The domestic equity benchmarks trimmed losses in mid-morning trade. PSU banks witnessed some value buying after plunging nearly 7% in the past three sessions.
At 11:27 IST, the barometer index, the S&P BSE Sensex, was down 307.90 points or 0.64% to 48,039.69. The Nifty 50 index lost 85.40 points or 0.60% to 14,153.50.
Investor sentiment was dented after the new coronavirus variant resulted in fresh lockdowns and other restrictions on movement in certain counties across the globe. However, the COVID-19 vaccine rollout in many countries offered some respite.
The Federal Open Market Committee (FOMC) monetary policy decision and the briefing by Chair Jerome Powell will remain on investor's radar today.
Domestic shares were also under pressure ahead of monthly derivatives expiry on Thursday and the upcoming Union Budget.
In the broader market, the S&P BSE Mid-Cap index slipped 0.16% while the S&P BSE Small-Cap index added 0.16%.
The market breadth was negative. On the BSE, 1121 shares rose and 1471 shares fell. A total of 131 shares were unchanged.
Economy:
The International Monetary Fund (IMF) IMF on Tuesday raised its forecast for global economic growth in 2021 and said the coronavirus-triggered downturn in 2020 would be almost a full percentage point less severe than expected. It said multiple vaccine approvals and the unveiling of vaccinations in some countries in December had boosted hopes of an eventual end to the pandemic.
IMF projected an impressive 11.5% growth rate for India in 2021, making the country the only major economy of the world to register a double-digit growth this year amidst the coronavirus pandemic.
The IMF's growth projections for India in its latest World Economic Outlook Update released on Tuesday reflected a strong rebound in the economy, which is estimated to have contracted by 8% in 2020 due to the pandemic.
India's economy, the IMF said, is projected to grow by 6.8% in 2022 and that of China by 5.6%. With the latest projections, India regains the tag of the fastest developing economies of the world.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 100,248,229 with 2,156,941 deaths. India reported 176,498 active cases of COVID-19 infection and 153,724 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.
A total of 20,29,424 beneficiaries have so far been vaccinated for COVID-19 through 36,572 sessions held till the evening of January 26, the eleventh day of the immunisation drive, according to a provisional report of the Union Health Ministry.
Primary Market:
The initial public offer (IPO) of Stove Kraft received bids for 86.65 lakh shares as against 58.94 lakh shares on offer on Monday (25 January 2021), according to the stock exchange data at 11:00 IST. The issue was subscribed 1.47 times. The issue opened for subscription today (25 January 2021) and it will close on Thursday (28 January 2021).
Buzzing Index:
The Nifty PSU Bank index rose 1.03% to 1,862.85. The index declined by 6.91% in the past three sessions.
Canara Bank (up 3.14%), Bank of Maharashtra (up 2.21%), Bank of Baroda (up 1.62%), UCO Bank (up 1.15%) and SBI (up 1.14%) advanced.
CBI (down 1.87%), Indian Overseas Bank (down 1.42%), Indian Bank (down 0.89%) and Union Bank of India (down 0.33%) declined.
Earnings impact:
ICICI Securities fell 5.22% to Rs 422.70. On a consolidated basis, ICICI Securities reported 94.6% jump in net profit to Rs 267 crore on 46.7% rise in total income to Rs 620 crore in Q3 December 2020 over Q3 December 2019.
The company said its Q3 performance was aided by strong all round performance in equities & allied business, distribution business, private wealth management business, as well as investment banking business. Profit was boosted on account of growth in revenue and improvement in margins.
Astec Lifesciences slumped 11.29% to Rs 1062.65 after consolidated net profit dropped 42% to Rs 7.06 crore on 7.1% fall in net sales to Rs 116.01 crore in Q3 December 2020 over Q3 December 2019.
Global Markets:
Asian stocks were mixed on Wednesday. In US, the S&P and Nasdaq slipped on Tuesday from record closing levels as investors digested a batch of corporate earnings results, while an expected policy announcement from the Federal Reserve on Wednesday helped to limit moves.
The Biden administration signaled Tuesday that it could be open to tweaking eligibility for future stimulus checks. President Joe Biden's $1.9 trillion proposal calls for $1,400 direct deposits, but the plan has drawn critiques from a bipartisan group of lawmakers because of its lofty price tag.
Investors were also waiting for a new policy statement from the Federal Reserve as the central bank began its two-day meeting on Tuesday. Former Fed Chair Janet Yellen was confirmed as Treasury secretary, becoming the first woman to hold the position.
On the coronavirus front, Moderna said Monday that its vaccine does provide some protection against a variant found in South Africa, while officials in Minnesota reported the first U.S. confirmed case of a strain found in Brazil.
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