The Sensex and the Nifty reversed gains and once again entered negative terrain in mid-afternoon trade. The Nifty slipped below 11,850 level. Investors turned cautious after the Asian Development Bank (ADB) lowered India's growth forecast. At 14:24 IST, the barometer index, the S&P BSE Sensex, was down 39.81 points or 0.10% at 40,200.07. The Nifty 50 index was down 9.55 points or 0.08% at 11,847.25. In the broader market, the S&P BSE Mid-Cap index was down 0.11%. The S&P BSE Small-Cap index slipped 0.20%. The market breadth favored the sellers. On the BSE, 845 shares rose and 1502 shares fell. A total of 199 shares were unchanged. In Nifty 50 index, 25 stocks advanced while 25 stocks declined. Economy: The Asian Development Bank (ADB) on Wednesday announced it trimmed its forecasts for economic growth in developing Asia this year and next year as growth in the People's Republic of China (PRC) and India is weighed down by both external and domestic factors. India's growth is now seen at a slower 5.1% in fiscal year 2019 as the foundering of a major non-banking financial company in 2018 led to a rise in risk aversion in the financial sector and a credit crunch. Also, consumption was affected by slow job growth and rural distress aggravated by a poor harvest. Growth should pick up to 6.5% in fiscal year 2020 with supportive policies. In September, ADB forecast India's GDP to grow 6.5% in 2019 and 7.2% in 2020. Stocks in Spotlight: CSB Bank fell 5.86% to Rs 244.15, extending its losses for fifth session. It hit a record low of Rs 238.95 in intraday today. Shares of the Kerala-based bank have tumbled 17.04% in just five trading sessions since listing on bourses on 4 December 2019. Profit booking at higher levels and overall weak sentiment in market has pulled the stock lower. The stock debuted on 4 December 2019 at Rs 275, a premium of 41.02% to the initial public offer (IPO) price of Rs 195. The stock hit its record high of Rs 314.2 on 5 December 2019. Shares of Adani Transmission rose 1.59% to Rs 341.55. Adani Transmission (ATL), Adani Electricity Mumbai (AEML) and a subsidiary of Qatar Investment Authority (QIA) have signed definitive agreements for the sale of a 25.1% stake in AEML to QIA and for a shareholder subordinated debt investment by QIA in AEML (the transaction). The total QIA investment in AEML will be approximately Rs 3,200 crore (equivalent to approximately $450 million). Shaily Engineering Plastics gained 2.49% to Rs 631.75 after the Goods and Service Tax (GST) authorities vacated seizure of moulds owned by the company and its customers. The company had informed on Saturday, 7 December 2019, that there was a search at its Rania plant in Gujarat by Goods and Services Tax (GST) authorities and the same has ended. As part of the investigation, the authorities seized some moulds belonging to the company as well its customers as part of the process which is being contested by the company. The firm said it is extending all co-operation and the investigation and submissions by the company is continuing. KNR Constructions slipped 0.42% to Rs 225. The company announced that it has received a work order for Rs 240.60 crore Greater Hyderabad Municipal Corporation for maintenance of main road in Secunderabad zone of GHMC under comprehensive road maintenance contract (CRMC) for 5 years. Numbers to Watch: The yield on 10-year benchmark federal paper fell to 6.690% at 14:19 IST compared with 6.703% in the previous trading session. In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 70.855, compared with its close of 70.925 during the previous trading session. MCX Gold futures for 5 December 2019 settlement rose 0.10% to Rs 37,608. In the commodities market, Brent crude for February 2020 settlement was down 42 cents at $63.92 a barrel. The contract rose 9 cents, or 0.14%, to settle at $64.34 a barrel during the previous trading session. Powered by Capital Market - Live News |