The market extended losses and hit fresh intraday low in mid-morning trade amid negative global cues. Other Asian stock markets tumbled as the death toll from a new virus spreading in China rose and more cases were reported around the world. Trading was volatile on account of monthly derivatives expiry.
At 11:29 IST, the S&P BSE Sensex, was down 246.08 points or 0.6% at 40,952.58. The Nifty 50 index was down 74.16 points or 0.61% at 12,055.35.
The broader market also corrected. The S&P BSE Mid-Cap index was down 0.72% while the S&P BSE Small-Cap index was down 0.8%.
The market breadth favored the sellers. On the BSE, 635 shares rose and 1375 shares fell. A total of 129 shares were unchanged. In Nifty 50 index, 9 stocks advanced while 41 stocks declined.
Economy:
Federation of Indian Chamber of Commerce and Industry (FICCI) projected India's FY20 GDP Growth Rate at 5%. FICCI on Wednesday said that its Economic Outlook Survey has projected the country's annual GDP growth rate at 5%. The projection made is in line with projections made by the National Statistical Organisation (NSO).
The median growth forecast for agriculture and allied activities has been put at 2.6% for 2019-20; the industry and services sector are expected to grow by 3.5% and 7.2% respectively during the current year. Growth is likely to improve to 5.5% in 2020-21 as per the projections.
Furthermore, a median forecast of 4.7% for GDP growth has been pegged at for the third quarter of 2019-20. The growth numbers for the third quarter are expected to be released by Central Statistical Organisation in the month of February 2020
Stocks in Spotlight:
Larsen & Toubro was down 0.66% to Rs 1356.40. The water & effluent treatment business of L&T Construction has secured a 'Large' EPC order from Narmada Valley Development Authority (NVDA), Government of Madhya Pradesh to execute the Indira Sagar-Parwati Phase III & IV Lift Micro Irrigation Project. This is a repeat order from NVDA, for whom L&T is already executing the Parwati Phase I & II and various other projects. As per the company's classification, the valuation of the 'large' order lies between Rs 2,500 crore and Rs 5,000 crore.
Aurobindo Pharma tumbled 6.14% to Rs 476.15 after the company received a letter from the USFDA classifying the inspection conducted at the company's Unit-VII facility as Official Action Indicated (OAI). The company assured that this will not have any material impact on the existing revenues or supplies to US businesses.
Himadri Speciality Chemical in an exchange filing made after market hours yesterday informed that commercial operations of the proposed expansion of 60,000 MTPA plant for manufacturing carbon black at West Bengal have commenced. The overall capacity of carbon black has increased to 1,80,000 MTPA, it added. The stock fell 0.45% to Rs 66.9.
ITI was trading 1.6% lower at Rs 86.3. The company launched its follow-on public offer (FPO) on 24 January 2020. The FPO was earlier slated to close on 28 January 2020, but the company later extended FPO closing date and readjusted its price band. The issue will now close on 31 January 2020. Price band has been revised from Rs 72-77 to Rs 71-77 per share. As on 30 January 2020 (10:45 IST), the FPO received bids for 8.86 crore shares, as against 18.18 crore shares on offer, as per the National Stock Exchange of India (NSE) website data. The issue was subscribed 0.49 times.
Foreign Markets:
Asian shares declined on Thursday while gold & bonds were in demand as worries about the spread of a new virus from China sent investors heading for safety. The outbreak of Coronavirus continued to terrorise and outgrow. The death toll from coronavirus touched 170 mark with a confirmed case in Tibet.
In US, markets ended little changed on Wednesday, with better-than-expected results from blue-chip names, including Apple, offset by lingering concerns related to China's coronavirus outbreak.
The Federal Reserve held its benchmark fed funds interest rate steady in a range between 1.5% and 1.75% on Wednesday, saying the economy remained on a moderate growth path. But Fed Chairman Jerome Powell acknowledged that the coronavirus epidemic in China introduces "uncertainty" into the outlook and also called asset valuations somewhat elevated.
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