Key equity benchmarks corrected after rising in the past three trading sessions. The Nifty 50 index slipped below 11,600 mark. The market opened lower and extended losses as the session progressed. Maximum selling pressure emerged at the last hour of trading session. Trading was volatile on account of expiry of weekly options contracts on the NSE.

The Sensex fell 318.18 points or 0.81% to settle at 38,897.46. The index fell 11.17 points, or 0.03% at the day's high of 39,204.47. The index fell 354.39 points, or 0.90% at the day's low of 38,861.25.

The Nifty 50 index fell 90.60 points or 0.78% to settle at 11,596.90. The index fell 10.35 points, or 0.09% at the day's high of 11,677.15. The index fell 105.10 points, or 0.90% at the day's low of 11,582.40.

Sentiment was affected due to weak global cues amid media reports that trade negotiations between US and China are at an impasse over restrictions on Chinese tech giant Huawei.

Slow progress of monsoon also weighed on investors' risk appetite. India's monsoon rains were 20% below average in the week ending on Wednesday, as rainfall was scanty over the central, western and southern parts of the country, the the India Meteorological Department (IMD) said, raising concerns over the output of summer-sown crops.

Meanwhile, Asian Development Bank on 18 July 2019 lowered India's GDP growth forecast to 7% for the current year on the back of fiscal shortfall concerns. India is expected to grow by 7% in 2019 (FY20) and 7.2% in 2020 (FY21), slightly slower than projected in April because the fiscal 2018 outturn fell short, ADB said in its supplement to the Asian Development Outlook 2019. For the south Asian region, ADB said the outlook remains robust, with growth projected at 6.6% in 2019 and 6.7% in 2020.

Further, India's external sector position in 2018 was broadly in line with the level implied by fundamentals and desirable policies, the International Monetary Fund (IMF), noted in its latest External Sector Report. India's current account (CA) deficit grew to $68 billion in 2018-19 from $49 billion the previous year while India's net international investment position marginally improved with the deficit coming down from $438 billion in 2017-18 to $431 billion in 2018-19. India's overall international reserves, though stood at $411.9 billion at the end of March this year, down from March last year by $12.5 billion, IMF noted.

Broader market tumbled. The S&P BSE Mid-Cap index fell 1.23%. The S&P BSE Small-Cap index fell 1.15%.

The market breadth was tilted in favour of sellers. On the BSE, 748 shares rose and 1742 shares fell. A total of 146 shares were unchanged.

Among the sectoral indices on the BSE, the S&P BSE FMCG index (down 0.31%) and the S&P BSE Finance index (down 0.38%) outperformed the S&P BSE Sensex. Meanwhile, the S&P BSE Auto index (down 2.65%), the S&P BSE Metal index (down 2.38%) and the S&P BSE Energy index (down 1.81%) underperformed the S&P BSE Sensex.

HDFC twins sailed through the tide. HDFC rose 2.26% to Rs 2338. HDFC Bank rose 0.26% to Rs 2403.90.

Index heavyweight and IT major TCS fell 2.43% to Rs 2065.60.

Another index heavyweight Reliance Industries fell 1.54% to Rs 1261.80. The company announced during market hours today, 18 July 2019, that Reliance Brands, subsidiary of Reliance Industries, has completed acquisition of 100% stake of Hamleys Global Holdings through a special purpose vehicle company set up in United Kingdom for cash consideration of GBP 67.96 million.

Yes Bank slumped 12.85% to Rs 85.80 after its net profit dropped 90.97% to Rs 113.76 crore on 9.87% rise in total income to Rs 9088.80 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours yesterday, 17 July 2019. Yes Bank's gross non-performing assets (NPAs) stood at Rs 12092.10 crore as on 30 June 2019 as against Rs 7882.56 crore as on 31 March 2019 and Rs 2824.46 crore as on 30 June 2018. The ratio of net NPAs to net advances stood at 2.91% as on 30 June 2019 as against 1.86% as on 31 March 2019 and 0.59% as on 30 June 2018. Yes Bank's net provisions at Rs 1784 crore in Q1 June 2019 includes one off impact of Rs 1109 crore of investment MTM provision led by rating downgrades of investments in companies of two financial services groups.

Axis Bank fell 1.57%. The bank after market hours yesterday, 17 July 2019, announced that Dr. Sanjiv Misra has ceased to be the non-executive chairman of the bank, pursuant to the completion of his tenure with effect from the close of business hours on Wednesday. It further added that Rakesh Makhija will assume charge as the non-executive chairman of the bank, with effect from Thursday, 18th July 2019.

Among other private sector banks, Federal Bank (down 3.88%), IndusInd Bank (down 1.97%), City Union Bank (down 1.87%), RBL Bank (down 1.75%) and ICICI Bank (down 1.41%) declined. Kotak Mahindra Bank rose 0.31%.

State-run banks fell across the board. Bank of Baroda (down 4.6%), Canara Bank (down 4.11%), Bank of India (down 3.24%), Union Bank of India (down 3.04%), Punjab National Bank (down 2.85%), State Bank of India (down 2.28%), IDBI Bank (down 2.27%), Corporation Bank (down 2.06%), Indian Bank (down 1.93%), Syndicate Bank (down 1.65%), UCO Bank (down 1.63%), Bank of Maharashtra (down 1.58%), Andhra Bank (down 1.55%), Central Bank of India (down 0.51%) and United Bank of India (down 0.3%) declined.

Allahabad Bank fell 3.91%. The bank after market hours yesterday, 17 July 2019, reported a fully provided non-performing account, viz. SEL Manufacturing (SELM) with outstanding dues of Rs 688.27 crore for which NCLT proceedings are in progress, has also been declared as fraud and reported to RBI as per regulatory requirement.

Jammu & Kashmir Bank fell 1.53%. In its annual report released after market hours yesterday, 17 July 2019, the bank said that during the financial year 2018-19, 11 cases of frauds were detected/ reported to the Reserve Bank of India involving an amount of Rs 182.90 crore.

Punjab & Sind Bank slipped 3.10%. The bank said that on the basis of Forensic Audit Investigation findings and CBI filing FIR, on suo moto basis, against Bhushan Power And Steel (BPSL) and its directors, alleging diversion of funds from banking system, a fraud of Rs 238.30 crore is being reported by bank to RBI. In the accounts of the BPSL, the bank has already made provisions amounting to Rs 189.35 crore, as per prescribed prudential norms. The announcement was made after market hours yesterday, 17 July 2019.

Most FMCG shares declined. Jyothy Laboratories (down 2.36%), Procter & Gamble Hygiene & Health Care (down 1.86%), Hindustan Unilever (down 1.14%), Tata Global Beverages (down 0.88%), GlaxoSmithKline Consumer Healthcare (down 0.73%), Marico (down 0.62%), Dabur India (down 0.44%) and Bajaj Corp (down 0.02%) edged lower. Godrej Consumer Products (up 0.06%) and Britannia Industries (up 0.75%) edged higher.

Colgate-Palmolive (India) rose 3.02% after the company announced its Q1 June 2019 result during market hours today, 18 July 2019. Colgate-Palmolive (India)'s net profit fell 10.76% to Rs 169.11 crore on a 4.72% rise in the total income to Rs 1,100.03 crore in Q1 June 2019 over Q1 June 2018.

In a separate announcement during market hours today, Colgate-Palmolive (India) said that it has appointed Ram Raghavan as managing director of the company with effect from 1 August 2019.

Nestle India fell 0.49%. The company announced after market hours yesterday, 17 July 2019, that MAGGI Fusian - the range of Asian flavor inspired noodles, have garnered overwhelming consumer response on Amazon Prime Days, witnessing an equivalent of 2.5 lakh single units being sold over a two day period, with orders coming from 29 states of India.

Market research firm Nielsen reportedly lowered its growth target for the fast moving consumer goods (FMCG) sector on Wednesday, 17 July 2019. The firm has estimated growth in 2019 to be in the 9-10% range for 2019 as against 11-12% estimated earlier, citing macroeconomic factors such as slowing growth and the impact of a deficient monsoon. The lowering of the sales forecast for India's packaged goods sector as consumption cooled for the third straight quarter, led by a sharp rural slowdown.

DFM Foods jumped 11.53% after net profit surged 52.3% to Rs 7.63 crore on 29.5% rise in total income to Rs 128.63 crore in Q1 June 2019 over Q4 March 2019. The result was announced after market hours yesterday, 17 July 2019.

Reliance Power fell 3.04%. ICRA downgraded borrowings worth Rs 8,015 crore of the company to 'default'. The company continues to remain in the non-cooperating category.

Torrent Pharmaceuticals fell 2.50% after the US drug regulator classified the inspection of the company's Dahej facility as Official Action Indicated (OAI). The pharmaceutical company said it received a communication from the US Food and Drug Administration (USFDA) classifying the inspection conducted at its Dahej facility in Gujarat in March 2019 as Official Action Initiated (OAI). The company already had submitted its initial response to USFDA and commitments given in response to Form 483 observations have been fulfilled. The company is sending further updates over receiving of this OAI letter. The company will be engaging with the regulator and is fully committed in resolving this issue at the earliest. The announcement was made after market hours yesterday, 17 July 2019.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 68.97, compared with its close of 68.8250 during the previous trading session.

In the commodities market, Brent crude for September 2019 settlement rose 56 cents at $64.22 a barrel. The contract fell 69 cents or, 1.07% to settle at $63.66 a barrel in the previous trading session.

Overseas, European stocks were trading lower while Asian stocks ended lower on Thursday, as investors digest fresh corporate results and keep an eye on global trade developments.

Japan's exports fell 6.7% in June as compared to a year ago, according to data released on Thursday. The Bank of Korea announced that it was cutting the base rate by 25 basis points to 1.5%, following a cut to South Korea's growth target earlier this month, and an ongoing trade spat between Seoul and Tokyo that has seen Japan place import curbs on important materials used by South Korea's technology sector.

US stocks ended lower for a second straight session Wednesday as investors digested mixed earnings results and economic data, while a lack of progress on the Beijing-Washington tariff dispute remained a headache.

At the macroeconomic level, businesses were generally positive through early July about the economic outlook for the coming months despite widespread concerns about the possible negative impact of trade-related uncertainty, according to the Beige Book survey released by the Federal Reserve on Wednesday.

The survey found that the economy expanded at modest pace from mid-May through early July, little changed from the spring. The Fed is widely expected to cut interest rates at the conclusion of its two-day July 30-31 policy meeting and the Beige Book didn't alter that outlook.

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