MARKET WRAP: Indices pare gains; Sensex up 693 pts, Nifty settles at 7,801

Topics Markets | MARKET WRAP

Brokers trade at their computer terminals at a stock brokerage firm in Mumbai. Photo: Reuters
A day after registering its biggest one-day fall ever, the domestic equity market ended with mild gains on Tuesday amid positive global cues. Gains, however, were capped after Finance Minister Nirmala Sitharaman said that an economic package was still underway even as she announced a slew of other measures, mainly with regard to regulatory compliance matters. 

Earlier, investor sentiment got a boost after the US Federal Reserve on Monday rolled out an array of measures to support the US economy, including purchases of corporate bonds. 

The S&P BSE Sensex today ended at 26,674, up 693 points or 2.67 per cent while NSE's Nifty50 closed the session at 7,801, up 191 points or 2.51 per cent. During the day, the 30-share Sensex hit a high and low of 27,462.87 and 25,638.90, respectively. IT major Infosys ended as the biggest gainer on the index with the gain of around 13 per cent after the company said the US Securities and Exchange Commission (SEC) has concluded the investigation in the whistleblower allegations made last year, and that it does not anticipate any further action by the regulator. READ MORE

On the NSE, all sectoral indices but Nifty Realty ended in the green. Nifty IT topped the list with over 6 per cent gains to 11,865 levels, followed by Nifty FMCG and NIfty Pharma. Nifty Realty index, on the other hand, slipped 2 per cent to 170.65 levels. 

India VIX, the volatility index, cooled off around 14 per cent to 81.94 levels. 

In the broader market, the Nifty Midcap 100 index ended with over 1 per cent gains at 11,110 while the Nifty SmallCap index slipped around 1 per cent to 3,340 levels. 

Global Markets

Asian stocks rallied on Tuesday as the US Federal Reserve’s promise of bottomless dollar funding eased painful strains in financial markets, even if it could not soften the immediate economic hit of the coronavirus.

European shares also attempted another rebound after slumping in the previous session.

In the commodity market, oil prices rose on hopes that the United States will reach a deal soon on a $2 trillion coronavirus aid package which could blunt the economic impact of the outbreak and in turn support oil demand.

(With inputs from Reuters)


4:20 PM IST Market seemed to breathe a sigh of relief today after the crash yesterday, in sync with the global markets. In addition to the huge relief package by the US Fed yesterday, there were also expectations of a fiscal package by the government. Market came off its highs after no significant announcements by the FM and the fact that the economic package was still in development. European and US manufacturing activity data due later, which may indicate the impact of Covid-19 on economies, could influence markets tomorrow.

4:03 PM IST

4:03 PM IST

3:42 PM IST The S&P BSE Sensex gained 693 points or 2.67 per cent to end at 26,674 while NSE's Nifty50 settled at 7,801, up 191 points or 2.51 per cent.

3:30 PM IST

3:27 PM IST

3:26 PM IST Source: Bloomberg

3:24 PM IST In his view, the fast-spreading disease is likely to come to a halt, but gradually. Levitt, whose specialty is not in epidemiology, cited the slowing rate of increase in the number of deaths in China to support his hypothesis.   Levitt said that just like China, the United States too will get through the worst of the coronavirus outbreak sooner than many specialists anticipate, the Los Angeles Times reported on Monday. READ MORE

3:14 PM IST The extension of GST return filing timelines together with the deferment of e-invoicing and new returns announced earlier would allow businesses to focus on resumption of business processes once normalcy resumes in future. The waiver of interest, late fees and penalties for SME’s would enable them to focus on reviving their businesses once things are back to normal  

3:11 PM IST

LIVE UPDATES

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

Market seemed to breathe a sigh of relief today after the crash yesterday, in sync with the global markets. In addition to the huge relief package by the US Fed yesterday, there were also expectations of a fiscal package by the government. Market came off its highs after no significant announcements by the FM and the fact that the economic package was still in development. European and US manufacturing activity data due later, which may indicate the impact of Covid-19 on economies, could influence markets tomorrow.

Sectoral gainers and losers on the NSE


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


CLOSING BELL

The S&P BSE Sensex gained 693 points or 2.67 per cent to end at 26,674 while NSE's Nifty50 settled at 7,801, up 191 points or 2.51 per cent.

ALERT :: European markets trade higher


ALERT :: US Dow Futures locked in upper circuit


Rupee check

Source: Bloomberg


'End of coronavirus pandemic is near', says Nobel laureate Michael Levitt

In his view, the fast-spreading disease is likely to come to a halt, but gradually. Levitt, whose specialty is not in epidemiology, cited the slowing rate of increase in the number of deaths in China to support his hypothesis.
 
Levitt said that just like China, the United States too will get through the worst of the coronavirus outbreak sooner than many specialists anticipate, the Los Angeles Times reported on Monday. READ MORE

COMMENT :: MS Mani, Partner, Deloitte India on FM's announcements

The extension of GST return filing timelines together with the deferment of e-invoicing and new returns announced earlier would allow businesses to focus on resumption of business processes once normalcy resumes in future. The waiver of interest, late fees and penalties for SME’s would enable them to focus on reviving their businesses once things are back to normal
 

MARKET ALERT :: Sensex erases gains partially


NEWS ALERT | Debit card holders, who withdraw cash, from any ATM can do it for free of charge for 3 months

>> Will reduce bank charges for digital trade transactions for all trade finance consumers

NEWS ALERT | SIP issued for import of aqua-culture extended for 3 months: FM

>> Delay of arrival of imports will be overlook

Alert: SIP is Sanitary Import Permit

NEWS ALERT | Threshold limit for default raised from Rs 1 lakh to Rs 1 crore under IBC to protect MSMEs: FM Sitharaman

>> May consider suspension of Section 7,9 and 10 of IBC for six months if virus-related uncertainties prevail beyond April. 

NEWS ALERT | Requirement to invest 15% of debentures in specified instruments extended till June 30, 2020: FM

>> The mandatory requirement was earlier required to be fulfilled by April, 2020

NEWS ALERT | Moratorium issued w.r.t MCA registry to be from April 1 to Sept 30

>> Mandatory requirement to hold Board meetings relaxed till next two quarters

>> No addtional fees for late filing of registry

NEWS ALERT | Last date for 'Sab ka Vishwaas' scheme applicability extended to June 30, 2020: FM

>> No interest rate to be charged for late submission of claims for businesses with turnover less than Rs 150 cr

>> Custom clearance will be available 24x7 till June 30, 2020

Alert: Sab ka Vishwaas' scheme  is a tax dispute redressal scheme for indirect taxes

NEWS ALERT | Last date for filing GST and/or composition returns for March, April & May 2020 extended to June 30, 2020

>> No interest, no late fee or penalty will be charged from business woith turnover less than Rs 5 crore

>> No late fee or penalty will be charged for the first 15 days, beyond that interest to be charged at 9% for businesses with turnover more than Rs 5 crore

>> Date for opting compostion scheme now extended to June 30, 2020

NEWS ALERT | Linking of Aadhar-Pan card can be done till 30 June 2020: FM

>> Benefits of 'Vivaad Se Vishwas' scheme will be extended till June 30, 2020, with no addtional 10% charge

>> Due dates for issues of notice, intimation, notification, approval order, sanction order, filing of appeal, filing return, etc will be extended till 30 June 2020 under I-T Act, STT Law, CTT Law, Wealth Tax Act, etc

NEWS ALERT | Last date for Income Tax return for FY19 will now be 30 June 2020: FM

>> Delayed return will attract interest rate of 9%, down from 12%

Coronavirus impact: As data usage jumps, telcos ask govt for more spectrum

In a letter to the department of telecommunications (DoT), the Cellular Operators Association of India (COAI) has demanded additional spectrum both for “access and backhaul microwave” for a short term and temporarily as they need to augment their capacity to meet the growing demand. COAI director general Rajan Matthew however says they are still waiting for a response from the government. READ MORE

MARKET CHECK:: Sensex up 1,100 pts ahead of FM Sitharaman's addres


MARKET VOICE

BUZZING STOCK | Britannia Ind surges 13%


MARKET CHECK | Top losers on the BSE at this hour


MARKET COMMENT | Quote on asset purchase program by the US Fed from LKP Securities

Emerging markets have already witnessed outflows of $83 bn since the beginning of the crisis and although the asset purchase program of the Fed is commendable the markets shall see improvement only when the economy is allowed to come back to life

BROKERAGE RADAR | Sharekhan on Ipca Labs

Management expects strong momentum to continue across the API and formulations segment. Moreover, given the lower dependence on China for imports of intermediates, it is unlikely to have any material disruption of supplies. We expect Ipca to report a sales and profit CAGR of 16% and 20% over FY2020-FY2022, respectively. At the CMP, the stock is trading at an P/E multiple of 21.6x/18.2x its FY2021/FY2022 earnings. The recent correction in the stock price provides a good opportunity for investors to accumulate the stock. We maintain our Buy recommendation on the stock with unchanged PT of Rs. 1,590.

Covid-19 an economic tsunami; biz failures, bankruptcies coming: Moody's

"The economic tsunami that hit China and much of Asia earlier in the year and hit Europe a few weeks ago is now slamming the US economy as more parts of the country require nonessential businesses to shut down. This sudden stop in the economy is unprecedented. The only analogue is the 9/11 terrorist attack. But that lasted for a day or two, and except for airlines, businesses continued to operate," wrote Mark Zandi, chief economist at Moody's Analytics in a recent report. READ MORE

MARKET WATCH | Top gainers on the BSE at this hour


BUZZING STOCK:: Bajaj Finance recoups day's losses; up 19% from day's low


ALERT :: FM assures of a stimulus package to combat Covid-19

Sector watch :: ICRA downgrades hospitality sector from stable to negative outlook

>> Occupancies across hotels in India have crashed during March 2020, by over 40% in many cases. Cancellations are at all-time highs. Risk aversion to travel and unfamiliar surroundings is at a high.  Group events felt the first impact of Covid-19, with mass cancellations impacting banqueting and allied income for hotels starting in February 2020, even before the impact of the contagion was visible in India and the Indian government sprang into action.
 
>> ICRA expects the travel and tourism industry to witness one of the longest tail periods of impact, potentially running into multiple quarters, following the covid-19 wave
 
 

MARKET UPDATE:: Sensex extends gains after FM's tweet


BROKERAGE RADAR | Emkay Global Financial Services on Engineering & Capital Goods

We compare and draw parallels between the 2008-10 financial crisis-led economic slowdown and the current Covid-19 situation in terms of capex push, and check the government’s ability to fund the infrastructure capex. We find that after the Global Financial Crisis (GFC) in 2008, the impact on our coverage companies in the ECG space was limited mostly to export revenue for 4-6 quarters. Domestic revenue did not see a major slowdown, except for the private sector capex-dependent players such as ABB, Siemens and Thermax. We maintain that the reduced infra capex will hurt larger and diversified players more than the smaller and niche players. We have a Hold rating on L&T and Buy on Cummins India, KNR Constructions and PNC Infratech. 

Top BSE500 gainers

COMPANY LATEST PREV CLOSE GAIN(%)
FINE ORGANIC 1801.60 1564.25 15.17
ESCORTS 633.95 551.30 14.99
HDFC LIFE INSUR. 389.20 342.55 13.62
AUROBINDO PHARMA 332.65 294.35 13.01
BRITANNIA INDS. 2410.00 2133.35 12.97
Click here for the full list

NEWS ALERT | FM Sitharaman to address the media at 2 pm today

-- Sitharaman to address media specifically on statutory and regulatory compliance matters

Coronavirus outbreak: Stock exchanges activate disaster recovery sites

The move is in line with the Securities and Exchange Board of India’s (Sebi’s) guidelines on business continuity plan (BCP) and disaster recovery (DR) for market infrastructure institutions (MIIs), which includes stock exchanges, clearing corporations and depositories. The objective is to ensure exchange’s preparedness in the event of a natural calamity, so that any disruptions should not affect market integrity and investor confidence. READ MORE

No trading seen in bonds in first 20 minutes of the market session

India’s bond market saw no trading in the first 20 minutes on Tuesday, and the total trading volume as of 11:30 am was just Rs 250 crore, as bond traders worked from home amid expectations of an imminent rate cut. The market now expects rate cuts of at least 50 basis points, and industry associations have called for a cut of as much as 150 basis points, as the number of coronavirus cases are rising in India and globally, bringing economic activities to a halt. READ MORE

BROKERAGE RADAR | ICICI Securities on HUL

The acquisition of Vwash would not make any material difference to growth. However, it has strong potential to grow into a bigger brand in the next five to 10 years. With respect to the recent outbreak of Covid-19, the personal wash category is likely to see strong growth in the next few quarters. Though the personal wash category is fully penetrated, it is expected to witness unprecedented increase in per capita consumption after increasing awareness on personal hygiene. Despite the extraordinary economic slowdown, HUL is likely to sustain robust revenue growth and strong operating margins. The company would continue to command a premium to the peers being the leader in the category. We change our recommendation from HOLD to BUY with a target price of Rs 2,310/share.

BROKERAGE RADAR | Kotak Securities on Media sector

We expect a complete/partial lockdown of cinemas for a couple of months in view of Covid-19 outbreak. During this period, PVR would incur cash loss of about Rs550-600 mn per month. The company has adequate liquidity to navigate a complete lockdown of about five months and would be able to borrow more, if need be. We expect a strong bounce back in demand post Covid-19 led by (1) pent-up demand, and (2) packed line-up of movies (4QFY20/1QFY21 releases deferred would be scheduled over 2Q-4QFY21) and (3) we believe that PVR’s performance is largely linked to content quality and likely weakness in macro aftermath Covid-19 would have modest impact on PVR’s operating performance.

We recommend buying PVR on dips. We have a BUY rating with a fair value of Rs 1,800, implies 11X FY2022E EV/EBITDA. 

Auto sector braces for tough road ahead as lockdown hits business

The impact in FY20 will be felt the most in the last two weeks, given that footfalls have dropped drastically with dealers forced to close down showrooms and the planned transition from BS-IV to BS-VI not happening as smoothly as planned. READ MORE

Growth biggest concern for banks now; keep an investment horizon of 3 yrs

Even before the outbreak of this disease, growth in the overall banking industry was not encouraging. Banking credit was growing 6-7 per cent only. Further, it must be noted that only private lenders were growing and not state-run banks. Now, with this crisis, private banks will have to take a back seat as they are, to a great extent, retail-oriented READ MORE

MARKET UPDATE:: Sensex up over 600 pts


How to identify and benefit from trends based on rising and falling volumes

Volume plays a crucial role in determining the trend and strength of a stock or an index. Volume, purely in layman terms, is defined as the number of shares traded during a given period of time. A continuous rise in volumes for a few sessions suggests a strong bias for the traded unit - be it a stock or the index. The trend depends on the positive or a negative close. READ MORE

Banks in focus: IndusInd Bk hits 8-yr low, m-cap slips below Rs 20K cr-mark

The bank has now appointed Sumant Kathpalia as the managing director and chief executive officer. Kathpalia's appointment as MD & CEO will be placed for approval of the shareholders at the ensuing annual general meeting, the bank said in a statement. READ MORE

NEWS ALERT | PM Modi to address the nation at 8 PM today on COVID-19

NEWS ALERT | Cabinet Secretary asks state secretaries to keep stock market in exempt category of services: CNBC TV18

-- Stock market entities should be exempt from purview of lockdown

-- Essential staff related to stock market should be allowed to commute smoothly

IndusInd Bank 22% off lows


IndiGo, SpiceJet hit lower circuit after govt suspends domestic flights

Aviation stocks including SpiceJet and InterGlobe Aviation-run IndiGo crash landed at the bourses today after the central government announced suspension of the domestic flights beginning the 23:59 hours of March 24 in the wake of coronavirus (Covid-19) outbreak. While SpiceJet was locked in the 5 per cent lower circuit at Rs 31.85 apiece on the BSE, IndiGo hit its 10 per cent lower limit at Rs 765.05 before recovering maerginally to trade 8.6 per cent lower at Rs 776.50. READ MORE

CORONAVIRUS UPDATE:: Two more people test positive for coronavirus in West Bengal: PTI

NEWS ALERT | Sterlite Tech announces share buyback at maximum Rs 150/share: BSE filing

-- announces share buyback for max 96.66 lakh shares (2.4% equity)
 

HUL zooms 10% after announcing acquisition of Vwash from Glenmark

Shares of Hindustan Unilever (HUL) surged 10 per cent to Rs 2,059.80 on the BSE on Tuesday after the consumer goods major announced the acquisition of intimate hygiene brand VWash from Glenmark Pharmaceuticals for an undisclosed sum. The deal would include an upfront cash payment and a deferred consideration over the next three years, the firm said in an exchange filing yesterday. The acquisition includes intellectual property, trademark and design of the brand. READ MORE

India is not one of the most attractive emerging markets right now

We have made assumptions on, e.g., exchange rate movements, lockdowns in countries (via lesser hour worked per worker), global trade disruptions, adverse consumer and investor sentiment and behaviour and negative productivity effects. When wrapping up that assessment, the virus was only spread extensively in China, Italy and South Korea. However, we felt things could easily turn for the worst and have also calculated an adverse pandemic scenario. We have adopted that one as our baseline scenario. READ MORE
Hugo Erken, Senior economist & country analyst for North America, Mexico and India.

ICICI Securities on hospitals

We expect the hospitals sector to witness a temporary impact in outpatient volumes with OPDs working at low capacity and patients avoiding movement out of their homes unless necessary, due to COVID-19. Additionally, in-patient occupancy and medical tourism (minimal foreign patients) would be affected with the delay in elective procedures unless its an emergency.

Our channel checks suggest that currently, there is a significant decline in foreign patients across hospitals but marginal impact on inpatients as occupancy is steady. However, we expect the occupancy to decline with rise in COVID-19 cases in the ensuing weeks. We remain positive on the healthcare sector from a long term perspective with no structural impact on its business, although near term would remain muted.

Apollo Hospitals

Nifty slips below 7,600; India VIX surges 15%


MARKET UPDATE:: Sensex pares morning gains, slips into the red


NEWS ALERT | SEC concludes its investigation; do not anticipate any further action: Infosys via BSE filing

>> Says, Company has also responded to all the inquires received from the Indian regulatory authorities and Company will continue to cooperate with the authorities should there be any additional requests for information. 

Alert: SEC was investigating whistleblower complaint

          SEC is the United States' Securities & Exchange Commission


Titan declines 8%


IndusInd Bank falls another 15%


Bharat Petroleum hits 52 week low


Nifty Bank turns red, slips 0.5%


MARKET ALERT :: Sensex erases gains, trades 150 pts higher


Dabur trades higher


MARKET COMMENT :: Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

The Fed is now leading from the front with its historic package which includes open-ended purchase of securities, direct loans to companies, purchase of corporate bonds, lending against  student loans & credit card loans etc. This comprehensive package for the wall street and the main street is unprecedented and gives the message that the World’s largest central bank will “do whatever it takes” to mitigate the economic crisis.

Other central banks can be expected to follow suit with bold measures to ease the severely strained credit and financial markets. A major package from the GOI and RBI can be expected shortly. Markets likely to remain hugely volatile with rising possibility of V shaped recovery occasionally. However, the calamity facing humanity is enormous

Hindustan Unilever gains nearly 7%


Broader Market Check


Manappuram Finance surges over 7.5% as gold gains ground


Maruti Suzuki recoups yesterday's losses


HDFC gains 5% in early trade


Reliance Industries jumps over 6%


Sectoral trends at NSE during Opening Trade


Sensex Heatmap at Open


FIRST TRADE | Nifty back above 8,000-mark


FIRST TRADE | Sensex recovers Monday's losses


Tata Motors to Coal India, hot stocks to watch on Tuesday

Nifty
 
Current: 7610 (Fut 7,580)
 
Target: NA
 
Stop long positions at 7,450. Stop short positions at 7,750. Big moves could go till 8,000, 7250. Be prepared for extreme volatility. A long 7,900c (200), short 8,000c (160) could gain 60 if there’s one short-covering session that pushes the index above 8,000 by settlement. READ MORE

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


Market at Pre-Open


Market at Pre-Open


Rupee opening

Rupee opens higher at 76.07/$ vs Monday's close of 76.22 against the US dollar

Biggest crash ever makes India worst performing market in the world

Market experts said investors were afraid of the unprecedented disruption to business activity pushing the country into a prolonged recession if the outbreak did not stem. The Nifty dropped 1,135 points, or 13 per cent, to close at 7,610, the lowest since April 8, 2016. This was the steepest fall for the index, both in percentage and point terms. READ MORE

CORONAVIRUS UPDATE :: Total confirmed cases now at 492: Govt

Gold rises over 1%

Gold prices rose on Tuesday, following a near 4% jump in the previous session after the U.S. Federal Reserve announced unprecedented measures to support an economy which is reeling from the coronavirus pandemic.

- Spot gold climbed 1.7% to $1,578.83 per ounce by 6:45 am. The metal rose 3.7% on Monday, its highest percentage gain since June 2016.
 
- US gold futures rose 1.6% to $1,592.20 per ounce.

Bulk deals on NSE as on Monday

Bulk deals on BSE as on Monday

NEWS ALERT | South Korean president says to set up 10.7 trillion won equity market stablisation fund: Reuters

-- Planning a 10 trillion won resuce package for corporate sector

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


Rupee check

Source Bloomberg


Oil check

>> US crude oil futures climbed nearly 3% on Tuesday in light trading as the Trump administration launched an effort to work with Saudi Arabia to stabilise oil prices.
 
>> West Texas Intermediate (WTI) crude futures for May delivery rose $0.67, or 2.9%, to $24.03 
 
>> Brent futures for May delivery rose 52 cents, or 1.9%, to $27.55 

(As reported by Reuters)

SGX Nifty

>> At 8:20 am, the Singaporean Exchange for Nifty Futures was at 7,828.75 level, up 349.25 points or 4.67 per cent.

Asian Market check

Source: Reuters


US Market check

Source: Reuters


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