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Markets turn negative in noon deals

Local equity benchmarks erased all the gains to turn negative in afternoon session as investors were cautious ahead of the tabling of the Economic Survey in the Parliament, later in the day. Both Sensex and Nifty were trading below 46,800 and 13,800 marks, respectively. Sentiments turned negative as IMF's Chief Economist Gita Gopinath stated that it would be damaging for India to start tightening policy support in the midst of the COVID-19 pandemic. She said there is scope for the Indian government to provide more direct support to people. However, downfall remain capped as SBI Research’s report stated that with record GST collections expected in January at Rs 1.21-1.23 lakh crore, the shortfall in state GST can be narrowed to a minimal Rs 11,000 crore.

On the global front, Asian markets were trading lower amid worries about rising coronavirus cases, Wall Street volatility and U.S. economic aid plans. Back on street, in scrip specific developments, Indigo gained despite reporting consolidated net loss of Rs 620 crore in Q3, while Vodafone Idea declined after losing 28.94 lakh subscribers in November.

The BSE Sensex is currently trading at 46794.28, down by 80.08 points or 0.17% after trading in a range of 46738.70 and 47423.66. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.66%, while Small cap index was up by 0.19%.

The top gaining sectoral indices on the BSE were Realty up by 0.83%, Energy up by 0.83%, Bankex up by 0.34% and PSU was up by 0.05%, while TECK down by 1.21%, IT down by 1.19%, Telecom down by 1.09%, Healthcare down by 1.05% and Capital Goods was down by 1.01% were the top losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 5.00%, Mahindra & Mahindra up by 2.37%, Bajaj Finance up by 1.55%, ICICI Bank up by 1.08% and Reliance Industries was up by 1.08%. On the flip side, Dr. Reddys Lab down by 3.53%, Maruti Suzuki down by 3.06%, Axis Bank down by 2.20%, TCS down by 1.88% and Infosys was down by 1.33% were the top losers.

Meanwhile, IMF's Chief Economist Gita Gopinath has said that it would be damaging for India to start tightening policy support in the midst of the COVID-19 pandemic. She said there is scope for the Indian government to provide more direct support to people. She also said India should come out with a credible medium-term fiscal plan that can be achieved once the pandemic ends.

Noting that India's debt-to-GDP ratio has gone up to 85 percent, Gopinath said the country's banking sector is vulnerable due to rise in bad loans during the pandemic. She also stressed on reducing wasteful expenditures in the upcoming Budget and added that steps need to be taken for a more effective Goods and Services Tax (GST) collection and more credible disinvestment plan.

IMF's Chief Economist further pointed out that India has relied heavily on indirect support measures, including loans, equity and credit guarantees during the pandemic. She also opined that so, there is scope for India to provide more direct support to Indians. She added that the collapse of the global economy in 2020 due to COVID-19 pandemic was much more severe than the Global Financial Crisis (GFC).

The CNX Nifty is currently trading at 13793.35, down by 24.20 points or 0.18% after trading in a range of 13776.40 and 13966.85. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Indusind Bank up by 5.00%, Mahindra & Mahindra up by 2.42%, Indian Oil Corp. up by 1.78%, Bajaj Finance up by 1.60% and Reliance Industries was up by 1.04%. On the flip side, Dr. Reddys Lab down by 3.53%, Maruti Suzuki down by 3.12%, Tata Steel down by 2.65%, Axis Bank down by 2.17% and TCS was down by 1.74% were the top losers.

All Asian markets were trading lower; Nikkei 225 slipped 534.03 points or 1.89% to 27,663.39, Hang Seng decreased 282.92 points or 0.99% to 28,267.85, Taiwan Weighted dropped 277.57 points or 1.8% to 15,138.31, Straits Times trembled 15.74 points or 0.54% to 2,904.56, KOSPI fell 92.84 points or 3.03% to 2,976.21, Shanghai Composite declined 56.33 points or 1.61% to 3,448.85 and Jakarta Composite was down by 128.23 points or 2.14% to 5,851.16.

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