Equity indices extended losses and hit fresh intraday low in mid-morning trade as selling pressure intensified. The Nifty slipped to 11,850 level. Selling was broad based with metal and auto losing the most.

At 11:25 IST, the barometer index, the S&P BSE Sensex, tumbled 245.24 points or 0.6% at 40,440.63. The Nifty 50 index slipped 64.25 points or 0.54% at 11,866.20.

In the broader market, the S&P BSE Mid-Cap index was down 0.9% while the S&P BSE Small-Cap index fell 0.15%.

The market breadth turned negative. On the BSE, 1068 shares rose and 1223 shares fell. A total of 147 shares were unchanged.

COVID-19 Update:

India reported 653,717 active cases of COVID-19 infection and 119,014 deaths while 7,137,228 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India. Total COVID-19 confirmed cases worldwide stood at 42,926,013 with 1,152,990 deaths, according to data from Johns Hopkins University.

RBI Governor Shaktikanta Das on Sunday tweeted that he has been tested positive for COVID-19 but he is asymptomatic. He assured that work in RBI will go on normally.

Buzzing Index:

The Nifty PSU Bank index was up 0.43% to Rs 1,325, extending its winning run to third trading session. The PSU Bank index was also a top gainer in NSE Sectoral Indices.

Punjab National Bank (up 2%), Union Bank (up 1.03%), Canara Bank (up 0.73%), Indian Overseas Bank (up 0.54%), Bank of India (up 0.37%) and Bank of Baroda (up 0.23%) were top gainers in PSU bank segment.

The yield on 10-year benchmark federal paper fell to 5.815% compared with its closing of 5.844% in the previous trading session.

Stocks in Spotlight:

Ashoka Buildcon rose 1.26% to Rs 64.15 after the company said its wholly-owned subsidiary achieved financial closure of a road project in Telangana. Ashoka Kandi Ramsanpalle Road, a wholly owned subsidiary of Ashoka Buildcon, is in receipt of letter from National Highways Authority of India (NHAI) dated 23 October 2020 for the approval of achievement of financial closure as on 5 October 2020 for a road project. The project entails four laning of NH-161 from Kandi to Ramsanpalle in Telangana under Bharatmala Pariyojna on Hybrid Annuity Mode. The bid project cost is Rs 1,000 crore.

Alembic Pharmaceuticals on Monday (26 October 2020) said it has received final approval from the US drug regulator for Timolol Maleate Ophthalmic Gel Forming Solution. Timolol Maleate Ophthalmic Gel Forming Solution is indicated in the treatment of elevated intraocular pressure in patients with ocular hypertension or open-angle glaucoma.

Punjab & Sind Bank was up 0.09%. The state-run bank announced that an NPA account, via. IL&FS Financial Services (IFIN) with outstanding dues of Rs 561.13 crore has been declared as fraud and reported to Reserve Bank of India. The bank has already made 100% provisioning as per the prescribed prudential norms and account is technically written off. The announcement was made after market hours on Friday, 23 October 2020.

Global Markets:

Asian markets were mixed on Monday as new coronavirus cases surge in the U.S. as well in countries across Europe. The Hong Kong market is closed on Monday for a holiday. The central committee of China's ruling Communist Party, led by Xi, is set to meet in Beijing from October 26 to 29 to discuss a proposal for national development for the next five years - from 2021 to 2025. The government sets these economic and social priorities every five years.

Investor focus on Monday was also likely on the deteriorating coronavirus situation in the West, with the U.S. recently reporting a record-breaking number of new virus cases.

Over in Europe, cases have also surged, with reports that France registered record daily coronavirus infections while Italy ordered bars to close early and shut public gyms in a bid to stem a resurgence in the virus. The Spanish government on Sunday declared a national state of emergency that includes an overnight curfew in hopes of not repeating the near collapse of the country's hospitals.

In US, the S&P 500 and Nasdaq closed modestly higher on Friday in choppy trading while the Dow ended lower on the day as investors weighed the potential for additional fiscal stimulus. The Dow Jones Industrial Average closed 28.09 points lower, or 0.1%, to 28,335.57, the S&P 500 gained 11.9 points, or 0.34%, to 3,465.39 and the Nasdaq Composite added 42.28 points, or 0.37%, to 11,548.28.

Intel shares fell 10.6% following the release of mixed quarterly numbers for the chipmaker. Gilead Sciences Inc rose as its antiviral drug remdesivir became the first and only drug approved for treating patients hospitalized with COVID-19 in the United States.

U.S. House Speaker Nancy Pelosi said it still was possible to get another round of COVID-19 aid before the November 3 election, but that it was up to President Donald Trump to act. Trump and Treasury Secretary Steven Mnuchin countered that Pelosi must compromise to get an aid package.

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