Key indices are trading lower in early trade on negative Asian stocks. At 9:25 IST, the barometer index, the S&P BSE Sensex, was down 181.13 points or 0.52% at 34,687.85. The Nifty 50 index was down 63.95 points or 0.62% at 10,241.35. Sentiment was impacted by rising coronavirus cases worldwide and the International Monetary Fund's downgrade to outlook for global economy.
The S&P BSE Mid-Cap index was off 0.04%. The S&P BSE Small-Cap index was down 0.42%.
The market breadth, indicating the overall health of the market, is weak. On the BSE, 692 shares rose and 1008 shares fell. A total of 59 shares were unchanged.
F&O expiry:
Market may see volatile swings today as traders roll over positions in the F&O segment from the near month June series to July series. The June 2020 F&O contracts expire today, 25 June 2020.
IMF World Economic Outlook Update:
The International Monetary Fund (IMF) on June 24 projected a sharp contraction of 4.5% for the Indian economy in 2020, a historic low, citing the unprecedented coronavirus pandemic that has nearly stalled all economic activities, but said the country is expected to bounce back in 2021 with a robust 6% growth rate.
The IMF projected the global growth at -4.9% in 2020, 1.9 percentage points below the April 2020 World Economic Outlook (WEO) forecast. Given the unprecedented nature of this crisis, as is the case for almost all countries, this projected contraction is a historic low, Gita Gopinath, IMF's Chief Economist, said as she released the World Economic Outlook Update.
Stocks in news:
Tata Consultancy Services (TCS) fell 0.4%. TCS has successfully implemented a unified partner commerce platform for Zebra Technologies, a market leader in industry-tailored solutions that intelligently connect people, assets and data.
BPCL rose 0.63%. BPCL is planning to raise up to Rs 3,000 crore during the current financial year 2020-21 through private placement of unsecured non-convertible debentures subject to market conditions. The details of the issue viz., class of investors, issue price, tenor, interest rate etc. will depend on the market conditions which will be intimated on crystallization of the issue, BPCL said.
Bharti Infratel dropped 3.17%. The board of directors of Bharti Infratel said they have further extended the Long Stop Date till 31 August 2020 for merger with Indus Towers, subject to agreement on closing adjustments and other conditions precedent for closing, with each party retaining the right to terminate and withdraw the scheme.
General Insurance Corporation of India rose 6.78% after the company reported 47.33% rise in consolidated net profit to Rs 1,309.62 crore on 43.09% rise in total income to Rs 9,886.85 crore in Q4 March 2020 over Q4 March 2019.
Canara Bank dropped 5.44% after the company reported a net loss of Rs 3,259.33 crore in Q4 March 2020, higher than net loss of Rs 551.53 crore in Q4 March 2019. Total income rose 1.59% to Rs 14,222.39 crore.
Karur Vysya Bank jumped 5.26% after the bank reported 39.45% rise in net profit to Rs 83.70 crore on 3.27% rise in total income to Rs 1,803.15 crore in Q4 March 2020 over Q4 March 2019.
H.G. Infra Engineering surged 16.07% after the company reported 39.49% rise in consolidated net profit to Rs 51.25 crore on 7.62% rise in total income to Rs 626.64 crore in Q4 March 2020 over Q4 March 2019.
Global Markets:
Overseas, Asian stocks are trading lower following a tumble in Wall Street stocks and oil prices on Thursday after surging U.S. coronavirus cases and the International Monetary Fund's downgrade to global economic projections shook confidence in a recovery. Markets in Hong Kong and mainland China are closed for public holidays on Thursday.
In US, Wall Street's three major indexes on Wednesday suffered their biggest daily percentage drop in almost two weeks as a surge in U.S. coronavirus cases intensified fears of another round of government lockdowns and worsening economic damage.
Shares of U.S. airlines, resorts and cruise operators slumped as travel was hit hard by lockdowns. Royal Caribbean Cruises Ltd, Norwegian Cruise Line Holdings Ltd and Wynn Resorts all tumbled.
On Wednesday, three U.S. states reported record increases in new cases -- Florida, Oklahoma and South Carolina -- driving the negative sentiment.
The governors of New York, New Jersey and Connecticut, initially hard hit by the pandemic, ordered travelers from nine other states to quarantine for 14 days on arrival as COVID-19 showed signs of rising in other areas.
Back home, the Sensex and the Nifty corrected sharply on Wednesday, after rising almost 6% in the past four sessions. Banks and pharma shares tumbled due to profit booking. European stocks fell while US index futures corrected amid spike in COVID-19 cases worldwide. The barometer S&P BSE Sensex tumbled 561.45 points or 1.58% at 34,868.98. The Nifty 50 index slumped 165.70 points or 1.58% at 10,305.30.
Foreign portfolio investors (FPIs) bought shares worth Rs 1,766.90 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,524.90 crore in the Indian equity market on 24 June, provisional data showed.
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