Updated 14th October 2020 | 10:37 IST
Domestic stock markets started Wednesday’s session on a muted note, halting a rally that extended to nine straight days, each day after the International fund said India is headed for the most important slump of any major emerging nation. The S&P BSE Sensex index fell 235.88 points – or 0.58 percent – to 40,389.63 at the weakest level recorded in early deals, following a flat opening. The broader NSE Nifty 50 benchmark dropped to as low as 11,850.45, down 84.05 points – or 0.70 percent – from its previous close.
At 9:20 am, the Sensex traded 73.43 points – or 0.18 per cent – lower at 40,552.08 while the Nifty was down 24.00 points – or 0.20 per cent – at 11,910.50. (Track Sensex, Nifty Here)
Lowering its forecast for India, the IMF said the country’s economy will contract 10.3 percent this year due to the coronavirus pandemic – its biggest contraction since independence.
Banking and financial services stocks declined before the Supreme Court’s hearing on interest waivers for loans under moratorium. The Nifty Bank index – which tracks stocks of 12 major lenders within the country – fell the maximum amount as 1.09 percent in morning deals, dragged by SBI, Axis Bank, and ICICI Bank.
The outcome of the case could have far-reaching consequences not just for many borrowers, but also for banks.
Wipro shares slumped nearly 7 percent, each day after the Bengaluru-based IT major reported its earnings and announced a share buyback plan worth ₹ 9,500 crores. Its net income rose 3.2 percent to ₹ 2,466 crores within the July-September period compared to the previous quarter.
Share markets in other parts of Asia slipped on Wednesday as halted COVID-19 vaccine trials and an impasse in US fiscal aid package talks soured risk appetite.
Johnson & Johnson on Tuesday said it had been pausing a COVID-19 vaccine trial thanks to a study participant’s unexplained illness. Eli Lilly and Co later said it too had paused the clinical test of its COVID-19 antibody treatment thanks to a security concern, leading the US equity market to deepen losses.
MSCI’s broadest index of Asia-Pacific shares outside of Japan was last seen trading 0.2 percent lower, while Japan’s Nikkei 225 benchmark was also down 0.2 percent. China’s blue-chip index CSI300 was down 0.3 percent at the time