The benchmark indices continued to trade with heavy losses in mid morning trade. The Nifty struggled to hold around the 15,600 mark. Auto shares extended losses for fourth consecutive session.
At 10:29 IST, the barometer index, the S&P BSE Sensex, was down 476.14 points or 0.91% to 52,102.62. The Nifty 50 index lost 146.20 points or 0.93% at 15,600.25.
In the broader market, the S&P BSE Mid-Cap index fell 0.81% while the S&P BSE Small-Cap index declined 1.08%.
Sellers significantly outnumbered the buyers. On the BSE, 955 shares rose and 2094 shares fell. A total of 77 shares were unchanged.
Meanwhile, Asian markets mostly edged lower as Hong Kong's Hang Seng index struggled to rebound after the Chinese Government actions triggered regulatory fears over sectors such as technology and private education.
Investor sentiment simmered after the International Monetary Fund (IMF), following the RBI and S&P, revised downwards its forecast for India's GDP in FY22 as it took into account the economic impact of the second pandemic wave.
Economy:
The second wave of the pandemic has set back economic recovery in India, the IMF said, as it cut the country's growth forecast for the ongoing financial year. India's GDP is estimated to grow by 9.5% in FY22 compared to the 12.5% forecast in April 2021, according to the world economic outlook published by the IMF on Tuesday. For FY23, GDP is estimated to grow by 8.5% compared to 6.9% estimated in April.
The second wave of the pandemic has set back economic recovery in India, the IMF said, as it cut the country's growth forecast for the ongoing financial year.
While the forecast for the global economy remains unchanged from April, prospects for emerging market and developing economies have been marked down for 2021, especially for emerging Asia, according to the note. By contrast, the forecast for advanced economies is revised up.
Economic prospects have diverged further across countries, with vaccine access emerging as the principal fault line along which the global recovery splits into two blocsalmost all advanced economies that can look forward to further normalization of activity later this year and those that will still face resurgent infections and rising Covid-19 death tolls, the IMF said.
Primary Market:
The initial public offer of bulk drug and contract manufacturer Glenmark Life Sciences received bids for 5.10 crore shares as against 1.50 crore shares on offer on Wednesday (28 July 2021), according to stock exchange data at 11:05 IST. The issue was subscribed 3.40 times.
The issue opened for bidding on Tuesday (27 July 2021) and it will close Thursday (29 July 2021). The price band of the IPO was fixed at Rs 695-720 per share. An investor can bid for a minimum of 20 equity shares and in multiples thereof.
The initial public offer of automotive component maker Rolex Rings received bids for 49.72 lakh shares as against 56.85 lakh shares on offer on Wednesday (28 July 2021), according to stock exchange data at 11:05 IST. The issue was subscribed 0.87 times.
The issue opened for bidding on Wednesday (28 July 2021) and it will close Friday (30 July 2021). The price band of the IPO was fixed at Rs 880-900 per share. An investor can bid for a minimum of 16 equity shares and in multiples thereof.
Buzzing Index:
The Nifty Auto index fell 1.10% to 9,983.40, declining for fourth day in a row. The index has lost 2.47% in four sessions.
Tata Motors (down 2.11%), Mahindra & Mahindra (down 1.95%), Eicher Motors (down 1.22%), Maruti Suzuki (down 1.18%) and TVS Motor Company (down 0.96%) were the top index losers. Concurrently, Hero MotoCorp (down 0.95%), Bharat Forge (down 0.87%), Ashok Leyland (down 0.82%) and Bajaj Auto (down 0.64%) edged lower.
Global Markets:
Asian stocks were trading mostly lower on Wednesday, with stocks in Hong Kong struggling to recover from a two-day rout.
U.S. stocks fell for the first time in six days on Tuesday as a rout in China induced caution and U.S. megacap technology earnings received a mixed response from investors.
Investors are awaiting the Federal Reserve's update on its monetary policy as the central bank's two-day meeting began. The Federal Open Market Committee will release a statement when the meeting concludes Wednesday, followed by Chairman Jerome Powell's news conference.
The International Monetary Fund warned Tuesday that there's a risk inflation will prove to be more than just transitory, pushing central banks to take pre-emptive action.
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