Local equities trade with marginal losses

Local equity benchmarks were trading with marginal losses in morning session, tracking global equities, which plummeted amid rising concerns about a surge in coronavirus infections globally. Some concern also came as the International Monetary Fund (IMF) said that GDP growth in India will contract sharply by 4.5 percent in the fiscal year 2020-21 following a longer COVID-19 lockdown period and slower recovery than anticipated in April. However, the markets trimmed early losses as buying interest emerged in FMCG and Oil & Gas shares. Traders also found some support as Union Minister Nitin Gadkari has rolled out the Credit Guarantee Scheme for subordinate debt to provide Rs 20,000 crore of guarantee cover to two lakh micro, small and medium enterprises (MSMEs). On the sectoral front, pharma stocks were in focus as Union Minister of Chemicals and Fertilisers D V Sadananda Gowda said the development of bulk drug and medical device parks will help in bringing down India's dependency on imports and making the country emerge as a major pharma exporter.

On the global front, Asian markets were trading in red, as the International Monetary Fund has sharply lowered its forecast for global growth this year because it envisions far more severe economic damage from the coronavirus than it did just two months ago. Back home, the BSE Sensex is currently trading at 34810.66, down by 58.32 points or 0.17% after trading in a range of 34499.78 and 34828.58. There were 17 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.65%, while Small cap index was up by 0.33%.

The top gaining sectoral indices on the BSE were Utilities up by 1.21%, FMCG up by 1.10%, PSU up by 0.77%, Oil & Gas up by 0.62% and Healthcare up by 0.55%, while IT down by 1.24%, TECK down by 1.11%, Telecom down by 0.49%, Bankex down by 0.37% and Capital Goods down by 0.04% were the top losing indices on BSE.

The top gainers on the Sensex were ITC up by 2.24%, Bajaj Auto up by 1.58%, Maruti Suzuki up by 0.75%, NTPC up by 0.67% and Ultratech Cement up by 0.66%. On the flip side, Infosys down by 2.46%, HDFC Bank down by 1.48%, Bajaj Finserv down by 1.08%, HCL Technologies down by 0.78% and Tata Steel down by 0.74% were the top losers.

Meanwhile, the International Monetary Fund (IMF) in its the World Economic Outlook (WEO) Update has projected a sharp contraction of 4.5 per cent for the Indian economy in 2020, a ‘historic low,’ citing the unprecedented coronavirus pandemic that has nearly stalled all economic activities. IMF's record reveals that this is the lowest ever for India since 1961. The IMF does not have the data beyond that year.

However, IMF said the country is expected to bounce back in 2021 with a robust 6 per cent growth rate. The IMF projected the global growth at -4.9 per cent in 2020, 1.9 percentage points below the April 2020 WEO forecast. 

It said the COVID-19 pandemic has had a more negative impact on activity in the first half of 2020 than anticipated, and the recovery is projected to be more gradual than previously forecast. In 2021, global growth is projected at 5.4 per cent.  For the first time, all regions are projected to experience negative growth in 2020. In China, where the recovery from the sharp contraction in the first quarter is underway, growth is projected at 1.0 per cent in 2020, supported in part by policy stimulus.

The CNX Nifty is currently trading at 10298.25, down by 7.05 points or 0.07% after trading in a range of 10194.50 and 10298.55. There were 32 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were GAIL India up by 5.18%, Hero MotoCorp up by 3.58%, ITC up by 2.29%, UPL up by 1.89% and Bajaj Auto up by 1.69%. On the flip side, Bharti Infratel down by 4.23%, Infosys down by 2.40%, Eicher Motors down by 2.29%, HDFC Bank down by 1.52% and Bajaj Finserv down by 1.14% were the top losers.

Asian markets were trading in red; Nikkei 225 slipped 300.68 points or 1.33% to 22,233.64, Jakarta Composite lost 49.98 points or 1.01% to 4,914.76, KOSPI fell 44.81 points or 2.07% to 2,116.70 and Straits Times trembled 32.77 points or 1.25% to 2,595.85.