The outlook cut is based on a weak premise since the economy is expected to rebound this fiscal but a wake-up call was needed.
Citing the impact of the second wave of the pandemic over the economy and consumer sentiment, Swiss brokerage Credit Suisse has lowered its nominal GDP growth forecast by 150-300 bps to 13-14 per cent, but expects a stronger recovery in the second half as it sees the lockdowns having limited impact on tax collections. Last month, Neelkanth Mishra, the co-head of equity strategy for Credit Suisse Asia Pacific, and India equity strategist, had told PTI that he expected the real GDP to fall to 8.5-9 per cent in FY22 due to the more severe pandemic attack. The virus case load has crossed the 25-million mark, death toll from the same is nearing 2.9 lakh mark, which is one of the highest in the world as the test positivity rate has been around 15 per cent for long.
Lack of fuel security is a major constraint to the growth of the generation capacity, and the slow pace of tariff reforms is hindering infrastructure investment at the state-level.
Forex dealers said weakness in local equities and a firm dollar overseas against other currencies also weighed on the rupee.
With most schemes performing below the index, a few don'ts in the recent rally.
A total of 10 new stocks have been included in BSE Mid-Cap index, while 12 existing ones would move out.
While analysts remains overweight on financials, property, discretionary, industrials and materials, they maintain a neutral stance on pharma, telecom and energy; and underweight on staples, utilities, and IT services.
BSE Metal, IT and Consumer Durable indices surged by nearly 2% each. However, BSE FMCG index declined by nearly 1%.
The Bombay Stock Exchange's 30-share Sensex closed at 19,504 up 117 points. The National Stock Exchange's 50-share S&P CNX Nifty closed up 26 points at 5,930.
Under the Indradhanush roadmap announced in 2015, the government will infuse Rs 70,000 crore in state banks over four years while they will have to raise a further Rs 1.1 trillion from the markets to meet their capital requirement in line with global risk norms, known as Basel III.
The S&P BSE Sensex ended the day at 28,226, up 85 points, while the Nifty50 settled at 8,734, up 18 points.
Changes in the economic environment have altered the dynamics of stock markets. In the recent past, they have started defying investment fundamentals.
An AP tweet, which an AP spokesman says was "bogus," had said there were two explosions at the White House.
Enjoy the ride but avoid getting greedy. Disciplined profit-taking is a must to survive in the treacherous markets ahead, says Sonali Ranade
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