Sensex, Nifty Update: Equity indices Sensex and Nifty endedon a bullish note on Wednesday, tracking bullish trend from global key indices as authorities world over stepped up efforts to fight the pandemic. Sensex ended 1,861 points higher at 28,535, and Nifty gained 496 points higher to 8,297 mark.
Market sentiments turned optimistic as government took drastic measures to combat Covid-19 outbreak with Prime Minister Narendra Modi announcing a complete lockdown of the country for 21 days. Overseas, Asian, European as well as Wall Street indices reversed from losses and gained significantly, as investors banked on hopes of economic stimulus from policymakers.
On Tuesday, Sensex closed 692 points higher to trade at 26,674, and Nifty gained 190 points to 7,801 mark.
Globally, Covid-19 infection cases have risen drastically outside China, hurting major economies and disrupting supply chains. Since early March, authorities world over have stepped up efforts to fight the pandemic and announced several financial stimulus. There are over 4 lakh confirmed cases and 17,451 deaths from the coronavirus outbreak. Of these, over 1 lakh have recovered globally. The number of infected cases in India has increased to 519, with 469 active cases & 39 recovered cases. The death toll from coronavirus in India has risen to 10 till Wednesday.
Here's a look at the updates of the market action on BSE and NSE today:
3: 45 PM
Equity indices Sensex and Nifty endedon a bullish note on Wednesday, tracking bullish trend from global key indices as authorities world over stepped up efforts to fight the pandemic. Sensex ended 1,861 points higher at 28,535, and Nifty gained 496 points higher to 8,297 mark.
3: 30 PM
Sensex which was trading volatile in early morning trade on the back of rising coronavirus cases in India changed gear in afternoon session.
The 30-share benchmark index logged a 2,116 point rally to 28,790 compared to the previous close of 26,674. On a similar note, Nifty has climed to the day's high of 8,376.75, rising 775 points higher agains the last closing of 7,801.
Financial and banking indices top gainers today
All sectors traded in green territory today, with high buying pressure registered in financials, banking scrips.
On NSE, Nifty financial rose over 8%, followed by 7% in Nifty bank and private banking, 4% gain in auto, 3% in IT and 2% rise in FMCG, realty, metal and media scrips. Pharma and PSU ank were trading over 1% higher today.
Parag Milk rises 16%
3: 05 PM
Shares of Parag Milk touched an intraday high of Rs 60, rising 16.17% on BSE after the company announced that its promoter will be repaying the entire Rs 14.85 cr loan, to repay all dues and release pledged shares.
Dollar steadies after fall
2: 55 PM
The dollar halted its decline and gains in riskier currencies petered out on Wednesday as fresh rises in coronavirus cases kept markets on edge and the greenback funding market tight.
Foreign exchange markets were in consolidation as the prospect of a huge U.S. stimulus package bolstered Asian stock markets although gains in riskier currencies were tempered. The safe-haven dollar, which had pulled back from recent peaks, was now steady against the euro EUR= at $1.0789, and fell only marginally against the yen JPY= to 111.11 yen per dollar.
Retail stocks rise
2: 45 PM
Retail sector stocks such as Avenue Supermarts, Spencer's Retail, V-Mart and V2 Retail zoomed in early trade today after people resorted to panic buying of essential goods on the first day of complete lockdown in the country.
While share price of V2 Retail was stuck in the upper circuit of 10%, Avenue Supermarts rose 3.69% , Spencer's Retail climbed 20% and V-Mart stock gained 16% on the prospects of regular buying of essential goods during the lockdown.
Why domestic market is rising today
2: 30 PM
Equity benchmark Sensex and Nifty jumped over 6% as the government took drastic measures to combat Covid-19 outbreak with Prime Minister Narendra Modi announcing a complete lockdown of the country for 21 days. This measure was in line with global peers, as worldwide policy makers are stepping up to provide financial cushions to the economies hit by the COVID-19 pandemic.
European peers also started the day's trade higher following global cues as US lawmakers edged towards a mammoth stimulus package to support the world's top economy against the impact of the coronavirus pandemic.
Where FTSE gained 2.9%, CAC was up 3% and DAX was trading 3.1% higher today.
Elsewhere in Asia, Nikkei traded 8% higher, followed by 6% rise in SGX Nifty, and over 5% rise in Kospi, Strait and Set Composite. Where Hang Seng and Taiwan index rose 3%, Shanghai index was up 2%.
US Congress was nearing an agreement on a massive stimulus package to help the coronavirus-ravaged American economy, tracking record Wall Street gains.Following this, Nasdaq closed 8% higher on Wall Street.
Sensex, Nifty gain 6%
Equity indices Sensex and Nifty gained 6% each on Wednesday tracking bullish trend from global key indices as authorities world over stepped up efforts to fight the pandemic. Sensex traded 1,750 points higher at 28,405, and Nifty gained 482 points higher to 8,285 mark.
Morgan Stanley On Oil & Gas
2: 00 PM
-Hike in taxes on petrol and diesel positive for City Gas distributors
-With oil near $30 per barrel and rupee at 76, current fuel prices give sufficient room to raise taxes
-Current Gross Marketing Margin of Rs 8.4-9.5 per litre for OMCs is abnormally high
-May not translate into much earnings due to limited demand on account of the shutdown.
Investec on Astral Poly Technick
1: 45 PM
-Buy rating maintained
-Price target of Rs 1,357
-Q1 accounts for 15 percent of financial year revenue
-Adverse impact would be capped even if shutdown lasts longer
-Piping division remains strong
-Adhesives ramp-up was below expectation as distributor addition and KYC checks taking longer than usual.
CLSA on Bharti Airtel
1: 40 PM
-Buy rating maintained
-Price target cut to Rs 590 from Rs 680
-Covid-19 hit likely to be moderate
-Tariff hikes to moderate Covid-19 hit
-Impending TRAI decision on floor tariffs to be a big positive
Sensex, Nifty gain 6% each
1: 35 PM
Equity indices Sensex and Nifty gained 6% each on Wednesday, tracking bullish trend from global key indices as authorities world over stepped up efforts to fight the pandemic. Sensex traded 1,630 points higher at 28,307, and Nifty gained 433 points to 8,235 mark.
YES Bank shares decline 18%
1: 20 PM
YES Bank shares touched an intraday low of Rs 28.65, falling 18.26% as against the previous closing value of Rs 35.05 on BSE today.
YES Bank shares have fallen 43.97% in the last 4 sessions since March 19, when the lender's single-largest promoter Madhu Kapur (widow of its founder-chairman Ashok Kapur)sold 2.5 crore bank shares in a block deal.The share price of the lender has fallen 51% in one week, 15% in one month and 36% since the beginning of the year. The stock has been highly volatile today with an intraday volatility of 15.24%.
UBS On Tata Motors
-Buy rating maintained
-Price target cut to Rs 130 from Rs 285
-Downgrading global auto forecast due to Covid-19
-Rising demand risk requires aggressive cost cutting
-JLR volumes in FY21 may now decline 5 percent instead of 3 percent growth previously.
UBS on JSW Energy
12: 40 PM
-Upgrade to buy from sell
-Price target maintained at Rs 68
-Too much pessimism seems to be priced in
-On a strong footing despite merchant rates remaining soft
-Fall in international coal prices to enhance profitability
-Kamalanga acquisition to be value accretive
Indices climb 3.5% each
12: 30 PM
Equity indices Sensex and Nifty gained 3.5% each on Wednesday tracking bullish trand from global key indices as authorities world over stepped up efforts to fight the pandemic. Sensex traded 950 points higher at 27,669, and Nifty gained 276 points higher to 8,077 mark.
ICRA upgrades YES Bank to 'rating watch with developing implications'
12: 10 PM
Ratings firm ICRA upgarded YES Bank's stock bonds and other financial instruments.
The rating agency placed it on 'rating watch with developing implications' and upgraded the bank's Basel III compliant bonds, infrastructure bond programme, certificates of deposit programme and short-term fixed deposit programme.
"The ratings upgrade factors in the removal of the moratorium on March 18, 2020, which was earlier imposed on Yes Bank Limited (YBL) by the Central Government, thereby restricting payments to its depositors and creditors," ICRA said on a press release.
ICRA added the bank comforts from the liquidity support to be provided by domestic financial institutions and the RBI, if required, post the removal of the moratorium. However, the stability of the deposit base, post the removal of the moratorium, will be a key driver of YBL's liquidity over the medium term, the rating firm added.
CLSA on Indian consumer products
-Covid-19 impact on the sector is evolving rapidly
-Operating leverage highest for hotels, QSR, multiplexes and retail companies
-Financial leverage highest for Lemon Tree, AB Fashion and Arvind Fashion
-Discontinue coverage on Arvind Fashion due to lack of cashflow visibility and restructurin
Deutsche Bank report on 'Maximum Containment, Social Distancing & the Economics of Stoppage'
11: 55 PM
An unexpected convergence of multiple exogenous forces in 2020 will likely lead to a severe global recession in the 1H 2020, said Deutsche Bank. The report added, "COVID-19 virus is quickly becoming the greatest global health pandemic since the Spanish flu in 1918."
It added that while China, Singapore, HK, Taiwan and South Korea flattened their curves through vigilant monitoring and early intervention, cases across Europe and the US are rising rapidly, with US data resembling that of Italy from one week ago.
The report further notes that global market volatility in March has risen to levels seen only three times previously over the last 8 century (2008, 1987, 1929) and added that the scale of global de-risking and fear has led to broad-based selling across virtually all asset classes.
Vigilant monitoring, testing and social distancing have become critical to an effective public policy response. Although a wave of layoffs, missed rental payments and bankruptcies are likely to follow. The speed and precision required to 'bridge' millions of SMEs globally will be very difficult to execute, it further noted.
Promoters on buying streak amid freefall
11: 45 AM
With markts falling on a unprecendented manner over the last month, many stocks have seen significant coreections, which has further led to promoters raising stake in their companies from open market, said Motilal Oswal in its market report on Tuesday. As per the report, such companies include Tata Chemicals, MPhasis, Tata Steel, Indian Hotels, Bajaj Finserv, Maruti Suzuki, GMR Infra, Bajaj Auto, Sun Pharma, Tata Motors, Tata Motors DVR, Tata Power, JSW steel, Bajaj Finance, Tata Consumer Products, Mondtree, Bajaj Holdings, Godrej Ind, IDFC First Bank and Cholamandalam Investments.
Oil prices rise today
11: 35 AM
Oil prices gained yesterday on hopes that U.S. may soon reach a deal on a $2 trillion coronavirus aid package to support economy.
Crude oil Futures rose 0.76% or 3.17% ti $ 24 per barrel today. Similarly, Brent Crude futures traded at $27.91 per barrel, rising 0.76 points or 2.80%.
Gold prices today
11: 30 AM
Gold price declined on international grounds, with Spot Gold trading 0.65% lower at $1,599 per ounce, after climbing to two week highs yesterday.
On Spot gold's near term technical outlook, Hareesh V, Head Commodity Research at Geojit Financial Services said,"Positive bias likely to continue as long as prices stay above $1585. However, intraday resistance is seen at $1635 which needs to be cleared to trigger further sharp rallies. A close below $1445 is a signal of major liquidation pressure."
MCX Gold traded higher on domestic grounds, rising to 41,670, up 290 points or 0.70%. On gold's near term outlook, Hareesh added that," Gold continues to gain on supply worries and economic easing measures taken by various central banks. Air traffic restrictions and closure of gold refineries in many parts of the globe due to spread of deadly coronavirus has raised concerns over the supply of the yellow metal. Safe haven demand on hopes of a possible recession due to the negative impact of virus will also support the commodity."
Global key indices trade positive
11: 25 AM
European markets closed significantly higher on Tuesday and Asian markets traded positive on Wednesday, with Nikkei up over 5% tracking overnight gains in US.
US markets closed with significant gains as investors grew more optimistic, awaiting big stimulus announcement from law makers.
Motilal Oswal on market freefall
Given the nature of the crisis, and the consequent containment measures, forcasting corporate earnings for FY21 has become diffciult with existing earning estimates facing sharp downward risks, said Motilal Oswal in its daily market report.
It added later that Nifty traded at a Price/Earnings ratio of 14.7 times, that is lowest in 6 years while Nifty's Price/Book value is at 1.9 times, lowest since the GFC (Global Financial Crissi). Market Capital to GDP on NSE Nifty 50 ia ta 49%, again lowest since the GFC.the report further added that Indian indices were the top laggards amongst the key global indices, since the average peak achieved in February 2020. Since then, Brazil index has fallen 40%, followed by India, where the decline stands at 36%.
France has dropped 31%, Germany 29%, while 28% drop is seen in South Korea, UK and USA.
Japan has dropped 24%, followd by 23% fall in Russia, 21% in Taiwan and 16% in China.
Market turns volatile, trades bullish
11: 10 AM
Equity indices Sensex and Nifty turned volatile as market sentiments were pessimistic following the pan-India lockdown for 21 days. Sensex traded 310 points higher at 26,995, and Nifty gained 80 points higher to 7,882 mark. According to market experts, traders are weighing the economic impact of the 21-day lockdown announced last night, an unprecedented drastic measure taken by the country to curb the spread of coronavirus. PM Narendra Modi, while declaring the 3 week lock down, also announced a central allocation of Rs 15,000 crore to strengthen the health infrastructure to tackle the disease. In recent days, India has been gradually expanding stay-at-home orders and has banned international and domestic flights and suspended passenger service on its extensive rail system.
Expert opinion on Market after 21 days lockdown
Speaking over the 21 days lock down and its impact on the financial markets, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services sauid,"Enforcement of the 21 day lock out of the nation will be a major challenge. Ensuring supplies to all households is not going to be easy, but has to be done. The temporary shock to the economy will be huge. But if we come out of this lockdown successfully, economic recovery can be sharp.The choice in this crisis is limited. That's why the PM said, if we don't do this 21 day lockdown, we will go back to 21 years. Effective practical enforcement of the lockdown will require massive support from the central govt including income support to poor households, foreberance on NPA classification, EMI repayment etc. This will come, as the FM said earlier in the AN, sooner than later."
Ashiana Housing drops 10%
Ashiana Housing shares opened with a loss of 9.92% today and touched an intraday low of Rs 46.3 in today session. The company announced today it has launched a residential project, namely 'Ashiana Amantran' for booking (conversion of expression of interest into booking) on 12 March 2020 having a total saleable area of 8,14,320 sq.ft.
Out of the total 240 units (consisting 4,27,200 sq. ft. area) available in Phase 1 & 2 of the said project, the company has received conversion requests for 125 units (consisting 2,18,765 sq. ft. area) leading to final booking, the filing added.
RIL gains almost 10%
Reliance Industries share prcie was rising 9.7% higher on Wednesday to Rs 1,035 on BSE, after media reports suggested that social media conglomerate Facebook was close to signing a preliminary deal to buy 10% stake in Mukesh Ambani's Reliance Jio, company's subsidiary.
In another update, as per the data availale with NSE, there were 11.6 cr shares change hands in the pre-market block at the price Rs 949 per share on BSE, worth 1.8% equity stake.
RIL shares have risen 3.25% in one week, although it has fallen 29% in one month and 34% since the start of 2020.
Technical outlook on Nifty
10: 30 AM
As per HDFC Securities daily report, the Relative Strength Index on the monthly charts has reached oversold zone for the first time ever in the Sensex.
Similarly, from the all-time high of 12,430, registered in January 2020, Nifty has witnessed a fall of 39% in the span of just 45 sessions. Support for the Nifty has shifted up to 7511, below which it could slide to 7,341, which happens to be 50% retracement of the entire rally seen from 2,252(Oct 2008 Bottom) to 12430 (All Time high made in Jan 2020).
In case, Nifty breaks 7,341, Feb 2016 bottom placed at 6825 can act as a support, the report added further.
Ashok Leyland acquires stake in subsidiary
10: 20 AM
Ashok Leyland Ltd has acquired 1,70,17,995 shares of Rs 10 each, constituting 3.62% of the paid-up equity share capital of Hinduja Leyland Finance, a subsidiary of the Company at a price of Rs 119per equity share.
As per the filing, HLFL is an RBI registered NBFC, with revenue of Rs 2560.64 crore as on March 31, 2019.
Consequent to the aforesaid acquisition, the Company's shareholding in HLFL stands increased from 61.83% to 65.45%. The aforesaid acquisition is part of the 6.99% acquisition approved by the Board at the meeting held on March 21, 2020, the filing added.
Shares of Ashok Leyland were trading 3.5% lower at Rs 34.41 today.
Nifty has fallen 39.57% in 46 sessions
HDFC Securities in its daily market report said that markets are falling at almost triple the speed of 2008. From the highs of 2020 to the lows, the Nifty has fallen 39.57% in 46 sessions. In 2008, the Nifty had fallen as much in 129 sessions. In terms of number of shares in Stock Futures the positions are further down by 8%.
The FIIs had sold stocks worth Rs 26,000 cr in 2008 between January 8, 2008 and July 15, 2008, when the markets fell as much. In the 46 sessions the FIIs have sold double that amount, almost Rs 53,000 cr.
HDFC Securities' viewpoint report later added that when the markets recoup the highs of 2020, the returns will be 65% as compared to the current fall of 39.57%.
FII/DII action on Tuesday
On a net basis, foreign institutional investors sold equities worth Rs 2,153.35 crore on Tuesday, data available with stock exchanges showed. Meanwhile, domestic investors bought equity shares worth Rs 1,553 crore yesterday. Incessant foreign fund outflow also kept domestic market participants risk-averse, traders said.
Market turns bearish
Equity indices Sensex and Nifty erased early gains and turned bearish as market sentiments were pessimistic following the pan-India lockdown for 21 days. Sensex traded 310 points lower at 26,397, and Nifty gained 78 points higher to 7,722 mark. PM Narendra Modi yesterday announced a 21-day lockdown from March 25 to contain the rising number of coronavirus cases and deaths in the country.
Money market closed today
9: 50 AM
Currency market will be shut on Wednesday, on account of Gudi Padwa holiday.
Market erases gains
9: 45 AM
Equity indices Sensex and Nifty erased early gains and turned volatile as market sentiments were pessimistic following the pan-India lockdown for 21 days. Sensex traded 30 points higher to trade at 26,703, and Nifty gained 35 points higher to 7,825 mark.
Market turns green
9: 35 AM
Within minutes of opening bell on Wednesday, equity indices turned green and traded with over 2% gains, tracking bullish trend from global key indices. Overseas, Asian, European as well as Wall Street indices reversed from losses as investors banked on hopes of economic stimulus from policymakers.
Sensex traded 500 points higher to trade at 27,299, and Nifty gained 130 points higher to 7,970 mark.
9: 15 AM
Equity market indices Sensex and Nifty opened lower on Wednesday's trading session as PM Narendra Modi called for a nationwide lockdown for 21 days to combat coronavirus outbreak in the country.
BSE 30-share index Sensex fell 174 points lower to trade at 26,499 and NSE 50-share barometer Nifty dropped 65 points to 7,735 level. In domestic grounds, investors were cautious on markets taking a hit due to rising number of COVID-19 infections and deaths.
This was in contrary to global counterparts (barring SGX Nifty) that turned green from multi year lows after the announcement by US Federal Reserve as they promised to support the struggling economy after Congress delayed action on a $2 trillion coronavirus aid package.
Pre-open session on Wednesday
BSE 30-share index Sensex fell 280 points lower to trade at 26,393 and NSE 50-share barometer Nifty dropped 75 points to 7,725 level.
JP Morgan says lockdown to severely impact GDP
8: 55 AM
Over the 21 days lockdown announced yesterday, economists at JP Morgan estimated its implications on GDP and said that about 60% of GDP (outside of agri, public admin, health, telecom etc) is expected to get significantly impacted. "Assuming 60-70% hit to the GDP - would mean 2-3% points of annual GDP," the research firm said.
Complete lockdown in India
8: 50 AM
The Ministry of Home Affairs has issued an advisory containing a list of what will remain open and what will remain closed.
All-India lock down for 21 days
8: 45 AM
Prime Minister Modi on Tuesday announced a lockdown in the country yesterday, which will last for 21 days. It is a long time but necessary for everyone's safety, said PM and added that the nation will have to pay a big price if everyone doesn't follow social distancing.
SGX Nifty in red
8: 35 AM
SGX Nifty on Singaporean Exchange fell 185 points to trade around 7,840 as compared to yesterday's closing of Nifty March Futures at 7,850, indicating a lower opening for domestic market.
8: 25 AM
Equity market indices Sensex and Nifty are likely to open lower on Wednesday's trading session. In domestic cues, markets are likely to trade volatile after PM Narendra Modi called for a nationwide lockdown for 21 days to combat coronavirus outbreak in the country.
Global cues today
8: 20 AM
Global markets record biggest single-day jump in multi-years yesterday on the back of stimulus measures from the US Federal Reserve. Overseas, the trend turned bullish post announcement by US Federal Reserve as they promised to support the struggling economy after Congress delayed action on a $2 trillion coronavirus aid package. In its latest step, the Fed offered to buy unlimited amounts of assets to steady markets and expanded its mandate to corporate and bonds.
On Wall Street, Nasdaq Composite closed 8% higher, while Tuesday saw an 11.37% surge in Dow Jones. FTSE2, CAC and DAX each gained 8%, 9% and 10% respectively in Europe.
Elsewhere in Asia, except SGX Nifty all the other key indices traded in green. While Nikkei grew 5%, Taiwan and Kospi indices were up 4%. Hang Seng, Shanghai and Strait Times gained 2% each.
COVID-19 majorly to rule market trend
8: 15 AM
Globally investors were cautious on markets taking a hit due to rising number of COVID-19 infections and deaths. The Covid-19 infection cases have risen drastically outside China, hurting major economies and disrupting supply chains. There are over 4 lakh confirmed cases and 17, 451 deaths from the coronavirus outbreak. Of these, over 1 lakh have recovered globally. The number of infected cases in India has increased to 519, with 469 active cases & 39 recovered cases. The death toll from coronavirus in India has risen to 10 till Wednesday.
Stocks to watch today on March 25
Inox Leisure Sterlite Tech Majesco and more among others are the top stocks to watch out for in Wednesday's trading session
Market on Tuesday
Sensex and Nifty closed over 2.5% higher on Tuesday in line with bullish trend from Asian equities & US stock futures. Investors also hoped that government would soon announce stimulus package for the coronavirus hit industry.
On Tuesday, Sensex closed 692 points higher to trade at 26,674, and Nifty gained 190 points to 7,801 mark.