MARKET: Sensex erases day's gains, ends 52 pts lower; Bharti Airtel dips 3%

All that happened in the markets today

10:58 AM

Fitch revises India GDP forecast for FY21 to -10.5% from -5% earlier

Fitch has sharply lowered its forecast for India’s gross domestic product (GDP) growth for the current fiscal 2020-21 (FY21) and now expects the country’s GDP to contract 10.5 per cent versus its earlier estimate of 5 per cent contraction in this period. This, at a time, when the rating agency has revised upwards, albeit modestly, its forecast for global GDP – from the earlier estimated fall of 4.6 per cent to 4.4 per cent now. READ MORE

10:57 AM

BROKERAGE VIEW:: Edelweiss Securities on Metals & Mining sector

China’s trade data for August-20 shows continued strength in its economy. Key highlights: i) Unwrought/semis copper imports surged 66% YoY to 668kt. ii) Steel exports slipped 27% YoY to 3.7mt. iii) An increase of 5% YoY in iron ore imports. That said, certain data points warrant caution: i) MoM decline in copper and iron ore imports; ii) an uptick in aluminium exports; and iii) a steady pile-up of steel inventories. This may well be due to the slightly weaker industrial activity in the wake of floods in south-west China and the narrowing arbitrage window in aluminium and copper owing to the uptick in LME prices in August-20. We will keep close tabs on industrial data to be released later this month and upcoming trade data. On balance, we maintain the positive view on the sector with Tata Steel (TP: Rs 500, 6.4x FY22E EBITDA) as the preferred pick.

10:46 AM

Index check :: Nifty Bank index up nearly 200 pts from day's low

10:40 AM

BROKERAGE VIEW:: ICICI Securities on Repco Home

RATING: BUY | TARGET PRICE: Rs 248

Growth will be modest and the consolidation phase would continue for some time. However, capital adequacy at 26%, cumulative provisions at 1.8% of AUM and collateralised lending would sufficiently absorb asset quality volatility. Intrinsic value of the franchise and the company being a potential acquisition candidate can drive further rerating. Maintain BUY.

10:33 AM

NEWS ALERT :: FY21 GDP to contract 11.8%, says India Ratings

>> The quantum of negative gross domestic product growth of 23.9% recorded in 1QFY21 is much higher than India Ratings and Research’s forecast of 17.0%, because of the impact of the Covid-19 pandemic and resultant lockdown. The agency has, therefore, revised its FY21 GDP growth forecast further downward to negative 11.8% from negative 5.3%

>> The negative 23.9% growth in 1QFY21 is the first contraction in quarterly GDP data series which have been made available in the public domain since 1QFY98. The economic loss in FY21 is estimated to be Rs 18.44 trillion.

>> GDP is expected to rebound and grow at 9.9% yoy in FY22 mainly due to the weak base of FY21.

10:26 AM

Sensex at day's high

10:22 AM

Ashoka Buildcon surges 8% after Co emerges lowest bidder for NHAI projects

The company, which is engaged in the construction of roads and highway projects, said the first project comprises a proposal for the four laning of Arrah to Pararia section of NH-319(Old NH-30) from Km 0+000 to Km 54+530 (Design Chainage) in Bihar under Bharatmala Pariyojana phase -1 on EPC mode (Package-I). READ MORE

10:15 AM

HDFC's all-time low core valuations offer an interesting proposition

Housing Development Finance Corporation (HDFC Ltd) announced over the weekend that it had approved the deployment of Rs 47,000 crore towards affordable housing. Given that HDFC is often viewed as a firm catering to the mid-to-upper market, this marks a significant change. Higher loans to the affordable housing segment mark its faster penetration into the space. The stock traded in the green on Monday, even though the rise was less than 1 per cent. READ MORE

10:05 AM

Rupee opening

Rupee opens lower at 73.64/$ vs Monday's close of 73.34 against the US dollar

10:03 AM

MARKET UPDATE:: Sensex holds slim opening gains

9:55 AM

Bharat Dynamics slips 14% as government's stake sale via OFS begins

Shares of Bharat Dynamics slipped 14 per cent to Rs 333 on the BSE on Tuesday as the government's 15 per cent stake sale in the company via offer for sale (OFS) route opened for non-retail investors today. The floor price for the OFS has been fixed at Rs 330 per share, a 14 per cent discount to Monday’s closing price of Rs 385. READ MORE

9:48 AM

New margin norms may give boost to dabba trading

The Securities and Exchange Board of India’s (Sebi’s) new margin norms may spur ‘dabba trading’ in equities — a parallel market where trades are done based on prices quoted on exchanges but settled in cash off-market. The rise in futures and options (F&O) contract sizes, along with higher margin requirements, has goaded investors to move to this platform since the past year, said market players. They added that the requirement for upfront margins could push more investors to this segment. READ MORE 

9:44 AM

BUZZING STOCK:: Shriram City Union Finance gains 5% in an otherwise flat market

9:33 AM

IRCTC rises nearly 2%

9:31 AM

InterGlobe Aviation up over 3%