MARKET WRAP: Sensex recovers 1,574 pts from day's low to end at 28,288

Topics Markets | MARKET WRAP

Among sectoral indices on the NSE, Nifty Auto cracked the most - down around 6 per cent to 5,195 points
Extending its slide, the domestic equity market ended Thursday's extremely volatile session in the red as investors remained risk-averse amid escalating coronavirus  (Covid-19) cases. The S&P BSE Sensex closed the day at 28,288 levels, down 581 points or 2 per cent with ITC (up 7 per cent) being the top gainer and Bajaj Finance (down 10 per cent) the biggest loser. 

During the day, the index hit a high and low of 29,370.53 and 26,714.46, respectively. Reliance Industries (RIL), ICICI Bank, Axis Bank, and Bajaj Finance contributed the most to the index's fall while FMCG major ITC, HDFC Bank, and Infosys gave the much-needed support. 

NSE's Nifty ended at 8,263, down 205 points or 2.42 per cent with 40 out of 50 constituents declining and 10 advancing. Volatility index India VIX advanced around 13 per cent to 71.95 levels. 

In the currency market, rupee tumbled to a record low of 75.01 against the US dollar, as a flight into cash and worries about tightening liquidity boosted demand for the world’s reserve currency.

Among sectoral indices on the NSE, Nifty Auto cracked the most - down around 6 per cent to 5,195 points, followed by Nifty Metal and Nifty Media indices. 

In the broader market, Nifty Midcap 100 index ended at 12,053, down 542 points or over 4 per cent while the Nifty SmallCap index slipped 222 points or over 5.5 per centy to 3,797-mark. 

Global markets

The dollar surged, bonds plunged and global markets struggled to find their footing on Thursday as the European Central Bank’s latest promise of stimulus provided only brief solace while the world struggles to contain the coronavirus pandemic. China and Hong Kong stocks fell sharply.

The Hang Seng index dropped 4.3 per cent to 21,344.93, the lowest since July 2016, while the Hong Kong China Enterprises Index lost 4.9 per cent to 8,366.04. The CSI300 index fell 2.7 per cent to 3,536.65 by the end of the morning session, while the Shanghai Composite Index lost 2.1 per cent to 2,670.37.

In commodities, oil prices rose on Thursday but pared early gains as investors tried to assess how effective massive stimulus by central banks will be in shoring up the global economy as the shock from the coronavirus pandemic deepens.

(With inputs from Reuters)

LIVE UPDATES

MARKET COMMENT | Vinod Nair, Head of Research at Geojit Financial Services

After another volatile session of trade, in which the Nifty fell below the 8,000-mark, the benchmark indices closed down by around 2.4 per cent. Market failed to take early cues from the positive opening in the European markets, after ECB rolled out another stimulus package. With worries about a case of community spread of the virus, Investors fear further impact from Covid-19 and preferred Cash instead of Investments. All asset classes are seeing downward pressure. FIIs have also been net sellers to the tune of Rs.40,000 crores this month, further putting pressure on the markets. However, pockets of value buying in quality stocks were seen during the session

SECTOR WATCH | Here's how sectoral indices on the NSE performed today


MARKET AT CLOSE | Top losers and gainers on the S&P BSE Sensex


CLOSING BELL

The S&P BSE Sensex ended at 28,288 levels, down 581 points or 2 per cent while NSE's Nifty slipped 205 points or 2.42 per cent to settle at 8,263 levels.

BROKERAGE RADAR | ICICI Securities on Ashok Leyland

Given the challenging times at Ashok Leyland (ALL) due to the muted demand scenario in the commercial vehicle (CV) space domestically as well as uncertainty surrounding the economic impact of Covid-19, we view this investment as not a prudent step at this juncture. Moreover, ALL is not loaded with surplus cash on its books. Hence, its plans to fund this share purchase through debt will increase leverage on the B/S, which erodes our margin of safety on ALL. Hence, we downgrade the stock to HOLD with a revised SOTP based target price of Rs 55/share.

NEWS ALERT | SpiceJet suspends majority of international flights amid Coronavirus pandemic

Spokesperson says --

In view of the unprecedented situation arising due to COVID-19, SpiceJet is forced to temporarily suspend majority of its international operations from 21st March till 30th April, 2020. We will resume the suspended flights as soon as the situation normalises.
 
Our Kolkata-Dhaka flight will continue to operate as per schedule. Our Chennai-Colombo flight will restart from the 25th March, 2020 while our Delhi-Dubai and Mumbai-Dubai flights will resume from 16th April, 2020.

Covid-19: IndiGo senior staff take salary cuts, 25% pay cut for CEO Dutta

"With the precipitous drop in revenues, the very survival of the airline industry is now at stake," Dutta said in his email to employees. "We have to pay careful attention to our cash flow so that we do not run out of cash." READ MORE 


ITC re-enters list of top-10 most valued firms after stock rises 6%

Cigarette major and fast moving consumer goods (FMCG) company ITC has re-entered the list of top 10 most valuable companies after the stock rose nearly 6 per cent to Rs 160 on the BSE on Thursday. At 02:22 pm, ITC had a market capitalisation (market-cap) of Rs 1.95-trillion, and thus stood at 10th position in overall rankings, BSE data shows. The company surpassed the government-owned bank, State Bank of India (SBI), which had the market-cap of Rs 1.89 trillion, data shows. READ MORE

STOCK ALERT :: Indiabulls Housing Finance hits record low

>> Tanks 31% intra-day on the BSE to hit lifetime low of Rs 95


MARKET CHECK | Bharti Infratel tanks over 15%


Foreign investors turn net sellers of Asian bonds in Feb on Covid-19 fears

Foreigners sold a net $3.88 billion worth of regional bonds last month, their largest net selling since April 2018, according to data from regional banks and bond market associations in Indonesia, Malaysia, Thailand, South Korea and India. READ MORE

DBS says Singapore recession inevitable in 2020 due to coronavirus: Reuters

Singapore’s economy will contract by 0.5% in 2020, the city-state’s biggest bank DBS said on Thursday, adding a recession was inevitable due to an expected hit from the coronavirus outbreak. DBS’s prior estimate was for the economy to grow 0.9%. 

MARKET CHECK | Top gainers on the BSE at this hour


MARKET UPDATE:: Sensex falls again


BROKERAGE VIEW :: ICICI Direct on Capital Goods sector

>> The recent fall in crude oil prices of more than 40% to US$30/barrel is expected to impact overall orders/awarding from the MENA region owing to demand destruction fears amid excess supply. Companies like L&T and KEC with exposure to MENA region are expected to be moderately impacted. The Middle East region contributes ~13% to the order book and 14% to consolidated revenues of L&T. KEC International has exposure of ~| 2100 crore order book from MENA region, which is 9.5% of order book and 10% to revenue. However, Engineers India had around 25% overseas revenue in FY19 while 54% of 9MFY20 order inflow came in from overseas market.

>> It is difficult to assess the real magnitude of the Coronavirus outbreak and oil price crash at the moment as it is yet to peak out. Accordingly, we have tried to factor in the additional risk and revised our estimates, target prices and ratings for companies like L&T, KEC, Kalpataru, Elgi Equipments, Thermax, AIA and Engineers India with operational and sales exposure to these geographies.

Contribution to Sensex's sharp rebound today


BROKERAGE VIEW :: HDFC Securities on IT sector amid Covid-19 outbreak

>> We have cut EPS est. by ~7% (rev cut 2-7%) and TP by ~17%, factoring delay in pipeline conversion and core business vol./pricing impacting 1Q/2QFY21. Impact on travel & hospitality segment expected to be higher (Mindtree/Hexaware). Tailwinds include increase in outsourcing intensity, USD-INR and G&A (travel cost at 1.6 - 4.2% of rev). Maintain constructive view on the sector.

>> Top picks: Infosys, LTI and Sonata

European markets open higher


MARKET ALERT | Sensex gains 200 pts


NEWS ALERT | IndiGo CEO says senior vice presidents and above taking 20 per cent pay cut: PTI reports

>> vice presidents, cockpit crew taking 15% pay cut

Airtel, Voda-Idea to pay Rs 7881 crore a year if AGR is staggered

Under a payment scheme staggered over 20 years, Bharti Airtel and Vodafone Idea together have to pay around Rs 7,881 crore annually (the latter around Rs 5,235 crore) towards their AGR dues. Analysts say the figure comes from the Department of Telecommunication’s proposal for a staggered payment scheme with an interest rate of 8 per cent per annum. READ MORE

BROKERAGE RADAR | Sharekhan on Bajaj Finance

Bajaj Finance (BFL) currently trades at a reasonable 4.7x its FY2021E and 3.9x its FY2022E book value per share (BVPS) and is available at below its five-year average one-year forward PBV multiple of ~5x. We find BFL to be a strong player, performing consistently, buoyed by its ability to boost profitability (along with prudent asset-quality performance) and its strong underwriting and risk measurement standards. We beleive BFL should be able to relatively better manage its asset quality and profitability during challenging times. We opine any further weakness in the stock may be an opportunity for investors to add it to their long-term portfolio. We maintain our Buy rating on the stock with a revised PT of Rs. 4,500.

NEWS ALERT | Emami Board approves share buyback for 64.7 lakh share at Rs 300/sh: BSE filing

>> Buyback would max fetch up to Rs 194.1 cr

>> Also declares payment of second Interim Dividend of Rs. 2/- per equity share

India's economic policy response to Covid-19 lags global peers: Edelweiss

With the coronavirus (Covid-19) casting its shadow on the global economy, most governments and central banks have initiated a strong policy response to battle the pandemic. Analysts at Edelweiss Securities, however, suggest that India has not done enough compared to its global peers to combat the situation. The macroeconomic response so far since the outbreak of the Covid-19 pandemic, they feel, pales in comparison to what has happened globally so far, or even compared with the policy steps undertaken by India during the global financial crisis (GFC).  READ MORE

STOCK ALERT :: Coal India hits all-time low of Rs 125.40

>> Stock trades ex-date for interim dividend of Rs 12 per share


SECTOR WATCH :: Nifty PSU Bank index turns positive in a weak market


BROKERAGE RADAR | Motilal Oswal Financial Services on Motherson Sumi

We have lowered our FY21/22 consol. EPS by 15%/8% to factor in the near-term volume weakness in all key businesses due to the impact of coronavirus. We maintain our positive view on MSS (stabilization of greenfield plant + execution of strong order book of SMRPBV + India recovery). However, the near-term stock performance could be influenced by development on coronavirus (China exposure in SMRPBV and PKC) and the ongoing restructuring exercise. We are also lowering our target multiples for both India (from 25x to 20x) and Global business (from 15x to 12x) to factor in for risk of prolonged impact of Coronavirus. Maintain Buy with a target price of around Rs 108 (Mar’22E SOTP).

Ind-Ra revises rating watch on YES Bak to 'evolving' from 'negative'

The revision of the rating watch follows the systemic support Yes Bank has received recently, in terms of both equity and liquidity, from the new set of investors and the regulator for its reconstruction.
 
It also considers the pressure that could show up on the liabilities once the regulator-imposed moratorium is lifted. READ MORE

BROKERAGE RADAR | Motilal Oswal Financial Services on Telecom sector

We maintain our SOTP-based TP of Rs 650 on Bharti, assigning 12x on FY22E India wireless EBITDA and 6x on Africa. If we assume a duopoly scenario, Bharti can generate incremental EBITDA of Rs 100 billion, assuming it gets 40% revenue share and 50% EBITDA margin (building incremental network cost and higher capex intensity). Thus, it can garner EBITDA of Rs 550 billion in FY22, without factoring any further ARPU increase. At 10x EV/EBITDA, it could derive a blue-sky TP of Rs 825. We maintain our TP of Rs 500/share on RJio which could see additional gains due to ARPU increase or eating into VIL’s market share.

BROKERAGE RADAR | Emkay Global Fin Services on steel sector

We remain cautious on the steel sector. We also note that though the steel mills we spoke to have taken stringent measures to prevent any outbreak, but given the high population concentration at plants, we believe the probability of an outbreak in any plant is high.

BROKERAGE RADAR | Edelweiss Securities on telecom sector

We believe further consolidation in the telecom market will reduce competitive intensity, benefitting Bharti and Reliance Jio (RJIO) by granting them better pricing power and much higher revenues. The government has proposed deferred payment option, but SC’s standpoint on the same will be crucial. Although there is merit in the deferred payment plan considering the NPV of the AGR liability remains intact and consequences of disallowance on the sector would be staggering, we are uncertain on SC’s stance on this. In case of consolidation of telecom operators, Bharti Infratel will also have a second order impact on its tenancies. We maintain positive stance on Bharti (BUY) and RJIO due to their ability to fund the liabilities and gain market share.

Expert Tweets

EXPERT COMMENT | Blind advice can hurt investors: Shyam Sekhar

Gold rises as ECB measures to limit coronavirus impact lift investors' mood

FUNDAMENTALS
 
* Spot gold rose 0.4% to $1,491.40 per ounce by 0040 GMT, having risen 1% earlier in the session.
 
* The metal fell about 3% on Wednesday along with other precious metals, as investors sold across assets to hoard cash.
 
* U.S. gold futures rose 1.2% to $1,495.80 per ounce. READ MORE

MARKET UPDATE:: Broader indices underperform; India VIX jumps 14%


MARKET COMMENT :: Vinay Panit, Head - Institutional Equities, IndiaNivesh

Nifty slipping below 8,000 is virtually indicating a very bad FY21. While most investors and analysts were writing off Q4FY20, the current correction seems to be writing off FY21. Most sectors will have to bear the brunt of the global slowdown and impact due to coronavirus. Crude correcting sharply to sub $25 is going to impact refiners and crude derivative user industries due to inventory losses for most players

Rupee crash, Covid-19 to make India Inc's overseas debt repayments costlier

Bankers said overseas debt worth billions of dollars of top corporate houses is due to be refinanced or will be repaid in the March and subsequent quarters. "Whatever option the company chooses between refinancing and repayment, it would end up paying more due to the 4 per cent fall in rupee's value versus the dollar since January," a banker said. READ MORE

Expert Tweets :: Ambareesh Baliga

No point in banning short sale or stock exchange shutdown

We are going through a rough phase. Markets are witnessing an unprecedented sell-off owing to growing fears of economic slowdown due to coronavirus (Covid-19) pandemic. The Nifty has already corrected over 30 per cent in less than 15 days and may slide further. Unless there is some clarity over the virus outbreak and the magnitude of its impact on the economy - both globally as well as domestically - forecasting could be hazardous. READ MORE

Sell stocks and go! Difficult to predict when the market carnage will end

The coronavirus health scare caught the world off-guard and has completely roiled equity markets over the past few weeks. The precipitous fall in global equities since the first case came to light in late 2019 has already ended the bull-run in many stock indexes over the globe, including in Dow Jones Industrial Average (DJIA), which saw its 11-year bull-run punctured. Indian markets, too, succumbed and entered bear terrain, which is typically defined as a fall of 20 per cent or more in an index or a stock from the top. READ MORE

Currency check | Rupee hits 75/$-mark


NEWS ALERT | Telcos receive fresh notification from DoT on SC order: CNBC TV18

-- Notification says no self-assessment of AGR dues to be considered

Market check | Sensex stages recovery, now down 450 pts


Rupee continues its slide: Nears 75 a dollar, forcing an RBI intervention

Rupee’s loss is expected as the dollar index, which measures the greenback’s strength against major global currencies crossed 100 as funds sought safe haven investment in US treasury. READ MORE

MARKET UPDATE:: PSU banks recover from day' low; Nifty PSU Bank index trading 1% higher after bouncing 8% from day's low


Recovery from intra-day lows in BSE500 stocks

COMPANY DAY'S LOW(RS) LATEST(RS) RISE(%)
MUTHOOT FINANCE 485.00 597.90 23.28
UNITED BREWERIES 758.75 928.55 22.38
RBL BANK 150.00 183.20 22.13
BAJAJ FIN. 2485.15 3015.25 21.33
ICICI LOMBARD 805.60 970.20 20.43
Click here for the full list

Nifty Auto hits 6-year low; Maruti tumbles 11%, Ashok Leyland plunges 19%

Among stocks, Ashok Leyland bled the most - falling up to 19 per cent in the trade. Bharat Forge, Maruti Suzuki India (MSIL), and Mahindra & Mahindra (M&M), all were down over 11 per cent each. Other stocks that were under pressure included Hero MotoCorp, Tata Motors, and Bajaj Auto, among others. These stocks were down in the range of 3.5 - 5 per cent. On the other hand, Motherson Sumi was trading over 1.6 per cent higher at Rs 62.60 apiece on the NSE. READ MORE

MARKET UPDATE:: Sensex off day's lows


United Spirits, 4 others hit 52-wk lows as bars shut amid Covid-19 outbreak

Individually, United Spirits plunged the most, down 16 per cent on the NSE, followed by GM Spirits (13.17 per cent), and Globus Spirits (10 per cent). Besides, Radico Khaitan slipped 7 per cent, United Spirits (5.6 per cent), Pioneer Distilleries (5 per cent), and Associated Alcohol and Breweries (4.8 per cent).  READ MORE

Rupee at record low


IndusInd Bank recovers 13% off day's lows


YES Bank plunges 23%


Coronavirus pandemic burns Rs 1.9 trillion hole in LIC's investments

A 30 per cent drop in the S&P BSE Sensex and the Nifty 50 thus far in the calendar year 2020 (CY20) has weighed heavily on the fortunes of state-owned life insurer, Life Insurance Corporation of India (LIC), which has suffered a notional loss of about Rs 1.9 trillion in the past two-and-half months. The insurer, known for making large equity investments, has substantial holdings in many listed companies. READ MORE

Oil to stay under pressure; eyes on fiscal measures to address coronavirus

Crude oil has indeed taken the brunt of the coronavirus (COVID-19) health scare and was one of the first markets to be impacted by the sell-off in risk-assets. The full demand impact of the virus is still unclear, but oil consumption is certainly under severe pressure as countries continue to escalate measures to stem the spread of the virus. In our view, jet fuel demand will continue to suffer well into the summer months due to the widespread travel bans that have been put in place. Fuel oil demand will also suffer as the cruise-line industry slows dramatically. READ MORE

Nifty reclaims 8,000-mark


MARKET UPDATE:: Mild recovery in Sensex


Coronavirus update:: Two women test positive ; total cases in Maharashtra reaches 47

Technical view: Here are five ways you can manage market volatility

India VIX, a measure of volatility and investors’ perception about the risk of sharp swings based on options prices, rose to its highest level since the 2008 global financial crisis (GFC) last week, as fear gripped markets worldwide after COVID-19 was declared a ‘pandemic’. VIX is meant to indicate investors’ perception of the annual market volatility over the next 30 calendar days. The higher the value, the higher is the expected volatility and vice versa. VIX touched its historical peak of 85.13 on November 17, 2008, in the aftermath of the collapse of Lehman Brothers. In the past five years, it has stayed below 30. READ MORE

IndusInd Bank continues its downtrend, falls 13%


Power Grid trades 3% higher in a weak market


Info Edge trades at lowest level since May 2019


Asian Paints tank over 9%


CORONAVIRUS UPDATE :: Total cases reach 169

Total number of Active COVID 2019 cases across India: 151
 
Total number of Discharged/Cured COVID 2019 cases across India * : 14
 
Total number of Migrated COVID-19 Patient: 1
 
Total number of Deaths due to COVID 2019 across India: 3

NTPC gains over 2% in a weak market


Bata sees sharp slide


United Breweries fizzles out as bars, restaurants shut amid Covid-19


Private bank stocks slide; Nifty Pvt Bank index down over 7%


Bajaj Finance tanks 13%


MARKET CHECK :: SENSEX PLUNGES 2,000 PTS


Mumbai-based IGL cracks as city enters into lockdown


Maruti Suzuki bleeds, stock down nearly 9%


Tata Motors tanks 8%


BPCL locked on 10% lower circuit


SECTORAL TRENDS AT NSE


SENSEX HEATMAP :: Power Grid survives markert sell-off


NIFTY BRIEFLY BREACHES 8,000, HITS LOW OF 7,937.05


BLOODBATH CONTINUES, SENSEX OPENS 1,700 PTS LOWER


Nifty falls to 8468, experts say index may further slide below 8,000

Derivatives and technical analysts expect the Nifty to slide below the psychological 8,000 mark in the coming sessions, with the index breaching its previous support level of 8,555 on Wednesday. According to experts, the Nifty has continued to form lower top-lower bottom formations, a trend seen in the last five weeks, and witnessed sharp selling towards 9,700 zones. READ MORE

NEWS ALERT | Reserve Bank of India (RBI) initiates work from home for its central staff office in Mumbai: CNBC TV18

-- RBI's work from home advisory effective March 19-31

Market at Pre-Open


Top gainers and losers at S&P BSE Sensex during Pre-Open


Rupee opening

Rupee opens weaker at 74.95/$ vs Wednesday's close of 74.26 against the US dollar

Market at Pre-Open


Nifty outlook and top stock recommendations by CapitalVia: Buy Lupin, ITC

Buy: Lupin Limited (Above Rs 638)
 
Target: Rs 678
 
Stop loss: Rs 605
 
Stock is forming an insider bar in daily charts, breakout above 638 would lead to bullish moment. Stock is showing sign of oversold on RSI indicator. Breakout from the level of 638 would lead stock to witness more upward movement. READ MORE

Bulk deals on NSE as on Wednesday

Bulk deals on BSE as on Wednesday

FII/FPI & DII trading activity on NSE, BSE and MSEI


Rupee check

Source: Bloomberg


Oil check

>> Oil prices surged nearly 20 per cent on Thursday stoked by stimulus efforts to ward off recession. Brent crude was up 8 per cent at $26.98 a barrel after tumbling 13 per cent on Wednesday. 

SGX Nifty

>> At 8:24 am, the Singaporean Exchange for Nifty Futures was at 8,114.75 level, down 327 points or nearly 4%

Asian Market check

Source: Reuters


US Market check

Source: Reuters


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