Share Market Update: Sensex closes 1,709 points lower, Nifty at 8,541; banks lead losses
BusinessToday.In March 18, 2020
Sensex, Nifty LIVE: Logging losses for the third straight session, benchmark indices Sensex an Nifty closed 5% lower on Wednesday's session, amid heavy selloff registered in banking scrips. Domestic market tracked negative cues from adroad as European indices and US futures slipped nearly 4% in red. Extending losses, Sensex closed near day's low, falling 1,709 points to 28,896 and Nifty50 ended at 8,468 mark, down 498 points to its previous close.
European indices like UK, Germany and France Index declined nearly 4% each. US Dow Futures slipped 4% and Nasdaq Future declined 4.5%. Brent Crude slipped 1% at $28.5 per barrel
Besides the outbreak in China, the Covid-19 infection cases have risen drastically outside China, hurting major economies and disrupting supply chains. There are currently 197,496 confirmed cases and 7,940 deaths from the coronavirus outbreak as of March 18, 2020. Of these, 81,911 have recovered globally. The number of infected cases in India has increased to 148. The death toll from coronavirus in India has risen to 4 by Wednesday.
Here's a look at the updates of the market action on BSE and NSE today:
Market at close
3: 55 PM
Logging losses for the third straight session, benchmark indices Sensex an Nifty closed 5% lower on Wednesday's session, amid heavy selloff registered in banking scrips. Domestic market tracked negative cues from adroad as European indices and US futures slipped nearly 4% in red. Extending losses, Sensex closed near day's low, falling 1,709 points to 28,896 and Nifty50 ended at 8,468 mark, down 498 points to its previous close.
Indices fall to day's low
3: 20 PM
With few minutes left for closing, indices dropped majorly to trade near day's lows on Wednesday, tracking negative trend from European indices that opened 4% lower in red territory. Sensex fell 1,800 points to trade near 28,613.05 and Nifty50 fell 550 points lower to 8,450 level
Global market scenario
3: 00 PM
European Index like UK, Germany and France Index declined nearly 4% each. US Dow Futures slipped 4% and Nasdaq Future declined 4.5%. Brent Crude slipped 1% at $28.5 per barrel
Morgan Stanley On Indian Life Insurers
2: 55 PM
-Earnings outlook getting tougher amid volatility
-Lower rates, negative impact from COVID-19 key risks
-Reduce VNB by 3-10 percent over FY21-22
-Full blown impact likely in Q1 which is seasonally weak
Citi On Indian Media
-COVID-19 adding to near-term market challenges
-Currently see low single-digit ad revenue decline in Q4
-See high single-digit growth in FY21 for Zee & Sun TV
-Delays in movie production to temporarily impact Zee & Sun TV
-Valuations are attractive Market worried about different risks associated with Zee's stock
Credit Suisse On HUL
2: 30 PM
-Upgrade to Outperform from Neutral Price target raised to Rs 2,400 from Rs 2,200
-GSK acquisition to be key driver over next 3-5 years
-Expect media efficiency, staff cost reduction, distribution efficiency & lower overheads to aid margins by 1,000 basis points
-See margin tailwinds as crude forms 35% of input costs
Morgan Stanley On HDFC AMC
2: 15 PM-Equalweight rating maintained Price target cut to Rs 2,235 from Rs 3,300
-Cut target to factor-in sharp market drawdown and uncertain outlook
-Market could face prolonged challenges
-Cut EPS estimates for FY20/21/22 by 1, 15 and 14 percent respectively
Emkay On ICICI Bank
2: 20 PM
-Buy rating maintained Price target cut to Rs 600 from Rs 650
-Immediate focus on business continuity plan
-Focus on retail remains un-wavered
-Better operating profits, Provision Coverage Ratio to help absorb shocks
-Cut earnings estimates, valuations given the risk-off environment
Goldman Sachs report says 'Markets could fall further from here'
Goldman Sachs in its latest report on US indices stated that 'Markets could fall further from here'
S&P 500 set to fall to a mid-year low before rallying to 3,200 at year-end. The index is down 17% since peak on February 19, 2020, the research firm added.
It also added that event-driven bear markets tend to recover within a year. Although stated that Fed Model and DDM (Dividend discount model) both reflect jump in uncertainty about path of the downturn.
Further GS said that the Sentiment Indicator combines nine metrics of US equity investor positioning and currently Investor positioning is only modestly negative.
The total number of cases have increased to 148 including 25 foreign nationals now. Global death toll due to the coronavirus outbreak has touched 7,800, with China and Italy contributing maximum to the number of deaths.
Jet Airways share locks 5% upper circuit
1: 35 PM
Jet Airways share price hit upper ciruit on Wednesday, rising 5% to Rs 17.10 as against the previous close of Rs 16.30. This was on ack of NCLT granting the cash crunched airline another 90 days for resolution under IBC. The 270-day deadline for Jet Airways ended on March 15,2020.
IRCTC declines 5%
IRCTC shatres hit lower circuit of 5% in early trade today after Indian Railways cancelled 85 trains as a precaution against the spread of coronavirus and due to low occupancy.
Share price of IRCTC fell 5% or Rs 55 to Rs 1,052 compared to the previous close of Rs 1,108.35 on BSE. IRCTC's market cap declined to Rs 16,847 crore. The stock opened at a loss of 3.27% at Rs 1,072 today.
YES Bank shares climb 50%
YES Bank shares gained almost 50% intraday on Wednesday's trading session as investors were enthused on withdrawal of RBI imposed a moratorium on the lender. The RBI imposed moratorium will be lifted today and the private lender will restore full banking services after 6 pm.
Following the news, YES Bank stock price opened with a gain of 9.97% today and later touched an intraday high of Rs 87.95, rising 49.96% on BSE. This was against the previous closing value of Rs 58.65.
The 30-share index BSE Sensex to day's low at 29,235 down 1,345 points. NSE Nifty also dropped 385 points lower at 8,518.
12: 45 PM
In a similar trend to the equity markets, commodity markets are also trading volatile as virus outbreak panic has caused rising concerns of its impact on the global economy.
12: 30 PM
Silver internationally rose 1.7% to $12.81 after eight straight sessions of falls.
Asian indices in red
12: 10 PM
In negative cues, Asian indices have fallen from green territory, drastically over Wednesday's trade. SGX Nifty and Kospi were down over 4%, followed by 2% drop in Taiwan and Hang Seng indices. Nikkie and Jakarta Composite dropped 1.5% each.
Only Strait Times and Set Composite indices were trading in green.
Advance decline ratio
Advance decline ratio on BSE and NSE traded around 0.30 and 0.47, indicating that stocks that have shown more negative movement.
On NSE, 1,068 stocks are falling against 501 rising stocks, with 91 unchanged. On a similar note, 1,581 scrips are falling on BSE as against 493 gaining ones, with only 18 stocks unchanged.
Moody's lowers India's GDP estimate
Moody's Investors Service on Tuesday lowered India's GDP growth forecast for 2020 calendar year to 5.3 percent, on coronavirus implications on the economy
India VIX at its highest
11: 50 AM
In the meanwhile, India VIX, that indicates volatility over the domestic equity market has risen to its highest level, at 62.745, rising 0.99 points or 1.57%.
Indices drop 2.6% each
Equity benchmarks indices Sensex and Nifty fell further by the afternoon session of Wednesday and dropped 2.4% each, amid heavy selling spree in almost all sector-based indices. The 30-share index BSE Sensex to day's low at 29,798, down 780 points.
All sectors in red
11: 30 AM
All the sector-based-indices were trading in red, with over 4% fall in banking and financials.
Gold back above Rs 40,000
11: 15 AM
Gold April futures on MCX opened lower by 50 points at Rs 40,239 per 10 gm as against its previous close of Rs 40,279. Although later, the yellow metal traded 84 points or 0.21% higher at Rs 40,363 per 10 gm.
Spot gold moved up after US Fed's measures to boost liquidity in the markets helped to bring down concerns among investors. The price of the precious metal rose 1.12% internationally to 1,542 per ounce, after declining for two straight sessions.
Vodafone Idea drops 9%
Vodafone shares fell over 9% to Rs 4.40 on BSE today after the apex cout SC said its orders are clear and that there will be no futher objections to be allowed against payable dues the telecom companies.
India Vix declined from its day's high
India Vix, that indicates volatility over the domestic equity market has fallen to 62.745, declining 0.18 points or 0.28%.
Rupee gains on Wednesday
10: 45 AM
At the interbank foreign exchange the rupee opened at 73.98, then gained further ground and touched a high of 73.92 against the US dollar, registering a rise of 32 paise over its previous close.
10: 40 AM
According to traders, domestic equities followed global stocks as hopes of economic stimuli from governments gave some respite to the increasing woes of investors.
However, investors were still on edge as fear of an impending global recession is leading company heads to plead for billions in government help to prevent them going under, experts said.
Top losers and gainers today
Axis Bank, PowerGrid, Kotak Bank, IndusInd Bank and Nestle India were the top laggards, while Sun Pharma, Bharti Airtel, TCS, HCL Tech, HDFC Bank and ITC were among the gainers.
10: 15 AM
Equity benchmarks indices turned volatile on Wednesday and traded strongly bearish amid heavy sell-off in banking stocks. As per market participants, investors began booking profits pushing both the bourses in the red. The index pared all gains to trade 350 points lower at 30,245 after jumping 522 points at open.
Similarly, after spiking over 160 points, the NSE Nifty was falling 53 points to 8,915.
Oil prices today
10: 10 AM
The global oil benchmark Brent crude futures rose over 1.50 per cent to USD 29.16 per barrel. In the meanwhile, OPEC kingpin Saudi Arabia said on Tuesday that it plans to boost oil exports to more than 10 million barrels per day as theoil major escalates a price war with Russia.
FII/DII action on Tuesday
10: 10 AM
On a net basis, foreign institutional investors sold equities worth Rs 4,044.69 crore on Tuesday, data available with stock exchanges showed.
Banking stocks fall the most
10: 00 AM
Banking indices fell the most on BSE and NSE after Reuters reported that Indian banks were planning to appeal for NPA relative measures to the government amid the coronavirus outbreak which has led to fresh surge in bad loans.
As per Reuters report, the appeal to the Reserve Bank of India (RBI) will be made via the Indian Banks' Association. Amid the coronavirus outbreak, rhe RBI had assured markets that it will take considered, calibrated actions to tackle the threat to the economy from the outbreak.
The rupee appreciated 22 paise to 74.02 against US dollar in morning session after closing almost flat yesterday.
Market turns volatile
Equity benchmarks indices Sensex and Nifty turned volatile on Wednesday and traded on a muted note. In the meanwhile, SGX Nifty Futures too gave up gains and turned red, falling 1.32% or 118 points to 8,886. Earlier, the 30-share index BSE Sensex opened 497 points higher to 31,076. Similarly, the 50-share index NSE Nifty 50 started the day by rising 153 points to 9,120 level.
9: 20 AM
Reversing from losses, benchmarks indices Sensex, Nifty opened higher on Wednesday, tracking overseas trend as investors were enthused over policymakers injecting liquidity and took measures to curb the spread of the virus.
The 30-share index BSE Sensex has risen points 497 higher to 31,076. Similarly, the 50-share index NSE Nifty 50 climbed 153 points to 9,120 level.
Market at pre-open
At pre-open session on Wednesday, the 30-share index BSE Sensex has risen points 422 higher to 31,000. Similarly, the 50-share index NSE Nifty 50 climbed 88 points to 9,285 level.
Stocks in focus today
YES Bank, Dr Reddy's, Delta Corp, Muthoot Finance among others are the top stocks to watch out for in Wednesday's trading session
Global market scenario
8: 40 AM
On Wall Street, stocks gave up losses and rose higher after the fed and White House took further steps to boost liquidity and stem damage from the coronavirus outbreak. The Dow Jones Industrial Average rose 1,048.86 points, or 5.2%, to 21,237.38, the S&P 500 gained 143.06 points, or 6.00%, to 2,529.19 and the Nasdaq Composite added 430.19 points, or 6.23%, to 7,334.78.
Following this, European indices, FTSE, DAX and CAC closed over 2% higher each.
Asian indices too turned green, with Set Composite and Strait times rising 2% each, followed b 1% gain in Nikkie. Kospi, SGX Nifty, Hang Seng and Shanghai Composite grew around 0.50% each.
Besides the outbreak in China, the Covid-19 infection cases have risen drastically outside China, hurting major economies and disrupting supply chains. There are currently 197,496 confirmed cases and 7,940 deaths from the coronavirus outbreak as of March 18, 2020. Of these, 81,911 have recovered globally. The number of infected cases in India has increased to 142. The death toll from coronavirus in India has risen to 4 by Wednesday.
Market at close on Tuesday
8: 15 PM
Extending freefall from yesterday's session, market indices closed 2.5% lower on Tuesday, due to major sell off in global equities. Sensex tanked 810 points to close at 30,597, while Nifty fell 230 points to end at 8, 967.