The benchmark indices trimmed losses after hitting fresh intraday low in afternoon trade. The Nifty continued to trade below 12,050 level. At 13:29 IST, the S&P BSE Sensex, was tumbled 312.61 points or 0.76% at 40,886.05. The Nifty 50 index was tumbled 91.55 points or 0.75% at 12,037.95.
Sentiment was affected by weak Asian cues amid rising death toll from a new virus spreading in China. Trading was volatile due to expiry of monthly derivatives today.
The broader market corrected. The S&P BSE Mid-Cap index was down 0.99% while the S&P BSE Small-Cap index lost 0.91%.
There were more sellers than buyers. On the BSE, 698 shares rose and 1560 shares fell. A total of 134 shares were unchanged. In Nifty 50 index, 10 stocks advanced while 40 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:
Bajaj Auto (up 1.75%), Power Grid Corporation of India (up 1.05%), Eicher Motors (up 1.04%), Bharti Infratel (up 0.86%) and NTPC (up 0.49%) advanced.
Cipla (down 2.50%), Reliance Industries (down 2.24%), Bajaj Finserv (down 2.22%),Zee Entertainment Enterprises (down 2.04%) and Wipro (down 1.86%) declined.
HDFC Bank shed 1.19% to Rs 1221.25. The Reserve Bank of India (RBI) imposed a monetary penalty of Rs 1 crore on the bank for failure to undertake on‐going due diligence in case of 39 current accounts opened for bidding in Initial Public Offer.
Yes Bank declined 5.58% to Rs 38.90. India Ratings maintained 'Rating Watch Negative (RWN)' on Yes Bank, saying that the lender continues to remain in discussions with potential investors but raising sizeable capital in the near-term could be challenging. RWN indicates that the rating will be either affirmed or downgraded. It has maintained RWN on the Basel III tier-2 bonds of Rs 11,000 crore, additional Basel tier-1 bonds of Rs 11,100 crore and infrastructure bonds of Rs 3,580 crore.
Larsen & Toubro was down 0.53% to Rs 1358.15. 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.
Foreign Markets:
European stocks opened lower while Asian shares declined on Thursday as worries about the spread of a new virus from China sent investors heading for safe instruments like gold & bonds. 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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