Key equity barometers sharply pared losses in mid-afternoon trade. Buying support in pharma and metal stocks aided the recovery. The Nifty managed to regain 11,000 level. Trading was volatile as the August 2019 F&O contracts expire today, 29 August 2019.
At 14:26 IST, the barometer index, the S&P BSE Sensex, was down 157.24 points or 0.42% at 37,294.6. The Nifty 50 index was down 35.8 points or 0.932% at 11,010.30.
The S&P BSE Mid-Cap index was down 0.12%. The S&P BSE Small-Cap index was down 0.47%.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 843 shares rose and 1491 shares fell. A total of 147 shares were unchanged.
State-run ONGC rose 1.73% after the company announced that it has set up a Euro Medium Term Note (EMTN) Programme of $2 billion which will be listed on Singapore Stock Exchange.
Muthoot Finance declined 1.71% to Rs 612 after company's employees which are a part of 'Non-Banking & Private Finance Employees Association (CITU)' declared indefinite strike from 20 August 2019. Out of 623 branches in Kerala, 265 were opened for transactions of which 15 branches have been forcibly closed.
L&T Finance Holdings fell 1.58%. The company reported that an agreement has been executed between company's subsidiary, L&T Capital Market and IIFL Wealth Finance. IIFL Wealth Group (IIFLWealth) entered into a definitive agreement to acquire 100% equity shares of L&T Capital Markets. L&T Capital Markets provides wealth management services for individual and institutional clients.
Meanwhile, the yield on 10-year benchmark federal paper rose to 6.621% at 14:20 IST compared with 6.564% at close in the previous trading session.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 71.74, compared with its close of 71.775 during the previous trading session.
In the commodities market, Brent crude for November 2019 settlement was down 9 cents at $59.84 a barrel.
MCX Gold futures for 4 October 2019 settlement rose 0.15% at Rs 39,101.
Overseas, European markets were trading higher as soft inflation data boosted hopes that the European Central Bank will inject stimulus into the economy next month.
The German state of Saxony reported CPI (consumer price index) inflation at +1.4% year-on-year, falling further below the ECB target, while Spain's August HCPI (harmonized consumer price index) came in at +0.4%, down from +0.6% on the year in July. The ECB indicated that stimulus could be forthcoming if inflation continues to languish well below its target of almost 2%.
Meanwhile, U.K. Prime Minister Boris Johnson announced plans to suspend parliament until 14 October, less than three weeks before the Britain's scheduled exit from the European Union on 31 October. The move is seen as increasing the chances of a no-deal Brexit that economists estimate could deal a significant blow to economic growth in the U.K and Europe.
Asian stocks were trading lower on Thursday as investors continued to watch the yield curve in U.S. Treasurys, which inverted further overnight.
US stocks climbed on Wednesday on gains in energy and financial shares. Meanwhile, the White House is scheduled to impose the first stage of U.S. tariffs on $300 billion worth of Chinese imported goods on Sunday, when China is set to respond with tariffs on U.S. products also.
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