Sensex Zooms 879 Points; Consumer Durables And Metal Stocks Rally

The lender posted a profit before tax (PBT) of Rs 2,896.6 million for Q4FY20 on healthy rise in net interest income and a sharp drop in provisions and contingencies. It had posted a loss of Rs 71,369 million in Q4FY19.

Shares of IDBI Bank ended 20% higher on back of the above news.

Apart from IDBI Bank, market participants were also tracking V-Guard Industries share price and Birla Cable share price as these companies announced their March quarter results today.

In news from the economic space, India's manufacturing activity contracted in May due to weak demand and logistic challenges, said the monthly IHS Markit India Manufacturing Purchasing Managers' Index (PMI) survey.

Reportedly, the fall was slightly slower than April's historic contraction.

Manufacturing PMI stood at just 30.8 in May, marginally up from April's 27.4.

A nationwide lockdown in April had led to conditions across sectors falling by the biggest margin ever and new businesses collapsing at a record pace.

Last month, jobs were hit the most. Jobs were again cut and at a quicker pace than April's 15-year high, the survey said.

However, the PMI survey showed that manufacturers remained optimistic towards the one-year business outlook in May.

In other news, as per Bank of America Securities, the lockdown extension by the government will have a deep impact on the economic activity.

The foreign brokerage firm sharply cut India's GDP forecast for this financial year to a contraction of 2%.

The estimate has been arrived at with the assumption that the lockdown will extend till mid-July and a restart of the economy will get stretched to August.

As per Bank of America Securities, GDP is expected to contract by 2%, 0.70% wider than the previous estimate.

The brokerage was quick to add that if the lack of a vaccine forces the government to continue with the semi-lockdown phase, the economy will contract by as much as 5%.

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Disclosure: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research ...

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