Don’t miss the latest developments in business and finance.

Nifty slips below 11,400; broader market trades strong

Image
Capital Market
Last Updated : Aug 21 2020 | 11:04 AM IST
Benchmarks came off early highs in morning trade as profit booking emerged at higher levels. The Nifty gave up the crucial 11,400 mark. The undertone, however, was upbeat amid positive global cues.

At 10:23 IST, the barometer index, the S&P BSE Sensex, added 269.53 points or 0.71% at 38,489.92. The Nifty 50 index added 80.45 points or 0.71% at 11,392.40.

The broader market was trading on a strong note. The S&P BSE Mid-Cap index surged 1.09% while the S&P BSE Small-Cap index rallied 1.29%.

There were more buyers than sellers. On the BSE, 1701 shares rose and 575 shares fell. A total of 133 shares were unchanged.

Economy:

The Reserve Bank of India on Thursday released the minutes of the monetary policy committee (MPC) meeting held from 4 to 6 August 2020. In its growth outlook, the MPC observed that the recovery in the rural economy is expected to be robust, buoyed by the progress in kharif sowing. Manufacturing firms responding to the Reserve Bank's industrial outlook survey expect domestic demand to recover gradually from Q2 and to sustain through Q1:2021-22.

On the other hand, consumer confidence turned more pessimistic in July relative to the preceding round of RBI's survey. External demand is expected to remain anaemic under the weight of the global recession and contraction in global trade. Taking into consideration the above factors, real GDP growth in Q2-Q4 is expected to evolve along the lines noted in the May resolution. For the year 2020-21, as a whole, real GDP growth is expected to be negative. An early containment of the COVID-19 pandemic may impart an upside to the outlook. A more protracted spread of the pandemic, deviations from the forecast of a normal monsoon and global financial market volatility are the key downside risks, it said.

COVID-19 Update:

More From This Section

Total COVID-19 confirmed cases worldwide stood at 22,678,483 with 7,92,708 deaths. India reported 6,92,028 active cases of COVID-19 infection and 54,849 deaths while 21,58,946 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Earnings Today:

Rossari Biotech was up 4.32% ahead of its first quarterly earnings post listing on 23 July 2020.

Indiabulls Housing Finance (up 1.35%), Kolte Patil Developers (up 2.38%), Punjab National Bank (up 3.27%), Oil India (up 1%) and Union Bank (up 1.84%) are some of the companies that will announce their results today.

Stocks in Spotlight:

GMM Pfaudler jumped 5.37% to Rs 6253.05. The company announced the signing of definitive agreements to acquire a majority stake in the global business of its parent, the Pfaudler Group from the private equity firm Deutsche Beteiligungs AG Fund VI (DBAG). As per the agreements, GMM (directly and through its subsidiary Mavag AG) and the Patel family will acquire, a 54% and 26% equity stake respectively in the Pfaudler Group. DBAG will continue to retain the balance 20% stake. The consideration for the 54% stake acquired by GMM, which is expected to be around $27.4 million, will be funded by the company through a mix of internal accruals and debt. Pursuant to the acquisition, GMM shall become the ultimate holding company with the entire business of Pfaudler being consolidated into the company. The company will have a consolidated revenue of Rs 2000 crore and EBITDA of approximately Rs 250 crore.

Premier Explosives hit an upper circuit of 5% at Rs 135.85 after the company said it received am order worth Rs 3.90 crore from Israel Aerospace Industries. The company will develop and supply EDRM Rocket Motors. The order is to be delivered within nine months

Thirumalai Chemicals fell 3.73% to Rs 73.4 amid profit taking after a recent steep surge. The stock surged 33.53% in the past three sessions to Rs 76.25 yesterday from its recent closing low of Rs 57.10 on 17 August 2020. During the same period, the S&P BSE Sensex and the S&P BSE SmallCap index added 0.45% and 3.22% respectively.

Powered by Capital Market - Live News

Also Read

First Published: Aug 21 2020 | 10:21 AM IST

Next Story