Stocks extended initial losses and hit fresh intraday low in morning trade. At 10:21 IST, the barometer index, the S&P BSE Sensex, was down 217.76 points or 0.6% at 36,052.31. The Nifty 50 index was down 67.05 points or 0.62% at 10,821.30. Local stocks were weighed by weakness in Asian stocks.
Domestic stocks dropped in early trade on weak Asian stocks.
The S&P BSE Mid-Cap index was down 0.07%. The S&P BSE Small-Cap index was up 0.17%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, turned positive from negative. On the BSE, 964 shares rose and 919 shares fell. A total of 113 shares were unchanged.
Overseas, Asian stocks were trading lower on Tuesday, tracking losses on Wall Street as traders braced for an interest rate hike by Federal Reserve. US equity indexes slid to their lowest close in 14 months on Monday as investors weighed the impact of the Fed on growth in a market already anxious over trade, geopolitical tensions and a possible government shutdown.
The Federal Reserve holds its final policy meeting of 2018 on Tuesday and Wednesday. The Federal Open Market Committee is expected to raise its short-term interest rate by a modest quarter-point to a range of 2.25% to 2.5%. Investors are closely watching the Federal Reserve monetary policy guidance for 2019. The central bank forecasts three more rate hikes in 2019, but softer global growth could cause a shift in its hawkish stance. The Bank of Japan's monetary policy decision is due Thursday, followed by a briefing from Governor Haruhiko Kuroda. A Bank of England decision is also due on Thursday.
Back home, Sun Pharmaceutical Industries (up 1.36%), M&M (up 1.21%), L&T (up 0.76%), Vedanta (up 0.32%) and State Bank of India (up 0.29%) edged higher from the Sensex pack.
Infosys (down 2.23%), Wipro (down 2.02%), Adani Ports and Special Economic Zone (down 1.29%), HDFC Bank (down 1.01%) and IndusInd Bank (down 0.98%) edged lower from the Sensex pack.
Graphite India rose 1.4% after the company said its Bengaluru graphite electrode plant received 'Consent for Operations' from Karnataka State Pollution Control Board for a period up to 30 June 2020 only with condition to shift the unit from the existing location. The announcement was made after market hours yesterday, 17 December 2018.
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