The benchmark stock indices have fallen this morning after overnight losses in the US bourses. The halt in vaccine trials may have contributed to the rout.

Join us as we follow the top business news through the day.

Corporates lock in low rates

Sensex drops 171 points; Nifty ends below 11,300

Choppy trading in stocks continued today after a negative opening this morning.

PTI reports: "Equity benchmark Sensex tumbled 171 points on Wednesday, tracking losses in index heavyweights HDFC Bank, ICICI Bank and Infosys amid weak cues from Asian peers.

After slumping 430.09 points during the day, the 30-share BSE index recovered some lost ground and ended 171.43 points or 0.45 per cent lower at 38,193.92.

In similar movement, the NSE Nifty settled 39.35 points or 0.35 per cent down at 11,278.

SBI was the top loser in the Sensex pack, shedding over 4 per cent, followed by Bajaj Finserv, Axis Bank, ONGC, ITC, ICICI Bank, Bajaj Finance, Kotak Bank and HDFC Bank.

On the other hand, Tata Steel, Reliance Industries, IndusInd Bank, Sun Pharma and Asian Paints were among the gainers.

Domestic equities traded on a negative note tracking weak cues from global equities after late-stage studies of AstraZeneca’s COVID-19 vaccine candidate were put on temporary hold, traders said.

The company said it is investigating whether a recipient’s “potentially unexplained” illness is a side effect of the shot.

Bourses in Shanghai, Hong Kong, Seoul and Tokyo ended with significant losses.

Stock exchanges in Europe, however, were trading on a positive note in early deals.

Global oil benchmark Brent crude was trading 1.33 per cent higher at USD 40.31 per barrel.

In the forex market, the rupee appreciated 5 paise to close at 73.55 against the US dollar."

Total retail auto sales fall 27% in August: FADA

The retail automobile sales continued to decline in August — even though the pace of decline showed some improvement, with overall sales witnessing 26.81% contraction year-on-year to over 11.88 lakh units, Federation of Automobile Dealers Associations (FADA).

Tractors continued to be the only segment showing a positive retail sales trend with a growth of 27.80% to 67,406 units as against the same month of 2019. While passenger vehicles sales in August 2020 fell by 7.12% to over 1.78 lakh units, the two-wheeler sales declined nearly 28.71% to about 8.98 lakh units. The commercial vehicle retail sales tumbled 57.39% to 26,536 units and three-wheeler category sales were down 69.51% to 16,857 units.

Reliance Jio to roll out 100 million low-cost phones by December

RIL's latest telecom move.

Reuters reports: "Reliance Industries Ltd's telecom unit is looking to outsource the manufacturing of over 100 million low-cost smartphones that will be built on Google's Android platform, India's Business Standard newspaper reported, citing sources.

The phones, which will be bundled with data packs, could be launched in December 2020 or early next year, the newspaper reported on Wednesday.

Reliance, India's most highly-valued company, in July said Alphabet Inc's Google will invest $4.5 billion in its digital unit.

Billionaire Mukesh Ambani, who controls Reliance, in July said that Google would build an Android operating system (OS) to power a low-cost “4G or even 5G” smartphone that Reliance would design.

Reliance has sold nearly 33% of its digital arm, Jio Platforms, to raise 1.52 trillion rupees ($20.22 billion) and has won the backing of global financial and tech investors including, Facebook Inc, Intel and Qualcomm."

SC asks Centre to clarify if refund will be given for tickets booked for air travel during lockdown

The Supreme Court Wednesday asked the Centre to clarify whether it is willing to give complete refund of air tickets booked for travel during the COVID-19 lockdown.

A bench headed by Justice Ashok Bhushan referred to a recent affidavit filed before it by the Director General of Civil Aviation (DGCA) saying that ticket booked for travel during the lockdown period will be refunded.

Solicitor General Tushar Mehta told the bench, also comprising Justices R.S. Reddy and M.R. Shah, that suppose a ticket was booked on March 15, that is before the lockdown period, then also full refund would be given.

However, Mr. Mehta said that he would file an additional affidavit clarifying the position in this regard.

As per my understanding, even before the lockdown suppose a ticket was booked on March 15 for travel during the period of lockdown and the flight was cancelled, complete refund may be given, he said.

‘Global economy to contract 4.4%, China to grow at 2.7%’

Fitch Ratings on Tuesday projected global GDP to contract 4.4% in the current year, but revised upwards China’s growth estimate to 2.7% for 2020.

In its September update to the Global Economic Outlook (GEO), Fitch Ratings cut its 2020 GDP forecast for emerging markets, excluding China, to (-)5.7%, from (-)4.7% estimated in June, mainly on account of a huge downward revision to India GDP forecast for the financial year ending March 2021.

Fitch has slashed India’s growth projection to (-)10.5% from (-)5% estimated earlier after official data released last week showed the April-June 2020 quarter GDP contracted by 23.9%.

AstraZeneca Pharma shares tank over 13% on COVID-19 vaccine study roadblock

Uncertainty over the company's vaccine project has worried investors.

PTI reports: "Shares of AstraZeneca Pharma on Wednesday plunged over 13 per cent after its COVID-19 vaccine study was paused following a participant’s unexplained illness.

The stock tumbled 13.40 per cent to Rs 3,650 on the BSE.

On the NSE, it tanked 12.31 per cent to Rs 3,710.

As per reports, late-stage studies of AstraZeneca’s COVID-19 vaccine candidate are on temporary hold while the company investigates whether a recipient’s “potentially unexplained” illness is a side effect of the shot.

In a statement issued on Tuesday evening, the company said its “standard review process triggered a pause to vaccination to allow review of safety data“.

AstraZeneca didn’t reveal any information about the possible side effect except to call it “a potentially unexplained illness“.

The health news site STAT first reported the pause in testing, saying the possible side effect occurred in the United Kingdom. An AstraZeneca spokesperson confirmed the pause in vaccinations covers studies in the US and other countries."

Facebook employee quits alleging firm ‘profiting off hate’: Report

A Facebook software engineer, Ashok Chandwaney, has quit the social media giant stating that the company is “profiting off hate”, according to a report by The Washington Post.

In a letter posted on Facebook's internal employee network, Mr Chandwaney said, “I’m quitting because I can no longer stomach contributing to an organization that is profiting off hate in the US and globally.”

These allegations come at a time when Facebook is faced with severe criticism over failure to implement its own policies for hate speech mainly as a result of political bias, particularly in India.

GDP to shrink 14.8%: Goldman

The Indian economy is the worst-hit among major economies, American brokerage Goldman Sachs said on Tuesday, sharply cutting its FY21 GDP forecast to a contraction of 14.8%.

It had earlier estimated that the economy of the country, which is now home to the second-largest number of COVID-19 infections, to contract by 11.8%.

The estimate comes days after official data said the economy contracted by 23.9% for the June 2020 quarter, as activity across all sectors barring agriculture contracted due to the lockdowns. The nearly two-month-long lockdowns chilled economy activity but was unable to contain the number of infections, which stands at 40 lakh.

Swiss central bank piles up on US tech stocks

Oil falls further amid growing alarm over coronavirus second wave

Oil continues to be clobbered by fears of a severe demand drop.

Reuters reports: "Oil futures fell further on Wednesday after big declines the previous session with Brent sliding below $40 a barrel for the first time since June as COVID-19 cases rebounded in several countries.

The biggest global health crisis in a century continues to flare unabated with cases rising in India, Great Britain, Spain and several parts of the United States, where the infection rate has not come under control for months.

The outbreak is threatening hopes for a global economic recovery that could impact demand for fuels from aviation gas to diesel.

Brent crude was down 16 cents, or 0.4%, at $39.62 a barrel by 0241 GMT after declining more than 5% on Tuesday.

U.S. crude was down 24 cents, or 0.7%, at $36.52 a barrel, having fallen nearly 8% in the previous session.

“Stalling demand has been a concern for most in the market for a while (and) it is becoming more evident,” ING Economics said in a note.

Record supply cuts by the Organization of the Petroleum Exporting Countries and allies, known as OPEC+ have helped support prices, but with grim economic figures being reported almost daily, the outlook for demand for oil remains bleak.

China's factory gate prices fell for the seventh straight month in August although at the slowest annual pace since March, suggesting industries in the world's second-biggest economy continued their recovery from the coronavirus-induced downturn."

Reliance Industries shares gain 1.5% as Silver Lake picks stake in Reliance Retail

The rush for a piece of RIL continues to enthuse investors.

PTI reports: "Shares of Reliance Industries gained 1.5 per cent in early trade on the bourses after US private equity firm Silver Lake Partners picked up 1.75 per cent stake in the retail arm of the company for Rs 7,500 crore.

The stock jumped 1.52 per cent to Rs 2,139.10 on the BSE.

At the NSE, it rose by 1.50 per cent to Rs 2,138.75.

“Reliance Industries Limited and Reliance Retail Ventures Ltd (RRVL) announced today that Silver Lake will invest Rs 7,500 crore into RRVL, a subsidiary of Reliance Industries,” the statement said.

This investment values RRVL at a pre-money equity value of Rs 4.21 lakh crore. Silver Lake’s investment will translate into a 1.75 per cent equity stake in RRVL on a fully diluted basis.

This marks the second billion-dollar investment by Silver Lake in a Reliance Industries subsidiary after the USD 1.35 billion investment in Jio Platforms announced earlier this year.

“Reliance Retail Limited, a subsidiary of RRVL, operates India’s largest, fastest growing and most profitable retail business serving close to 640 million footfalls across its about 12,000 stores nationwide,” the statement said."

Rupee drops 13 paise to 73.73 against US dollar in early trade

The fall seen in stocks isn't helping the rupee this morning.

PTI reports: "The rupee depreciated 13 paise to 73.73 against the US dollar in opening trade on Wednesday tracking muted domestic equities and strengthening American currency.

At the interbank forex market, the rupee opened on a weak note at 73.67, then fell further to 73.73, registering a fall of 13 paise over its last close.

The rupee had settled at 73.60 against the US dollar on Tuesday.

Forex traders said strong dollar, muted domestic equities and sustained foreign fund outflows weighed on investor sentiment. Further, tension at Indo-China border too dampened investor sentiment.

India on Tuesday said Chinese troops attempted to close in on its position in eastern Ladakh a day earlier and fired shots in the air, in a rapid escalation of tensions where firearms were used along the line of actual control (LAC) after 45 years.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.02 per cent to 93.46.

On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 329.26 points lower at 38,036.09 and broader NSE Nifty fell 89.05 points to 11,228.30.

Foreign institutional investors were net sellers in the capital market as they offloaded shares worth Rs 1,056.52 crore on a net basis on Tuesday, according to provisional exchange data.

Brent crude futures, the global oil benchmark, fell 0.45 per cent to USD 39.60 per barrel."

Silver Lake picks 1.75% stake in Reliance Retail for ₹7,500 crore

U.S. private equity firm Silver Lake Partners has picked 1.75 per cent stake in Reliance Retail for ₹7,500 crore, the Indian firm said in a statement on Wednesday.

The investment values Reliance Retail at ₹ 4.21 lakh crore.

Silver Lake, whose portfolio of companies includes Airbnb and social media firm Twitter Inc had previously invested in billionaire Mukesh Ambani’s digital unit, Jio Platforms Ltd.

Reliance, controlled by Asia's richest man Mukesh Ambani, has been aggressively building its retail business as it looks to attract potential investors over the next few quarters.

Sensex falls over 250 points in early trade; Nifty drops below 11,300

A bad start to the day for stocks which have been choppy the last few days.

PTI reports: "Domestic equity benchmark Sensex tumbled over 250 points in early trade on Wednesday tracking losses in index-heavyweights HDFC Bank, ICICI Bank and ITC amid intense selloff in global markets.

The 30-share BSE index was trading 255.26 points or 0.67 per cent lower at 38,110.09; while the NSE Nifty dropped 79 points or 0.70 per cent to 11,238.35.

ONGC was the top loser in the Sensex pack, shedding around 3 per cent, followed by Tata Steel, SBI, NTPC, ITC and Bajaj Finserv.

On the other hand, Reliance Industries, Asian Paints, Infosys and Tech Mahindra were among the gainers.

In the previous session, Sensex ended 51.88 points or 0.14 per cent lower at 38,365.35; while the NSE Nifty slipped 37.70 points or 0.33 per cent to 11,317.35.

Exchange data showed that foreign institutional investors sold equities worth Rs 1,056.52 crore on a net basis on Tuesday.

Domestic equities opened on a negative note tracking weak cues from global equities after late-stage studies of AstraZeneca’s COVID-19 vaccine candidate were put on temporary hold, traders said.

The company is in the process of investigating whether a recipient’s “potentially unexplained” illness is a side effect of the shot.

Bourses in Shanghai, Hong Kong, Seoul and Tokyo were trading with intense losses in mid-session deals.

Stock exchanges on Wall Street witnessed massive selloff in overnight sessions.

Global oil benchmark Brent crude was trading 0.90 per cent lower at USD 39.42 per barrel."

‘Global economy to contract 4.4%, China to grow at 2.7%’

Fitch Ratings on Tuesday projected global GDP to contract 4.4% in the current year, but revised upwards China’s growth estimate to 2.7% for 2020.

In its September update to the Global Economic Outlook (GEO), Fitch Ratings cut its 2020 GDP forecast for emerging markets, excluding China, to (-)5.7%, from (-)4.7% estimated in June, mainly on account of a huge downward revision to India GDP forecast for the financial year ending March 2021.

Fitch has slashed India’s growth projection to (-)10.5% from (-)5% estimated earlier after official data released last week showed the April-June 2020 quarter GDP contracted by 23.9%.