Key benchmarks extended losses and hit fresh intraday low in mid-morning trade. The Nifty slipped below its 200 days simple moving average placed at 11,268.85. At 11:31 IST, the barometer index, the S&P BSE Sensex, was down 259.32 points or 0.68% at 37,918.63. The Nifty 50 index was down 77.70 points or 0.69% at 11,235.60.
The S&P BSE Mid-Cap index was down 0.79%. The S&P BSE Small-Cap index was down 0.34%.
The market breadth was tilted in favour of sellers. On the BSE, 792 shares rose and 1160 shares fell. A total of 125 shares were unchanged. In Nifty 50 index, 14 stocks advanced and 36 stocks declined.
Moody's Investors Service on Thursday cut India's gross domestic product (GDP) growth forecast for 2019-20 to 5.8% from the earlier estimate of 6.2%. It attributed the deceleration to an investment-led slowdown that has broadened into consumption, driven by financial stress among rural households and weak job creation. It expects growth to pick up to 6.6% in FY21 and around 7% over the medium term.
On 4 October 2019, the Reserve Bank of India (RBI) cut its FY20 GDP growth rate forecast sharply to 6.1% from 6.9%.
DHFL slumped 8.25% on reports Edelweiss Asset Management has approached the Bombay High Court to recover its dues of around Rs 70 crore from DHFL.
Piramal Enterprises slumped 4.86%. The company announced that it filed complaint with Securities and Exchange Board of India (Sebi) regarding misleading rumors about the company's financial services business.
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The firm said total borrowings in the financial services business stands at about Rs 39,000 crore currently, which is about 75% of the loan book. Financial services business received total inflows (including borrowings, asset inflows) of about Rs 45,000 crore in the past one year, which comprises of about 85% of the loan book as of September 2018.
It disbursed about Rs 19,000 crore in the past one year, of which around Rs 5,000 crore was disbursed towards housing finance (retail). The company repaid debt obligations of around Rs 30,000 crore in the past one year, of which about Rs 5,300 crore was repaid in Q2 FY2020.
Promoter holding in PEL remains at 46%-highest among sizeable financial services institutions in India.
Shares of Piramal Enterprises have slumped 16.57% to its current market price of Rs 1332 in three trading session from its previous closing high of Rs 1596.60 on 4 October 2019.
Shares of two telecom firms advanced after rival Reliance Jio Infocomm started charging for voice calls made to subscribers of other telcos. Shares of Vodafone Idea rose 3.60% to Rs 6.05, while shares of Bharti Airtel rose 4.57% to Rs 375.65.
Telecom shares surged amid hopes that the price hike could possibly herald an end in India's bruising telecom price war unleashed by the entry of Reliance Jio. Forced by regulatory uncertainty, Mukesh Ambani's unlisted telecom firm Reliance Jio Infocomm on Wednesday announced that it will charge customers 6 paise per minute for voice calls made to rival phone networks, but will compensate them by giving free data of equal value.
The S&P BSE Telecom index soared 8.31% in three trading sessions to its current 973.51 points, from a recent closing low of 898.78 points on 4 October 2019.
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