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Wobbly Wednesday: IMF predicts India’s GDP may contract to 10.3 per cent in FY21; Infosys to be in limelight today

Karan DSIJ
·2-min read

The fierce bulls are on a rampage as they recorded gains for the ninth consecutive day on Tuesday. It seems that there would be a full stop to this merry ride of the bulls as they faced a googly ball from the IMF after they predicted that India’s GDP for 2020-21 may contract 10.3 per cent from an earlier estimate of 4.5 per cent.

Further, the cues from the global markets are not at all supportive, which would cause the bears to put a foot in the door but will they stay for long? Well, as long as the index trades above the 11,800 level, buy on dips would be the most preferred strategy. SGX Nifty trades down by 54 points at 11,887 levels. The market participants will also keep an eye on the quarterly earnings as Infosys would report its earnings today.

Security in the F&O ban for today is Adani Enterprises, BHEL, Canara Bank, Escorts, IDEA, Jindal Steel, and SAIL.

Asian markets are trading mostly lower on Wednesday as the overnight cues from Wall Street were negative. China’s Shanghai Composite has dropped 0.48 per cent while Hong Kong’s Hang Seng shed 0.17 per cent and Japan’s Nikkei 225 dipped 0.05 per cent.

IT stocks and the blue-eyed boy of D-Street i.e. Reliance Industries helped the Indian benchmark indices to log its one of the most longest winning streak in the recent years as the indices extended their merry ride for the ninth straight day. At close, Nifty and Sensex added 0.03 per cent and 0.08 per cent, respectively. On the other hand, the broader indices continued with their dismal performance with Nifty Mid-cap and Small-cap ending lower by 0.48 per cent and 0.17 per cent, respectively.

The stocks on Wall Street ended in red on Tuesday, which was weighed down by the financial stocks, despite a good performance reported by JPMorgan Chase and Citigroup in Q3. The market participants turned apprehensive after Johnson & Johnson temporarily halted its COVID-19 vaccine study. Further, the uncertainty over a stimulus package added fuel to the fire. On the economic front, the Consumer Price index (CPI) came in line with expectations. In the end, Nasdaq lost 12 points, while Dow and S&P ended lower by 0.5 per cent and 0.6 per cent, respectively. A string of bad news hampered the indices in the European continent. A resurge of the Coronavirus cases in several parts of the continent along with some dull earnings reports that played on investors' minds, made them press the sell button.