MARKET WRAP: Sell-off continues for 4th day; Sensex ends 392 pts lower

Extending their losses for the fourth day in a row, benchmark indices ended Wednesday's highly volatile session in the negative territory as the rapid spread of coronavirus from its epicentre in China to other countries dented investors' risk appetite. So far, the total number of coronavirus-related deaths in China has crossed over 2,700, while the number of confirmed cases in mainland China hit 78,064, including 406 new cases. CLICK TO READ MORE

The S&P BSE Sensex ended below the crucial psychological level of 40,000 at 39,889, down 392 points or around a per cent. Reliance Industries (RIL), Infosys, ICICI Bank, and HDFC contributed the most to the index's decline. Drug major Sun Pharma ended as the biggest loser on the index - down over 3.5 per cent while SBI ended as the biggest gainer on the index with half a per cent gain. 

On the NSE, the Nifty50 index closed the session at 11,678.5, down 119 points or 1 per cent with 44 out of 50 stocks ending in the red and just 6 in the green.

In the broader market, the Nifty Midcap 100 index skid over a per cent to settle at 17,512 while the Nifty SmallCap 100 index ended at 5,992, down 34 points or 0.57 per cent. 

India VIX, the "fear guage", climbed over 8 per cent to 18.29 levels. 

Among sectoral indices, Nifty Auto index slipped the most - over 2 per cent to 7,208 levels. Nifty Metal index dropped 1.63 per cent to 2,430 while the Nifty Realty index ended at 297.50, down around 1.7 per cent. 

GLOBAL MARKETS

Asian shares fell on Wednesday as a US warning to Americans to prepare for the possibility of a coronavirus pandemic jolted Wall Street yet again and pushed yields on safe-haven Treasuries to record lows. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 1.1 per cent. Japan was among the worst-performing market in the region, weighed by growing concerns the virus could force the cancellation of the Tokyo Olympics.

Euro Stoxx 50 futures were down 0.36 per cent, German DAX futures fell 0.53 per cent, while FTSE futures were off 0.4 per cent. 

Crude prices edged up on Wednesday as investors covered short positions after three sessions of losses, even as fears deepened that the rapid spread of the coronavirus will lead to a global pandemic.

(With inputs from Reuters)

4:05 PM IST Increasing concern regarding coronavirus in the world over is impacting global market. The economic impact is expected to be worse than thought earlier forcing investors to stay away from risky assets. Domestic market is bracing for yet another subdued GDP growth, with a forecast of 4.6 per cent  to 4.7 per cent in Q3 compared to 4.5 per cent in Q2, which is adding to the fear.

3:45 PM IST

3:44 PM IST

3:36 PM IST The S&P BSE Sensex slipped 392 points or 0.97 per cent to end below the crucial level of 40,000 at 39,889 while NSE's Nifty50 index ended at 11,678, down 119 points or 1 per cent.

3:25 PM IST The Coronavirus has had a widespread impact across major economies and is now becoming a global emergency. China’s (the epicentre of Coronavirus) manufacturing capacities have shut down for over a month now, creating a supply disruption of finished goods/components for consumer durable companies operating in India. However, most vendors had already made provisions for inventory due to the Chinese Lunar New Year holidays. Hence, there may not be an immediate impact in the current quarter.

3:02 PM IST

2:56 PM IST

2:53 PM IST European shares fell for a fifth straight session on Wednesday, as investors fretted over the growing impact of a fast-spreading coronavirus that has pushed companies world-wide to sound the alarm on earnings. Europe’s main equity benchmark STOXX 600 fell 0.8 per cent, marking its first five-day losing streak since July 2019. Asian shares fell on Wednesday as a US warning to Americans to prepare for the possibility of a coronavirus pandemic jolted Wall Street yet again and pushed yields on safe-haven Treasuries to record lows. That led MSCI’s broadest index of Asia-Pacific shares outside Japan down 1.1 per cent. Japan was among the worst-performing market in the region, weighed by growing concerns the virus could force the cancellation of the Tokyo Olympics.

2:51 PM IST

2:42 PM IST

LIVE UPDATES

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

Increasing concern regarding coronavirus in the world over is impacting global market. The economic impact is expected to be worse than thought earlier forcing investors to stay away from risky assets. Domestic market is bracing for yet another subdued GDP growth, with a forecast of 4.6 per cent  to 4.7 per cent in Q3 compared to 4.5 per cent in Q2, which is adding to the fear.

SECTOR WATCH | Auto stocks fall the most


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


CLOSING BELL

The S&P BSE Sensex slipped 392 points or 0.97 per cent to end below the crucial level of 40,000 at 39,889 while NSE's Nifty50 index ended at 11,678, down 119 points or 1 per cent.

BROKERAGE RADAR | ICICI Securities on Consumer Discretionary

The Coronavirus has had a widespread impact across major economies and is now becoming a global emergency. China’s (the epicentre of Coronavirus) manufacturing capacities have shut down for over a month now, creating a supply disruption of finished goods/components for consumer durable companies operating in India. However, most vendors had already made provisions for inventory due to the Chinese Lunar New Year holidays. Hence, there may not be an immediate impact in the current quarter.

MARKET CHECK


Contribution to S&P BSE Sensex's fall today


Global Markets check

European shares fell for a fifth straight session on Wednesday, as investors fretted over the growing impact of a fast-spreading coronavirus that has pushed companies world-wide to sound the alarm on earnings.

Europe’s main equity benchmark STOXX 600 fell 0.8 per cent, marking its first five-day losing streak since July 2019.

Asian shares fell on Wednesday as a US warning to Americans to prepare for the possibility of a coronavirus pandemic jolted Wall Street yet again and pushed yields on safe-haven Treasuries to record lows.

That led MSCI’s broadest index of Asia-Pacific shares outside Japan down 1.1 per cent. Japan was among the worst-performing market in the region, weighed by growing concerns the virus could force the cancellation of the Tokyo Olympics.

Maruti Suzuki dips 3%


MARKET CHECK | Vedanta slips nearly 2.5%


Sensex at day's low


Heatmap: S&P BSE Sensex


Nifty sectoral indices at this hour


Rupee check: Indian currency near day's low


Nifty near 11,700; India VIX up 5%


MARKET UPDATE:: Sensex resumes fall


BUZZING STOCK:: Spencers Retail zooms over 18%


Chemical shares rally; Neogen, Fairchem, Navin Fluorine surge over 10%

Shares of commodities and specialty chemicals companies were on a roll on Wednesday with Navin Fluorine International (NFIL), Fairchem Speciality and Neogen Chemicals rallying more than 10 per cent on the BSE in an otherwise weak market on expectation of strong earnings growth going forward. Shares of NFIL hit a new high of Rs 1,426, up 12 per cent and zooming 34 per cent in the past two trading days. READ MORE

Planning to apply for SBI Cards IPO? Check out the eligibility criteria

The initial public offer (IPO) of SBI Cards & Payments Services, India's second largest credit card issuer, will open on March 2. The price band of the offer has been set at Rs 750-755 per equity share. The offer comprises a fresh issue worth Rs 500 crore and an offer for sale (OFS) of up to 130,526,798 equity shares. The bid lot for the offer has been finalised to be 19 equity shares and in multiples of 19 equity shares thereafter. READ MORE

MARKET CHECK | Sensex reclaims 40,000


In 120 years, equity returns have outpaced bonds & bills: Credit Suisse

Adjusted for inflation, equities as an asset class have returned 5.2 per cent on an annualised basis over the past 120 years (since 1900), outpacing the returns by bonds at 2 per cent and bills at 0.8 per cent, says the latest Credit Suisse Global Investment Returns Yearbook 2020. READ MORE  


Tata Motors gets nod to raise Rs 500 cr through non-convertible debentures

Tata Motors on Wednesday said its board approved committee has given its approval for raising Rs 500 crore through issuance of non-convertible debentures on private placement basis. "The Board approved Committee has today approved allotment of 5000 rated, listed, unsecured, redeemable, non-convertible debentures E28-B Series of face value Rs 10 lakh each, at par, aggregating Rs 500 crore," the company said in a regulatory filing. READ MORE

MARKET CHECK | All sectoral indices on the NSE trade in the red


MARKET CHECK | Top gainers on the BSE at this hour


MARKET UPDATE:: Sensex off day's lows, but still down 200 pts


IndusInd Bank, Eicher Motors, HPCL: 10 stocks that look bearish on charts

As the Nifty slips toward its 200-day moving average (DMA) placed at 11,685 levels, several stocks have started showing weakness and this trend may get carried forward in the coming sessions if the selling pressure continues to accelerate. Although cement and FMCG stocks are looking relatively better for now, the upside seems capped at higher resistance levels. READ MORE  


Shilpa Medicare slips 5% as USFDA issues Form 483 for Telangana facility

Shares of Shilpa Medicare were locked in 5 per cent lower circuit at Rs 489 -- down 9 per cent from intra-day high -- on the BSE on Wednesday after the US health regulator issued Form 483, with 15 observations for the company’s facility in Telangana. Till 12:11 pm, a combined 217,507 shares had changed hands and there were pending sell orders for 38,590 shares on the BSE and NSE. READ MORE

SECTOR WATCH:: Auto stocks decline

COMPANY LATEST(rs) CHG(%) VOLUME
TATA MOTORS 145.40 -2.97 890771
ASHOK LEYLAND 79.25 -1.61 763626
TATA MOTORS-DVR 60.80 -1.54 80797
ESCORTS 829.05 -0.17 39079
M & M 505.90 -0.75 23355
» More

M&M, L&T, Hindalco and 3 other Nifty50 stocks hit 52-week lows

Shares of six Nifty50 companies, GAIL (India), Hindalco Industries, ITC, Oil and Natural Gas Corporation (ONGC), Larsen & Toubro (L&T), and Mahindra & Mahindra (M&M) hit their respective 52-week lows on the NSE on Wednesday after more than 3 per cent fall in the benchmark Nifty50 index in the past four days. A total of 40 stocks from the Nifty500 index touched 52-week lows today. READ MORE

YES Bank gains 4%, at day's high now


BROKERAGE RADAR | Geojit Financial Services on Berger Paints

Rating: Hold

CMP: Rs.569   

Target Price: Rs.623
 
Berger paints recorded tepid growth of 4.9 per cent YoY in consolidated revenue for Q3FY20, as decorative business witnessed modest growth with late monsoon, early Diwali and general demand conditions. EBITDA margin expanded 290bps YoY to 17.5 per cent primarily driven by lower input costs on account of declining raw material prices. PAT rose 36.2 per cent YoY to Rs. 182 crore supported by improved operating margins and lower taxes. With on going improvements in margins, we expect the company's earnings to grow at a healthy 23 per cent CAGR over FY20-22. Hence, we upgrade our rating on the stock to a HOLD with a roll forward target price of Rs 623 based on 55x FY22E adj. EPS.

Most active stocks by volume

COMPANY PRICE(rs) CHG(%) VOLUME
VODAFONE IDEA 3.97 0.51 20547651
INDIA CEMENTS 104.60 19.95 4467998
SADBHAV ENGG. 78.50 0.77 4454378
SUZLON ENERGY 2.83 0.00 3720749
YES BANK 35.90 2.13 3356018
» More on Most Active Volume

BROKERAGE RADAR | Motilal Oswal Financial Services on Gujarat Gas

The NGT order has panned out strongly at Morbi. Gujarat is facilitated by better availability of gas/pipeline infrastructure and already has a high market share of natural gas in its energy mix (~25%). Given lower LNG prices, we have modeled EBITDA/scm for the company at Rs 4.5/Rs 4.5, with volumes growth forecast of 10% for FY21/22. GUJGA trades at 21.2x FY21E EPS of Rs13.5 and 11.8x FY21E EV/EBITDA. We value the company at 22x FY22E EPS to arrive at a target price of Rs 340 and reiterate Buy rating. Jump in LNG prices and open access remain the biggest risks to our rating

BROKERAGE RADAR | Emkay Global on Havells India

TP: Rs 715  (12 months) | Rating: BUY | Upside: 14.1%
  • After upgrading Havells to Hold recently, we are further upgrading the stock to Buy in the wake of positive feedback from recent channel checks which corroborate our estimates and projections that bake in a gradual revenue recovery from Q4FY20.
  • Our channel checks suggested that HAVL had lost market share in Fans in Q2 and Q3, while it has started to recover from Dec’19. Revenue growth in the core business (exLloyd) has started to rebound from Q4, with revenue growth seen in Fans as well.
  • Favorable base from Q4FY20 and moderated growth assumption for the ensuing quarte and a gradual uptick expected in government spending from Q1FY21, which has direct corelation with 30% of HAVL’s revenues, should lead to growth from Q4FY20.
  • We raise target multiple to 40x FY22E EPS from 35x, with a revised TP of Rs715 as we see recovery in revenue growth, which has been lagging for the last four quarters. We are baking in revenue/EBITDA/PAT CAGR (FY20-22E) of 13%/15%/19%. We are EW in EAP. 

 

Global markets are not fully pricing in coronavirus' impact: Jim Rogers

Global financial markets, including India, have been taken by surprise by how coronavirus has spread across countries, which in turn, is casting a shadow on economic growth. JIM ROGERS, chairman of Rogers Holdings tells Puneet Wadhwa that he is looking to invest in India on a correction. India does not need all these protectionist regulations that hamper its growth potential, which the government must realise and do away with, he says.  READ MORE

MARKET UPDATE:: Nifty breaches 11,700


NEWS ALERT | SpiceJet to launch 11 new domestic flights from March 29: CNBC TV18

-- SpiceJet to launch flights between Leh-Srinagar, Srinagar-Mumbai

Contribution to S&P BSE Sensex's fall today


India Cements zooms 37% in 2 days after Gopikishan Damani buys 2.75% stake

Shares of India Cements surged 18.5 per cent to Rs 103.35 on Wednesday, thus rallying over 37 per cent in the past two trading days after Gopikishan Damani bought 2.75 per cent stake in the company for a total amount of Rs 70.5 crore via open market. On Tuesday, Gopikishan S Damani had purchased 8.52 million shares in India Cements at an average price of Rs 82.70 apiece, NSE bulk deal data showed. The name of the sellers were not ascertained immediately. READ MORE

Bandhan Bank gains 5% as RBI lifts restrictions on opening new branches

Shares of Bandhan Bank rose as much as 5 per cent to Rs 423 on the BSE on Wednesday in intra-day trade after the Reserve Bank of India (RBI) lifted restrictions placed on the bank from opening new branches. ".. though the Bank is still not in compliance with the licensing condition on dilution, considering the efforts made by the Bank to comply with the said licensing condition, it (the RBI) has lifted the regulatory restriction on branch opening, subject to the condition that the Bank ensures that atleast 25 per cent of the total number of 'Banking Outlets' opened during a financial year are opened in unbanked rural centres," Bandhan Bank said in a regulatory filing. READ MORE

BUZZING STOCK:: IOL Chemicals zooms 6%


BROKERAGE RADAR | HDFC Securities on ICICI Securities

We attended ISEC’s sell side analyst day and were impressed by the strong client franchise, innovations and focus on adding value propositions (apart from pricing) for customers. While we appreciate the fundamental strength of ISEC’s business model, we believe valuations at FY21E/22E P/E of 23.5/20.8x are stretched. We rate ICICI Securities a SELL with target price of Rs 435 (18x FY22E EPS).

Planning to apply for SBI Cards IPO? Check out the eligibility criteria

The initial public offer (IPO) of SBI Cards & Payments Services, India's second largest credit card issuer, will open on March 2. The price band of the offer has been set at Rs 750-755 per equity share. The offer comprises a fresh issue worth Rs 500 crore and an offer for sale (OFS) of up to 130,526,798 equity shares. The bid lot for the offer has been finalised to be 19 equity shares and in multiples of 19 equity shares thereafter. READ MORE  


Sanofi India hits record high, surges 9% on dividend of Rs 349 per share

The total dividend of Rs 349 per equity share will be paid after approval of shareholders at the ensuing Annual General Meeting scheduled on April 28, 2020. The final as well as one-time special dividend, if approved by the shareholders, will be paid on or after May 5, 2020, it added. READ MORE

Market check | Sensex slips below 40,000-mark


STOCK ALERT | 3.4% equity exchanged


SECTOR WATCH:: Metal stocks continue to trade lower


Jindal Steel & Power slumps 4%


Reliance Industries slips 1%


Page Industries slides over 3%


Market check | Indices off lows


Momentum Picks by ICICI Securities


Cipla dips over 2%

>> Received warning letter for Goa from US FDA


JSW Steel slips over 1%

>> JSW Steel’s $2.7-billion purchase of a bankrupt steel mill is facing a fresh hurdle after a former chairman of Bhushan Power & Steel challenged the deal in the country’s top court.


India Cements surges over 8%

>> S Gopikishan Damani has bought 85,22,428 shares of India Cements at an average price of Rs 82.70 apiece, NSE bulk deal data shows.


MARKET CHECK | 0.2% equity of UPL changes hands


Asian Paints trades half a per cent higher


Sanofi India hits 52-week high

>> The company's board has declared final dividend of Rs 106 and a special didvidend of Rs 349.


Bandhan Bank gains 4%

>> The Reserve Bank of India (RBI) has lifted the regulatory restriction on branch opening, subject to the condition that the Bank ensures that atleast 25 per cent of the total number of 'Banking Outlets' opened during a financial year are opened in unbanked rural centres.


Sectoral trends at NSE during Opening trade


Top gainers and losers on S&P BSE Sensex during Opening trade


Opening Bell | Nifty near 11,700


Opening Bell


Top gainers and losers on S&P BSE Sensex during Pre-open


Market at Pre-open


Market at Pre-open


Rupee opening

Rupee opens higher at 71.75/$ vs Tuesday's close of 71.88 against the US dollar

Stocks to watch

Bandhan Bank: The Reserve Bank of India (RBI) has lifted the regulatory restriction on branch opening, subject to the condition that the Bank ensures that atleast 25 per cent of the total number of 'Banking Outlets' opened during a financial year are opened in unbanked rural centres.
 
Sanofi India: The company's board has declared final dividend of Rs 106 and a special didvidend of Rs 349. READ MORE

Road ahead for equity markets will be challenging, says Shyamsundar Bhat

With Wuhan-based coronavirus spreading fast outside mainland China, risks to global economies could become more pronounced in the next quarter at a time when the global growth is slowing. While the potentially slower global growth is being reflected in our debt market with yields trending lower, it has not yet been reflected in our equity market, SHYAMSUNDAR BHAT, chief investment officer of Exide Life Insurance, tells Nikita Vashisht. READ MORE

Top stocks ideas by Religare Broking

Buy Marico Limited
 
Initiation range: Rs 303-306
 
Target: Rs 325
 
Stop loss: Rs 296
 
MARICO has been witnessing correction for the last five months and is currently hovering around the support zone of the long-term moving average of 200 EMA on the weekly chart. Indications are in the favor of marginal consolidation followed by steady rebound ahead. We advise accumulating fresh longs as per the given levels. READ MORE

Nifty view and stock picks by HDFC Securities

Nifty has reached a crucial support zone 11,750-11,783, which happens to be the unfilled gap formed on 4th Feb 2020. Low made on 25th Feb is exactly at the upward sloping trend line adjoining bottoms of 19th Sep 2019 and 3rd Feb 2020. Violation of 11,750 support may drag Nifty towards the 200 DMA support, currently placed at 11,684. The previous bottom on the Nifty daily chart is placed at 11,614, which can also act as far support. READ MORE

Bulk deals on BSE as on Tuesday

Bulk deals on NSE as on Tuesday

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


Rupee check


SGX Nifty

>> At 8:10 am, the Singaporean Exchange for Nifty Futures was down 78 points
 

Asian Market Check

Source: Reuters


US Market Check

Source: Reuters


Track all the latest markets-related developments here.
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