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Market slumps in early trade

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Capital Market
Last Updated : May 14 2020 | 9:50 AM IST

Indian indices opened with sharp losses on weak global cues. At 9:15 IST, the barometer index, the S&P BSE Sensex, was down 446.58 points or 1.4% at 31,562.03. The Nifty 50 index was down 121.20 points or 1.29% at 9,262.35.

The S&P BSE Mid-Cap index was up 0.24%. The S&P BSE Small-Cap index was down 0.1%.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 543 shares rose and 694 shares fell. A total of 58 shares were unchanged.

Finance Minister announces liquidity measures:

Finance Minister Nirmala Sitharaman briefed the media on Wednesday (13 May) to share details of the Rs 20 lakh crore package announced by Prime Minister Narendra Modi on Tuesday to tackle the impact of coronavirus.

The government will provide collateral-free automatic loan up to Rs 3 lakh crore for the Micro, Small & Medium Enterprises (MSME) with a time frame of 4 years with a 12 month moratorium period. 45 lakh MSMEs will benefit from this scheme. Eligible must have turnover of Rs 100 crore.

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The government will facilitate provisions of Rs 20,000 crore as subordinate debt for stressed MSMEs.

FinMin also announced Rs 50,000 crore equity infusion for MSMEs (who may be doing viable business but need handholding because of current situation) through Fund of Funds; to be operated through a Mother Fund and few daughter funds. This will help to expand MSME size as well as capacity.

Key equity indices ended with strong gains on Wednesday as PM Modi's Rs 20 lakh crore economic stimulus package boosted investor sentiment. Gains in banks and auto stocks pushed the indices higher. The barometer S&P BSE Sensex jumped 637.49 points or 2.03% at 32,008.61. The Nifty 50 index gained 187 points or 2.03% at 9,383.55.

Foreign portfolio investors (FPIs) sold shares worth Rs 283.43 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 232.65 crore in the Indian equity market on 13 May, provisional data showed.

Stocks in news:

Maruti Suzuki India declined 1.39%. Maruti Suzuki India said that the board has approved acquisition of 39.13% equity stake from Sumitomo Corporation, Japan and 10% equity stake from Sumitomo Corporation India held in J.J. Impex (Delhi).

Infosys lost 4.03%. Infosys and NICE Actimize, a NICE business and a leader in Autonomous Financial Crime Management, announced the expansion of their strategic collaboration. This global partnership will allow Infosys to offer its best-in-class delivery capabilities and resell NICE Actimize's end-to-end financial crime software solutions through either a cloud or on-premises environment to a growing customer base around the world.

ABB India fell 0.97%. ABB India reported 44.37% drop in net profit to Rs 64.64 crore on 14.33% fall in total income to Rs 1,624.81 crore in Q1 March 2020 over Q1 March 2019.

Siemens dropped 2.42%. Siemens reported 38.18% drop in consolidated net profit to Rs 175.70 crore on 20.26% fall in total income to Rs 2,919.90 crore in Q2 March 2020 over Q2 March 2019.

Godrej Properties fell 1.52%. Godrej Properties reported 35.48% drop in consolidated net profit to Rs 101.08 crore on 7.06% rise in total income to Rs 1,288.17 crore in Q4 March 2020 over Q4 March 2019.

PNC Infratech rose 4.99%. PNC Infratech said that NHAI has declared the company as lowest bidder for a highway project in Uttar Pradesh under Bharatmala Pariyojana on Hybrid Annuity Mode (HAM) for Rs 1,412 crore.

Global Markets:

Overseas, Asian stocks are trading lower on Thursday as a data release showed employment in Australia falling in April.

On the economic data front, seasonally adjusted employment in Australia fell by 594,300 people in April as compared to March, according to data released by the country's Bureau of Statistics on Thursday. P> In US, stock benchmarks closed sharply lower Wednesday as Wall Street digested a grim near-term economic outlook from Federal Reserve Chairman Jerome Powell and as state and federal officials attempt to restart businesses from a coronavirus-induced lockdown.

The moves came as U.S. Federal Reserve Chairman Jerome Powell said Wednesday that more may need to be done to support the economy. While the economic response has been both timely and appropriately large, it may not be the final chapter, given that the path ahead is both highly uncertain and subject to significant downside risks, Powell said.

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First Published: May 14 2020 | 9:33 AM IST

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