Key indices cut losses in mid-afternoon trade as European stocks opened higher. At 14:28 IST, the barometer index, the S&P BSE Sensex, was down 33.89 points or 0.09% at 36,340.19. The Nifty 50 index was down 10.10 points or 0.09% at 10,895.10. Realty stocks fell. Global stocks rose Friday amid optimism for progress in US-China trade talks.

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. Key equity indices trimmed losses in afternoon trade.

The S&P BSE Mid-Cap index was down 0.69%. The S&P BSE Small-Cap index was down 0.65%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 874 shares rose and 1573 shares fell. A total of 145 shares were unchanged.

Realty stocks fell. DLF (down 2.23%), Indiabulls Real Estate (down 0.7%), Housing Development and Infrastructure (down 1.45%), D B Realty (down 2.55%), Sobha (down 1.92%), Godrej Properties (down 0.09%), Prestige Estates Projects (down 0.72%) and Oberoi Realty (down 2.25%) declined.

Surya Roshni rose 1.09% after the company said it obtained an order for supply of LED street lights worth Rs 45.67 crore from Energy Efficiency Services under all India SLNP (Street light National Program) through competitive e-bidding. The announcement was made during trading hours today, 18 January 2019.

Overseas, Asian and European stocks rose 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.

Meanwhile, 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.

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.