Benchmarks trim some losses in late afternoon session

The Indian equity benchmarks trimmed some of their losses in late afternoon session but continued to trade below the neutral lines. Sentiment remained downbeat as Fitch Ratings in its latest report has sharply lowered its forecast for India's gross domestic product (GDP) growth for the current fiscal year (FY21) to (-) 10.5 percent from (-) 5 percent estimated earlier. It pointed out that the continued spread of the virus and the imposition of sporadic shutdowns across the country depress sentiment and disrupts economic activity. It further noted that the severe fall in activity has also damaged household and corporate incomes and balance sheets, amid limited fiscal support. However, downside remained capped with private report that the Indian economy is expected to climb from a deeper trough in the calendar year 2020 (CY20) and see a stronger rebound in the year 2021. On the global front, all Asian markets are trading lower after the sell-off of major technology companies on Wall Street drove down US indices. Crude oil prices and Treasury yields also declined. However, European markets were trading higher.

The BSE Sensex is currently trading at 38095.07, down by 270.28 points or 0.70% after trading in a range of 37935.26 and 38252.67. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index decline 0.68%, while Small cap index was down by 1.36%.

The few gaining sectoral indices on the BSE were Energy up by 1.17%, Healthcare up by 0.63% and Metal was up by 0.47%, while Bankex down by 2.66%, PSU down by 2.62%, Realty down by 1.62%, Utilities down by 1.37% and Industrials was down by 1.31% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 2.05%, Reliance Industries up by 1.99%, Sun Pharma up by 1.33%, Nestle up by 0.89% and Indusind Bank up by 0.87%. On the flip side, SBI down by 4.78%, Bajaj Finserv down by 3.41%, Axis Bank down by 3.15%, ONGC down by 3.02% and ICICI Bank down by 2.69% were the top losers.

Meanwhile, automobile dealers' body Federation of Automobile Dealers Associations (FADA) in its latest report has showed that passenger vehicle (PV) retail sales declined 7.12 per cent to 1,78,513 units in August  2020 as compared to 1,92,189 units in August 2019.

As per the report, two-wheeler sales witnessed a decline of 28.71 per cent to 8,98,775 units last month as compared with 12,60,722 units in August 2019, while commercial vehicle sales declined 57.39 per cent to 26,536 units as compared to 62,270 units in August 2019.

Besides, a decline also witnessed in three-wheeler sales by 69.51 per cent to 16,857 units in August 2020 as compared with 55,293 units in August 2019. Total sales across categories declined 26.81 per cent to 11,88,087 units in August  2020 as against 16,23,218 units in the year-ago month.

The CNX Nifty is currently trading at 11246.95, down by 70.40 points or 0.62% after trading in a range of 11185.15 and 11281.75. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Zee Entertainment up by 3.23%, Cipla up by 2.12%, Tata Steel up by 2.02%, Reliance Industries up by 2.00% and Dr. Reddys Lab up by 1.55%. On the flip side, SBI down by 4.90%, GAIL India down by 4.34%, Bajaj Finserv down by 3.60%, Axis Bank down by 3.38% and Indian Oil down by 3.32% were the top losers.

All Asian markets are trading lower, Nikkei 225 slipped 241.59 points or 1.04% to 23,032.54, Hang Seng decreased 155.41 points or 0.63% to 24,468.93, Jakarta Composite lost 94.69 points or 1.81% to 5,149.38, Shanghai Composite declined 61.79 points or 1.86% to 3,254.63, Taiwan Weighted dropped 54.98 points or 0.43% to 12,608.58, KOSPI fell 26.10 points or 1.09% to 2,375.81and Straits Times was down by 7.78 points or 0.31% to 2,496.98.

European markets were trading higher; UK’s FTSE 100 increased 55.13 points or 0.93% to 5,985.43, France’s CAC increased 36.01 points or 0.72% to 5,009.53 and Germany’s DAX increased 135.00 points or 1.04% to 13,103.33.