Key benchmarks extended fall in mid-morning trade. At 11:27 IST, the S&P BSE Sensex, fell 165.34 points or 0.39% at 41,367.57. The Nifty 50 index was down 47.7 points or 0.39% at 12,176.85.
Market sentiment was affected by the International Monetary Fund (IMF) lowering India's growth forecast. Subdued quarterly results by key index constituents and negative global cues also put pressure on domestic shares.
The broader market also faced selling pressure. The S&P BSE Mid-Cap index was down 0.31% while the S&P BSE Small-Cap index inched 0.09% lower.
The market breadth, indicating the overall health of the market, turned negative. On the BSE, 824 shares rose and 1261 shares fell. A total of 154 shares were unchanged. In Nifty 50 index,16 stocks advanced while 34 stocks declined.
Q3 Results:
Monnet Ispat & Energy was locked in a 5% lower circuit at Rs 14.23 after the company reported net loss of to Rs 137.15 crore in Q3 December 2019, higher than net loss of Rs 77.66 crore in Q3 December 2018. Net sales rose 16% to Rs 570.17 crore in Q3 December 2019 over Q3 December 2018. Total expenditure rose 28.4% to Rs 607.98 crore in Q3 December 2019 over Q3 December 2018, primarily on account of sharp rise in inventories as they stood at Rs 74.44 crore as on 31 December 2019.
HFCL declined 1.73% to Rs 17.05 after consolidated net profit fell 31.8% to Rs 46.08 crore on 30.1% decrease in net sales to Rs 853.47 crore in Q3 December 2019 over Q3 December 2018. Consolidated profit before tax witnessed a 27.3% drop to Rs 69.78 crore in Q3 December 2019 as against Rs 95.97 crore in Q3 December 2018. Tax expense slipped 29% to Rs 11.98 crore in Q3 December 2019 over Q3 December 2018. The Q3 earnings was declared after trading hours yesterday, 20 January 2020
Can Fin Homes advanced 4.29% to Rs 406.05. The housing financier's net profit surged 40.6% to Rs 106.61 crore in Q3 December 2019 as compared to Rs 75.82 crore reported in Q3 December 2018. The company reported profit before tax (PBT) of Rs 145.57 crore in Q3 December 2019, up by 20.4% from Rs 120.89 crore in Q3 December 2018. Net Interest Income (NII) increased to Rs 168.63 crore in Q3 December 2019 from Rs 156.11 crore in Q2 September 2019 and Rs 136.11 crore in Q3 December 2018. Net interest income is difference between interest earned and interest expended.
Stocks in Spotlight:
Info Edge surged 1.39% to Rs 2625 after food delivery major Zomato signed a purchase agreement with Uber Eats India. Info Edge has a 22% stake in Zomato. Uber Eats India is Uber's food delivery business.
NBCC (India) gained 1.20%. The firm said it received a letter of acceptance from Central Coalfield (CCL) to provide project management consultancy services for construction of smart township/colony roads, network and other road, services buildings and other allied jobs related to mines for Magadh and Amrapali area, Jharkhand. The estimated project cost is Rs 720.32 crore.
Economy:
The International Monetary Fund (IMF) on Monday (20 January) said global growth, estimated at 2.9% in 2019, is projected to increase to 3.3% in 2020 and inch up further to 3.4% in 2021. Compared to the October World Economic Outlook (WEO) forecast, the estimate for 2019 and the projection for 2020 represent 0.1% reductions for each year while that for 2021 is 0.2% lower. A more subdued growth forecast for India accounts for the lion's share of the downward revisions.
India's growth is estimated at 4.8% in 2019, projected to improve to 5.8% in 2020 and 6.5% in 2021 (1.2 and 0.9 percentage point lower than in the October WEO), supported by monetary and fiscal stimulus as well as subdued oil prices. India's domestic demand has slowed more sharply than expected amid stress in the non bank financial sector and a decline in credit growth, IMF said.
Foreign Markets:
Most Asian stocks were trading lower on Tuesday after IMF cut its global growth forecasts, primarily due to a sharp slowdown in emerging markets.
In US, markets were closed for a holiday in observance of Martin Luther King Jr. Day.
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