Author: Newsdesk

The BSE Sensex slumped over 1,000 points on Thursday breaking its 10 day gaining streak amid selloff across global stock markets.

Heavy selling in banking and IT stocks weighed on the domestic indices. Fading hopes of further stimulus in the US subdued the investor sentiments globally. Further resurgence of the novel coronavirus cases globally also impacted the stock markets.

Sensex closed at 39,728.41, lower by 1,066.33 points or 2.61 per cent from its previous close of 40,794.74.

It had opened at 41,048.05 and touched an intra-day high of 41,048.05 and a low of 39,667.47.

The Nifty50 on the National Stock Exchange closed at 11,680.35, lower by 290.70 points or 2.43 per cent from its previous close.

Also Read: IMF Foresees Steep Fall And Rise For India’s GDP

Also Read: India Set To Be A Top Investment Choice: Survey

IT major Infosys on Wednesday reported a 20.55 per cent increase in its consolidated net profit for the July-September quarter, on a year-on-year basis, at Rs 4,845 crore.

During the corresponding period of the last financial year, Infosys had reported a consolidated net profit of Rs 4,019 crore.

The company’s total revenue from operations stood at Rs 24,570 crore, 8.58 per cent higher than Rs 22,629 crore earned in the year-ago period, it said in a regulatory filing.

It has revised the FY21 revenue growth guidance upward to 2-3 per cent in constant currency.

The IT major has declared an interim dividend of Rs 12 per equity share and fixed October 26, 2020 as record date for interim dividend and November 11, 2020 as the payment date.

“Our second quarter performance is a clear reflection of our ability to help clients on their digital transformation journeys. Our digital and cloud capabilities combined with intense client relevance are helping us achieve differentiated results in the market as is visible in 2.2% year on year overall revenue growth and 25.4% growth from digital offerings, which now are at 47.3% of revenues”, said Salil Parekh, CEO and MD.

On Wednesday, its shares on the BSE closed at Rs 1,136.10, lower by Rs 21.90 or 1.89 per cent from its previous close.

Also Read: IMF Foresees Steep Fall And Rise For India’s GDP

Also Read: India Set To Be A Top Investment Choice: Survey

With the coronavirus pandemic still to be contained and the central government’s stimulus measures having limited impact on economic activities and consumer demand, the outlook for the Indian economy for the current financial year has only worsened.

In its latest global outlook, the International Monetary Fund (IMF) predicts that India’s GDP will contract by 10.3 per cent in the 2020-21 fiscal. This is a downward revision of its previous estimate of 5.8 per cent.

The outlook for the next financial year (2021-22), however, has improved. The IMF now estimates an 8.8 per cent growth in the country’s GDP in FY22, higher than the previous estimate of 2.8 per cent.

Noting that all emerging market and developing economy regions are expected to contract this year, IMF’s World Economic Outlook said: “Revisions to the forecast are particularly large for India, where GDP contracted much more severely than expected in the second quarter. As a result, the economy is projected to contract by 10.3 per cent in 2020, before rebounding by 8.8 per cent in 2021.”

Global economy is now projected to contract 4.4 per cent in 2020, as per IMF’s latest estimate.

In her foreword to the World Economic Outlook, IMF Chief Economist Gita Gopinath noted that preventing further setbacks to the global economy will require that policy support is not prematurely withdrawn.

“The path ahead will require skilful domestic policies that manage trade-offs between lifting near-term activity and addressing medium-term challenges,” she said.

As India’s growth falls, amongst the most in the world, India is on track to fall below Bangladesh in terms of the per capita GDP. India will grow smartly next year, as per IMF.

As per the World Economic Outlook report, India’s per capita GDP is set to plunge to $1,877 this fiscal year ending March 31, 2021. This will make India the third poorest country in South Asia with only Pakistan and Nepal behind.

Bangladesh, Bhutan, Sri Lanka and Maldives now have more per capita GDP than India.

Bangladesh’s per capita GDP in dollar terms is expected to grow 4 per cent in 2020 to $1,888, overtaking India.

Till five years back, India’s per capita GDP was 40 per cent higher than Bangladesh. In the last five years, Bangladesh has grown three times the rate of India, at 9.1 per cent compared to 3.2 per cent for India, a much larger economy.

Also Read: Demand in China boosts Indian steel industry

Also Read: India Set To Be A Top Investment Choice: Survey