Key indices were trading sharply lower taking cues from extremely weak Asian stocks and an overnight plunge in US markets. At 9:21 IST, the barometer index, the S&P BSE Sensex, was down 944.19 points or 2.38% at 38,801.47. The Nifty 50 index was down 282.35 points or 2.43% at 11,350.95.
The S&P BSE Mid-Cap index was down 2.43%. The S&P BSE Small-Cap index was down 2.75%. Both these indices underperformed the BSE Sensex.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 83 shares rose and 445 shares fell. A total of 19 shares were unchanged.
Investors will keep a close watch on the quarterly GDP estimate for the quarter October-December, 2019 (Q3 of 2019-20), which be released on today, 28 February 2020. ICRA expects that the Indian economic growth may display a mild improvement. It estimates annual economic growth at 4.7% in the October-December 2019 quarter, marginally higher than 4.5% in the previous quarter, thanks to a small rebound in rural demand and government spending.
Stocks in news:
IndusInd Bank fell 1.2%. IndusInd Bank said the Reserve Bank of India (RBI) has approved the appointment of Sumant Kathpalia as the bank's chief executive officer (CEO), with effect from 24 March 2020, for three years. Kathpalia, who heads the bank's consumer banking business, will succeed Romesh Sobti.
Wipro slumped 3.48%. Wipro announced that Designit, its strategic design arm, is opening a new studio in Dallas to bring the firm's unique approach to strategic design to the city, signalling the expansion of the design-driven mindset outside of the traditional hotspots of Silicon Valley and New York City. The studio will be officially launched with an event at the Dallas Museum of Art on 23 March 2020.
ONGC dropped 3.54% and HPCL fell 1.32%. ONGC and HPCL have bought out lenders in Petronet MHB, the firm that owns a petroleum product pipeline in Mangalore, for about Rs 371 crore. The two firms paid Rs 185.38 crore each for acquiring 17.28% more share in Petronet MHB. They now hold 49.99% cent each in the company that transports petroleum products from Mangalore Refinery.
DIC India gained 3.35%. DIC India said the board of directors has approved the sale of land of the company located at Chandivali, Mumbai to Godrej Properties for Rs 153 crore.
Pidilite Industries was down 1.44%. Pidilite Industries entered into a definitive agreement with Tenax SPA for acquiring 70% of the share capital of Tenax India Stone Products for cash consideration of Rs 80 crore. Tenax Italy is a leading manufacturer of adhesives, coating, surface treatment chemicals and abrasives for the marble, granite and stone Industry.
Motherson Sumi was down 4.72%. Systems Motherson Sumi Systems said ratings agency S&P Global has re-affirmed long term credit rating at BB+ and revised its outlook to negative for Samvardhana Motherson Automotive Systems Group B.V, a subsidiary of Motherson Sumi Systems.
HFCL crashed 5.9%. HFCL said it has signed an agreement to acquire up to 47.87% stake in Chennai-based BigCat Wireless in a Rs 22.5 crore deal. BigCat had a turnover of Rs 7.57 crore in 2018-19. The acquisition would help HFCL to competitively address business of next generation wireless products.
Global Markets:
Overseas, most Asian stocks were trading sharply lower on Friday as fears about the novel coronavirus continue to spur a global sell-off.
In US, stocks tumbled to close lower for a sixth straight day on Thursday, taking benchmark indexes to the lowest levels since October, as the global coronavirus epidemic disrupted international trade and travel.
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