Domestic shares continued to display weakness in in afternoon trade. The Nifty hovered around the 12,200 mark. At 13:27 IST, the S&P BSE Sensex, declined 121.94 points or 0.29% at 41,406.97. The Nifty 50 index was down 32.75 points or 0.27% at 12,191.80.
Market sentiment was affected by the International Monetary Fund (IMF) lowering India's growth forecast. Subdued quarterly results by key index constituents and negative global cues also put pressure on domestic shares.
In the broader market, the S&P BSE Mid-Cap index was down 0.01% while the S&P BSE Small-Cap index was up 0.12%.
The market breadth was negative. On the BSE, 1005 shares rose and 1302 shares fell. A total of 171 shares were unchanged. In Nifty 50 index, 16 stocks advanced while 34 stocks declined.
Economy:
IMF on Monday (20 January) said global growth, estimated at 2.9% in 2019, is projected to increase to 3.3% in 2020 and inch up further to 3.4% in 2021. Compared to the October World Economic Outlook (WEO) forecast, the estimate for 2019 and the projection for 2020 represent 0.1% reductions for each year while that for 2021 is 0.2% lower. A more subdued growth forecast for India accounts for the lion's share of the downward revisions.
India's growth is estimated at 4.8% in 2019, projected to improve to 5.8% in 2020 and 6.5% in 2021 (1.2% and 0.9% lower than the October forecast), supported by monetary and fiscal stimulus as well as subdued oil prices. India's domestic demand has slowed more sharply than expected amid stress in the non bank financial sector and a decline in credit growth, IMF said.
Stocks in Spotlight:
Bharti Infratel (up 7.03%), Zee Entertainment Enterprises (up 3.90%), Coal India (up 1.49%), BPCL (up 1.26%) and HDFC (up 1.21%) were the top gainers.
Asian Paints (down 2.79%), Power Grid Corporation of India (down 2.25%), Tata Steel (down 1.94%), Indian Oil Corporation (down 1.66%) and JSW Steel (down 1.40%) were the top losers.
Bharti Airtel rose 0.05%. The telecom major and Google Cloud announced a partnership to serve the evolving needs of millions of Indian businesses in a rapidly digitizing economy. Bharti Airtel will offer G Suite to small and medium sized businesses (SMBs) in India as part of its integrated Information and communications technology (ICT) portfolio. The agreement will provide a platform for both companies to tap growth opportunities in India.
Larsen & Toubro advanced 0.07% to Rs 1310.50. The company proposed the issue of rated, listed, unsecured, redeemable non-convertible debentures aggregating upto Rs. 1000 crore, on private placement basis.
Spencer Retail spurted 19.84% to Rs 89.40 after well-known investor and D-Mart promoter Radhakishan Damani's name appeared in latest shareholding pattern of the company.
The latest shareholding pattern of Spencer Retail showed Radhakishan S Damani holding 16,61,324 equity shares, or 2.09% equity, in the quarter ended December 2019.
Foreign Markets:
Shares in Europe opened lower while most Asian stocks were trading lower on Tuesday after the International Monetary Fund cut its global growth forecasts, primarily due to a sharp slowdown in India and other emerging markets.
Investors in Asia were also concerned about the economic impact of a Chinese disease outbreak rose. Officials in China are racing to contain the spread of a new coronavirus that has left at least four people dead and sickened hundreds after it was confirmed the infection can spread between humans. Beyond China, the outbreak has so far spread as far as Thailand, Japan and South Korea.
Meanwhile, Japan's central bank left its key interest rate unchanged and revised up its economic growth outlook. The Bank of Japan left its policy rate at -0.1% and reaffirmed its commitment to increase holdings of government bonds. Board members raised their projection of economic growth in the year that starts in April to 0.9% from 0.7%.
The European central bank also is due to make an interest rate decision this week.
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