In the broader market, Nifty Midcap 100 index slipped 2.8 per cent to 11,435 levels
Equity markets witnessed yet another weak session on Monday as the coronavirus (Covid-19) cases in India continued to rise despite nationwide lockdown. So far, confirmed cases in India have reached 1,071 while 29 people have died due to the disease. CLICK TO VIEW STATE-WISE DETAILS
Further, weak global cues such as fall in global markets and plunge in crude oil prices, too, adversely impacted the investor sentiment.
The S&P BSE Sensex today slipped 1,375 points or 4.61 per cent to settle at 28,440. Bajaj Finance (down 12 per cent) emerged as the biggest loser on the index while Tech Mahindra was the top performer - up 5 per cent.
HDFC, HDFC Bank, ICICI Bank, and Reliance Industries (RIL) contributed the most to the index's losses.
Market breadth was in favour of declines as out of 2,453 companies traded on the BSE, 1,347 declined and 934 advanced while 172 remained unchanged.
Among individual stocks, Abbott India hit a new high in a weak market amid report that Abbott Laboratories, USA, the ulitmate holding company, has received the approval to launch 5-minute coronavirus (COVID-19) test for use almost anywhere. Abbott India is a subsidiary of Abbott Laboratories of USA. The stock ended at Rs 15,400 apiece on the BSE, up around 9 per cent. READ MORE
On the NSE, frontline index Nifty ended at 8,281, down 379 points or 4.38 per cent. Volatility index India VIX increased 1.53 per cent to 71.46 levels. On the sectoral front, barring pharma and FMCG, all the indices ended in the red. Nifty Bank tumbled over 6 per cent to 18,760 levels while Nifty Finacial Services pack tanked around 7.5 per cent to 9,029-mark.
In the broader market, Nifty Midcap 100 index slipped 2.8 per cent to 11,435 levels and the Nifty SmallCap 100 index lost 2.3 per cent to 3,485 levels.
Asian shares slid on Monday as fears mounted that the global coronavirus shutdown could last for months although markets regained some lost ground late in the session with Australia posting a standout jump. US and European futures also turned upwards in the Asian afternoon, with E-Mini futures for the S&P 500 up 1.1%, again after earlier losses, EUROSTOXXX 50 futures rallying 2% and FTSE futures 1.5%.
In commodity market, Crude oil fell sharply with US crude briefly dropping below $20 and Brent hitting its lowest level in 18 years, on heightened fears that the global coronavirus shutdown could last months and demand for fuel could evaporate further.
MARKET AT CLOSE | Top losers and gainers on the S&P BSE Sensex
The S&P BSE Sensex ended at 28,440, down 1,375 points or 4.61 per cent while NSE's Nifty50 ended at 8,281, down 379 points or 4.38 per cent.
MARKET CHECK | Top gainers on the BSE at this hour
Bank of Baroda cuts personal, retail loan rates by 75 bps to 7.25%
Bank of Baroda, has reduced its Baroda Repo Linked Lending Rate (BRLLR) by 75 basis points with effect from March 28, 2020, it said in a statement.
The BRLLR linked to RBI Repo Rate is revised downwards in line with the reduction on Reserve Bank of India Repo Rate from 5.15 per cent to 4.40 per cent, it said. READ MORE
BROKERAGE VIEW :: Sharekhan on HDFC Life Insurance
HDFC Life is available at reasonable 2.9x FY22E EVPS due to the recent market weakness. We believe that due to the lockdown, business growth and Investment income may see some impact for the industry as well as HLIC and have therefore fine-tuned our estimates and target valuation multiple. Since the regulator has already allowed a 30-day extension to Insurance policies, risks to persistency for now are contained. Given the strong fundamentals of HDFC Life (strong balance sheet, consistent profitability) and high long term growth potential for Indian Insurance industry in general and HDFC Life in particular we see attractive risk reward for investors. While there may be volatility in the near term, it would be an opportunity to accumulate for long-term investor. We maintain our Positive view and expect a potential upside of 25-30% on the stock.
Covid-19: Global aviation could lose $250 bn; India may take $3.6 bn hit
According to the International Air Transport Association (IATA), airlines could lose a quarter of a trillion dollars in revenue this year as commercial flights come to a grinding halt.
Sydney-based CAPA Centre for Aviation estimates that many carriers will go bankrupt by the end of May if they cannot find support and further predicted that about half of all global airlines could go out of business before the end of the year. READ MORE
MARKET CHECK :: Sensex at day's low, slumps 1,400 pts
Antique Stock Broking on IT sector
The Government ordered country-wide lockdown for 21 days on 24th March, the impact weighs on Indian IT companies both in the near to long term. Many large and mid-size IT companies were already anticipating the lockdown and triggered business contingency plan (BCP) last month itself and nearly 80-90% of the staff now have work from home (WFM) facilities, as IT companies bought, rented more laptops and installed desktops at employees' homes. Many IT service companies supported the lockdown as safety of employees is a priority; but are requesting Government to make exceptions for a few employees for whom companies are finding it difficult to offer WFH option due to the critical nature of their work
NEWS ALERT | SEBI relaxes some requirement for compliance by credit rating agencies: CNBC TV18
-- relaxes timelines for rating action, issuing press releaes by CRAs
COMMENT :: Kotak Securities on RBI measures
Pulling out all the stops. The RBI’s comprehensive policy will likely lower system-wide funding costs, ease near-term financial stress, and provide financial relief to stressed sectors. Given a moderating inflation trajectory, the MPC can further reduce rates by 50 bps in response to the further spread and impact of Covid-19. In case the Covid-19 spread extends well into 1HFY21, the government will have to step in with further sops which may require more OMO purchases or even partial monetization of the deficit.
Market rout: Financial sector stocks are not attractive yet, say analysts
As most of these stocks now trade closer to their 2008 levels, when the world was hit by the global financial crisis, there seems to be a consensus among brokerages that they have become attractive. But, if investors look deeper, beyond valuations, multiple concerns cloud over these stocks. Analysts say despite the recent dispensation on asset quality provided by the Reserve Bank of India (RBI), it may not have fully addressed the pain points yet. READ MORE
COMMENT :: Morgan Stanley sees deep global recession in 2020
Given the scale of disruption to economic activity, we expect a deep global recession in 1H20, with growth contracting by 2.3%Y in 1H20. Assuming the outbreak peaks by April/May, this will likely set the stage for a recovery in 2H20, to 1.5%Y by 4Q20.
For the US, we expect an unprecedented drop of 30.1%Q SAAR in 2Q20 with the unemployment rate also rising to a record 12.8% (since data collection began in the 1940s) before we see it bouncing back at a 29.2%Q SAAR pace in 3Q20. However, global growth for full-year 2020 will still see a decline of 0.6%Y, past the 0.5%Y rate of contraction we saw during 2008 and, on our estimates, the weakest pace of growth during peacetime since the 1930s
STOCK UPDATE:: Sugar stocks trade firm in a weak market
-- Balrampur Chini Mills, Shree Renuka Sugar Mills, Dwarikesh Sugar, Dhampur Sugar Mills and Triveni Engineering & Industries locked in upper circuit on the BSE
European stocks drop
Coronavirus :: Right time to invest in equities via SIP route
Indian stock markets have seen significant downtrend in recent weeks, amid the coronavirus pandemic tightening its grip in the country, but experts believe it is the right time to start investing in equities through SIP route for the long term as the current valuations are juicy. READ MORE
Auto shares skid; Eicher Motors hits lowest level since November 2014
Eicher Motors, Bharat Forge, Mahindra & Mahindra (M&M), Maruti Suzuki India and Hero MotoCorp slipped more than 5 per cent, while MRF, TVS Motor Company, Apollo Tyres, Bajaj Auto, Bosch, Motherson Sumi Systems, Ashok Leyland and Tata Motors were down in the range of 3 to 5 per cent on the NSE. READ MORE
STOCK UPDATE:: ABB Power Products and Systems India locked in upper circuit of 5% at Rs 714 on stock market debut
-- The company had demerged from ABB India Ltd. with effect from December 1, 2020, to become a standalone legal entity of ABB’s Power Grids business in India.
-- ABB Power Products and Systems India received one equity share for every five equity share held in ABB India
NEWS ALERT | All banks ensuring that their branches are open: Finance Minister
All banks are ensuring that their branches are kept open, ATMs filled up & are working. Banking correspondents are active. Social distancing is respected & sanitizers are provided where necessary. Just in case, any assistance/clarification is required contact @DFSFightsCorona
NEWS ALERT :: TVS Motor Company pledges Rs 25 crores to PM-CARES
NEWS ALERT :: PM-CARES Fund is eligible for 50% deduction u/s 80G (12A): Tax Dept, reports CNBC TV18
NEWS ALERT | BEL asked to manufacture 30,000 ventilators in next 2 months: Health Ministry
Bharat Electronics Ltd. has been asked to manufacture 30,000 ventilators in the next two months in collaboration with local manufacturers. Automobile manufacturers have been asked to manufacture ventilators and are working towards this end: Ministry of Health #CoronavirusOutbreakpic.twitter.com/ALbnqtKpOd
BROKERAGE VIEW :: Investment tips by HDFC Securities
Technical view for the next three months:
Nifty has fallen from 12152 to 7511 and on bounces the retracement levels could be 9270-9846. In the best case scenario, it could rise to 10294. It could later fall again and in case we are able to contain the virus by April end (first scenario), then we could form a higher bottom at 7842-8160. However in case the virus lingers on beyond this date (second scenario), then we could breach the low of 7511 and go towards 6825-6357.
BROKERAGE VIEW :: Investment strategies by ICICI Securities
In the current milieu, some of the large and best managed companies are available at attractive valuations on a historical basis. Hence, in our view, one should venture out and accumulate companies (depending on their risk appetite and time horizon), which have gone through such challenging cycles and have come out much stronger when such events subside.
Top Picks in the large cap space are HDFC Bank, Kotak Mahindra Bank, Titan, Dabur Bharti Airtel, Avenue Supermarts and SBI Life
Top Picks in midcap space are Bata, Tata Consumer Products (erstwhile Tata Global Beverages), Trent.
BROKERAGE VIEW :: Anand Rathi on Indian Economy
Major slowdown, but short of recession
>> Q1 FY21 growth to be negative. In all likelihood, Q1 FY21 growth will be negative. The extent of contraction could be up to 4%. GDP growth in Q2 FY21 may also be contained (but positive) due to the combined effect of the longer-than-expected period (three weeks) of shutdown, a slow pick-up of activities after the shutdown is lifted, constrained consumer, business and investor sentiment. We expect a marked pick-up in economic activities during H2 FY21.
>> Before the Covid-19-driven shutdown, we expected India’s GDP growth during FY21 to be 5.5%. Under the now altered scenario, we expect a growth rate of around 3%, excluding the impact of the stimulus. Depending on the size and content of the stimulus, India’s FY21 growth could step up to 4.5%.
NEWS ALERT :: India Ratings cuts FY21 GDP forecast to 3.6% from 5.5%
>> The key reasons are the spread of COVID-19 and the resultant nation-wide lockdown imposed till 14 April 2020, crippling most economic and commercial activities. The revision is based on the assumption of lockdown continuing till end-April 2020 (full or partial) and gradual restoration of economic activities May 2020 onwards.
>> Ind-Ra has even revised the FY20 GDP forecast downward to 4.7% (9MFY20: 5.1%) from The National Statistical Office’s advance estimate of 5.0%
>> Ind-Ra expects the GDP growth to come in at 3.6% in 4QFY20 and 2.3% in 1QFY21
Indian economy can contract 2.6%; US over 11% in worst case in 2020: Nomura
“We now expect GDP growth to slide from 4.7 per cent y-o-y in Q4 2019 to 3.1 per cent in Q1 and plunge to -6.1 per cent in Q2, when both domestic and external demand will weaken. We are building in a sequential pickup in the second half of 2020, but the pace of recovery is likely to be much weaker given some lasting damage to potential output,” wrote Sonal Varma, managing director and chief India economist at Nomura in a co-authored report with Aurodeep Nandi titled 'COVID-19’s impact on the world economy'. READ MORE
NEWS ALERT | April-June average temperature seen above normal in parts of India: IMD
>> Frequency of heatwave seen slightly above normal in April-June
Nifty sectoral indices at this hour
MARKET CHECK | Top 5 losers on the BSE at this hour
Moratorium on loans will defer but not remove the asset-quality risk: Emkay Global Fin Services
The RBI has allowed lenders to extend 3-month moratorium on Term Loan (TL) instalments (including retail, agri and corporate) and also on interest on working capital loans, falling due between March 1 and May 31, 2020, without being classified as NPA. The loan repayment moratorium would limit the hit on asset quality for lenders in the interim, subject to timely containment of the virus and return to normalcy in business well before the moratorium ends (May 31, 2020). The moratorium extension on TL (assuming 100% usage) can optically inflate FY21 loan book by ~4%, but also depress margins. We believe that an asset classification forbearance, instead of a blanket moratorium on repayment that raises the risk of disrupting credit discipline, would have been a preferred route. Some PSBs have already granted blanket moratorium to borrowers apart from adhoc credit facilities, but hope that the move by select private players would be more measured and on a need basis.
Coronavirus lockdown will hit asset-backed securities' performance: Moody's
Rating agency Moody's Investors Service says the nationwide lockdown in India will adversely impact the performance of the commercial vehicle and small and medium-sized enterprise (SME) loans in asset-backed securities (ABS). Asset-backed securities are a kind of instrument where the underlying loan pool and income stream are packaged and often rated for strength. Most assets in rated Indian ABS are commercial vehicle and SME loans. READ MORE
NEWS ALERT | Trades undertaken today to be settled on April 3: TV reports
>> Trades undertaken tomorrow will be settled on April 7
>> Trades undertaken on April 1 to be settled on April 7
>> Banks, Exchanges push settlement due to year closing
NEWS ALERT | Don't expect significant impact of Covid-19 on operations: HCL Tech
(Source: BSE filing)
NEWS ALERT | SCI, CONCOR divestment likely pushed to H1FY21: TV reports
Tata, Bajaj among 277 promoters that hiked stake in group firms in March
Analysts say the promoters are using this opportunity to buyback is a typical feature of a bear market that serves two basic purposes - one is to buy shares at an attractive price and the second is to instill confidence in the minds of shareholders that the promoters are still backing the company even in turbulent times. That apart, some promoters also believe cash could be put to better use through buybacks rather than being locked up in a fixed deposit or remain idle. READ MORE
Tech view: Nifty may find support at 8,250-8,300 levels amid market fall
NIFTY 50: As the index failed to conquer 9,000 levels decisively, the resistance has shifted to the lower side. Besides, since 9,000 acts as the major resistance level, going forward 8,750 will be the next selling level. The immediate resistance comes in the range of 8,600 to 8,550 levels. On the other hand, 8,300 to 8,250 becomes the support range. The overall trend shows volatility that gets triggered on economic development. READ MORE
IndusInd Bank pares losses, turns green
Future Group stocks tank, Future Retail hits 5% lower circuit for 13th day
Shares of Future Group stocks were trading deep in the red on Monday. While Future Supply Chain Solutions was down around 5 per cent at Rs 115.90 apiece on the BSE, Futures Retail was locked in the lower circuit band for the 13th straight day. The stock was frozen at Rs 82.85 apiece on the BSE, down 5 per cent. Future Enterprises, too, was trading with over half a per cent cut at Rs 9. Future Lifestyle hit a 5 per cent lower circuit of Rs 124.10. READ MORE
Covid-19 crisis :: Imposing a financial emergency can be useful
On March 26, the Centre for Accountability and Systemic Change (CASC), a governance reform outfit, filed a petition with the Supreme Court, seeking that the Centre must declare a financial emergency in view of the country-wide lockdown imposed after the COVID-19 outbreak. READ MORE
CORONAVIRUS UPDATE:: Total COVID-19 cases in India rises to 1071
Total number of #Coronavirus positive cases in India rises to 1071 (including 942 active cases, 99 cured/discharged cases and 29 deaths): Ministry of Health and Family Welfare pic.twitter.com/ycuuia3rMC
SECTOR WATCH:: Nifty Pharma index gains 2% in a weak market
NEWS ALERT | Lupin receives EIR for its Inhalation Research Center from US FDA: BSE filing
>> Pharma major Lupin Limited (Lupin) today announced the receipt of the Establishment Inspection Report (EIR) from the U.S. FDA for its Inhalation Research Center located at Coral Springs, Florida. The facility was inspected by the U.S. FDA, between February 19, 2020 and February 26, 2020, on behalf of the U.K. MHRA for Lupin’s generic Fostair application to the U.K. MHRA.
Coronavirus shutdown puts Rs 15-trillion debt at risk, to impact finances
According to an analysis by Business Standard, 201 non-financial listed companies are likely to face a sharp deterioration in their financial position in the first half of 2020-21 (FY21), making it tough for them to service their debt.
Some of the top indebted companies likely to face financial headwinds in the coming quarters include NTPC, PowerGrid, Tata Steel, Adani Power, JSW Steel, UPL, and Steel Authority of India. READ MORE
Abbott India up 19% as parent firm gets US FDA nod for rapid COVID-19 test
Shares of Abbott India surged 19 per cent to hit a new high of Rs 16,869 on the BSE on Monday in an otherwise weak market on report that Abbott Laboratories, USA, the ulitmate holding company, has received the approval to launch 5-minute coronavirus (COVID-19) test for use almost anywhere. Abbott India is a subsidiary of Abbott Laboratories of USA. READ MORE
FinMin, RBI meeting on Tuesday to decide first-half borrowing plan for FY21
Post meeting, the borrowing calendar for issuance of dated government securities and short term papers will be announced in the evening.
As per the Budget, the government plans to borrow Rs 5.36 lakh crore from the market in 2020-21, higher than the Rs 4.99 lakh crore estimated for the current financial year ending March 2020. READ MORE
Westlife Development trades near 200-DEMA
Road ahead for equity markets will be challenging: Exide Life CIO
Though the markets have gained from the recent low, boosted by US markets, a $2 trillion stimulus in the US, followed by the announcements from the Indian government and the Reserve Bank of India (RBI), we continue to remain cautious, as a sustainable up move could still be a few months away. This would depend upon a reduction in global cases, removal of travel restrictions and lifting of lockdowns in several of the cities/countries, apart from the nature of the measures by various Governments and central banks to restore the demand situation subsequently. READ MORE
MARKET CHECK:: Sensex off opening lows
BROKERAGE RADAR | Edelweiss Securities on Consumer Durables
While the recent stock correction to some extent factor near term earnings disruption from COVID 19, valuation correction has been in line with broader indices. We reiterate our conviction for: a) Voltas - sustained leadership in RACs and potential to scale up the refrigerator business (JV), b) KEI - earnings growth resilience and balance sheet discipline. We add Amber to our top picks given its scale & return potential.
Avenue Supermarts trades above 50-DEMA
Axis Bank gains 3% in an otherwise weak market
RBI rate cut, government stimulus done. What are the markets eyeing now?
The Indian markets which expected the authorities to roll out measures to stem the fall and stabilise sentiment after the over 35 per cent fall from the peak levels seen earlier this year triggered by the sudden and rampant spread of coronavirus (Covid-19) pandemic across the globe, witnessed profit booking. The S&P BSE Sensex slipped 1,310 points from the day’s high to close marginally negative on Friday post the RBI’s measures. READ MORE
IndusInd Bank recovers 9% off opening lows
IndusInd Bank recovers 9% off opening lows
Sun Pharma hits 52-week low
>> Company's Halol facility classified as official action indicates. Halol plant was inspected from Dec 3-13 and issued 8 observations.
Globus Spirits sees sharp surge
M&M slumps over 7%
Sugar stocks extend rally as govt approves ethanol-based hand sanitizers
Top gainers and losers at S&P BSE Sensex during Pre-Open
Market at Pre-Open
Rupee opens lower at 75.18/$ vs Friday's close of 74.89 against the US dollar
Market at Pre-Open
Refined soy oil
Refined soy oil prices are trading at Rs 820 per 10 kg and prices are expected to head towards Rs 840 per 10 kg over the next few days. Disturbance in supplies due to decline in crushing operations, logistics and labour issues on the back of Covid-19 outbreak are likely to support prices in the near term. READ MORE
Outlook & trading strategies for Copper, Gold by Tradebulls Securities
Gold this week saw stellar rally wherein two trading session saw a boost of nearly $100 after US Fed unveiled massive stimulus and unconfirmed reports that London spot gold price quotes have become unreliable. This prompted European big traders and commercials to go for long position in COMEX futures. Gold usually trades higher on fear factors and now that US Dollar index is retracing we are seeing a fresh surge in gold. READ MORE