Key indices extended recovery in mid-afternoon trade as European stocks edged higher in early trade. At 14:28 IST, the barometer index, the S&P BSE Sensex, was down 198.95 points or 0.56% at 35,275.56. The Nifty 50 index was down 40.70 points or 0.38% at 10,615.50. Realty stocks rose.

Domestic stocks began trading on a negative note on subdued Asian indices. A sudden sell-off in index pivotals dragged indices to intraday low in morning trade. Key benchmark indices traded near intraday low in mid-morning trade. After a mild recovery in early afternoon trade, key benchmark indices gyrated in negative zone in afternoon trade.

The S&P BSE Mid-Cap index was up 0.55%. The S&P BSE Small-Cap index was up 0.02%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,211 shares rose and 1,259 shares fell. A total of 147 shares were unchanged.

TCS (down 3.21%), Infosys (down 2.79%), Power Grid Corporation of India (down 2.29%), Wipro (down 1.97%) and Bajaj Auto (down 1.94%), were the major Sensex losers.

Realty stocks rose. DLF (up 4.23%), Indiabulls Real Estate (up 2.56%), Housing Development and Infrastructure (up 3.24%), D B Realty (up 9.36%), Godrej Properties (up 2.14%), Prestige Estates Projects (up 0.69%) and Oberoi Realty (up 1.29%) gained. Sobha (down 0.47%) fell.

Adani Gas hit an upper circuit limit of 20% at Rs 97.80. Adani Gas has bagged authorization from the Petroleum and Natural Gas Regulatory Board, Government of India to expand its city gas footprint in 13 new geographical areas (GAs) in the recently concluded 9th round of CGD bidding. In addition, the company has also won 9 GAs in its joint venture company with Indian Oil Corporation, i.e. Indian Oil - Adani Gas (IOAGPL). The announcement was made during trading hours today, 21 November 2018.

Crude prices tumbled overnight amid a selloff in global stock markets fed by growing concerns about slowing global growth. In the global commodities markets, Brent for January 2019 settlement was up 77 cents at $63.30 a barrel. The contract had fallen $4.26 a barrel or 6.38% to settle at $62.53 a barrel during the previous trading session.

India imports majority of its crude requirements and a decline in crude eases concerns on fiscal deficit, inflation and gives more room for the government to boost growth through spending on infrastructure.

Overseas, European equities rose as investors returned to the market amid optimism of a compromise over Italy's budget. The European Commission is scheduled to take the first step toward disciplining Rome over its contentious draft fiscal proposal on Wednesday. Most Asian stocks fell after another tumble on Wall Street, where concerns have spread to the corporate-bond market.

Meanwhile, UK Prime Minister Theresa May is expected to make an appearance in Brussels on Wednesday, as she discusses Brexit developments with the President of the European Commission, Jean-Claude Juncker. The British leader is currently facing broad criticism from across the political spectrum, amid lingering concerns she could soon face a vote of no-confidence. The EU is due to hold a summit to discuss Britain's proposed deal on Sunday.

US stocks closed sharply lower Tuesday, extending a pre-Thanksgiving rout that has been fueled mostly by a selling in shares of technology and internet-related companies. US financial markets will be closed Thursday for the Thanksgiving Day holiday and see an early close Friday.

On the US data front, housing starts came in at a 1.228 million seasonally adjusted annual rate in October, while permits came in at a 1.263 million rate. Year-over-year, growth in housing starts has steadily slowed in 2018.