The benchmarks corrected today after rising in the past nine sessions. Profit booking emerged after International Monetary Fund (IMF) slashed India's economic growth forecast in the wake of the coronavirus pandemic.
In the broader market, the S&P BSE Mid-Cap index fell 0.15% while the S&P BSE Small-Cap index lost 0.52%.
The market breadth was weak. On the BSE, 930 shares rose and 1565 shares fell. A total of 170 shares were unchanged.
COVID-19 Update:
India reported 826,876 active cases of COVID-19 infection and 110,586 deaths while 6,301,927 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India. Total COVID-19 confirmed cases worldwide stood at 38,066,297 with 1,085,411 deaths, according to data from Johns Hopkins University.
Economy:
The annual rate of inflation, based on monthly Wholesale Price Index (WPI), stood at 1.32% (provisional) for the month of September 2020 (over September 2019) compared with 0.33% during the corresponding month of the previous year.
Meanwhile, the International Monetary Fund (IMF) on Tuesday said it expects India's gross domestic product (GDP) to decline by 10.3% in FY21. It is expected to rebound by 8.8% in 2021. The IMF has revised India's GDP growth, since its June forecast of a 4.5% drop, while reflecting a severe-than-anticipated contraction in economic activities in Q1 FY21, amid the nationwide lockdown due to the COVID-19 pandemic.
Gainers & Losers:
Bajaj Finserv (up 2.16%), UltraTech Cement (up 1.44%), Britannia Industries (up 1.23%) and Tata Steel (up 1.06%) were top gainers in Nifty 50 index.
NTPC (down 4.84%), Coal India (down 3.43%), ONGC (down 3.26%) and Tata Motors (down 3.17%) were top losers in Nifty 50 index.
Earnings Impact:
Wipro lost 5.96%. The company's consolidated net profit declined 3.41% to Rs 2,465.70 crore on 0.07% fall in revenues to Rs 15,114.50 crore in Q2 September 2020 over Q2 September 2019. Sequentially, consolidated net profit rose 3.02% and revenue increased 1.35% in Q2 September 2020 (Q2FY20) over Q1 June 2020 (Q1FY20). The result was announced after market hours yesterday, 13 October 2020.
Tata Steel Long Products hit an upper circuit of 20% at Rs 403.20 after the company reported a consolidated net profit of Rs 59.06 crore in Q2 FY21 as against a net loss of Rs 188.48 crore in Q2 FY20. Net sales during the quarter jumped 52.5% year-on-year (YoY) to Rs 1185.86 crore in Q2 FY21.
Karnataka Bank added 3.69% after the bank reported 12.8% rise in net profit to Rs 119.44 crore on 1.6% increase in total income to Rs 1933.52 crore in Q2 September 2020 over Q2 September 2019. The ratio of gross NPAs to gross advances stood at 3.97% on 30 September 2020 as against 4.64% as on 30 June 2020 and 4.78% as on 30 September 2019. The ratio of net NPAs to net advances stood at 2.21% as on 30 September 2020 as against 3.01% as on 30 June 2020 and 3.48% as on 30 September 2019. The bank's net interest income (NII) rose by 15.27% to Rs 574.87 crore in Q2 September 2020 over Q2 September 2019. Net Interest Margin (NIM) improved to 3.08% in Q2 September 2020 from 2.82% in Q2 September 2019.
Stocks in Spotlight:
Glenmark Pharmaceuticals fell 3.57%. The company said it launched NINDANIB (Nintedanib 100 and 150 mg capsules) for the treatment of pulmonary fibrosis in India. Nintedanib is approved by the Indian drug regulator for the treatment of Idiopathic (unknown cause) Pulmonary Fibrosis (IPF). Pulmonary fibrosis (PF) is a respiratory condition characterized by the thickening and/or scarring of the lungs.
Future Enterprises (FEL) fell 3.87% after the company defaulted on payment of interest on non-convertible debentures (NCDs) worth Rs 15.14 crore which was due on 12 October 2020. The obligation had a coupon rate of 10.15% per annum and was paid on half-yearly basis on April 11 and October 11 each year. The disclosure was made after market hours yesterday, 13 October 2020.
SPARC lost 0.3%. The company announced positive top-line results from pivotal phase 3 clinical trial of its investigational drug for treating inflammation and pain associated with ocular surgery.
Global Markets:
European markets opened mildly higher while Asian markets were mixed on Wednesday.
The US stock market finished session lower on Tuesday, 13 October 2020, as investors elected to book profit following the strong upward move seen over the past several sessions and as stalemate in fiscal stimulus negotiations continued. Negative sentiment was also generated in reaction to news that Johnson & Johnson has paused a late-stage trial of its Covid-19 vaccine candidate due to an unexplained illness in a study participant.
Uncertainty about a new stimulus bill also weighed on Wall Street, as House Speaker Nancy Pelosi continued her attacks on the White House's latest offer in a letter to her Democratic colleagues, claiming the proposal "falls significantly short of what this pandemic and deep recession demand." "Significant changes must be made to remedy the Trump proposal's deficiencies," Pelosi added while saying she remains "hopeful that the White House will finally join us to recognize the needs of the American people."
On the economic front, US consumer price index rose by 0.2% in September after climbing by 0.4% in August, according to a report released by the Labor Department on Tuesday.
As per the latest forecast from IMF, the global economy is now projected to contract by 4.4% in 2020 - an upward revision from an estimate of approximately 4.9% made in June.
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