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  • 2020-09-29
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Indian equity benchmarks ended flat with a negative bias on Tuesday’s

trading session. Markets made a positive start of the trading session, as the

Reserve Bank has decided to extend by six months the enhanced borrowing

facility provided to banks to meet liquidity shortage till March 31, 2021, amid

the ongoing economic woes created by the coronavirus pandemic. Some

support also came after the Ministry of Corporate Affairs has extended the

duration of several schemes till December 31 in view of the continued

disruption caused due to the COVID-19 pandemic in certain parts of the

country.

However, indices soon turned volatile to end on a flat note, as ratings agency

ICRA revised its forecast for the contraction in India's FY21 GDP to 11 per

cent from its earlier assessment of 9.5 per cent. The ratings agency cited the

elevated levels of Covid-19 infections at the end of Q2FY21. Traders got

worried, after the World Bank said the coronavirus pandemic is expected to

lead to the slowest growth in more than 50 years in East Asia and the Pacific

as well as China, while up to 38 million people are set to be pushed back into

poverty. The bank said the region this year is projected to grow by only 0.9%,

the lowest rate since 1967.

On the global front, European markets were trading lower. Asian Markets

ended mixed on Tuesday, after overall consumer prices in the Tokyo area

were up 0.2 percent on year in September. The Ministry of Internal Affairs and

Communications said that was shy of expectations for an increase of 0.3

percent, which would have been unchanged from the August reading. Core

CPI, which excludes volatile food prices, slipped an annual 0.2 percent. That

exceeded forecasts for a drop of 0.3 percent, which also would have been

unchanged from the previous month.

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