The News International Team
12:25pm JP Morgan cuts GDP forecast
JP Morgan cuts its India GDP growth projection for 2014/15 to 5.1 percent from 5.3 percent after weak factory output print.
“IP (industrial production) debacle is the straw that breaks the camel’s back,” JP Morgan said in its Oct. 10 report.
India’s August industrial output rose just 0.4 percent compared with 2.4 percent estimated in a Reuters poll.
The Reserve Bank of India projects GDP to grow at around 5.5 percent in the current fiscal year ending March 2015.
A slower growth and a fall in oil and commodity prices increase the chance for the RBI to attain its challenging 6 percent consumer price inflation target by January 2016, JP Morgan said, reports Reuters.
12:00pm Market Check
Equity benchmarks halved losses in noon trade with the Sensex falling 73.47 points to 26223.91 and the Nifty declining 22.95 points to 7837.
About 1075 shares have advanced, 1466 shares declined, and 94 shares are unchanged.
Infosys, TCS, Hero Motocorp and Coal India extended gains, up 1.2-1.7 percent. Axis Bank, State Bank of India, Tata Steel and Bajaj Auto gained 0.4-1 percent.
However, utility vehicle maker Mahindra and Mahindra, and realty major DLF slipped further, down 3.7 percent and 5 percent, respectively. Shares of ITC, L&T, ICICI Bank, Tata Motors, HDFC Bank, Bharti Airtel, ONGC, Cipla, Sun Pharma, Dr Reddy’s Labs and NTPC declined 0.7-2 percent.
In the midcap space, Essar Ports, BF Utilities, Symphony, Pipavav Defence and Gujarat Mineral rallied 4-13 percent while Kaveri Seed, Amtek Auto, Sundaram-Clayton, Cox & Kings and CRISIL lost 3-5 percent.
Among smallcaps, Essar Shipping, Vascon Engineers, Diamond Power, APL Apollo and Monnet Ispat shot up 7-17 percent whereas JMT Auto, Oscar Investment, KDJ Holiday, Sanghi Industries and Bodal Chemicals slipped 5-6 percent.