Post Session: Quick Review

Indian equity benchmarks trimmed some of their losses to end off day's low points on Wednesday’s trading session. Key indices made a negative start of the trading day, as the rating agency 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.

Markets remained in red terrain for whole day, amid a private report that the Indian economy is the worst-hit among major economies, American brokerage Goldman Sachs said sharply cutting its 2020-21 GDP forecast to a contraction of 14.8 per cent. It had earlier estimated that the economy of the country, which is now home to the second-largest number of COVID-19 infections, to contract by 11.8 per cent. Adding pessimism, the private report said that India is witnessing the weakest hiring sentiment in 15 years with just 3 percent companies planning to add staff in the next three months.

However, in the last hours of trade, benchmarks staged recovery, taking support with a 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. Traders took a note of Reserve Bank of India (RBI) board member Manish Sabharwal’s statement that India needs more banks for sustaining high growth and doubling the credit-to-GDP ratio to 100 per cent. He also said the country needs immediate reforms in banking, compliance, labour laws and education because hope is not a strategy.

On the global front, European markets were trading higher. Asian markets ended lower on Wednesday, even after China's inflation eased in August on slowing pork price growth and factory gate prices continued to decline, but the pace of drop slowed from the last year. Consumer price inflation slowed to 2.4 percent in August from 2.7 percent in July. The rate came in line with expectations. On a monthly basis, consumer prices gained 0.4 percent.

The BSE Sensex ended at 38193.92, down by 171.43 points or 0.45% after trading in a range of 37935.26 and 38252.67. There were 12 stocks advancing against 18 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.28%, while Small cap index was down by 0.94%. (Provisional)

The top gaining sectoral indices on the BSE were Energy up by 1.78%, Metal up by 1.26%, Healthcare up by 1.09%, Telecom up by 0.62% and Basic Materials up by 0.43%, while Bankex down by 2.14%, PSU down by 2.02%, Realty down by 1.50%, IT down by 0.89% and Industrials down by 0.67% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tata Steel up by 3.04%, Reliance Industries up by 2.57%, Sun Pharma Inds. up by 1.40%, Bharti Airtel up by 1.33% and Asian Paints up by 1.27%. On the flip side, SBI down by 4.46%, Bajaj Finserv down by 3.29%, Axis Bank down by 2.94%, ONGC down by 2.42% and ITC down by 2.23% were the top losers. (Provisional)

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 ended at 11278.00, down by 39.35 points or 0.35% after trading in a range of 11185.15 and 11298.15. There were 25 stocks advancing against 25 stocks declining on the index. (Provisional)

The top gainers on Nifty were Zee Entertainment up by 3.65%, Tata Steel up by 3.04%, Cipla up by 2.73%, Reliance Industries up by 2.57% and JSW Steel up by 2.03%. On the flip side, SBI down by 4.51%, GAIL India down by 3.70%, Bajaj Finserv down by 3.33%, Axis Bank down by 2.95% and Indian Oil Corp. down by 2.66% were the top losers. (Provisional)

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.

Asian markets ended lower on Wednesday. Japanese shares ended lower with the stronger safe-haven yen after US technology stocks sold off overnight and a leading corona virus vaccine candidate faced delay. Final clinical trials for a corona virus vaccine, developed by drug maker AstraZeneca and Oxford University have been put on hold after a participant had a suspected adverse reaction in the UK. Further, heightened trade tensions between Washington and Beijing, and falling oil prices also curbing risk appetite. Chinese inflation data for August showed the producer price index declined 2.0% in August from a year earlier, and in line with expectations; while the consumer price index in August rose 2.4% as compared with a year ago.