Of 30 constituents, 28 declined and only two - ONGC and ITC ended in the green
The relentless selling on Dalal Street continued on Wednesday with no signs of abating as stocks across-the-board, especially financial sector, fell like a pack of cards. Threat of economic fallout emananting from pandemic Coronavirus (Covid-19) continued to weigh on investor sentiment. Moreover, statements by global brokerages Morgan Stanley and Goldman Sachs that the coronavirus has triggered a global recession spooked investors further.
The S&P BSE Sensex sank 1,710 points or 5.6 per cent to end the day at 28,869.51. IndusInd Bank continued to bleed and ended at Rs 460 apiece, down 24 per cent. Other bluechip financial names such as HDFC Bank, HDFC, Bajaj Finance, and Axis Bank plunged up to 11 per cent. Investors lost around Rs 5.39 trillion today. In the past three days, they have lost Rs 15.1 trillion.
Of 30 constituents, 28 declined and only two - ONGC and ITC ended in the green. ONGC witnessed a phenomenal rise in the fag-end of the session and closed 10 per cent higher at Rs 66 apiece.
On the NSE, the benchmark Nifty breached 8,500 level to end at 8,469 points with 44 constituents declining and just 6 advancing. Sectorally, all but Nifty Media ended in the red. Nifty Media ended at 1,158, up 4.50 points or 0.39 per cent. Nifty Private Bank index tumbled 7 per cent to 11,219 while Nifty Bank slid around 6 per cent to 20,854 levels.
In the broader market, the Nifty Midcap 100 index declined 5.5 per cent to 12,614 and the Nifty SmallCap index closed the day at 4,020 down over 6 per cent.
US stock futures and several Asian shares fell in choppy trade on Wednesday, as worries about the coronavirus pandemic eclipsed hopes broad policy support would combat the economic fallout of the outbreak. In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.3 per cent, led by a 4.9 per cent fall in Australia while Japan’s Nikkei gained 1.6 per cent. US stock futures fell 3 per cent in Asia.
European stock index futures fell more than 5 per cent as fears over the relentless global spread of the coronavirus.
In commodities, oil prices fell for a third session to be down about 17 per cent so far this week as the outlook for fuel demand darkened amid travel and social lockdowns triggered by the coronavirus epidemic.
MARKET COMMENT | Joseph Thomas, Head of Research - Emkay Wealth Management
"The frontline indexes were down by close to 5.50 per cent, in a market hit by the likely adverse impact of the pandemic, at a time when it was negotiating a critical juncture in the already existing economic sluggishness. Markets will continue to mirror the developments overseas till some comfort on the spread of the pandemic is received. It is too early to say when the feeling that the asset prices are lower than their intrinsic value would start coming in.”
SECTOR WATCH | Nifty Media rises; financials tumble
MARKET AT CLOSE | 28 out of 30 constituents of BSE Sensex end in the red
The S&P BSE Sensex sank 1,710 points or 5.6 per cent to settle at 28,870 levels while NSE's Nifty50 ended at 8,469, down 498 points or 5.56 per cent.
Sudden surge in Oil India
MARKET UPDATE :: Nifty breaches 8,500
MARKET UPDATE:: Sensex at day's low, down 1,900 pts
Bharti Infratel extends losses, hits record low
NTPC, Power Grid earnings relatively immune to coronavirus spread
For NTPC the positive should also accrue from the fact that availability of its critical power plants (Sipat and Korba) has recovered after heavy monsoons this year. Plant availability factor (PAF) stood at 100 per cent for Talcher Stage-II and at 50 per cent for Talcher Stage-I in the month of February, suggests Motilal Oswal Financial Services data. NTPC, which had continued seeing concerns on PAF of critical plants as well as under recoveries, however is seeing improved fundamentals. READ MORE
Work from home still not an option for currency traders amid coronavirus
In currency, the interbank rates can be availed only through a few platforms, including Murex, Calypso, and Reuters. These are installed in fixed computer terminals at the treasury floor. There are alternative applications that can be installed on mobile phones too, but they may work with a minor lag, which means interbank offers may not get truly captured. That is why it is important that traders must be present in front of the terminals for trading. READ MORE
NEWS ALERT | DHFL promoters, Kapil & Dheeraj Wadhawan untraceable at the moment: sources to CNBC TV18
>> Both of them didn't appear before ED yesterday
>> Kapil Wadhawan has said he cannot present himself before ED, says can't travel due to Covid-19 health advisory
Alert: ED is looking for them in money laundering cases w.r.t YEs Bank
STOCK ALERT :: Bajaj Finance slips 23% in 3 sessions
Covid-19 impact: Trump's economic rescue package could approach $1 trillion
His proposed economic package alone could approach $1 trillion, a rescue initiative not seen since the Great Recession. Trump wants checks sent to the public within two weeks and is urging Congress to pass the eye-popping stimulus package in a matter of days. READ MORE
Contribution to Sensex's fall today
BROKERAGE RADAR | Emkay Global Financial Services on ICICI Bank
We have trimmed our loan growth/earnings estimates by 1-2% and TP to Rs 600 from Rs 650, lowering P/ABV on core bank to 2.2x from 2.5x given the risk-off environment. ICICI Bank adopted ‘One Bank One RoE’ policy with a focus on risk-calibrated profitable growth, coupled with digital edge, which should help deliver strong RoEs (15-16% over FY21/FY22E) from sub-10%. Amid current market rout, revamped and stable ICICI offers a great investment opportunity from a long-term perspective. Maintain strong Buy/OW in EAP.
European shares fall in early trade
Detroit automakers, UAW agree to curb production to prevent Covid-19 spread
The agreement came hours after UAW President Rory Gamble went public with his dissatisfaction with how General Motors Co, Ford Motor Co and Fiat Chrysler Automobiles NV had responded to his proposal on Sunday that the companies stop production in the face of the coronavirus threat. READ MORE
MARKET UPDATE:: M-cap of BSE listed companies at Rs 114.48 trillion, its lowest level since February 15, 2017
-- Market cap erosion of Rs 45.88 trillion from its all-time high level on January 1, 2020
BROKERAGE RADAR | ICICI Securities on IT sector
It is difficult for us to accurately predict the slowdown in demand and its impact on the revenue & profitability of IT companies led by Covid-19, oil price fluctuation, banking & capital market, retail segment and restriction on movement of resources. Considering there are many moving parts, we conservatively downgrade our multiple and target price to factor in the uncertainty. However, the recent correction in stock prices of IT companies have made a few stocks attractively placed (based on FY20E FCFF yield and valuation). Hence, we maintain BUY on a few stocks led by attractive FCFF yield and upgrade the rating on a few stocks based on attractive valuation. The current valuation of Wipro, Sonata and Firstsource is factoring in zero growth till perpetuity making them lucrative buys at current levels
BROKERAGE RADAR | Motilal Oswal Fin Services on Endurance Technologies
We are lowering our consol EPS FY20/21 estimates to by 1%/8% to factor in for impact of coronavirus in EU business and our lowered estimate for 2W industry volume growth. ENDU’s near-term operating performance is expected to be influenced by the longevity of disruption in Europe and the BS6 transition in India. Both these events are transitory in nature but have created meaningful dislocation in price. Our positive view on ENDU remains intact and is driven by the company’s strong positioning in 2W OEMs as well as visibility of increase in content. Post the recent correction in the stock price, valuations are reasonable at 17.4x/15.8x FY21/FY22E consol. EPS. We also lower target multiple 22X (from 25x earlier) to factor in for risk of prolonged impact of coronavirus. Maintain Buy with TP of Rs 1,025 (~22x Mar’22E consol. EPS).
IndusInd Bank plunges 30%
Nifty sectoral indices at this hour
BSE Smallcap index hits over 3-year low, tanks 28% in a month
The S&P BSE Smallcap index hit an over 3-year low on Wednesday as shares of smallcap companies continued to reel under pressure on concerns of economic growth slowdown amid the coronavirus pandemic. At 12:00 pm, the S&P BSE Smallcap index was down 4.2 per cent at 10,384 points -- its lowest level since March 30, 2016. In comparison, the S&P BSE Sensex and S&P BSE Midcap index were down 2.7 per cent and 3.5 per cent, respectively. In the past one month, the smallcap index has slipped 28 per cent, against 27 per cent decline in the Sensex and midcap index. READ MORE
MARKET ALERT :: Sensex plunges nearly 1,400 pts
BSE Smallcap index hits over 3-year low, tanks 28% in a month
At 12:00 pm, the S&P BSE Smallcap index was down 4.2 per cent at 10,384 points -- its lowest level since March 30, 2016. In comparison, the S&P BSE Sensex and S&P BSE Midcap index were down 2.7 per cent and 3.5 per cent, respectively. In the past one month, the smallcap index has slipped 28 per cent, against 27 per cent decline in the Sensex and midcap index. READ MORE
MARKET ALERT :: Nifty50 briefly slips below 8,600, hits a low of 8,545.6
L&T, KEC Int'l: Oil price crash, Covid-19 to hit capital goods companies
Other prominent names that are expected to have a negative impact are Kalpataru Power, AIA Engineering, and Thermax, owing to weak export businesses as global economies are facing a lockdown situation due to the ongoing coronavirus situation. For instance, around 42 per cent of Kalpataru Power’s order book is exposed to international markets while 70 per cent of AIA Engineering’s revenue comes from export markets. Other companies which have substantial dependence on international markets include Elgi Equipment and Thermax. READ MORE
Mindtree, Tech Mahindra: IT stocks that should be on your watchlist
Shares of information technology (IT) companies have failed to remain insulated from the coronavirus-led sell-off in Indian equity markets despite Rupee's fall. The Indian currency which settled at 71.29 against the US dollar on February 17 fell to its record low of 74.50 per dollar on March 13, 2020. READ MORE
MARKET ALERT :: Sensex tanks 4% as Covid-19 cases rise in India
>> Hits 3-year low
MARKET ALERT :: Nifty Bank index slips below 20,600, down nearly 8%
STOCK ALERT :: IndusInd Bank hits 6-yr low, plunges 62% in eight days
>>Sees sharpest intra-day fall since listing on January 29, 1998.
CORONAVIRUS UPDATE :: Total number of cases reach 147: Govt
>> Active cases at 130
>> Recovered: 14
>> Deaths: 3
Yes Bank's mktcap moved up from 1,450 Cr to 1,09,000 Cr in 8 working days while the 3 banks bailed it out - Federal, IDFC First & Bandhan Bank have a total mktCap of 60,000 Cr!
Vodafone Idea tumbles 40%, Bharti Aitel slips 5% after SC's AGR verdict
Among individual stocks, Vodafone Idea tumbled 40 per cent to Rs 2.91 per share. At 11:35 am, the stock was trading 25.36 per cent lower at Rs 3.62 as compared to 2.06 per cent fall in Sensex. Bharti Airtel fell as much as 5.03 per cent to Rs 431.25 after rising 4.28 per cent to Rs 478.40 immediately after the SC hearing. Moreover, Bharti Infratel slipped 16.6 per cent to Rs 161.75 and Reliance Industries gave up its day's gains and fell 1.5 per cent to Rs 993.60. READ MORE
NEWS ALERT | NCLT Mumbai allows Jet Airways another 90 days for finalising resolution plan: CNBC TV18
>> Total number of days reach 360 days, as against 330 provided under IBC norms
Alert: 270-day deadline for Jet Airways ended on March 15
MARKET ALERT | Nifty tests 8,700-mark
MARKET SELL-OFF | Sensex tumbles over 800 points, gives up 30,000-mark
Brokerages slash India Inc's FY21 earnings estimates amid coronavirus scare
Analysts at Jefferies, for instance, suggest that the markets are already pricing in a 15 per cent drop in earnings given the current valuations. Within Nifty 100, they believe, 63 per cent stocks, including HCL Technologies, Infosys, ITC, Hero MotoCorp, Marico and Petronet, are building in a higher earnings downgrade of over 20 per cent. READ MORE
>> Actions of telecom companies are tantamount to seeking to bypass our judgment.
>> Court says no further objection will be entertained
Banking stocks take knock post AGR verdict
AGR CASE | Self assessment of AGR dues is in contempt of our orders: SC
>> "Self assessment by DoT is sheer violation of our orders, sheer contempt", Justice Arun Mishra remarks
AGR CASE | Companies are trying to influence us through the media: SC
>> AGR dues are public money
>> Court cannot permit another round of litigation on the issue of AGR.
AGR CASE| No objections to be allowed against payable dues: SC
>> How can there by self-assessment if DoT has already stated dues payable
(As reported by CNBC TV18)
Global refiners consider crude oil cuts as coronavirus destroys fuel demand
Gasoline demand in the United States, the world's largest oil consumer, is plunging. International flights are being grounded worldwide, slamming jet fuel demand.
Margins for producing transportation fuels turned negative in Europe and Asia, and briefly did the same in the United States, in a rapid response to international and domestic travel restrictions in scores of nations worldwide. READ MORE
NEWS ALERT | Covid-19 outbreak is likely to spark a spate of sovereign downgrades in 2020: Fitch
>> The rating agency expects a higher-than-average number of sovereign ratings actions in 2020
>> Says, these moves will have the strongest downward bias since the global financial crisis
Titan Company slides over 7%, hits fresh 52-week low
Feb Aviation Data :: Domestic air traffic up 8.98% YoY vs 2.2% in Jan
>> IndiGo market share at 48% vs 47.9% MoM
>> SpiceJet market share down at 15.3% vs 16.6% MoM
>> Air India market share up at 12% vs 11.6% MoM
STOCK ALERT | Tata Motors trades near 11-year low
IndusInd Bank 11% off day's high
Expert Speaks :: Ambareesh Baliga on surge in YES Bank stock price
Exchanges shud have suspended trading in #YesBank since depositories haven't yet sorted out the Free/Lock-in issue and the shares are still not reflected in the DP Accounts. @EdelweissFin@NSEIndia@BSEIndia#SEBIN Is the price surge artificial???
BROKERAGE RADAR | ICICI Securities on Karur Vysya Bank
RATING: BUY | TARGET PRICE: Rs 60
We believe asset quality ratios at current level have peaked out, during 9MFY20 absolute GNPL was down 1% from FY19 closing portfolio. However, due to Covid19 if general economy slows down further, it could have some impact on KVB’s SME portfolio. However, we believe it would be transitory in nature and should not materially impact the asset quality of KVB.
MARKET ALERT | Nifty breaches 8,900-mark
MARKET ALERT | Indices extend fall
STOCK ALERT | YES Bank zooms 198% in 3 days
MARKET CHECK | Sensex slips over 100 pts
Key sectoral indices slip into the red
Sanofi India trades 1.5% higher
>> The drug maker Sanofi Pasteur is entering the race to develop a vaccine to protect against the new coronavirus
BUZZING STOCK | YES Bank rallies over 32%, zooms 200% in past 3 days
Axis Bank slips 3%
Avenue Supermarts slips below Rs 2,000-mark
MARKET CHECK | Sensex erases opening gains
Vakrangee slides 5%
Mahindra and Mahindra dips in trade
>> The company acquired around 5 percent of the share capital of Eurl LD Azouaou, Algeria ('LDA').
Sectoral trends at NSE during Opening trade
Sensex heatmap at Open :: Sun Pharma, Infy top gainers
First Trade | Nifty back above 9,100
First Trade | Sensex reclaims 31,000-mark
NEWS ALERT | One more person tests positive in Pune: ANI
Naval Kishore Ram, District Magistrate of Pune, Maharashtra: One more person has tested positive for #Coronavirus in Pune. The person has travel history to France and Netherlands. Total number of positive cases reaches 18 in Pune and 42 in Maharashtra. pic.twitter.com/TqENpcImnl
CORONAVIRUS IMPACT: IBA to seek relief package for financial institutions
“The IBA is closely working on a plan to meet the challenges related to coronavirus. We are going to issue advisories to bank employees and the general public and assure them that there is no need to panic,” IBA Chief Executive Officer Sunil Mehta told Business Standard. READ MORE
Top gainers and losers on S&P BSE Sensex during Pre-open
Market at Pre-open
Market at Pre-open
Rupee opens higher at 73.99/$ vs Tuesday's close of 74.25 against the US dollar
YES Bank looks to recover Rs 8,500 cr from loan defaulters in next fiscal
YES Bank is hoping to recover about Rs 8,500 crore from its loan defaulters, mostly corporate entities, in the coming financial year (which begins April 1), said the bank’s administrator on Tuesday. READ MORE
Morgan Stanley, Goldman declare global recession underway
Morgan Stanley’s team, led by Chetan Ahya, said a worldwide recession is now its “base case,” with growth expected to fall to 0.9% this year. At Goldman Sachs, Jan Hatzius and colleagues predict a weakening of growth to 1.25%. S&P Global added its voice to the chorus with a report expecting that growth would range 1% to 1.5%. READ MORE
Coronavirus may spark global recession; worst since 2001: Morgan Stanley
Global economy is likely to slip into a recession triggered by the fast-spreading coronavirus (COVID-19) with growth dipping to 0.9 per cent year-on-year (YoY) in 2020, said analysts at Morgan Stanley in a recent report. The global recession, they said, will be deeper than seen in 2001. “Assuming this outlook of Covid-19, we expect 2020 global growth to dip to 0.9 per cent, the lowest since the global financial crisis (GFC). The global recession this year would be deeper than in 2001. We expect global growth to contract by 0.3 per cent in the first quarter (January – March) of 2020 (Q1-20) and 0.6 per cent in 2Q20,” wrote Chetan Ahya, chief economist and global head of economics at Morgan Stanley in a co-authored report with Derrick Y Kam, Nora Wassermann and Frank Zhao. READ MORE
Commodity prices extend declines amid market volatility led by silver
The spot price of silver has fallen 24.7 per cent in 2020 so far. On the MCX, gold futures for delivery in April declined by nearly two per cent to Rs 38,743 per 10g in late afternoon trade. Silver futures for delivery in May dived 4.8 per cent to Rs 34,470 a kg. Gold and silver have lost 15 per cent and 25 per cent, respectively, since Covid-19 was first reported in China during January. READ MORE
S&P lowers India's growth forecast to 5.2% for 2020 amid Covid-19 pandemic
The agency had earlier projected a growth rate of 5.7 per cent during the 2020 calendar.
Asia-Pacific economic growth in 2020 will be more than halve to less than 3 per cent as the "global economy enters a recession", S&P said in a statement. READ MORE
WEB EXCLUSIVE :: RBI's MPC to resume monetary easing amid risks to growth, uncertain outlook
In India, growth outlook over the next couple of quarters has become more uncertain on the prospects of a global recession and severe investor risk aversion and downside risks have increased due to a local outbreak. At this stage, India is relatively less affected from a global outbreak, due to lower trade dependence and participation in global value chains and smaller tourism receipts. READ MORE
WEB EXCLUSIVE :: Pace of flow into equity unsustainable as investors cut leveraged positions
Foreign portfolio investors (FPIs) are selling and cutting their exposure to emerging markets (EMs) given virus fears and crash in oil prices, as they are unwinding their aggressive bets and India is no exception. Generally when the oil price crashes, India tends to relatively outperform peers. This time the situation is bit murky for India given weak macro already. Brent crude oil at $30/barrel means a nearly $42 billion (1.4 per cent of GDP) boost to India’s economy, according to our macro strategist. This can help government revenues as government may retain most of the gains by increasing taxes. READ MORE