Key benchmark indices were trading near the intraday low levels in mid-morning trade. At 11:20 IST, the barometer index, the S&P BSE Sensex, was down 68.70 points or 0.20% at 34,115.34. The Nifty 50 index was down 11.95 points or 0.11% at 10,480.90.
Negative cues from other Asian stocks weakened investors sentiment. Losses were, however, limited following better-than-expected domestic economic growth. Selling in index pivotals, ICICI Bank, Infosys and ITC put pressure on the key indices.
Overseas, most Asian stocks declined, tracking overnight slide in US equities. Growth in China's manufacturing sector unexpectedly picked up to a six-month high in February. The Caixin/Markit Manufacturing Purchasing Manager's Index (PMI) edged up to 51.6 last month, from 51.5 in January. The 50-mark divides expansion from contraction on a monthly basis.
US stocks ended lower on Wednesday, as Wall Street digested data that were seen as underlining the economy's robust health. Strong economy could warrant the Federal Reserve to turn more hawkish.
In the latest economic data, the pace of growth in the US economy was trimmed to 2.5% from 2.6% in the fourth quarter, largely because of a slower buildup in inventories of unsold goods.
Separately, the Chicago PMI came in at 61.9 in February. Pending-home sales fell 4.7% in January, the lowest reading since October 2014, and the biggest monthly decline since 2010.
Among secondary barometers back home, the BSE Mid-Cap index was down 0.09%. The BSE Small-Cap index was up 0.30%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,289 shares rose and 1,021 shares fell. A total of 122 shares were unchanged.
ICICI Bank was down 1.93% at Rs 307.45. IT major Infosys was down 1% to Rs 1,162.45. Cigarette major ITC was down 0.60% to Rs 263.50.
Engineering & construction major L&T was up 0.07%. The company said its construction division has won orders valued Rs 1593 crore. The announcement was made during market hours today, 1 March 2018.
Car major Maruti Suzuki India was down 0.20%. The company said that its total sales rose 15% to 1.49 lakh units in February 2018 over February 2017. The announcement was made during market hours today, 1 March 2018. Domestic sales rose 14.2% to Rs 1.37 lakh units in February 2018 over February 2017. Exports jumped 24.9% to 11,924 units in February 2018 over February 2017.
Commercial vehicles maker Ashok Leyland was up 0.46%. The company said that its total sales rose 29% to 18,181 units in February 2018 over February 2017. The announcement was made during market hours today, 1 March 2018.
Motorcycle maker Bajaj Auto was up 0.68%. The company said that its total sales rose 31% to 3.57 lakh units in February 2018 over February 2017. The announcement was made before market hours today, 1 March 2018.
Most cement makers rose. ACC (up 0.43%) and Ambuja Cements (up 1.07%), edged higher. UltraTech Cement was down 0.29%.
Grasim Industries was up 2.66%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
On the macro front, India's Gross Domestic Product (GDP) growth further accelerated to 7.2% in Q3 December 2017, showing improvement from 6.5% growth in the preceding last quarter and 6.8% in the corresponding quarter last year. The GDP growth stood at 6.4% in April-December 2017, compared with 7.5% recorded in the corresponding period last year. The GDP growth estimate for 2017-18 has been revised upwards to 6.6% at second advances estimates level from 6.5% at first advance estimate level released in early January 2018.
Meanwhile, the output of eight core infrastructure sector comprising 40.27% of the weight of items included in the Index of Industrial Production (IIP), improved to 6.7% in January 2018 over January 2017.
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