Key benchmark indices are trading lower in early trade as trading resumed after a local holiday. At 9:25 IST, the barometer index, the S&P BSE Sensex, was down 184.42 points or 0.38% at 48,163.17. The Nifty 50 index was down 59.85 points or 0.42% at 14,179.05. Asian stocks are trading mixed.
The S&P BSE Mid-Cap index was off 0.66%. The S&P BSE Small-Cap index was down 0.61%.
The market breadth, indicating the overall health of the market, is weak. On the BSE, 695 shares rose and 1183 shares fell. A total of 95 shares were unchanged.
World Economic Outlook:
In its latest World Economic Outlook published Tuesday, the IMF now expects the global economy to grow 5.5% this year. That's a 0.3 percentage point increase from October's forecasts. Much now depends on the outcome of this race between a mutating virus and vaccines to end the pandemic, and on the ability of policies to provide effective support until that happens, IMF said.
On the macro front, India's gross domestic product (GDP) is expected to contract by 8% in 2020-21, according to the latest round of FICCI's Economic Outlook Survey. The annual median growth forecast by the industry body is based on responses from leading economists representing industry, banking and financial services sector. The survey was conducted in January.
The IMF on Tuesday 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 International Monetary Fund'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.
Stocks in news:
Shares of L&T rose 0.68%. On a consolidated basis, the infrastructure major's net profit rose 4.87% to Rs 2466.71 crore on 1.78% decline in revenue from operations to Rs 35,596.42 crore in Q3 December 2020 over Q3 December 2019. Profit before tax (PBT) rose 14.18% year-on-year to Rs 3,680.50 crore in Q3 December 2020. Total tax expense for the quarter jumped 46.37% to Rs 1,040.75 crore as against Rs 711 crore in Q3 December 2019.
The consolidated order book of the group stood at a record Rs 331,061 crore as at 31 December 2020, registering a robust growth of 9% over the March 2020 level. The international orders constitute 20% of the total order book.
ICICI Securities lost 4.23%. The company reported 94.58% rise in consolidated net profit to Rs 267.02 crore on a 46.68% rise in total income to Rs 619.97 crore in Q3 December 2020 over Q3 December 2019.
RPG Life Sciences rose 2.39% after the company reported 62.71% jump in consolidated net profit to Rs 12.87 crore on a 14.1% rise in total income to Rs 107.72 crore in Q3 December 2020 over Q3 December 2019.
Astec Lifesciences slumped 11.04% after the company reported 41.94% drop in consolidated net profit to Rs 7.06 crore on a 7.36% fall in total income to Rs 119.28 crore in Q3 December 2020 over Q3 December 2019.
Sharda Cropchem rose 2.63% after the company reported 724.4% jump in consolidated net profit to Rs 48.31 crore on a 27.53% rise in total income to Rs 503.54 crore in Q3 December 2020 over Q3 December 2019.
Global Markets:
Overseas, Asian stocks were mixed on Wednesday as the International Monetary Fund (IMF) raised its growth forecast for the global economy this year.
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.
Back home, the domestic equity benchmarks tumbled on Monday, dragged by Reliance Industries and IT pivotals. The barometer index, the S&P BSE Sensex, tumbled 530.95 points or 1.09% to 48,347.59. The Nifty 50 index lost 133 points or 0.93% to 14,238.90.
The domestic equity market were shut on Tuesday, 26 January 2021, on account of Republic Day.
Foreign portfolio investors (FPIs) sold shares worth Rs 765.30 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 387.76 crore in the Indian equity market on 25 January, provisional data showed.
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