The main stock indices continued trading with modest losses in afternoon trade. The Nifty held above the 11,950 level. At 13:26 IST, the S&P BSE Sensex, declined 180.21 points or 0.44% at 40,689.26. The Nifty 50 index tumbled 65.50 points or 0.54% at 11,987.45.
The sentiment was negative after Iran fired more than a dozen missiles at two US military targets inside Iraq in response to the United States' killing of senior Iranian military commander Qassem Soleimani last week.
In the broader market, the S&P BSE Mid-Cap index was down 0.32% while the S&P BSE Small-Cap index was down 0.09%.
The market breadth was weak. On the BSE, 780 shares rose and 1465 shares fell. A total of 157 shares were unchanged. In Nifty 50 index, 13 stocks advanced while 37 stocks declined.
Stocks in Spotlight:
UltraTech Cement (up 1.82%), TCS (up 1.70%), Bharti Airtel (up 1.21%), HCL Technologies (up 1.16%) and Bajaj Auto (up 0.73%) advanced.
Eicher Motors (down 3.24%), JSW Steel (down 2.49%), Larsen & Toubro (down 2.35%), Indian Oil Corporation (down 2.25%) and Hindalco Industries (down 1.92%) declined.
Car major Maruti Suzuki India fell 1.06% to Rs 6998.65. The company's total production rose 7.88% to 1.15 lakh units in December 2019 from 1.07 lakh units in December 2018.
Mahindra & Mahindra slipped 0.90% to Rs 521.90. CARE Ratings has reaffirmed the company's long term rating on bank loan facilities at AAA with stable outlook. The short-term rating was reaffirmed at A1+. The ratings factors the company's its dominant market position in the Indian tractor industry and Light commercial vehicles (LCV) segment.
Yes Bank gained 1.11% to trade at Rs 45.60 after the bank said its board will meet on 10 January 2020 to consider fund raising. Meanwhile, Yes Bank is banned from trading in NSE's F&O segment after the security crossed 95% of market wide position limit.
Shares of Tata Steel were trading 1.20% lower at Rs 469.95. The steel major announced that its arm TS Alloy has received a letter of intent for grant of mining lease by Odisha Government for the chromite mine. The mining lease given is for 50 years.
Economy:
The National Statistical Office on Tuesday forecast India's GDP growth to be 5% in 2019-20, slower than the previous year's 6.8% and in line with the RBI estimate. Real GVA growth is estimated 4.9% in 2019-20 as against 6.6% in 2018-19.
Foreign Markets:
Stocks in Europe opened lower while Asian markets continued to trade lower on Wednesday after the Middle East tensions flared following Iran's attack on military facilities in Iraq hosting American troops.
Tehran retaliated to Washington's killing of its top military commander late Tuesday, launching more than a dozen ballistic missiles targeted at US military forces in Iraq.
Iranian Foreign Minister Mohamad Javad Zarif tweeted "we do not seek escalation or war, but will defend ourselves against any aggression."
All is well! President Donald Trump tweeted, adding that an assessment of casualties was taking place.
Back in Europe, British Prime Minister Boris Johnson is meeting with European Commission President Ursula von der Leyen Wednesday, where he is due to tell her that the U.K. will not extend its transition out of the EU beyond December 2020.
US stock market ended slightly lower Tuesday, as concerns about the possibility of war in the Middle East overshadowed favourable US economic data.
In economic data, the US ISM service sector index rose to a four-month high of 55 in December, according to the Institute for Supply Management. The US Commerce Department also reportedly said the trade deficit narrowed in November to a 3-year low, but factory orders fell 0.7% in November.
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