The benchmark indices further extended its losses during early afternoon trade. The Nifty index bounced slightly to trade above 15,600 level. The Nifty Realty scrips witnessed a sell-off for the third consecutive day.
At 12:20 IST, the barometer index, the S&P BSE Sensex, dropped 383.29 points or 0.73% at 52,195.47. The Nifty 50 index lost 110.70 points or 0.70% at 15,635.75.
In the broader market, the S&P BSE Mid-Cap index slipped 0.51% while the S&P BSE Small-Cap index skid 0.72%.
The market breadth was weak. On the BSE, 1,131 shares rose and 1,968 shares fell. A total of 101 shares were unchanged.
Economy:
According to Care Ratings, the country's gross domestic product (GDP) growth is likely to be 8.8% to 9% in the current financial year, driven by agriculture and industry sectors. The country's economy had contracted by 7.3% in fiscal 2020-21. The agency said the outlook for the Indian economy on almost all counts in FY22 would look seemingly better than FY21 on account of the negative base effect.
Meanwhile, the second wave of the pandemic has set back economic recovery in India, the IMF said, as it cut the country's growth forecast for the ongoing financial year. India's GDP is estimated to grow by 9.5% in FY22 compared to the 12.5% forecast in April 2021, according to the world economic outlook published by the IMF on Tuesday. For FY23, GDP is estimated to grow by 8.5% compared to 6.9% estimated in April.
The second wave of the pandemic has set back economic recovery in India, the IMF said, as it cut the country's growth forecast for the ongoing financial year.
While the forecast for the global economy remains unchanged from April, prospects for emerging market and developing economies have been marked down for 2021, especially for emerging Asia, according to the note. By contrast, the forecast for advanced economies is revised up.
Economic prospects have diverged further across countries, with vaccine access emerging as the principal fault line along which the global recovery splits into two blocsalmost all advanced economies that can look forward to further normalization of activity later this year and those that will still face resurgent infections and rising COVID-19 death tolls, the IMF said.
Coronavirus Update:
Total COVID-19 confirmed cases worldwide stood at 19,53,29,792 with 41,77,400 deaths. India reported 3,99,436 active cases of COVID-19 infection and 4,22,022 deaths while 3,06,63,147 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
India reported a single day rise of 43,654 COVID-19 cases and 640 deaths pushing the country's total tally to 3,14,84,605, according to the latest bulletin released by the health ministry on Wednesday.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, surged 13.01% to 14.9550. The Nifty 29 July 2021 futures were trading at 15,617.05, at a discount of 18.70 points as compared with the spot at 15,635.75.
The Nifty option chain for 29 July 2021 expiry showed maximum Call OI of 76.3 lakh contracts at the 15,700 strike price. Maximum Put OI of 64.4 lakh contracts was seen at 15,500 strike price.
Buzzing Index:
The Nifty Realty index fell 1.27% to 389.30. The index skid 2.92% in the last three sessions.
Indiabulls Real Estate (down 4.90%), Oberoi Realty (down 2.28%), DLF (down 1.71%), The Phoenix Mills (down 1.64%) and Sunteck Realty (down 1.52%) were the major losers in the Realty segment.
Stocks in Spotlight:
Bajaj Healthcare jumped 5.79% after the company said that its board will meet on Friday, 13 August 2021, to consider and approve sub-division/ stock-split of equity shares of the company.
InterGlobe Aviation (Indigo) declined 3.50% after the airliner's consolidated net loss stood rose to Rs 3,174.18 crore in Q1 FY22, higher than net loss of Rs 2,844.29 crore in Q1 FY21. Consolidated net sales surged 292.2% to Rs 3,006.91 crore in Q1 FY22 over Rs 766.74 crore in Q1 FY21. Pre-tax loss stood at Rs 3,174.18 crore in Q1 FY22 as against a pre-tax loss of Rs 2,842.58 crore in Q1 FY21.
During the quarter, the airline company posted an EBITDAR (earnings before interest, taxes, depreciation, amortisation and restructuring or rent costs) of Rs (1,360.20) crore with EBITDAR margin of (45.2)% as compared to EBITDAR of Rs (1,421.20) crore with EBITDAR margin of (185.4)% for the same period last year. Capacity for the quarter grew 433.2% as compared to the same period last year.
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