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Market reaction: Sensex sheds 433 points as growth concerns mount
Posted on 5th October 2019
The Sensex on Friday lost over 433 points, after the Reserve Bank of India (RBI) sharply lowered GDP growth estimates for the current fiscal to 6.1% from 6.9%. The market believes the latest round of rate cuts may not be enough to revive demand. Investor wealth of Rs 1.42 lakh crore was wiped out on Friday, taking the five-day erosion to Rs 5.3 lakh crore. With Friday’s fall, the benchmark index has extended its fall for the fifth day and erased almost half the gains that it made since the corporate tax cut announcement. Sunil Sharma, chief investment officer, Sanctum Wealth Management, said the corporate tax cut will flow to corporate bottom lines, but will not necessarily revive the economy.

“The measures announced have been critical in supporting the markets and improving confidence, but consumption stimulus is critical, alongside monetary transmission,” Sharma said. Bank stocks bore the brunt of Friday’s sell-off on worries over anemic demand even after a sl-ew of steps to pull the economy out of a six-year low growth.

The Bank Nifty slumped 760.40 points in intra-day trade before settling at 27,731.85 points, down 682.25 points or 2.4%. The gauge for bank stocks has come off nearly 8% in the last five sessions and is just 3.6% away from its September 20 level.

While the Sensex slid 433.56 points, or 1.14%, to close the session at 37,673.31 points, the broader Nifty50 lost 139.25 points to settle at 11,174.75. Four banks — HDFC Bank, ICICI Bank, Kotak Mahindra Bank and Axis Bank — among them contributed about a third of Sensex’s fall on Friday.

After buying $954.65 million worth of shares in September, foreign portfolio investors (FPIs) resumed selling, and have pared domestic exposure to the tune of $469.4 million so far this month. On the flipside, domestic institutional investors bought shares worth $418.4 million during the same period.

The Nifty Mid Cap and Small Cap also lost over 5% in the last five sessions, taking their six-moth losses to 13.9% and 18.2% respectively. Motilal Oswal, managing director, Motilal Oswal Financial Services, said, “Today’s rate cut by 25 bps to 5.15% is a very good level of indicative rates. The issue is, transmission of these rates in the system. RBI has been asking banking system to offer loans at a level that reflects the benchmark cut, but the system is reluctant to pass on, due to risk aversion. It is a dichotomy that the one needs money does not get it and the one who is offered does not need it!”

“Equity markets are cautious and watchful about the earnings season which at this juncture looks less enthusiastic. There is a possibility that equity markets will trade cautious and range bound. In medium to long term, I see good investment opportunity in equities,” added Oswal.

The market breadth, indicating the overall health of the market, was tilted towards the losers over the last one-and-a-half years. On Friday, 1,121 stocks declined on NSE, compared with 657 stocks advancing, and 350 stocks remaining unchanged. On the BSE, 1,636 stocks ended in the red against 976 stocks closing higher.The negative sentiment rubbed off on most sectoral indices on Friday. Of the 19 sectoral indices compiled BSE, all barring BSE IT and BSE Teck ended the day in red with BSE Bankex losing nearly 2.5%.

Related Companies: Bombay Stock Exchange - BSE   National Stock Exchange of India Ltd (NSE)    

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Indian diplomat harassed in Pakistan, ISI tails his car to intimidate him
Posted on 5th June 2020
Pakistan's Inter-Services Intelligence (ISI) has been harassing and intimidating India’s top diplomat in Islamabad.

Reportedly, ISI has put up multiple persons in cars and bikes outside his residence to harass him.

In a note sent to the foreign ministry in Islamabad in March, Indian High Commission protested against the continuous harassment of its officers and staff by Pakistani agencies. India had cited 13 incidents of harassment of its officers and staff in the month of March itself.

COVID-19 in India live updates: 9,851 new cases take India's count to 2.26 lakh, recovery rate at 48.27%
Posted on 5th June 2020
The number of coronavirus cases in India has marked significant and consecutive highest jumps over a major part of the last two weeks.

On Thursday, the total number of confirmed cases of COVID-19 infection in India crossed the 2.25 lakh-mark, while the death toll breached the 6,300-mark as well. With this, India has now become the world's seventh worst-hit country in terms of coronavirus cases, according to the World Health Organisation's (WHO) COVID-19 tracker.

Unlock 1: Shops reopen in Mumbai on odd-even basis after remaining shut for two months
Posted on 5th June 2020
In a huge respite, business owners in Mumbai opened their shops after being closed for two months due to the COVID-19 lockdown. All shops providing non-essential services were closed by the government in March after it announced the nationwide lockdown to contain the spread of coronavirus.

Consumer confidence collapsed to historic low in May, says RBI survey
Posted on 5th June 2020
As the coronavirus pandemic continues to trouble India's economy, the consumer confidence has collapsed to a historic low, a survey by the Reserve Bank of India has showed.

Consumer confidence collapsed in May 2020, with the Current Situation Index (CSI) touching historic low and the one year ahead Future Expectations Index (FEI) also recording a sharp fall, entering the zone of pessimism, said RBI's Consumer Confidence Survey (CCS).

Maharashtra CM Uddhav Thackeray to visit Raigad to take stock of damages caused by Cyclone Nisarga
Posted on 5th June 2020
Two days after cyclone Nisarga made a landfall in Raigad district's Alibaug of Maharashtra, state chief minister Uddhav Thackeray will visit the affected areas on Friday to take a stock of the damages.

The visit comes a day after the CM held a video conference with the authorities to monitor the situation in the aftermath of the cyclone and asked the authorities to complete the 'panchnamas' or inspection and submit a report on the damages caused by Nisarga withing two days.

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