Firm trade continued over the Dalal Street for the most part of the session, as domestic sentiments remained positive, after the Union Ministry of Finance informed that an amount of Rs 30,000 crore Special Liquidity Scheme has been progressed for non-banking, housing finance companies and Monetary Financial Institutions (MFI) as part of the Atmanirbhar Bharat package. According to the Finance Ministry, 37 proposals involving Rs 10,590 crore have been approved as on September 11. While six applications seeking financing of Rs 783.5 crore are under process.
However, in the last hours of the trade, markets cut all of their gains to end on a lower note, as India’s inflation based on wholesale price index (WPI) surged 0.16% in the month of August, 2020 (over August, 2019) as compared to 1.17% during the corresponding month of the previous year. Adding more worries, Moody’s Investors Service in its latest report has projected that India’s Gross Domestic Product (GDP) growth rate to contract 11.5% for the financial year 2020-21 (FY21), from (-) 4% estimated earlier. Besides, India’s economic growth fell 23.9% during the first quarter of 2020-21, primarily because of a lockdown imposed to limit the spread of the coronavirus.
On the global front, European markets were trading higher, buoyed by the resumption of coronavirus vaccine trials. Asian markets ended mostly higher on Monday, after China's bank lending increased in August as the economy started to recover from the coronavirus driven downturn. The data from the People's Bank of China revealed that banks offered CNY 1.28 trillion loans in August. This was bigger than the expected level of CNY 1.22 trillion and CNY 992.7 billion loans provided in July. Total social financing, a broad measure of credit and liquidity in the economy, surged to CNY 3.58 trillion fr & FII Derivative Data M rom CarNkeY1.69 trilt