Key benchmark indices were trading lower in early trade, tracking negative leads from Asian markets and overnight decline on the Wall Street. At 9:20 IST, the barometer index, the S&P BSE Sensex, was down 28.42 points or 0.08% at 35,869.93. The Nifty 50 index was down 18.20 points or 0.17% at 10,771.65.
Among secondary barometers,the BSE Mid-Cap index was up 0.07%. The BSE Small-Cap index was flat at 13,414.60.
The market breadth, indicating the overall health of the market, was positive. On BSE, 538 shares rose and 361 shares fell. A total of 38 shares were unchanged.
Overseas, Asian shares declined Friday, following a negative closing in the US stocks after the release of a stream of disappointing global economic data on Thursday. Investors continue to closely watch high-level talks between US and Chinese trade negotiators in Washington, with little more than a week left before a US-imposed deadline for an agreement expires, triggering higher tariffs.
US stocks finished lower Thursday as fresh economic data out of Europe and Japan suggest further slowing in global growth. Concerns about slowing global growth were underscored by the release of surveys from Europe and Japan that showed manufacturing contracting in February, with export-dependent German manufacturers reporting the worst drop in activity in more than six years.
In US, December's durable goods data showed a surprise slowdown in business spending. The Philadelphia Fed manufacturing survey fell to minus 4.1, the first negative number since May 2016 and the biggest drop since August 2011. Markit PMI data also showed manufacturing activity at the slowest pace in 17 months.
Back home, Tata Steel was down 0.96%. The company informed that the meeting of the board of directors of the company is scheduled on 26 February 2019, inter alia, to consider and approve the issuance of unsecured Non-Convertible Debentures on private placement basis. The announcement was made after market hours yesterday, 21 February 2019.
Bharat Electronics (BEL) was up 1.61%. The company has on 20 February 2019, signed an MoU with JSR Dynamics Pvt Ltd (JSR), a Nagpur-based start-up Company, at Aero India 2019 in Bengaluru. The MoU aims at leveraging the individual design and manufacturing capabilities of BEL and JSR to develop weapons and light weight cruise missiles, which have business potential in both the domestic and international markets. The announcement was made after market hours yesterday, 21 February 2019.
AU Small Finance Bank was up 0.15%. The company has entered into agreement with ACKO General Insurance Company for General insurance as Corporate Agent. This tie up shall be mutually beneficial for Bank & ACKO General Insurance Company in terms of business, market penetration and digital distribution of Insurance Products. The announcement was made after market hours yesterday, 21 February 2019.
Allahabad Bank was down 2.05%. The bank has received a communication from the Government of India, Ministry of Finance, Department of Financial Services regarding fresh capital infusion of Rs 6896 crore towards contribution of the Central Government in the preferential allotment of equity shares (Special Securities/Bonds) of the Bank during the financial year 2018-19, as Government's investment. The announcement was made after market hours yesterday, 21 February 2019.
Security and Intelligence Services (India) was up 2.71%. The company said its subsidiary SIS Australia Group Pty Ltd on 21 February 2019, has signed definitive agreements to acquire initially 51% shareholding in Platform 4 Group. The announcement was made after market hours yesterday, 21 February 2019.
Meanwhile, the Reserve Bank of India (RBI) on Thursday released the minutes of the Monetary Policy Committee's meeting held on February 5-7. Governor Shaktikanta Das has said that the neutral stance of the central bank will provide flexibility and the room to address challenges to sustained growth of the Indian economy over the coming months, as long as the inflation outlook remains benign.
In his statement, Das said that global growth was losing traction amidst lingering trade tensions and uncertainty around Brexit. On the positive side, crude oil prices remain soft, though the benefit for net exports could be restricted due to slowing global demand. GDP growth for 2019-20 is projected at 7.4% - in the range of 7.2-7.4% in H1, and 7.5% in Q3 - with risks evenly balanced.
Das noted that the CPI inflation print of December at 2.2% continued to surprise on the downside. The RBI Governor also believed that the outlook for food inflation was expected to be benign in the backdrop of excess domestic supply conditions in many food items. CPI inflation is projected at below 4% in the remaining four quarters - 2.8% in Q4:2018-19, 3.2-3.4% in H1:2019-20 and 3.9% in Q3:2019-20 - with risks broadly balanced.
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