Weak oil, global cues trigger 1,011-pt Sensex slide; financials worst hit

Topics Markets | Coronavirus | US crude oil

Photo: Kamlesh Pednekar
The benchmark indices ended over 3 per cent lower on Tuesday amid collapse in crude oil prices and weak global markets. The session witnessed heavy selling in financial, metal, energy, and auto stocks.

The S&P BSE Sensex tanked 1,011 points or 3.2 per cent to settle at 30,637 while NSE's Nifty slipped 280 points or 3 per cent to 8,981 levels. Volatility index, India VIX, jumped over 4 per cent to 45.34 levels. 

In the Sensex pack, 27 out of 30 stocks ended in the red. IndusInd Bank (down 12 per cent) emerged as the biggest loser on the index, followed by Bajaj Finance (down 9 per cent), ICICI Bank (down over 8 per cent), and Axis Bank (down 7.6 per cent). 

Buzzing stocks

Financial stocks plunged during the session. The Nifty Bank ended nearly 5.5 per cent lower at 19,409 levels. Among individual names, ICICI Bank slipped nearly 9 per cent to Rs 329.80 apiece on the NSE after the bank clarified it has exposure to Ocean Tankers, a unit of Singapore oil-trading firm Hin Leong Trading (HLT), that has filed for bankruptcy in Singapore. The firm owes nearly $100 million -- or nearly Rs 760 crore -- to the lender. READ MORE

That apart, Bajaj Finance declined over 9 per  cent to Rs 2,099 after foreign brokerage firm UBS downgraded the stock to "sell". READ MORE

Oil & gas stocks slid during the day after the US crude oil futures collapsed below $0 on Monday for the first time in history, amid a coronavirus-induced supply glut, ending the day at a stunning minus $37.63 a barrel as desperate traders paid to get rid of oil. READ MORE 

Meanwhile, IT stocks took a beating after US President Donald Trump announced a temporary suspension of immigration into the country. The Nifty IT index slipped nearly 3.5 per cent to 12,409 levels, with all the 10 constituents ending in the red. 

Metal stocks, too, tumbled on concerns of weak demand due to the Covid-19 outbreak. The NIfty Metal Index declined over 5 per cent to 1,667 levels. 

On the upside, Aurobindo Pharma rallied 20 per cent to Rs 649 after US drug regulator USFDA classified the company's Unit IV of Hyderabad plant as VAI (voluntary action indicated). READ MORE

In the broader market, the S&P BSE MidCap index fell nearly 3 per cent to 11,477 levels while the S&P BSE SmallCap ended at 10,565, down 3 per cent. 

Global markets

Global stocks fell on Tuesday, a day after US crude oil prices turned negative for the first time, as dismal company earnings reports underlined worries about economic damage from the coronavirus pandemic.

MSCI’s All Country World Index, which tracks stocks across 49 countries, was down 0.8 per cent. European stock markets followed their Asian counterparts lower, with the pan-European STOXX 600 index down nearly 2 per cent in early deals.

In commodity market, Brent Crude futures slipped below $20 a barrel, a day after WTI Crude futures slipped into the negative zone amid fears that the sector will run out of storage for a glut caused by the coronavirus lockdown. At the time of writing of this report, US West Texas Intermediate (WTI) crude for May delivery traded at minus $2.58 a barrel, up $35.05 from Monday’s close when the contract settled at a discount of $37.63 a barrel.

(With inputs from Reuters)


4:03 PM IST "After the US crude oil crash, Indian markets, in sync with global markets traded negatively, as the extent of the impact of lockdowns and the global slowdown is becoming evident. Corporate earnings have also been impacted by the pandemic related shutdowns. Post earnings management guidance has also not given clear indication about the recovery path. Earnings results will be in focus for the future course of the company business."

3:47 PM IST

3:43 PM IST

3:39 PM IST The S&P BSE Sensex ended at 30,636.71, down 1,011 points or over 3 per cent while NSE's Nifty settled at 8,981.45, down 280 points or 3 per cent.

3:29 PM IST With today’s rally, the share price of Dr Reddy’s Laboratories has surged 62 per cent from its previous month low of Rs 2,498, touched on March 19, 2020 in the intra-day trade. READ MORE  

3:22 PM IST Whilst four plants continuing to be under USFDA scrutiny [Unit XI has warning letter, Unit VII, Unit I, Unit IX have official action indicated (OAI) status from the USFDA], re-assignment of VAI status for Unit IV despite 14 observations (that too for an injectable plant where cGMP requirements are even more stringent) came in as a huge positive surprise to us. Unit IV is a critical plant for the company, given most of its pending injectables are filed from this plant. Injectable segment is one of the key drivers for the company’s future growth and margins. We expect the US injectable segment to grow at 22% CAGR in FY19-22E to US$385 million. This is likely to provide much needed sentimental boost to the stock, which is getting valued at commodity multiple. The now defunct Sandoz deal also had its share of negative sentiments for having foregone one of the cheapest M&A bargains in the US generics space. While the recent chain of setbacks on the cGMP front will continue to weigh, a positive outcome like this is likely to provide a silver lining to a stock that is available at ~11x FY22E (~30-40% discount to its historical band and ~50% discount to Nifty Pharma). We ascribe a target price of Rs 770 valuing it 13x FY22E EPS of Rs 59.4. We upgrade the stock from HOLD to BUY to incorporate the significant booster.

3:12 PM IST >> We confirm that the Bank, in the normal course of its business, has exposure to the borrower group in question, is taking due steps to protect its interests, and will appropriately reflect the same in its financial statements, as it would do in respect of all its banking exposures.  (Via BSE Filing)

3:08 PM IST Singapore extends lockdown to June 1: Regional Media #COVID19— ANI (@ANI) April 21, 2020

3:02 PM IST COMPANY PRICE(rs) 52 WK LOW CHG(%) ADITYA BIR. FAS. 131.00 129.10 -6.26 GE POWER 429.00 416.05 -2.40 INOX LEISURE 219.30 213.00 -1.99 MAH. SEAMLESS 188.75 185.45 -3.08 » More on 52 Week Low

2:58 PM IST -- Stock down 9% at Rs 2,088 on the BSE

2:52 PM IST Building in the prevailing muted demand prospects both domestically as well as globally in its base business and delay in commissioning of new projects, we expect HSCL to clock sales, PAT CAGR of 7.0%, 14.3%, respectively, in FY20E-22E. With a decline in margin profile, return ratios matrix has reduced to ~10% RoE, which significantly limits our ability to assign a higher valuation multiple to HSCL. Consequently, we value HSCL at | 50 i.e. 10x P/E on FY22E EPS of | 5.0. We derive some comfort from consistent CFO generation with controlled leverage on B/S (debt: equity at ~0.3x). We downgrade the stock from BUY to HOLD.

2:48 PM IST

LIVE UPDATES

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

"After the US crude oil crash, Indian markets, in sync with global markets traded negatively, as the extent of the impact of lockdowns and the global slowdown is becoming evident. Corporate earnings have also been impacted by the pandemic related shutdowns. Post earnings management guidance has also not given clear indication about the recovery path. Earnings results will be in focus for the future course of the company business."

SECTOR WATCH | Here's how sectoral indices on 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 30,636.71, down 1,011 points or over 3 per cent while NSE's Nifty settled at 8,981.45, down 280 points or 3 per cent.

Dr Reddy's Labs hits over 4-year high, surges 62% from March low

With today’s rally, the share price of Dr Reddy’s Laboratories has surged 62 per cent from its previous month low of Rs 2,498, touched on March 19, 2020 in the intra-day trade. READ MORE  

BROKERAGE VIEW:: ICICI Securities on Aurobindo Pharma

Whilst four plants continuing to be under USFDA scrutiny [Unit XI has warning letter, Unit VII, Unit I, Unit IX have official action indicated (OAI) status from the USFDA], re-assignment of VAI status for Unit IV despite 14 observations (that too for an injectable plant where cGMP requirements are even more stringent) came in as a huge positive surprise to us. Unit IV is a critical plant for the company, given most of its pending injectables are filed from this plant. Injectable segment is one of the key drivers for the company’s future growth and margins. We expect the US injectable segment to grow at 22% CAGR in FY19-22E to US$385 million. This is likely to provide much needed sentimental boost to the stock, which is getting valued at commodity multiple. The now defunct Sandoz deal also had its share of negative sentiments for having foregone one of the cheapest M&A bargains in the US generics space. While the recent chain of setbacks on the cGMP front will continue to weigh, a positive outcome like this is likely to provide a silver lining to a stock that is available at ~11x FY22E (~30-40% discount to its historical band and ~50% discount to Nifty Pharma). We ascribe a target price of Rs 770 valuing it 13x FY22E EPS of Rs 59.4. We upgrade the stock from HOLD to BUY to incorporate the significant booster.

NEWS ALERT :: ICICI Bank confirms exposure to Singapore based oil trader

>> We confirm that the Bank, in the normal course of its business, has exposure to the borrower group in question, is taking due steps to protect its interests, and will appropriately reflect the same in its financial statements, as it would do in respect of all its banking exposures. 

(Via BSE Filing)



NEWS ALERT

Stocks that hit 52-week low on BSE today

COMPANY PRICE(rs) 52 WK LOW CHG(%)
ADITYA BIR. FAS. 131.00 129.10 -6.26
GE POWER 429.00 416.05 -2.40
INOX LEISURE 219.30 213.00 -1.99
MAH. SEAMLESS 188.75 185.45 -3.08
» More on 52 Week Low

STOCK ALERT | Bajaj Finance nears 52-week low of Rs 2,083 hit on April 7

-- Stock down 9% at Rs 2,088 on the BSE

BROKERAGE VIEW:: ICICI Securities on Himadri Speciality Chemical

Building in the prevailing muted demand prospects both domestically as well as globally in its base business and delay in commissioning of new projects, we expect HSCL to clock sales, PAT CAGR of 7.0%, 14.3%, respectively, in FY20E-22E. With a decline in margin profile, return ratios matrix has reduced to ~10% RoE, which significantly limits our ability to assign a higher valuation multiple to HSCL. Consequently, we value HSCL at | 50 i.e. 10x P/E on FY22E EPS of | 5.0. We derive some comfort from consistent CFO generation with controlled leverage on B/S (debt: equity at ~0.3x). We downgrade the stock from BUY to HOLD.

Contribution to the S&P BSE Sensex's fall today


Gold can rise further if China diverts some of its forex: Nilesh Shah

Nilesh shah, the MD & CEO of Kotak AMC, is quite optimistic about mutual funds in general even durimg these difficult time. In an interaction with Rajesh Bhayani, he says that investors in systematic investment plans, or SIPs, ought to continue investing as the current market volatility represents an opportunity for averaging out the acquisition cost. But he also warns that this is leverage can be fatal at this moment. READ MORE

This small-cap company has found its watershed moment in Covid-19 pandemic

“Our agro chemicals business was running in an auto-pilot mode for decades. It was never a cash-churning business. Agriculture in India is monsoon-dependent and a bad monsoon season can easily ruin your business for next two years at least. We were also never in the big league with no patented molecule, but we somehow managed to survive and diversy,” says Dhirendra Dubey, a whole-time director at Kilpest India. READ MORE

MARKET CHECK | L&T slips 4.5%


Oil check | Brent crude hits lowest level in 18 years


Rupee Closing

Rupee closes 30 paise weaker at 76.84/$ vs Monday's close of 76.54 per US dollar

MARKET CHECK


Demand recovery, storage facility ramp up key for sanity in crude oil price

The negative close was only for the May contract, analysts said, which expires on April 21, while the June contract is still positive at around $20/barrel, signaling that this is a very short-term issue, for now. READ MORE

Multiplex operators trade weak; PVR tanks 10%, Inox Leisure hits 52-wk low

Among individual stocks, PVR tanked 10 per cent to Rs 1,007 and was trading close to its 52-week low of Rs 932, touched on April 7. Inox Leisure hit its 52-week low of Rs 213, down 5 per cent on the BSE today. The share prices of both these firms have more than halved from their respective 52-week highs, touched in February this year. READ MORE

Ind-Ra rates Mahindra & Mahindra NCDs 'AAA' with stable outlook

India Ratings and Research (Ind-Ra) has assigned Mahindra & Mahindra (M&M) non-convertible debentures (NCDs) a final rating of AAA with a stable outlook. Ind-Ra said M&M has maintained its leadership position in the domestic tractor market with 40 per cent market share in volume terms from FY09 to FY19. The company is also the number one player in the light commercial vehicle (goods carriers) segment with around 42.6 per cent market share in 11M FY20. READ MORE  

Mahindra
 

Covid-19 impact: Steel firms to focus on exports till demand improves

Lockdown measures to contain the spread of Covid-19 pandemic had immensely affected steel customers like auto and construction segments that closed down. Being an intermediate product, dependent on derived demand, steel companies resorted to rationalising production. However, some like JSW Steel are evaluating restarting production in a phased manner.
 
Acharya said, “In exports, we cover multiple countries and more than 80-85 per cent of our exports are to our existing customers where we are able to leverage our brand equity.” READ MORE

MARKET CHECK | Top 5 gainers on the BSE at this hour


Covid-19 fallout | RBI extends short-term crop loan interest subvention: CNBC TV18

>> Advises banks to extend 2% interest subvention (IS) & 3% prompt repayment incentive (PRI) on short-term crop loans up to Rs 3 lakh per farmer till May 31

>> Extension of interest subvention for loans due b/w March 1 and May 31, 2020.

European markets open lower

Source: Reuters


BROKERAGE VIEW:: ICICI Securities on Infosys

The company has shown a visible improvement in performance since the change in management. We expect Infosys to continue to make steady improvement in financials post these near-term challenges. Digital acceleration, large deal wins vendor consolidation and cost rationalisation remains key long term drivers. Further, the company has maintained healthy cash flow generation and has a consistent dividend payout policy. We remain positive on the stock and maintain our BUY rating with a target price of Rs 750/share.

Explained: What is negative crude future and how does it affect consumers?

The price of a barrel of benchmark US oil plunged below $0 a barrel on Monday for the first time in history, a troubling sign of an unprecedented global energy glut as the coronavirus pandemic halts travel and curbs economic activity.
 
The contract for West Texas intermediate crude, or WTI, is the benchmark for US crude oil prices. READ MORE

MARKET UPDATE:: Sensex extends fall


Investors seek to curb downside, with volatility hitting long-only products

According to available data, long-short funds -- those positioned as equity-plus return funds -- on an average have given negative returns of 12.84 per cent in March, mitigating the impact of the deep correction seen in equity markets.
 
“A long-short strategy majorly invests in domestic equity and equity derivatives for medium to long term. A fund manager takes long positions on stocks that are expected to see run-up in prices and takes short positions on stocks, where he expects correction due to over-valuation or any other factor,” said Ritika Farma, head of sales and client relations at PMS AIF World. READ MORE

Bajaj Finance dips 8% after UBS downgrades it to Sell, cuts target price

According to the brokerage, the nationwide lockdown could severely hit the services sector in the economy, denting recovery prospects of the self-employed or SME loans.
 
"We believe an extended lockdown (to 3 May or later) could be implemented for much of the economy. We worry that a subdued recovery (especially in the services sector) and a liquidity freeze for SMEs (due to banks’ caution and liquidity issues for NBFCs, with government/RBI support key) could significantly impact self-employed/SME loans," it said in its rating rationale. READ MORE

Rupee near day's high

(Source: Bloomberg)

Nifty Metal index tanks 6%; Jindal Steel, Tata Steel, Hindalco down over 7%

Shares of metal companies were under pressure with Nifty Metal index falling 6 per cent on the National Stock Exchange (NSE) on Tuesday on concerns of weak demand due to the Covid-19 outbreak. Jindal Steel & Power (JSPL), Hindalco Industries, Tata Steel and MOIL were down more than 7 per cent, while Steel Authority of India (SAIL), Vedanta, JSW Steel, Hindustan Copper and National Aluminium Company (NALCO) were trading lower in the range of 5 per cent to 6 per cent on the NSE. READ MORE

Top losers on BSE today

COMPANY PRICE(rs) CHG(%)
MOTHERSON SUMI 73.80 -12.82
BHARAT FORGE 259.25 -10.70
MINDA CORP 70.00 -10.54
SHRIRAM TRANS. 613.50 -10.48
JINDAL STEEL 81.50 -9.99
» More on Top Losers

Covid-19 clouds Infosys' prospects as Q4 results indicate quantum of pain

Notably, the company, for the first time, suspended its revenue and margin guidance due to uncertainty emanating from Covid-19. According to Amit Chandra, analyst at HDFC Securities: “Not giving or suspending guidance shows greater business uncertainty.” How the deal-wins ramp up going ahead after the September 2020 quarter would be key,” he added. READ MORE

EXPERT SPEAK:: Samir Arora

Policy measures may not offset Covid-19 economic damage in APAC: Moody's

The Covid-19 pandemic, Moody's believes, will manifest itself through three types of shocks in the Asia Pacific (APAC) region - country-specific, regional and second-round.
 
“Widespread containment measures are crippling domestic consumption and production, which is spilling over to other parts of the region in the form of lower demand for commodities, imported goods and services, and supply chain disruptions,” wrote Deborah Tan, assistant vice-president at Moody's in a recent note. READ MORE

Infosys, TCS, Wipro: How to trade IT stocks post Q4 results?

NIFTY IT: The counter is waiting for a breakout above 13,000 levels on a closing basis. On several occasions in recent sessions, the index made efforts to conquer this level, however fell short to do so. A major upward trigger may be waiting after a strong close above this mark. On the other hand, the support remains at 12,500 and 12,000 levels. If the index manages to conquer 13,000 levels, an “ascending triangle” formation may lead to 13,800 and 14,200 levels. READ MORE

Shriram Transport Finance drops for second straight session after 3-day rally


Markets have to wait before sustained rise; volatile period to stay

The Indian markets could well see more falls before a sustained rise signals the end of the bear market — at least if the past is any indicator. Each of the major falls since 2008 has seen the market rallying before falling again, and repeating the process multiple times before finally reversing losses. There were four such instances during the global financial crisis in 2008-09, five during the 2011 Euro crisis, two during China’s 2015 currency devaluation, and three during the taper tantrum, noted the data from foreign brokerage firm Jefferies India. READ MORE

NEWS ALERT | Mulling to shore strategic oil reserves: Govt official

>> Will take benefit of low crude oi prices

>> India to stockpile strategic reserves to maximum capacity

>> India's remittances from west Asia to be hit if Brent stays at curre nt level

>> Unable to leverage benefit of low crude prices due to lockdown  

(Via CNBC TV18)

BROKERAGE VIEW:: Edelweiss Securities on Infosys

Infosys reported a decline in revenue of 0.8% QoQ in constant currency (cc) (-1.4% QoQ in USD terms versus consensus USD decline estimate of 0.2% QoQ), as billings were impacted mainly by supply-side issues. EBIT margin at 21.2% (down 70bps QoQ) undershot Street’s estimate of 22%. Management suspended the FY21 guidance on revenue and margins citing extreme uncertainty. While the outlook for the immediate future looks ominous, business strategy is getting more intricately linked to technology by the day, and demand for digitising clients’ core operations will make an even swifter comeback in our view. That said, the current scenario clouds earnings visibility for all companies under our coverage, and we are cutting the target multiple by a modest 10% from 20x to 18x for Infosys. The stock is trading at 17x FY21E EPS. Maintain ‘BUY’ with a target price of Rs 758 as we roll over the valuation to Q2FY22E.

BROKERAGE VIEW:: ICICI Securities on TCNS Clothing

We are positive on the long term outlook, considering the company’s strong brand franchise, healthy return ratios and debt free status. The stock has seen a sharp correction of 30% YTD. We believe that in spite of near term negative impact on its profitability, the company offers a favourable risk reward perspective. We expect a sharp recovery in FY22E with revenue and EBITDA growth of 16% and 31% translating into revenue and EBITDA CAGR of 9% and 14%, respectively, in FY20-22E. We ascribe a BUY rating to the stock with a target price of Rs 480, valuing at 25x FY22E EPS of Rs 19.2.

BROKERAGE VIEW:: Emkay Global Fin Services on UPL

RATING: BUY | TARGET PRICE: Rs 500
  • We initiate coverage on UPL with a Buy rating and a TP of Rs 500 (38% upside) with OW stance in sector EAP. Market share gains, merger synergies and deleveraging should drive re-rating.
  • UPL has been gaining market share over the last five years despite flat industry growth, driven by new products and geographic launches. With the acquisition of Arysta, UPL has been able to fill portfolio gaps in major geographies and is poised to gain market share.
  • EBITDA margins started to improve from Q3FY20 (466bps yoy) as merger synergies kicked in. With better margins, reduction in working capital days, UPL's net debt/EBITDA should improve to 2.2x in FY22E from 3.5x in FY20E.
  • UPL is trading at 5.4x/8.7x FY22E EV/EBITDA and a P/E which is 48%/47% lower than its last 5-yr 1-yr fwd avg. of 10.4x EV/EBITDA and 16.4x P/E. We value UPL at 7.0x FY22E EV/EBITDA (5-yr avg.1-yr fwd multiple - 10.4x) and arrive at our TP of Rs 500.

BROKERAGE VIEW:: ICICI Securities on Engineers India

Engineers India (EIL) is relatively better placed to tackle the current Covid-19 related challenges in terms of execution delay, migrant workers, postponement of orders, etc. Company has an advantage in the consultancy segment due its non-dependency on ground-level execution. Also, the open-book estimate portion of LSTK does not carry working capital risk. Factoring-in the current lockdown, we cut FY20E, FY21E and FY22E earnings by 4.9%, 23.8% and 27.5% respectively. Given the strong balance sheet and attractive valuation with net cash at 57% of market cap, we maintain BUY on the stock with a revised target price of Rs 103
(previously: Rs 131).

BROKERAGE VIEW:: Edelweiss Securities on Telecom sector

A paradigm shift in consumer behaviour is underway in the wake of the lockdown and social distancing, which discourages person-to-person contact. We argue this is leading to higher dependency on digital tools such as video-conferencing, collaborative applications, etc, thereby driving up demand for telecom services. Besides, we see a miniscule financial impact of the lockdown on service delivery as government has exempted movement of critical staff. Consumers, too, attach a higher value to such services amid fettered physical movement. That said, we do expect the lockdown to arrest 4G subscriber addition and churn while accelerating SIM-consolidation. Bharti Airtel’s (Bharti) Africa business is particularly at risk should commodity prices stay persistently low, as seen during H1FY17 when the crude oil plunge triggered a currency crisis in Nigeria. On balance, Bharti remains our top pick as its strong balance sheet can withstand any AGR outcome while contribution of the vulnerable Africa business to its equity value is insignificant. We are upgrading Bharti Infratel (Infratel) to ‘BUY’ (from ‘HOLD’), expecting the high odds of a three-private-player industry structure sustaining.

BROKERAGE VIEW:: Prabhudas Lilladher on Infosys

Rating: HOLD | CMP: Rs 651 | TP: Rs 668

We have cut our revenue estimates for FY21E/FY22E by 2% & except revenue decline of 5% in FY21E. Our near term revenue forecast stands at QoQ decline of 3% in Q1FY21 and 2% decline in Q2FY21.This led to cut in EPS by ~5%/4% for FY21E/22E. We have assigned 16X multiple (unchanged) on FY22E earnings to arrive at changed target price of Rs. 668 (earlier 694). After a strong bounce back in stock, upside will be modest from hereon, downgrading to HOLD from BUY. 

Aurobindo Pharma gains 15% as USFDA grants VAI to Unit IV facility

Shares of Aurobindo Pharma surged 15 per cent to Rs 621.60 on the BSE in an otherwise weak market on Tuesday after US drug regulator USFDA classified the company's Unit IV of Hyderabad plant as VAI (voluntary action indicated). At 10:00 am, the stock was trading 12 per cent higher at Rs 605, as compared to 2.6 per cent decline in the benchmark S&P BSE Sensex. READ MORE

NEWS ALERT | Pharma stocks gain in an otherwise weak market

-- Nifty Pharma up 3% as compared to 2.6% decline in Nifty 50 index 

-- Dr Reddy's hits 52-week high, Sun Pharma nears 52-week high

EXPERT COMMENT :: Sriram Iyer, senior research analyst at Reliance Securities on Oil price collapse

After ending in negative territory, WTI May contract has started higher this Tuesday morning in Asian trading. However, upside could remain limited as rapidly filling storages and demand destruction from Covid-19 could see a slower expected reopening of the US economy.
 
Technically NYMEX June, which is active, could find support at $17.30, but a fall below could see more downside pressure towards $15.50 to $13.70 in coming sessions. MCX Crude Oil May will continue to trade on bearish note below 1,900 levels, downside negative momentum can take prices to 1,650-1,500 levels in coming sessions.
 
So, strategy for Crude Oil May will remain Sell in the range of 1,700-1,710, with the stop loss of 1,800 and a target of 1,500.

More dips ahead suggest bearish phase, going by major falls since 2008

There were four such instances during the global financial crisis in 2008-09, five during the 2011 Euro crisis, two during China’s 2015 currency devaluation, and three during the taper tantrum, noted the data from foreign brokerage firm Jefferies India.
 
The 2008-09 period saw dips ranging between 18 per cent and 45 per cent. The Euro crisis had five double-digit declines between 10 per cent and 17 per cent. The 2015 China decline twice fell 11-12 per cent. The taper tantrum was relatively mild, with three dips of 8-9 per cent. READ MORE

Infosys, TCS, Wipro: IT stocks tumble as Trump plans immigration suspension

Shares of information technology (IT) companies were under pressure, falling by up to 6 per cent on the National Stock Exchange (NSE) in early morning deals on Tuesday, after US President Donald Trump announced a temporary suspension of immigration into the country. Tata Consultancy Services (TCS), Infosys, Tech Mahindra, Wipro, HCL Technologies, Hexaware Technologies, NIIT Technologies and Mindtree were down 1 per cent to 5 per cent on the NSE in intra-day trade. READ MORE

MARKET VOICE | As a fund house, we are buying into this market correction: Mahesh Patil

This is a good time for investors to rebalance their asset allocation. Wherever the equity component has gone down due to the fall in the market, investors should increase their equity exposure. READ MORE

NEWS ALERT | Ten most productive days were lost; gave a concession period of 30 days: LIC India

-- Invested Rs 1.3 trillion last year: LIC India

(as told to CNBC TV18)

ICICI Bank skids 7% on report of $100 mn exposure to troubled oil trader

Shares of ICICI Bank tumbled nearly 7 per cent to Rs 337.25 on the BSE on Tuesday after reports suggested the bank has exposure to Ocean Tankers, a unit of Singapore oil-trading firm Hin Leong Trading (HLT), that has filed for bankruptcy in Singapore. The firm owes nearly $100 million -- or nearly Rs 760 crore -- to the lender. READ MORE

Oil & Gas stocks tumble as US oil prices collapse; ONGC declines over 6%

Shares of oil and gas companies slipped in on Tuesday, a day after the US crude oil futures collapsed below $0 on Monday for the first time in history, amid a coronavirus-induced supply glut, ending the day at a stunning minus $37.63 a barrel as desperate traders paid to get rid of oil. At 09:22 am, the S&P BSE OIL & GAS index was trading over 3 per cent lower at 10,984 levels whereas the benchmark S&P BSE Sensex was down nearly 3 per cent at 30,732.60 levels. READ MORE

Bajaj Finance dips 7% on UBS downgrade


Nifty Pharma index up over 1%


Aurobindo Pharma jumps 7% in an otherwise weak market

-- US FDA classifies Unit-IV as 'voluntary action indicated'

NEWS ALERT | L&T Construction bags order in the range of Rs 1,000 cr-Rs 2,500 cr


MARKET UPDATE:: Nifty gives up 9,000; India VIX up 5%


Reliance Industries declines 4%


Result impact | Infosys slides post Q4 nos


S&P BSE Oil and Gas index tumbles 3% at open


Sectoral trends at NSE during Opening Trade


Sensex Heatmap at Open


OPENING BELL


OPENING BELL


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


Market at Pre-Open


Market at Pre-Open


Stocks to watch: Oil-linked stks, Infosys, ICICI Prudential Life, ACC, TCS

Oil-linked stocks: Oil upstream and downstream companies, aviation and other oil-sensitive stocks are expected to hog the limelight today as the US crude oil prices on Monday collapsed and ended the day at a stunning minus $37.63 a barrel as desperate traders paid to get rid of oil.
 
Tata Consultancy Services (TCS) and Amway, a global leader in direct selling, have entered into a strategic partnership to transform the latter's global technology operations. READ MORE

NEWS ALERT | South Korean currency Won slides: CNBC

>> Korean Won falls sharply on against dollar on unconfirmed reports that North Korean leader Kim Jong Un is seriously ill

EXPERT COMMENT :: Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking

It's a grim situation, playing out in the oil markets grabbing eyeballs of the entire investor fraternity and defying logic. The absolute collapse of WTI prices is primarily owing to the expiry of May WTI contracts, alongside the significant demand destruction due to lockdowns in several countries and supply glut in oil markets. Put simply in other words, the sellers are paying the buyers. Oil traders are unwilling to take the delivery owing to lack of storage space. In complete contrast, Brent crude prices are trading at about $25/bbl. The reason for this sharp divergence is that WTI needs to be physically delivered at Cushing, Oklahoma whereas for Brent contract, deliveries can be done offshore at multiple locations.
 
Note that the WTI June contract is still trading higher. The storage constraints at Cushing, Okhalama has led to dumping and unwinding in May contract and market participants moving to June contract.

NEWS ALERT :: Fall in crude prices reflect future demand scenario: Chris Wood

>> Lockdown is a big risk for India
Christopher Wood, global head of equity strategy at Jefferies

Nifty outlook and stock calls by Anand Rathi: Buy HPCL, Sell Coal India

BUY HINDPETRO | TARGET: Rs 97 | STOP LOSS: Rs 88
 
The stock has provided a breakout from a two-month consolidation and is also making a higher top and higher bottom on the daily chart which indicates that the positive momentum is expected to continue in the short term. The momentum oscillator MACD is very well in buy mode on daily as well as weekly scale. READ MORE

Bulk deals on NSE as on Monday

Bulk deals on BSE as on Monday

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


Rupee check

Source: Bloomberg



Crude oil edges above $0 per barrel, recovers after record wipeout

>> Oil prices rebounded on Tuesday, with US crude turning positive after having traded below $0 for the first time ever, but gains were capped amid unresolved concerns about how the market would cope with fuel demand decimated by the coronavirus pandemic.
 
>> US West Texas Intermediate (WTI) crude for May delivery rose $38.73 to $1.10 a barrel by 0117 GMT after settling down at a discount of $37.63 a barrel in the previous session.

(Via Reuters)

SGX Nifty indicates at weak start for markets

>> At 8:24 am, the index was at 9,070.50 level, down -90 points or 2.05%

Asia shares follow Wall Street drop

Source: Reuters


Wall Street drops as oil traders cannot give away U.S. crude

Source: Reuters


NEWS ALERT | US President to sign executive order to temporarily suspend immigration into US

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