Key market barometers pared gains in mid-afternoon trade. At 14:29 IST, the barometer index, the S&P BSE Sensex, was up 43.66 points or 0.11% at 40,488.81. The Nifty 50 index was up 7.45 points or 0.06% at 11,928.95.
Sentiment was fragile as IHS Markit expects India's real GDP growth in 2019-20 fiscal to be slightly below 5%. Gains were also capped as the Reserve Bank of India (RBI) unexpectedly left interest rates unchanged on Thursday. The move was driven by the rising inflationary pressure and gradual improvement in monetary transmission.
In the broader market, the S&P BSE Mid-Cap index was up 0.08% and the S&P BSE Small-Cap index was down 0.27%.
The market breadth was negative. On BSE, 1029 shares advanced while 1328 shares declined. A total of 189 shares were unchanged. In Nifty 50 index, 27 stocks advanced and 23 stocks declined.
India's real GDP growth in 2019-20 fiscal is expected to be slightly below 5% as the impact of stimulus measures will take time to filter through to the economy, IHS Markit has said. Financial sector fragilities continue to weigh on India's economic growth momentum, with the high level of non-performing loans on the balance sheets of the public sector banks, constraining their new lending, IHS said in a report.
The Nifty PSU Bank index advanced 0.18% to 2,465.20. The index fell 6.11% in the past two sessions.
Allahabad Bank (down 2.24%), Central Bank of India (down 1.27%), Syndicate Bank (down 1.25%), IDBI Bank (down 1.01%), Corporation Bank (down 0.83%), Bank of Baroda (down 0.51%), Bank of Maharashtra (down 0.42%), Andhra Bank (down 0.28%) and Indian Bank (down 0.17%) declined.
Canara Bank (up 2.55%), Union Bank of India (up 1.82%), Punjab & Sind Bank (up 1.55%), Punjab National Bank (up 1.41%), United Bank of India (up 1.03%), UCO Bank (up 0.92%), State Bank of India (up 0.34%) and Bank of India (up 0.22%) advanced.
Stocks in Spotlight:
JSW Steel advanced 0.67% to Rs 255.75. The company's crude steel production fell 7% to 12.90 lakh tones in November 2019 from 13.90 lakh tones in November 2018. The company showed in November, 2019 a sequential month on month growth of 3% in crude steel production.
The blast furnaces, which were temporarily shut down in October, 2019 due to slowdown in auto demand has recommenced operations in the last week of November, 2019, JSW Steel said in an exchange filing.
Coffee Day Enterprises slumped 10.60% to Rs 43. Media reports suggested that The company's sale of its technology park to Blackstone Group is stalled as one of its creditors hasn't approved the deal. "Yes Bank hasn't issued the so-called no objection certificate as it's seeking assurances on repayments of other loans taken by Coffee Day," the reports added.
Dish TV India surged 9.63% to Rs 13.77 after the company reiterated its intention to repay all its debts as and when they become due in the future.
Care Ratings has downgraded the short-term bank facilities rating to 'CARE D' from 'CARE A4+'. The agency in its rationale has taken into consideration the default by Dish TV India in payment of its short-term loan amounting to Rs 250 crore.
Following the development, Dish TV clarified that it has been drawing on its internal cash accruals to fund its capital expenditure for more than six quarters now. In addition, the company has also serviced its debt and interest obligations, on a consolidated level, to the tune of Rs 850 crore in the current fiscal. Debt and interest payment obligations falling due after the particular incident of non-service have also been fulfilled on time.
Numbers to watch:
The yield on 10-year benchmark federal paper rose to 6.665% at 14:33 IST compared with 6.661% in the previous trading session.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 71.125, compared with its close of 71.20 during the previous trading session.
MCX Gold futures for 5 December 2019 settlement fell 0.11% to Rs 37,656.
In the commodities market, Brent crude for February 2020 settlement was down 0.37 cents at $64.02 a barrel. The contract rose 1.57% or $1 to settle at $64.39 a barrel during the previous trading session.
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