The equity barometers were trading near flat line with some positive bias in mid-morning trade. At 11:24 IST, the barometer index, the S&P BSE Sensex, was up 21.30 points or 0.06% at 34,890.28. The Nifty 50 index added 22.70 points or 0.22% at 10,328. Surging COVID-19 cases and an IMF downgrade to economic projections dented investors' confidence.
Investors were also cautious amid media reports that China has significantly ramped up its military presence in Pangong Tso, Galwan Valley and several points in eastern Ladakh. According to the reports, People's Liberation Army of China has increased its troops and weaponry along the Line of Actual Control in Arunachal Pradesh, Sikkim and Uttarakhand. India has rubbished China's claim of sovereignty over the Galwan Valley, and said that unilateral attempt to change status quo on LAC will not be accepted.
In the broader market, the S&P BSE Mid-Cap index rose 0.25% while the S&P BSE Small-Cap index gained 0.38%.
The market breadth was positive. On the BSE, 1383 shares rose and 940 shares fell. A total of 102 shares were unchanged.
Trading may turn volatile as traders roll over positions in the F&O segment from the near month June series to July series. The June 2020 F&O contracts expires today, 25 June 2020.
IMF World Economic Outlook:
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The International Monetary Fund (IMF) on June 24 projected a sharp contraction of 4.5% for the Indian economy in 2020, a historic low, citing the unprecedented coronavirus pandemic that has nearly stalled all economic activities, but said the country is expected to bounce back in 2021 with a robust 6% growth rate.
The IMF projected the global growth at -4.9% in 2020, 1.9 percentage points below the April 2020 World Economic Outlook (WEO) forecast. Given the unprecedented nature of this crisis, as is the case for almost all countries, this projected contraction is a historic low, Gita Gopinath, IMF's Chief Economist, said as she released the World Economic Outlook Update.
Covid-19 Update:
India reported 1,86,514 active cases of COVID-19 infection and 14,894 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India. Total coronavirus cases worldwide stood at 9,430,384 far with 482,752 deaths, according to data from Johns Hopkins University.
Buzzing Index:
The Nifty PSU Bank index added 0.61% to 1,506. The index had lost 1.78% yesterday.
Among the index constituents, Jammu and Kashmir Bank (up 4.76%), Punjab & Sind Bank (up 3.23%), Bank of India (up 2.55%), Indian Overseas Bank (up 2.29%), CBI (up 1.72%), Bank Of Baroda (up 1.26%), Union Bank of India (up 1.22%), SBI (up 0.89%), UCO Bank (up 0.72%), Bank of Maharashtra (up 0.45%) advanced while Indian Bank lost 1.30%.
Canara Bank tumbled 4.02% to Rs 105.05 after the bank reported net loss of Rs 3,259.33 crore in Q4 March 2020 as against net loss of Rs 551.53 crore in Q4 March 2019.
Total income rose 1.6% to Rs 14,222.39 crore in Q4 March 2020 over Rs 14,000.43 crore in Q4 March 2019. Non-Interest Income (NII) jumped 16.8% to Rs 2,175 crore as at Q4 FY20 over Q4 FY19. Provisions and contingencies slipped 2.68% to Rs 5,375.38 crore in Q4 March 2020 over Rs 5,523.50 crore in Q4 March 2019.
The ratio of gross NPAs to gross advances stood at 8.21% as on 31 March 2020 as against 8.36% as on 31 December 2019 and 8.83% as on 31 March 2019. The ratio of net NPAs to net advances stood at 4.22% as on 31 March 2020 as against 5.05% as on 31 December 2019 and 5.37% as on 31 March 2019.
Global Markets:
Asian stocks mostly declined on Thursday after a sharp retreat overnight on Wall Street as new coronavirus cases in the U.S. climbed to their highest level in two months. Markets in Hong Kong, Taiwan and Shanghai were closed for holidays.
The rise in new infections is stoking worries that reopenings of businesses closed earlier to fight the pandemic may have to be curtailed, despite indications that economies are recovering from lockdowns that are being eased in countries across the globe.
The US stock market finished session lower on Wednesday, 24 June 2020, as investor sentiment was dampened by reports showing the increase in number of newly confirmed coronavirus cases and as the US signalled possible new tariffs on European goods.
The U.S. Trade Representative said it was weighing new tariffs on US$3.1 billion (RM13.2 billion) in European goods amid a dispute over subsidies to planemaker Airbus, ratcheting up a fresh trade war tensions with the European Union. The Trump administration also has been threatening to reimposing tariffs on imports of aluminum from Canada on July 1 as the new USMCA, or the United States Mexico Canada Agreement, which replaced the North American Free Trade Agreement, is set to take effect.
Meanwhile, public health officials are growing increasingly worried about higher coronavirus counts in many states in the southern and western United States. New York, New Jersey and Connecticut announced 14-day quarantines on Wednesday on visitors from states with high COVID-19 infection rates. The travel advisory, which impacts residents of nine states, raises concerns about the pace of business activity resuming after lockdowns imposed to contain the spread of the pandemic.
In Texas, which had been among the most aggressive states in reopening, Governor Greg Abbott told a television interview that the "safest" place was home unless people had to go out.
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