Benchmarks trade with deep losses; PSU banks tumble

Key equity indices further extended losses in mid-afternoon trade amid weak global cues. The trading was volatile due to the expiry of September futures & options contracts today.

At 14:21 IST, the barometer index, the S&P BSE Sensex, was down 790.43 points or 2.10% at 36,877.99. The Nifty 50 index slumped 226.55 points or 2.04% at 10,905.30.

The Nifty was trading below its 50 DMA (daily moving average) placed at 11,297.04. It is still hovering above its 200-DMA placed at 10,763.07.

Global investors' sentiment took a hit after US Federal Reserve Vice Chairman Richard Clarida told the media on Wednesday that the U.S. economy remains in a deep hole of joblessness and weak demand, and called for more fiscal stimulus. Clarida added that the central bank will not raise interest rates until it sees 2% inflation for at least a few months and full employment is reached.

 

Meanwhile, rising COVID-19 infections in Europe and uncertainties over U.S. presidential elections also worried investors.

In the broader market, the S&P BSE Mid-Cap index fell 1.51% while the S&P BSE Small-Cap index slipped 1.88%.

Sellers outnumbered buyers. On the BSE, 546 shares rose and 1999 shares fell. A total of 150 shares were unchanged.

Buzzing Index:

The Nifty PSU Bank index fell 3.43% to 1,246.10. The index has tumbled 13.2% in seven sessions.

Canara Bank (down 5.16%), Punjab National Bank (down 4.26%), Indian Bank (down 4.2%), CBI (down 4.19%), Bank Of Baroda (down 3.61%), SBI (down 2.94%), UCO Bank (down 2.86%), Bank of India (down 2.72%), Indian Overseas Bank (down 2.7%), Bank of Maharashtra (down 2.69%), Jammu and Kashmir Bank (down 2.61%) and Union Bank of India (down 1.59%) declined.

Stocks in Spotlight:

Panacea Biotec hit an upper circuit of 5% at Rs 196.80 after the company announced successful completion of its Phase I/II study to evaluate the safety and immunogenicity of its vaccine, DengiAll, a single-dose live-attenuated tetravalent vaccine.

Gayatri Projects added 2.05% to Rs 17.45. The construction company on Thursday said it received Letter of Award (LoA) on 23 September 2020 from Namami Gange & Rural Water Supply Department in Uttar Pradesh for construction of Kachonda Kalan Group of Villages Water Supply Scheme and relevant works, including commissioning and operation & maintenance for 10 years. The bid project cost is Rs 196 crore. The project is in joint venture where the company's share is 80%.

Shalby rose 2.10% to Rs 75.20 after the company said its board will meet on 28 September 2020 to discuss various options to reduce promoters shareholding in the company to 75% from the current 79.45%. As per Sebi regulation, promoters of the listed companies are required to bring their shareholding down to 75%.

Numbers to Track:

In the foreign exchange market, the partially convertible rupee declined to 73.8975 compared with its previous closing 73.575.

The yield on 10-year benchmark federal paper fell to 6.010% compared with previous closing of 5.990% in the previous trading session.

MCX Gold futures for 5 October 2020 settlement fell 0.15% to Rs 49,435.

In the commodities market, Brent crude for November 2020 settlement fell 31 cents to $41.46 a barrel. The contract gained 0.12% or 5 cents to settle at $41.77 in the previous trading sessions.

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