Markets Trade Flat Post Economic Survey, SBI Jumps 2% After Q3 Results

Economic Survey 2020 presented by CEA Krishnamurthy Subramanian pegged the gross domestic product (GDP) growth at 5 per cent in this financial year

Markets Trade Flat Post Economic Survey, SBI Jumps 2% After Q3 Results

Financial stocks were going strong, with Kotak Bank, IndusInd Bank and SBI being major gainers

The benchmark indices have recouped their mid-day losses and are trading flat, post the presentation of Economic Survey. At 2.30 p.m., the Sensex had bounced back more than 300 points from intra-day lows and was quoting at 40,969, higher by 58 points or 0.1 per cent and the Nifty was at 12039, up three points. The broader markets i.e. BSE midcap and smallcap indices were trading flat at 15,530 and 14,721 respectively.

The Economic Survey 2020, presented by Chief Economic Advisor (CEA) Krishnamurthy Subramanian a day ahead of the Budget, pegged the gross domestic product (GDP) growth at 5 per cent in the current financial year, which it said would pick up to 6-6.5 per cent in financial year ending March 2021. That marked a sharp downward revision from the estimate of 7 per cent growth for the current financial year in last year's Economic Survey.

The European and Asian indices are trading mixed this afternoon. The CAC and DAX are marginally higher in early trades, whereas FTSE is open lower. On the Asian front, Nikkei and Taiwan are higher by more than half a per cent, while Straits Times, Hang Seng and Kospi have lost in the region of 1 per cent each.

On the corporate front, the country's largest lender by assets, State Bank of India, on Friday reported that its profit in October-December period rose 41 per cent to Rs 5,583.36 crore compared with Rs 3,954.81 crore in the same quarter last year. The higher profit in December quarter came on the account of lower provisioning for bad loans. The shares of SBI were trading higher by 2.8 per cent at Rs 319 post the Q3 numbers.

IT services major Wipro said its CEO and Managing Director Abidali Z Neemuchwala has decided to step down from the company. The stock was trading 1.7 per cent lower at Rs 236 on the BSE.

ITC, HUL and Tech Mahindra are due to declare their Q3 numbers this afternoon.

On the stock-specific front, financial and select auto stocks were going strong in afternoon trades. In the banking space, Kotak Bank, IndusInd Bank and SBI have gained 2 per cent to 4 per cent each. In the auto space, Bajaj Auto and Hero Motocorp gained more than 1 per cent each.

On the other hand, Tata Motors lost 4.8 per cent at Rs 177 to emerge as the top loser on the BSE. On Thursday, the auto major had exceeded Street expectations to report a Rs 1,738.3-crore profit for the December-ended quarter, as against its worst ever quarterly loss of Rs 26,992.54 crore in the corresponding period a year ago, on the back of improved profitability at its British subsidiary Jaguar Land Rover. 

ONGC and and IOC were among the significant losers, having shed between 2 per cent and 4 per cent each.

The market breadth was weak. Out of 2,459 stocks traded on the BSE, there were 1,000 advancing stocks as against 1,321 declines.

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