Key barometers were trading with steep losses in early afternoon trade. At 12:31 IST, the barometer index, the S&P BSE Sensex, was down 575.17 points or 1.71% at 32,963.20. The Nifty 50 index lost 166.80 points or 1.68% at 9,735.20.
Banks shares saw mild recovery after the Supreme Court in its hearing today (12 June) indicated that it was not considering a complete waiver of interest but was only concerned that postponement of interest should not accrue further interest on it. The Nifty Bank index regained 20,000 mark after falling as much as 19,526.10 in morning trade.
The apex court was hearing a petition seeking a waiver of interest during the period of moratorium on loan repayments. The Reserve Bank of India (RBI) granted a moratorium on loans instalments due between March 1 and May 31, which was later extended till August 31.
SC today reportedly asked Solicitor General Tushar Mehta to convene a meeting of the Finance Ministry and the Reserve Bank of India (RBI) officials over the weekend to decide whether interest incurred on EMIs during the moratorium period can be charged by banks.
The top court said these are not normal times, and it is a serious issue, as on one hand moratorium is granted and then, the interest is charged on loans during this period.
The Nifty 50 index hit a low of 9,544.35 in early trade as US stocks crashed overnight as cautious commentary from the Federal Reserve and rising coronavirus infection rates prompted investor concern. The Nifty bounced back from its 20-day moving average (DMA) placed at 9,575.61, which will act as near term support level.
In the broader market, the S&P BSE Mid-Cap index fell 1.06% while the S&P BSE Small-Cap index declined 1.44%.
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The market breadth is weak. On the BSE, 609 shares rose and 1065 shares fell. A total of 120 shares were unchanged.
Investors remained cautious of the rising coronavirus cases in the country. India reported 1,41,842 active cases of COVID-19 infection and 8,498 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.
Meanwhile, total coronavirus cases worldwide stood at 75,14,475 far with 4,21,456 deaths, according to data from Johns Hopkins University.
Buzzing Index:
The Nifty Pharma index shed 0.67% to 9,866.90. The index has lost 2.78% in two sessions.
Aurobindo Pharma (down 2.11%), GlaxoSmithKline Pharmaceuticals (down 1.48%), Strides Pharma Science (down 1.44%), Abbott India (down 1.33%), Lupin (down 1.07%), Cadila Healthcare (down 1.03%), Dr Reddy's Laboratories (down 0.99%), Cipla (down 0.54%), Divi's Laboratories (down 0.48%), IPCA Laboratories (down 0.46%), Alkem Laboratories (down 0.06%) declined.
Wockhardt (up 2.63%), Glenmark Pharmaceuticals (up 1.43%), Sun Pharmaceutical Industries (up 0.7%) and Piramal Enterprises (up 0.63%) advanced.
Earnings impact:
Dixon Technologies (India) rose 3.70% to Rs 5160.55 after consolidated net profit jumped 66.8% to Rs 27.58 crore on 0.2% decline in net sales to Rs 857.41 crore in Q4 March 2020 over Q4 March 2019. Consolidated EBITDA jumped 42% to Rs 55.85 crore in Q4 FY20 over Q4 FY19. EBITDA margin improved to 6.5% during the quarter ended on 31 March 2020 from 4.6% reported for the quarter ended on 31 March 2019.
E.I.D.-Parry (India) fell 3.27% to Rs 222 after the company reported 46.7% fall in standalone net profit to Rs 68.84 crore on a 8% rise in net sales to Rs 608.35 crore in Q4 March 2020 over Q4 March 2019.
IIFL Wealth Management lost 1.49% to Rs 958 after the company reported a consolidated net loss of Rs 2.96 crore in the fourth quarter. The firm had reported a consolidated net profit of Rs 83.53 crore in the corresponding period last year. Total income rose 17.8% to Rs 433.06 crore in Q4 FY20 over Q4 FY19.
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