Key benchmark indices were trading lower in early trade due to mixed Asian cues. At 9:19 IST, the barometer index, the S&P BSE Sensex, was down 163.90 points or 0.45% at 36,362.24. The Nifty 50 index was down 59.30 points or 0.54% at 10,949.
Among secondary barometers,the BSE Mid-Cap index was down 0.25%. The BSE Small-Cap index was down 0.39%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On BSE, 537 shares rose and 669 shares fell. A total of 57 shares were unchanged.
Overseas, Asia markets were mixed on Wednesday. Markets in China and South Korea are closed for a public holiday.
In US, the Dow Jones Industrial Average hit a record high on Tuesday as it rallied for a second day, boosted by gains in Intel and optimism around global trade. Stocks were coming off strong gains from the previous session after Canada joined the US and Mexico in a new trade deal. The United States-Mexico-Canada Agreement, or "USMCA" for short, will see all three countries compromise on certain trade aspects. More market access will be granted to US dairy farmers, while Canada has agreed to effectively cap automobile exports to the States.
Trade war remains in focus for the markets. Following the new USMCA deal to replace the current North American Free Trade Agreement, eyes are now on Washington's ongoing trade fight with China. Investors will be looking to China, to see if Beijing and Washington can compromise on certain trade elements.
In the UK, the Conservatives' annual party conference was under way with Prime Minister Theresa May facing pressure over her proposal for future UK-EU relations, known as the Chequers plan, which has already been rejected by EU leaders. Any additional signs of political instability in Europe could weigh on the US, where multinational firms have a large amount of revenue exposure to the region.
Further in Europe, Italy last week unveiled a 2019 budget deficit target that has met stiff opposition from European Union officials, who say it will violate the bloc's fiscal rules. Italy's coalition government proposed a budget that would increase the deficit to 2.4% of gross domestic output in 2019, well above the initial target of 0.8% proposed by the country's previous centre-left government. The current target range for this year is 1.6%. The deficit blowout revived fears of the eurozone debt crisis and put pressure on the euro.
Back home, Dr. Reddy's Laboratories was up 1.11%. The company announced that its wholly owned subsidiary Promius Pharma, LLC, has sold its rights of Cloderm (clocortolone pivalate) Cream, 0.1 % and its authorized generic to EPI Health, LLC, an affiliate of EPI Group, LLC. Under the terms of the agreement, Promius Pharma is eligible to receive an upfront payment followed by future royalties as the consideration for Cloderm Cream and its authorized generic in the United States, effective immediately. The announcement was made on Tuesday, 2 October 2018.
Hero MotoCorp was up 0.11%. The company reported sales of 7.69 lakh units of motorcycles and scooters in September 2018 - its highest-ever sales in any single month. With the peak festival season coming up in the months of October and November, the company is confident of setting yet another global benchmark in retail sales during the period this year, Hero MotoCorp said. The announcement was made after market hours on Monday, 1 October 2018.
Infosys was up 0.63%. The company announced that it has entered into a three-year collaboration with Cornell University to reshape the workforce driving digital transformation by advancing employee education and research. Through this collaboration, Infosys - alongside expert faculty at Cornell - will educate its global workforce on technologies such as Blockchain, machine learning and human computer interaction; as well as impart skills in data analytics, design, systems thinking, critical thinking and engineering on Cornell's eCornell virtual learning platform. The announcement was made after market hours on Monday, 1 October 2018.
TVS Motor Company was up 1.66%. The company registered a sales growth of 18% with sales increasing to 4.23 lakh units in the September 2018 from 3.59 lakh units in September 2017 . The announcement was made after market hours on Monday, 1 October 2018.
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