Nifty hovers below 9200; NBFCs tumble

Equity indices traded sideways with steep losses in mid-morning trade. At 11:29 IST, the barometer index, the S&P BSE Sensex, was down 433.41 points or 1.36% at 31429.67. The Nifty 50 index was down 121.35 points or 1.3% at 9,192.55.

Financial stocks took a hit after Franklin Templeton Mutual Fund decided to close six debt schemes citing lack of liquidity in the debt market and unprecedented redemptions in these yield-oriented schemes. The six yield-oriented schemes in which investments have been stopped from Thursday (23 April) include Franklin India Low Duration Fund, Dynamic Accrual Fund, Credit Risk Fund, Short Term Income Plan, Ultra Short Bond Fund and Income Opportunities Fund.

In the broader market, the S&P BSE Mid-Cap index was down 0.98% while the S&P BSE Small-Cap index was down 0.84%. The decline in both these indices was lower than the decline in the Sensex.

The market breadth was weak. On the BSE, 669 shares rose and 1256 shares fell. A total of 126 shares were unchanged. In Nifty 50 index, 18 stocks advanced while 32 stocks declined.

Buzzing Index:

The Nifty Financial Services index tumbled 3.05% to 9,509.30. It was the worst performing index on the NSE.

Nippon Life India Asset Management (down 13.97%), Cholamandalam Investment and Finance Company (down 8.33%), Mahindra & Mahindra Financial Services (down 6.29%), HDFC AMC (down 5.38%), Bajaj Finance (down 5.34%), Bajaj Finserv (down 4.26%), Edelweiss Financial Services (down 3.38%), Manappuram Finance (down 3.3%) and Shriram Transport Finance Company (down 3.19%) tumbled.

Stocks in Spotlight:

Mahindra & Mahindra (M&M) fell 2.47%. M&M said that the Loans & Investment Committee has approved issuance and offer of 6.78%, 10,000 nos. of Rated, Listed, Unsecured, Redeemable Non-convertible Debentures of Rs 10 lakh each aggregating Rs 1,000 crore for cash at par, (NCDs) on private placement basis.

Goa Carbon fell 4.99%. The company informed about the resumption of operations at its Paradeep unit located at Village Udayabata, Paradeepgarh, District Jagatsinghpur, Odisha, after taking necessary health and safety measures given the ongoing COVID-19 crisis. The announcement was made after market hours yesterday.

Larsen & Toubro (L&T) rose 3.03% to Rs 866.15 after the construction major bagged a significant contract from Kyosan Electric Manufacturing Co. (Japan) and Eastern Dedicated Freight Corridor (EDFC). As per the L&T's classification, the valuation of the 'significant' order stands between Rs 1,000 crore and 2,500 crore. The news was disclosed during market hours today, 24 April 2020.

Global Markets:

Asian markets were trading lower after an overnight report raised doubt regarding Gilead drug over a potential coronavirus treatment.

In US, markets ended near flat line on Thursday after a report that an experimental antiviral drug for the coronavirus flopped in its first randomized clinical trial.

The US House of Representatives overwhelmingly approved a $484 billion coronavirus relief bill on Thursday, funding small businesses and hospitals and pushing the total spending response to the crisis to an unprecedented near $3 trillion. The measure passed the Democratic-led House by a vote of 388-5, with one member voting present. House members were meeting for the first time in weeks because of the coronavirus pandemic.

The IHS Market flash purchasing managers index for the service sector fell to a record low in April, while the manufacturing PMI weakened to the lowest level in 11 years, as business activity has slumped due to the lockdowns to combat the coronavirus pandemic.

The flash services PMI fell to 27 from 39.8 in March while the manufacturing PMI dropped to 36.9 from 48.5.

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