Key equity indices trimmed losses in afternoon trade. At 13:19 IST, the barometer index, the S&P BSE Sensex, was down 79.62 points or 0.22% at 36,294.46. The Nifty 50 index was down 27.10 points or 0.25% at 10,878.10.

Volatility struck bourses in early trade as the key indices reversed initial gains and sink in negative zone. Key indices extended losses in morning trade. Stocks cut losses in mid-morning trade. Indices continued hovering in negative zone in early afternoon trade.

The S&P BSE Mid-Cap index was down 0.66%. The S&P BSE Small-Cap index was down 0.59%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 838 shares rose and 1474 shares fell. A total of 157 shares were unchanged.

Bharti Airtel (down 6.18%), Axis Bank (down 2.04%), Larsen & Toubro (down 1.05%), Tata Motors (down 1.03%) and ITC (down 0.78%), were the major Sensex losers.

Kotak Mahindra Bank (up 1.22%), ONGC (up 1.14%), HCL Technologies (up 0.68%), Vedanta (up 0.68%) and IndusInd Bank (up 0.30%), were the major Sensex gainers.

Reliance Industries (RIL) rose 1.59%. On a consolidated basis, RIL's net profit increased 8.82% to Rs 10251 crore on 56.69% increase in net sales to Rs 156397 crore in Q3 December 2018 over Q3 December 2017. The result was announced after market hours yesterday, 17 January 2018.

Increase in revenue is primarily on account of higher price realizations and volumes for petrochemical and refining businesses along with continuing strong growth momentum in consumer businesses. Product prices for the refining and petrochemicals business increased in line with 10.4% higher average Brent crude oil price. The higher volumes in petrochemical business are on account of stabilization and ramp-up of new petrochemical facilities. Retail business and digital services business recorded an increase of 89% and 51% in revenue during the quarter compared to the corresponding quarter of the previous year.

Commenting on the results, chairman and managing director, Mukesh Ambani said in its new-age consumer businesses, RIL maintained robust growth momentum across retail and Jio platforms and the share of consumer businesses is steadily increasing its contribution to the overall profitability of the company. In wireless business, RIL's customer-centric offerings and strong ubiquitous network are helping to digitalise India at an unprecedented rate.

Sun Pharmaceutical Industries slumped 1.28% after media report of a complaint by a whistleblower raised fresh concerns on the drugmaker's corporate governance. According to a media report, between 2014 and 2017, Aditya Medisales (AML) had over Rs 5800 crore of transactions with Suraksha Realty, controlled by Sun Pharma's co-promoter, Sudhir Valia. This is according to a new 172-page complaint (with documents) sent by the whistleblower on Sun Pharma to the market regulator, Securities and Exchange Board of India (Sebi).

The company has been battling corporate governance issues. In December 2018, the first complaint by whistleblower alleged that Dilip Shanghvi, his brother-in-law Sudhir Valia were part of financial irregularities with Dharmesh Doshi. Doshi was allegedly a key figure in Ketan Parekh scam of 2001.

Hindustan Unilever (HUL) was down 0.13%. HUL's net profit rose 8.9% to Rs 1444 crore on 12.4% increase in net sales to Rs 9357 crore in Q3 December 2018 over Q3 December 2017. The result was announced after market hours yesterday, 17 January 2018.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 22% to Rs 2046 crore in Q3 December 2018 over Q3 December 2017. Prudent management of volatility in costs (crude and currency led) along with improved mix and operating leverage has driven margin improvement, the company said.

Sanjiv Mehta, chairman and managing director, said that that company has delivered another strong performance in the quarter, with double digit volume growth and improvement in margins. HUL's focus on strengthening the core and leading market development by tapping into emerging trends has been yielding results across categories. In the near term, demand is likely to be stable. The company will keep a close watch on the macro-economic environment and respond with agility. HUL remains focused on its strategic agenda of delivering consistent, competitive, profitable and responsible growth.

Overseas, Asian stocks were trading higher Friday amid optimism for progress in US-China trade talks. China reportedly announced its economy czar, Vice Premier Liu He, will go to Washington for talks Jan. 30-31 aimed at ending the tariff war sparked by US complaints about Beijing's technology ambitions.

Japan's inflation in December came in weaker than expected. Prices rose 0.3%, down from November's 0.8%, as tumbling food costs offset a rise in energy prices.

US stocks advanced on Thursday as a published report that the United States was considering lifting tariffs on Chinese imports lifted investor sentiment. U.S. officials are reportedly considering lifting some tariffs on Chinese products in an effort to elicit more concessions from China for a bilateral trade deal and to stabilize the financial markets.

On the data front, the Federal Reserve Bank of Philadelphia's manufacturing index rose to 17.0 in January, up from 9.1 in December, the bank reported Thursday. The index reflects the health of the manufacturing sector in Pennsylvania, Delaware and New Jersey.

In Europe, investors awaited the next steps for the UK after Theresa May's government narrowly survived a no-confidence vote as she attempts to forge a path forward for the country's exit from the European Union.

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