The equity barometers hit fresh intraday low in mid-morning trade. At 11:24 IST, the barometer index, the S&P BSE Sensex, was down 312.49 points or 0.77% at 40,313.02. The Nifty 50 index lost 107 points or 0.90% to 11,827.50.
The Nifty slipped below the 11,850 mark after rising in the past nine sessions. Profit booking emerged after International Monetary Fund (IMF) slashed India's economic growth forecast in the wake of the coronavirus pandemic.
In the broader market, the S&P BSE Mid-Cap index declined 0.24% while the S&P BSE Small-Cap index fell 0.57%.
The market breadth was weak. On the BSE, 825 shares rose and 1452 shares fell. A total of 152 shares were unchanged.
Coronavirus Update:
India reported 826,876 active cases of COVID-19 infection and 110,586 deaths while 6,301,927 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India. Total COVID-19 confirmed cases worldwide stood at 38,066,297 with 1,085,411 deaths, according to data from Johns Hopkins University.
Economy:
The International Monetary Fund (IMF) on Tuesday said it expects India's gross domestic product (GDP) to decline by 10.3% in FY21. It is expected to rebound by 8.8% in 2021. The IMF has revised India's GDP growth, since its June forecast of a 4.5% drop, while reflecting a severe-than-anticipated contraction in economic activities in Q1 FY21, amid the nationwide lockdown due to the COVID-19 pandemic.
Stocks in news:
SPARC rose 0.65% to Rs 170.45 after the company announced positive top-line results from pivotal phase 3 clinical trial of its investigational drug for treating inflammation and pain associated with ocular surgery.
Karnataka Bank added 3.33% to Rs 43.40 after the bank reported 12.8% rise in net profit to Rs 119.44 crore on 1.6% increase in total income to Rs 1933.52 crore in Q2 September 2020 over Q2 September 2019.
The bank's net interest income (NII) rose by 15.27% to Rs 574.87 crore in Q2 September 2020 over Q2 September 2019. Net Interest Margin (NIM) improved to 3.08% in Q2 September 2020 from 2.82% in Q2 September 2019. The bank's provisions and contingencies increased by 22.76% to Rs 322.13 in Q2 September 2020 over Q2 September 2019.
The ratio of gross NPAs to gross advances stood at 3.97% on 30 September 2020 as against 4.64% as on 30 June 2020 and 4.78% as on 30 September 2019. The ratio of net NPAs to net advances stood at 2.21% as on 30 September 2020 as against 3.01% as on 30 June 2020 and 3.48% as on 30 September 2019.
Global Markets:
Asian markets were mixed on Wednesday following the overnight decline on the Wall Street.
The US stock market finished session lower on Tuesday, 13 October 2020, as investors elected to book profit following the strong upward move seen over the past several sessions and as stalemate in fiscal stimulus negotiations continued. Negative sentiment was also generated in reaction to news that Johnson & Johnson has paused a late-stage trial of its Covid-19 vaccine candidate due to an unexplained illness in a study participant.
Uncertainty about a new stimulus bill also weighed on Wall Street, as House Speaker Nancy Pelosi continued her attacks on the White House's latest offer in a letter to her Democratic colleagues, claiming the proposal "falls significantly short of what this pandemic and deep recession demand." "Significant changes must be made to remedy the Trump proposal's deficiencies," Pelosi added while saying she remains "hopeful that the White House will finally join us to recognize the needs of the American people."
With Pelosi and the White House struggling to reach an agreement on a broad relief package, Senate Majority Leader Mitch McConnell has announced the Senate will vote on a more limited stimulus bill.
On the economic front, US consumer price index rose by 0.2% in September after climbing by 0.4% in August, according to a report released by the Labor Department on Tuesday.
As per the latest forecast from IMF, the global economy is now projected to contract by 4.4% in 2020 - an upward revision from an estimate of approximately 4.9% made in June.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
