Stocks extended initial fall and hit intraday low in in morning trade. At 10:28 IST, the barometer index, the S&P BSE Sensex, was down 253.59 points or 0.7% at 35,756.25. The Nifty 50 index was down 84.80 points or 0.79% at 10,710.15.
Domestic stocks drifted lower in early trade on negative Asian stocks. Data showing a sharp drop in IIP in November 2018 also dented sentiment. The Sensex dropped below the psychological 36,000 level.
India's index of industrial production (IIP) (base year 2011-12=100) moderated sharply to mere 0.5% in November 2018, compared with 8.4% growth recorded in October 2018. The industrial production growth for October 2018 has been revised upwards from 8.1% increase reported provisionally. The data released after market hours on Friday, 11 January 2019.
The output of manufacturing sector declined 0.4%, while the electricity generation growth moderated to 5.1%% in November 2018. Further, the mining output growth also eased to 2.7% in November 2018.
The market sentiment was impacted by data showing that foreign funds were net sellers of Indian stocks on Friday, 11 January 2019. The trading activity on that day showed that the foreign portfolio investors (FPIs) sold shares worth a net Rs 687.20 crore on Friday, 11 January 2019, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 123.17 crore on Friday, 11 January 2019, as per provisional data.
The S&P BSE Mid-Cap index was down 0.65%. The S&P BSE Small-Cap index was down 0.47%.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 719 shares rose and 1130 shares fell. A total of 112 shares were unchanged.
Overseas, Asian shares were trading lower as investors kept a wary eye on looming Chinese trade data on increasing signs a slowdown in the world's second-biggest economy is dragging on global growth. Markets in Japan are closed for a holiday.
Wall Street dipped slightly on Friday, breaking a five-session rally, as energy shares declined and investors looked ahead to earnings season. The Dow Jones Industrial Average ended down 0.02% at 23,995.95 points, while the Nasdaq Composite dropped 0.21% to 6,971.48. The S&P 500 ended down 0.01% at 2,596.26.
Back home, L&T (down 2.11%), IndusInd Bank (down 1.88%), Vedanta (down 1.7%), TCS (down 1.48%) and Axis Bank (down 1.43%) edged lower from the Sensex pack.
Yes Bank (up 4.05%), Infosys (up 2.11%) and Sun Pharmaceutical Industries (up 1.05%) edged higher from the Sensex pack.
Tejas Networks fell 0.3%. Tejas Networks announced that it has signed a memorandum of understanding with Government of Kerala as its first telecom knowledge partner and is establishing a Center of Excellence (CoE) for next-generation telecom technologies in the state. Tejas CoE will focus on training, skills development and mentoring of college students, young entrepreneurs and high-potential electronics startups in the state. The announcement was made on Sunday, 13 January 2019.
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