Stock market updates: It was circa March 2020 at Dalal Street on Monday as fears that the government could go for stricter lockdowns to curb the second wave of Covid-19, hampering the economic recovery, spooked market participants. Such was the panic selling that investor wealth tumbled by nearly Rs 8 trillion on the BSE with the m-cap sliding to Rs 201 trillion by close.
Among the headline indices, the benchmark S&P BSE Sensex plunged nearly 1,900 points while the Nifty50 cracked about 590 points in the intra-day deals to hit lows of 47,693 and 14,249, respectively.
At close, the headline indices were 3.5 per cent lower each at 47,883 levels and 14,311 level, down 1,708 points and 524 points, respectively.
Only one constituent on the Sensex (Dr Reddy's Labs) and four on the Nifty (Dr Reddy's Labs, Cipla, Divis Labs, and Britannia) ende the day in the green. Among the losers were Tata Motors, Adani Ports, IndusInd Bank, Bajaj Finance, UPL, SBI, Hindalco, and Shree Cement, down in the range of 5.6 per cent to 10 per cent.
Broader markets, on the other hand, faced an even severe blow with the S&P BSE MidCap and SmallCap indices dropping 5 per cent each.
Sectorally, the Nifty PSU Bank index plummeted 9 per cent, Nifty Realty slipped 7 per cent, and Nifty Bank, Private Bank, Metal, and Auto indices skidded between 5 per cent and 6 per cent.
Global stock markets sank on Monday as investors waited to see whether U.S. earnings would justify sky-high valuations, while a rally in bonds could be tested by what should be strong readings for U.S. inflation and retail sales this week.
MSCI’s All Country World Index, which tracks stocks across 49 countries, was down 0.25 per cent after the start of European trading, off Friday’s record high.
European shares eased off record highs as investors held off from making big bets before earnings season. The pan-European STOXX 600 index was down 0.3 per cent. The UK's FTSE mid 250 index slipped 0.6 per cent. Germany’s DAX slipped 0.1 per cent and France’s CAC 40 fell 0.2 per cent. Italy’s FTSE MIB was the sole gainer, up 0.05 per cent.
Earlier in Asia, Tokyo’s Nikkei edged down 0.6 per cent. South Korean stocks were near flat.
TECH VIEW :: Rohit Singre, Senior Technical Analyst at LKP Securities
Strong profit booking has witnessed in today’s session and the index closed a day at 14355 with loss of more than three per cent formed a bearish candle on the daily chart. the index breached most of the good support in today’s session now 14250 will be immediate and strong support on the downside any break down below said levels we may see more pressure in index & if managed to hold some bounce can be expected, strong hurdle on the higher side coming near 14500-14600 zone one can use that level to lock gains
MARKET CLOSING COMMENT :: Vinod Nair, Head of Research at Geojit Financial Services
Further implementation of lockdowns and all-time high covid cases have dragged the market to a monthly low. This is expected to impact the economic growth of Q1fy23, more than thought earlier. Implications to the banking & discretionary sector are presumed to be the highest, drifting market to defensives like IT, Pharma and FMCG. This trend may happen for a couple of trading weeks, down a few weeks covid cases are likely to reduce, bringing growth back
Markets started the week on a feeble note and lost over three and a half percent. The benchmark indices opened a gap down and continue to plunge southwards due to rising COVID-19 cases, vaccine supply issues and the possibility of lockdown in various parts of the country. Selling pressure widened as the day progressed and consequently the Nifty ended lower by 3.5% at 14,310 levels. The broader markets too were not spared and it ended lower in the range of 4.8-5.3%. On the sector front, all the indices ended with negative bias wherein PSU banks, auto and metals were the top losers.
Markets will first react to TCS results and macroeconomic data viz. IIP and CPI inflation in early trade on Tuesday i.e. April 13. The rising Covid cases combined with the fear of lockdown have pushed the bulls completely on the back foot. We thus suggest maintaining a cautious stance in the near term. Besides, stock-specific volatility will remain high, with the start of Q4FY21 earnings and investors should focus on sectors such as IT, FMCG and Pharma as they are expected to post strong numbers. On the benchmark front, Nifty has the next critical support at 14,100 levels. In case of a rebound, the 14,500-14,650 zone would act as a hurdle.
BSE Snapshot :: M-cap of all BSE listed firms plunges by Rs 9 trillion
Stocks that dragged the Sensex lower today
Demand concerns hit metal counters; index slumps 6%
PSU Banks bleed: Nifty PSU Bank index sinks 9%
Sectoral trends on the NSE
Sensex Heatmap at Close
At close, the headline Sensex and Nifty indices were 3.5 per cent lower each at 47,883 levels and 14,311 level, down 1,708 points and 524 points, respectively.
BUZZING STOCK:: Dr Reddy's Laboratories surges 6% on EUA approval to Sputnik V
Rupee will be in suspended animation for some time
It all started with the credit policy where the Reserve Bank of India (RBI) announced a barrage of liquidity measures to pre-empt the possible shortage on account of the large government borrowing programme. It did seem innocuous at first, but the market got spooked. Too much liquidity which is exacerbated by Government Securities Acquisition Programme (G-SAPs) only means that bond yields will go down further. That was enough to spur a rally in the downward direction for the rupee, which started falling. In March, we were worried about the rupee appreciating and now in April the currency is falling and after 75 the expectation is whether 76 will be breached. READ MORE
Anupam Rasayan rebounds 13% from day's low on repaying debt worth Rs 471 cr
Shares of Anupam Rasayan moved higher by 6 per cent to Rs 586, bouncing back 13 per cent from day’s low of Rs 517, on the BSE on Monday after the company said it has re-paid significant debt, utilising the initial public offer (IPO) proceeds. The rally oushed the stock to its highest level since its listing on March 24, 2021. Moreover, it was trading above its issue price of Rs 555 per share and has recovered 24 per cent from its low of Rs 472, touched on March 31. READ MORE
Expert panel likely to take call on Sputnik V vaccine at key meet today
The Subject Expert Committee (SEC) is likely to meet today to take up Sputnik V application for Emergency Use Authorisation (EUA) in India, said sources.
Russia's Sputnik V vaccine did not get the EUA on Thursday as the SEC, following the meeting, asked for more information.
According to the sources, 'The SEC has asked for more information in context with the approval of the Russian vaccine." READ MORE
Fed's Powell sees US boom ahead, with coronavirus still a risk
The US economy is poised for an extended period of strong growth and hiring, the chair of the Federal Reserve has said in an interview broadcast, though the coronavirus still poses some risk. Chair Jerome Powell, speaking to CBS' 60 Minutes," also said that he doesn't expect to raise the Fed's benchmark interest rate, currently pegged at nearly zero, this year. And he downplayed the risk of higher inflation stemming from sharp increases in government spending and expanding budget deficits. READ MORE
Nifty sectoral indices at this hour
This recently-listed healthcare stock has zoomed 132% against issue price
In the past three days, the stock of the home healthcare and wellness products provider has jumped 36 per cent and soared 132 per cent against its issue price of Rs 400 per share. Nureca’s Rs 100-crore IPO had seen more than 40 times oversubscription. READ MORE
Q&A | Led by US, global markets should see happy FY22: IIFL's R Venkataraman
The US Fed and the RBI have both committed to easy money conditions and until normalcy (employment in the US and financial stability in India) is restored. However, as rates rise in the US, and the US Fed only controls the short end. Thus, capital outflow risk does become significant for EMs, especially a commodity importing EM like India. READ FULL INTERVIEW HERE
R Venkataraman, chairman, IIFL Securities
European markets check
TCS outperforms market ahead of March quarter results
Shares of Tata Consultancy Services (TCS) traded 1.5 per cent lower at Rs 3,273 on the BSE on Monday, outperforming the market, ahead of its January-March 2021 (Q4FY21) results today. In comparison, the S&P BSE Sensex was down 3.55 per cent or 1,758 points at 47,833, at 1:25 PM. The stock hit an intra-day high of Rs 3,344 and a low of Rs 3,241 on the BSE. READ MORE
Flipkart to ally with Adani to strengthen logistics, data centre infra
Flipkart will work with Adani Logistics, which is owned by Adani Ports & Special Economic Zone Limited. In addition, Flipkart will set up its third data centre at Adaniconnex Private Limited’s facility in Chennai. Adaniconnex is a new joint venture between EdgeConneX and Adani Enterprises Limited. READ MORE
Surya Roshni bags Rs 299 crore order for supply of carbon steel line pipes to Numaligarh Refinery
Lighting and steel pipe products maker Surya Roshni on Monday said it has bagged an order worth Rs 299 crore for supply of carbon steel line pipes to Numaligarh Refinery Ltd for Paradip Numaligarh Crude Oil Pipeline project in Odisha. "The company has obtained an order amount of Rs 299.07 crore (excluding GST) for supply of... external coated carbon steel line pipes to Numaligarh Refinery for Paradip Numaligarh Crude Oil Pipeline project," Surya Roshni said in a regulatory filing.
(Text Source: PTI)
Broader market check :: MidCap index tanks 5%
Heatmap: Only one out of the 30 S&P BSE Sensex constituents trades in green
Sudden movement of the rupee is not a reason to panic, say currency dealers
In the past, RBI governor Shaktikanta Das vigorously defended India’s stance on accumulating reserves, citing a possible reversal of portfolio flows from emerging markets like India.
Foreign investors poured in $30,296 billion in fiscal year 2020-21, in both debt and equity. However, in April, they have been net sellers. The reason for this is rising US bond yields, when Indian yields are heading down. READ MORE
India gold imports jump to near two-year high as weddings revive demand
Gold imports by India surged in March to the highest monthly total in nearly two years as a slump in prices stoked demand for jewelry during the ongoing wedding season. Overseas purchases increased more than sevenfold to 98.6 tons last month from 13 tons a year earlier, according to a person familiar with the data, who asked not to be identified as the information isn’t public. That would be the highest since May 2019. Finance Ministry spokesman Rajesh Malhotra didn’t immediately respond to calls to his mobile phone. READ MORE
Indian auto sales down 13%, industry retreats by six years in pandemic
India’s total automobile sales fell year-on-year by 13.05 per cent to 41,289,28 units as the economy reeled under the impact of the Covid-19 pandemic, data from an industry association showed. Overall volume in the domestic market, which was dragged down by two-wheelers, pushed the industry back by six years, said the Society of Indian Automobile Manufacturers (SIAM) on Monday in its annual sales data. READ MORE
Nomura cuts India's 2021 GDP forecast to 11.5%; sees higher inflation
Repricing of emerging market (EM) risk premium, Nomura said, could expose vulnerabilities in Indonesia, India and the Philippines. The challenge for EM Asia going forward, according to them, is that these countries may face tighter financial conditions even when outlook for growth is still weak. This, it believes, will require central banks to choose between supporting growth (tolerating higher inflation) or respond via rate hikes (at the cost of growth). READ MORE
Nifty PSU Bank index extends losses, down 9% now
Cyclical sectors are expected to drive March 2020 quarter earnings growth
Investors are an optimistic lot as March 2020 quarter (Q4FY21) results season gets underway. The economy is showing signs of recovery. There was good earnings growth in Q3FY21, though revenue growth was marginal. There will be a low base effect in Q4, as the last 10 days of March 2020 (usually among the busiest because of the fiscal ending) was hit by the lockdown. So, there should be enhanced year-on-year (YoY) revenue and earnings growth. READ MORE
Solara Active Pharma extends gains, rallies 12% on merger with Aurore Life
Shares of Solara Active Pharma moved higher by 12 per cent to Rs 1,529 on the BSE in the intra-day trade on Monday after the company said it has approved the amalgamation with Aurore Life Sciences (Aurore), Empyrean and Hydra in an all-stock transaction. The stock was trading higher for the fourth straight day, and has rallied 16 per cent during the period. It hit a 52-week high of Rs 1,625 on February 12. READ MORE
India must capture all segments of financial market to fuel growth: IMF
India is on the right track and is innovating on the policy side, including on digital identity and payments, but it also needs to capture all the segments of the financial market and institutions to make sure that every piece fits together like a puzzle to fuel growth in the country, according to a top IMF official. READ MORE
Infosys, TCS, Mindtree: Strategies for IT stocks ahead of Q4FY21 numbers
Information Technology (IT) counters reversed early morning gains and traded in the red on Monday as the sector looked set to report the March quarter results. Sector giant Tata Consultancy Services (TCS) will kick-off the Q4FY21 results today while Infosys, Wipro, and Mindtree will follow suit later this week. Overall, IT results are expected to show steady expansion, with a number of new deal wins. Against this backdrop, how do IT stocks look on charts? READ MORE
Man Industries bags new order worth Rs 766 crore
Pipe manufacturer Man Industries on Monday said it has bagged a new order worth Rs 766 crore. "The company has received a new order worth Rs 766 crore from the domestic hydrocarbon sector," Man Industries said in a regulatory filing. Man Industries said with this new order the unexecuted order book as on date stands at approximately Rs 1,900 crore to be executed in the current financial year.
(Text Source: PTI)
MARKET UPDATE:: Sensex extends losses
Bank earnings: Loan growth to improve, SC gives clarity on asset quality
India’s reviving economy could help banks to improve loan demand sequentially even if margins may come under pressure during the January-March quarter of the previous financial year, analysts said. However, mark-to-market losses could dent profitability for the banks due to hardening bond yields. Bond yields started heading north after the government announced a borrowing programme of Rs 12 trillion during the Union budget for 2021-22. Between February and March, bond yields hardened by around 25 bps which could result in marked-to-market losses on banks in the bond portfolio. READ MORE
JMC Projects bags order worth Rs 1,262 crore
JMC Projects (India) has secured new orders of Rs 1,262 crore. The details are as follows:
- Building Projects in India of Rs 1,059 crore
- Water Project in Maldives of approx. Rs 203 crore
Pharma shares in demand; Cipla, Laurus Labs, Dr Lal Pathlabs hit new highs
Shares of pharmaceutical, including healthcare facilities companies, were in demand at the bourses on Monday, with the S&P BSE Healthcare index hitting a new high after the government banned export of antiviral drug, Remdesivir (injection and API both) in order to address increased demand in view of rising Covid-19 cases in the country. READ MORE
Here's why investors lost Rs 7 trillion in trade on Monday
Bears launched an all-out attack on the stock markets on Monday as record daily cases of Covid-19 infections weakened bull reign. The benchmark S&P BSE Sensex and the Nifty50 indices cracked 1,479 points and 451 points, in the early morning deals, to hit intra-day lows of 48,112 and 14,384 levels, respectively. Consequently, investor wealth plummeted by nearly Rs 7 trillion within minutes into trade to Rs 202 trillion. READ MORE
Rupee breaks past 75-mark vs US dollar, hits lowest level since Aug 2020
The rupee declined 39 paise against the US dollar in Monday's session, looking set to extend its losing streak to the sixth day in a row as investors were spooked by the fast-rising Covid-19 cases in the country that threaten to derail India's economic recovery. The domestic unit slipped to 75.13 versus the US dollar, a level seen in August last year. It had opened at 74.96, down 22 paise, against its previous close of 74.74. Over the last five trading days, the domestic unit has seen a depreciation of 161 paise. READ MORE
Financials, auto, realty stocks dip as daily Covid-19 cases hit new peak
Shares of financial sector, including banks, non-banking financial companies (NBFCs), and housing finance companies, along with automobiles and real estate companies were under pressure at the bourses, on Monday, falling up to 10 per cent, on the National Stock Exchange (NSE) in intra-day trade on concerns of demand slowdown due to rising Covid-19 cases. READ MORE
Analysts turn cautious on real estate stocks amid rising Covid cases
The onset of the second wave of Covid and the ensuing curbs across key economic hubs has had another casualty – the commercial real estate segment. Experts say there is still uncertainty in the realty market with respect to resumption of business as usual (BAU) in the backdrop of rising COVID cases and the ensuing lockdown. READ MORE
> Rupee opens 22 paise lower at 74.96 vs US dollar
> Rupee falls to the lowest level against US dollar since August 21
Sector Watch | IT turns negative; pharma sole sector in the green
HDFC twins, ICICI Bank, and RIL among top drags on Sensex
Infosys gains 3%, hits new high as board to consider buyback of shares
Shares of Infosys hit a new high of Rs 1,480, up 2.7 per cent, on the BSE in intra-day trade on Monday after the information technology (IT) major said it will consider a proposal for buyback of fully paid-up equity shares of the company at its meeting to be held on Wednesday, April 14, 2021. This will be the third buyback of shares by the company. READ MORE
MARKET VIEW | V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
Since the second wave of the pandemic is turning out worse than expected, there is profound uncertainty about its impact on the economy & markets. Since the situation is the worst in economically significant Maharashtra, this can impact the market's assumption of around 11% GDP growth & above 30% earnings growth. The situation may improve if cases peak soon and start coming down. But presently, this is a negative. The bad health situation and INR depreciation have improved prospects for the pharma & IT sectors, which are likely to remain resilient even during a market downturn. Economy- facing stocks are likely to be under pressure.
MARKET UPDATE:: Broader indices fare worse than benchmarks
MARKET CHECK :: Nifty tests 14,400
Bear grip tightens! Sensex plunges 1,400 points
Vodafone Idea slides over 5.5% as DoT issues show-cause notice to the firm
>> The telecom department has issued a show-cause notice to Vodafone Idea Ltd (VIL) over non-payment of licence fee for the fourth quarter of FY2020-21, with regard to some circles, a PTI report said.
Shakti Pumps sinks despite capex plans
>> Shakti Pumps (India) on Sunday said it is planning business expansion next year as the company eyes a bigger share in the Centre's PM-KUSUM scheme of solar water pumps.
Balrampur Chini Mills skids 3% despite investment plans
>> The firm said its board has approved a higher investment of Rs 425 crore for a new distillery plant of 320 kilolitres per day (KLPD), which is expected to commence by December 2022.
Profit-taking :: Nifty IT index turns negative
Nifty PSU Bank index tanks over 6%; Canara Bank, Bank of Baroda drop up to 8%
Castrol India slips in a weak market despite new order win
>> The company has entered into an exclusive supply arrangement with ki Mobility Solutions in India wherein Castrol will supply lubricant products to ki Mobility's multi-brand workshops.
Ahead of results :: TCS slips 0.6%
>> Analysts expect TCS to post 9 per cent YoY growth in March quarter revenue aided by certain large deals such as Postbank and Prudential Financial, ramp-up in multiple $50-100 million deals won in the preceding quarter, and strong demand in areas of cloud and customer experience.
Barbeque Nation Hospitality slumps over 7%
Buyback boost :: Infosys cools off after hitting fresh 52-week high
>> The company on Sunday said its board will consider a buyback proposal at its meeting on April 14.
Sell-off intensifies :: Sensex now down over 1,000 pts
Sectoral trends :: IT, pharma shine, bank stocks bleed
Sensex Heatmap :: Defensive bets lead the list of gainers
Opening Bell :: Nifty gives up 14,600 in early deals
Opening Bell :: Sensex tanks over 800 pts on record Covid-19 cases, lockdown worries
Top gainers and losers on the S&P BSE Sensex in Pre-open
Pre-open session :: Nifty below 14,650
Pre-open session :: Sensex slumps over 600 pts
Nifty outlook and stock picks by Sameet Chavan
The deciding factor in days to come has to be the financial space. Since last couple of weeks, the banking index has been hovering around its strong support zone of 32,200 – 32,400 which is the breakout point on the budget day as well as the ’89-EMA’ on daily chart. It has managed to hold this till now and if any recovery has to take place, there will not be a better place than this. READ MORE
Top stocks to watch today
Earnings Today: Tata Consultancy Services, HDIL, California Software, Cupid Trades & Finance and Lloyds Metals and Energy will announce their quarterly earnings on April 12.
Analysts expect TCS to post 9 per cent YoY growth in March quarter revenue aided by certain large deals such as Postbank and Prudential Financial, ramp-up in multiple $50-100 million deals won in the preceding quarter, and strong demand in areas of cloud and customer experience.
Infosys: The company on Sunday said its board will consider a buyback proposal at its meeting on April 14. READ MORE
The stock has witnessed a decent correction, bottoming out near the trendline support zone of 1200 level. The trend is currently indicating a trend reversal to improve the bias. The chart looks attractive with the RSI also improving the bias and indicating a trend reversal to signal a buy. We suggest to buy and accumulate this stock for an upside target of 1,400-1,450 keeping the stop loss of 1,180. READ MORE
FII/FPI & DII trading activity on NSE, BSE and MSEI
Oil prices fell around 2% last week as production increases and renewed COVID-19 lockdowns in some countries offset optimism about a recovery in fuel demand.
Brent was quoted up 28 cents on Monday at $63.24 a barrel, while U.S. crude added 22 cents to $59.54.
SGX Nifty alert
>> At 8:22 am, the index was trading at 14,630, down 262 points.
Asian markets check
Asian shares started cautiously on Monday as investors wait to see if US earnings can justify sky-high valuations, while bond markets could be tested by what should be very strong readings for US inflation and retail sales this week.
MSCI’s broadest index of Asia-Pacific shares outside Japan was off 0.05% in slow early trade. Tokyo’s Nikkei edged up 0.1%, while South Korean stocks rose 0.2%.
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