index, the S&P BSE Sensex, was down 115.60 points or 0.34% at 33,895.16. The Nifty 50 index was down 37.50 points or 0.36% at 10,414.80. The Sensex drifted below the psychological 34,000 mark in early trade.

The S&P BSE Mid-Cap index was down 0.36%. The S&P BSE Small-Cap index was down 0.41%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 852 shares fell and 561 shares rose. A total of 71 shares were unchanged.

Overseas, Asian shares were trading higher as sentiment improved gradually from a recent shakeout that stemmed from fears of creeping inflation and higher borrowing costs. Markets in China, Hong Kong and Taiwan remain closed for the holiday. US markets will be closed today, 19 February 2018 in observance of Presidents Day.

Japanese exports rose for a 14th straight month in January 2018, helped by continued demand from Asia for equipment to make semiconductors, data from Japan's finance ministry showed today, 19 February 2018. Exports grew 12.2% in January from a year earlier, following a 9.3% year-on-year gain in the previous month.

In US, the Dow industrials and S&P 500 logged their sixth straight advance on Friday, 16 February 2018 but the Nasdaq lagged its peers, as political drama sparked turbulent trade late in the session. Special Counsel Robert Mueller announced the indictments of 13 Russian nationals and three Russian entities, accusing them of interfering in the 2016 US presidential election. The indictment said the defendants were supporting Donald Trump's campaign and disparaging Hillary Clinton.

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Back home, among the key losers from the Sensex pack, Tata Steel lost 2.8%, Hindustan Unilever 0.88% and IndusInd Bank fell 0.86%.

Reliance Industries (RIL) fell 0.27%. The company's wholly owned subsidiary Reliance Industrial Investments and Holdings (RIIHL) proposes to acquire equity shares of The Indian Film Combine (IFC), which is setting up a drive-in theatre and hospitality precinct comprising of a hotel, a retail mall and a club, built on about 12 acres of land in Bandra Kurla Complex (BKC), Mumbai. The announcement was made after market hours on Friday, 16 February 2018.

RIIHL will be acquiring 65% of current paid-up equity share capital of IFC from the existing shareholders for Rs 1105 crore (20% from Mauritian arm of Xander Group, Inc. based in USA for Rs 340 crore and 45% from entities belonging to the promoter group of RIL for Rs 765 crore). The remaining 35% of IFC continues to be held by the Maker Group. The acquisition is expected to be completed by 31 May 2018.

Infosys slipped 0.19%. Infosys announced that it has on 15 February 2018 signed an agreement for divestment of its entire investment from Onmobile Systems Inc. USA for a total consideration of $2.5 million. The announcement was made after market hours on Friday, 16 February 2018.

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First Published: Feb 19 2018 | 9:26 AM IST

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