Domestic stocks dropped in early trade on weak Asian stocks. At 9:30 IST, the barometer index, the S&P BSE Sensex, was down 161.55 points or 0.45% at 36,108.52. The Nifty 50 index was down 50.95 points or 0.47% at 10,837.40
The S&P BSE Mid-Cap index was down 0.06%. The S&P BSE Small-Cap index was up 0.06%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 622 shares rose and 669 shares fell. A total of 63 shares were unchanged.
Overseas, Asian stocks were trading lower on worries about the outlook for growth that are at odds with the projected Federal Reserve interest-rate hike on Wednesday. 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, Tata Steel rose 0.28%. Tata Steel and Thyssenkrupp have decided on the members of the future management board for the planned European steel joint venture between the two companies. The announcement was made after market hours yesterday, 17 December 2018.
NMDC rose 0.42%. NMDC revised prices of lump ore at Rs 3,250 per ton and fines ore at Rs 2,860 per month with effect from 13 December 2018. The announcement was made after market hours yesterday, 17 December 2018.
Bombay Dyeing & Manufacturing Company gained 4.97%. The announced that its board approved closure of its subsidiary in Indonesia, PT Five Star Textile Indonesia ('PTFS'), on 17 December 2018. PTFS was incurring losses for many years hence; this is in line with the strategic move to close this subsidiary. All the financial risks related to this subsidiary have been provisioned in the past years reported financial. The announcement was made after market hours yesterday, 17 December 2018.
Sadbhav Infrastructure Project advanced 4.85%. Sadbhav Infrastructure Project announced that ongoing litigation amongst the company, Sadbhav Engineering (collectively referred as Sadbhav) on the one side and Montecarlo on the other have arrived at amicable settlement. Hence, both the National Company Law Tribunal and High Court of Gujarat was pleased to dispose of the matter. Accordingly the said legal matters now stands closed. The announcement was made after market hours yesterday, 17 December 2018.
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