KEY HIGHLIGHTS
Weekly Market Wrap
Five Nifty Stocks Close At Multi-Year Low
Closing Bell
Indian equity markets ended off the lowest point of the day but with significant losses, posting their third straight weekly decline.
The S&P BSE Sensex Index fell 2.32 percent to end at 37,576, its lowest level since September 19, 2019. For the week, the benchmark index was down 1.88 percent.
The NSE Nifty 50 index too ended off the day's low but with losses of 2.57 percent at 10,979. This was its lowest level since September 19, 2019. The index was down 1.92 percent this week.
All sectoral indices ended with losses for the day. Nifty I.T. and Nifty Pharma were the only two indices that managed to register gains for the week.
Market breadth remained in favour of the declines. 1,287 stocks ended with declines while 301 stocks closed with gains.
Large Trade Alert: Reliance Industries
11.2 lakh shares of the company exchanged hands in a large trade on the National Stock Exchange as per Bloomberg data. Buyers and sellers in the trade were not immediately known.
The stock trades at Rs 1,271 per share, down 3 percent. It has traded with losses for 12 out of the last 14 trading sessions. It has lost 15 percent during this period.
The Fab Four Stocks Of The Day
- Future Lifestyle Fashions (Up 12.8%): Snaps 12-day Losing Streak
- Dixon Technologies (Up 6.3%): Emkay Says Buy With Price Target Of Rs 5,111
- Karur Vysya Bank (Up 4%): Snaps 10-Day Losing Streak
- Borosil Renewables (Up 5%): Ex-date For Demerger
Banking Stocks Lead The Losses Heading Into The Final Hour Of Trade
Gold Prices Rally On Virus Fears
Trading Ideas From Kunal Rambhia, The Streets
- Buy Nifty for target of 11,300 and stop loss of 10,750
- Buy Nifty Bank for target of 28,700 and stop loss of 27,300
- Buy Bajaj Finance for target of Rs 4,700 and stop loss of Rs 4,050
- Buy Maruti for target of Rs 6,900 and stop loss of Rs 6,150
FM Assures Yes Bank Depositors
Tata Motors Press Statement: Key Highlights
- Coronavirus has significantly impacted China sales
- Retail sales in China down 85 percent in February compared to last year
- Around 80 percent of the dealers are open, though most are operating with reduced staffing and facilities
- Spread of virus to South Korea, Japan and Italy will impact sales in those markets
- Suppliers in China resuming operations but below full capacity
- Transition to BS-VI is almost complete
- Shortage of parts to have significant impact on some BS-Vi models
- Fall in China sales may reduce JLR's full year EBIT margin by about one percent
The automaker currently trades 8.35 percent lower at Rs 115.25 per share, the lowest level since October 04, 2019.
Navigating Through Uncertainty With Nilesh Shah Of Kotak Mahindra AMC
Vodafone Idea's Self-Assessment On AGR Dues
The telecom player in an exchange filing has disclosed its AGR liabilities as per its self-assessment exercise.
“The self-assessment discloses the company's AGR liabilities to aggregate Rs 21,533 crore, including a principal amount of Rs 6,854 crore from FY07 to FY19 and interest up to February 2020,” the filing said.
Vodafone Idea has paid a sum of Rs 2,500 crore on February 17 and Rs 1,000 crore on February 20, 2020 towards the AGR dues.
The stock currently trades at Rs 3.35, down 6 percent on the National Stock Exchange.
BQ Spotted: Future Lifestyle Fashions
Future Lifestyle Fashions Ltd. has snapped a 12-day losing streak today. It is the top gainer on the Nifty Smallcap Index. The stock has seen only two days of gains in the last 20 trading sessions.
The stock has seen its biggest intraday gain since April 05, 2018. The 12 sessions of losses saw its market-cap erode by Rs 1,953 crore, as per Bloomberg data.
All 13 analysts tracked by Bloomberg have a 'Buy' rating on the stock, with an upside potential of 60 percent from current levels.
Group chairman Kishore Biyani in a statement to the exchanges clarified that messages on the operations and financial stability on the group are 'baseless and false.'
Ten Stocks In Nifty Trade At 52-Week Low
Ten out of 50 stocks in the NSE Nifty 50 are currently trading at 52-week low. In the NSE Nifty 500 Index, 112 stocks were trading at 12-month low.
Large Trade Alert: ITC
37.8 lakh shares of ITC Ltd. exchanged hands in a single trade on the National Stock Exchange, as per Bloomberg data. Buyers and sellers were not immediately known. The stock currently trades at a 52-week low of Rs 182.10, down 3.2 percent.
Stories On The Yes Bank Saga On BloombergQuint.Com
Markets At Noon
- All Nifty constituents trade with losses
- All sectoral indices trade with losses
- Stocks advancing on the NSE: 115
- Stocks declining on the NSE: 1,453
- All constituents of Nifty Bank, Nifty Auto, Nifty Metal, Nifty PSU Bank, Nifty Media & Nifty Realty trade with losses
Yes Bank Falls The Most On Record
Bajaj Finance Falls Most In Eight Months With High Volumes
Yes Bank Resolution Will Be Swift, Says RBI Governor
Reserve Bank of India Governor Shaktikanta Das told reporters at an event that the Indian banking sector remains 'Sound and Safe' and that it stands ready to intervene in whatever way required.
The Governor also called for IMF-led swap lines for countries affected by the Coronavirus which will act as the 'second line of defense.'
Update From Edelweiss AMC
F&O Snapshot: Active Options Contracts
For Nifty: March 12 Expiry
- 11,200 Call: Premium drops 76 percent to Rs 41.65. 8.2 lakh shares are added in open interest
- 11,000 Call: Premium drops 66 percent to Rs 108.35. 10 lakh shares are added in open interest
- 11,100 Call: Premium drops 71 percent to Rs 69.25. 11 lakh shares are added in open interest
For Nifty Bank: March 12 Expiry
- 27,000 Put: Premium jumps 503 percent to Rs 344.10. 75,540 shares are added in open interest
- 27,500 Put: Premium jumps 429 percent to Rs 528.60. 1.6 lakh shares are added in open interest
- 28,000 Call: Premium drops 65 percent to Rs 330.10. 3.1 lakh shares are added in open interest
Update From Kotak Mutual Fund
BQ Spotted: Oriental Bank Of Commerce
Oriental Bank of Commerce Ltd. has defied market sentiment over the last four days, gaining over 41 percent during this period. The stock is up for the fourth day in a row today, even as most of its banking peers trade with sharp cuts.
The state-run lender is trading at a one-month high and has added Rs 1,932 crore to its market capitalisation in the last four days. It is also gaining on healthy volumes, them being 13 times higher than the 20-day average.
Market Check: Investors Lose Over Rs 4 Lakh Crore In The Sell-Off
Indian equity investors lost over Rs 4 lakh crore within the first 15 minutes of the trade, according to data available on Bombay stock exchange.
That came after the equity indices slumped after the country's central bank took control of troubled Yes Bank. The S&P BSE Sensex and the NSE Nifty 50 were holding on to 2.8 percent loss.
Market breadth remains in favour of the declines with 1,409 stocks trading with losses and only 98 stocks advancing.
Advise Investors Not To Play In Markets During Volatility: Deven Choksey
The situation in the economy is that the companies which are bigger and better abilities to manage the situation are relatively safe, according to Deven Choksey of KRChoksey.
“The company which are smaller and in mid-tier segments are relatively more vulnerable to the management of the situation in the global and the Indian economy,” Choksey told BloombergQuint in an interaction.
“We are continuing to tell investors that it is not the time to play during volatility,” he added.
Bond Market Update: 10-Year Yield Drops Nearly 10 Basis Points
The yield on the 10-year note fell nearly 10 basis points intraday to 6.14 percent, the lowest since November 2016.
Nifty PSU Bank Index: Top Sectoral Loser
The index fell as much as 8.11 percent to 1,738.55, the lowest level since April 2009. This is the biggest one-day fall seen by the index since August 24, 2015. All constituents of the index are trading with sharp cuts led by State Bank of India.
Stock Reaction: Max Financial
Shares of the company fell the most since July 05, 2016 to Rs 495.65, after it said on a conference call that its total exposure to the Tier-II bonds of Yes Bank stands at Rs 2,000 crore. Out of which the balance sheet exposure is Rs 1,000 crore. Here are some of the highlights from their conference call:
- Tier-II bonds continue to remain safe
- Convinced about where we are and our position
- Yes Bank contributes around 10-11 percent of yearly sales on an APE basis
- Remote possibility of taking a write down unless there is a significant risk of a haircut
- Current MTM would be 8-10% of the Rs 500 crore ULIPs, which are part of the Rs 2,000 crore exposure
Stock Reaction: SBI & Yes Bank
Shares of State Bank of India Ltd. fell as much as 11.98 percent to Rs 253.95 per share on the National Stock exchange. This was the biggest intra-day drop since October 05, 2012. This after the bank got an in-principle approval from its board to explore investment opportunities in Yes Bank Ltd.
Shares of Yes Bank Ltd. too fell as much as 14.95 percent to Rs 31.30 on the National Stock Exchange. This was the biggest drop seen in its share price since December 11, 2019.
Opening Bell
Indian equity markets mirror weak global cues and open with sharp cuts. The S&P BSE Sensex opened as much as 3.79 percent lower to 37,011, the lowest level seen in six months. On the other hand the NSE Nifty50 index opened as much as 3.92 percent lower to 10,827.
This was the lowest level on the index since September 20, 2019 - the day Finance Minister Nirmala Sitharaman announced the Corporate Tax Cuts, paving the way for the index to rally to all-time high levels of 12,430.
All Sectoral indices are trading with losses. Nifty Bank, Nifty PSU Bank and Nifty Private Bank are the top sectoral laggards.
Market breadth was firmly in favour of the declines. 1,317 stocks are trading with losses compared to only 80 stocks that are trading with gains.
NSE Update On Yes Bank
The National Stock Exchange has said that no fresh renewal of bank guarantees and fixed deposit receipts issued by Yes Bank shall be accepted. The NSE will also suspend Yes Bank from the F&O segment from May 28, 2020.
Haircut in respect of shares of Yes Bank Ltd. provided as collaterals shall be revised to 100 percent with effect from begin day of March 06, 2020.NSE Statement
Money Market Update: Rupee Drops Nearly 1%
The Indian rupee weakened for the second consecutive trading session against the U.S. dollar. The home currency depreciated as much as 0.9 percent to 73.98 against the greenback.
SGX Nifty Down Close To 400 Points
Trading Ideas From Quantsapp.com's Shubham Agarwal
- Buy 460 Put of Mahindra & Mahindra for target of Rs 20 and Stop Loss of Rs 8
- Buy 70 Put of Ashok Leyland for target of Rs 5 and Stop Loss of Rs 2.5
Brokerages On Yes Bank
UBS
- Rating: Sell
- Price Target: Rs 20
- Expect government to act swiftly to avoid any systemic risks
Macquarie
- Depositors unlikely to lose money
- Merger with a PSU Bank the only likely option
- Mere stake sale will not be of any help
- Implied current net worth of bank is Zero
- See sharp negative reaction on SBI, Yes Bank
JPMorgan
- Rating: Underweight
- Price target cut to Re 1
Credit Suisse
- Delay in resolution to impact liquidity flows to other mid-sized private bank
- Credit crunch likely to get further aggravated
Morgan Stanley
- Rating: Underweight
- Price target: Rs 25
- Potential delays may impact resolution of stressed loans
- Protection of depositor interest positive from systemic risk perspective
Key Stocks In Focus
- Yes Bank: Government puts the lender under moratorium. Withdrawals are capped to Rs 50,000 for a month. The Reserve Bank of India has superseded the board.
Also Read: Government Puts Yes Bank Under Moratorium, RBI Supersedes Board, Withdrawals Capped At Rs 50,000
Also Read: What Experts Made Of Moratorium On Yes Bank
- State Bank of India: Gets In-principle approval from the board to explore investment opportunity in Yes Bank.
- Dr Reddy's: Gets three form 483 observations from the U.S. FDA for its Telangana unit.
- Lupin: Launches authorised generic version of Vimovo tablets, used in treatment of Arthritis and Ulcers.
- Reliance Industries: Acquires 37.7 percent stake in Alok Industries for Rs 250 crore.
- Music Broadcast: Redeems last outstanding NCD worth Rs 50 crore. Company says it will help it become nearly debt-free and reduce interest outgo by Rs 4.85 crore annually.
Get the complete list of the other stocks on the radar in today’s trading session HERE.
IPO Update: SBI Cards
- Total Subscription: 22.45x
- QIB: 31.86x
- Non-Institutional Investors: 23.36x
- Retail: 92 Percent
- SBI Card Employees: 35 percent
- SBI Shareholders: 15.75x
PSU Bank Mergers
PNB's Share Swap Ratio
- To issue 1,150 shares of Rs 2 each for every 1,000 shares of Rs 10 each of OBC
- To issue 121 shares of Rs 2 each for every 1,000 shares of Rs 1 each of United Bank of India
- Record date set as March 25
Union Bank's Share Swap Ratio
- To issue 325 shares of Rs 10 each for every 1,000 shares of Rs 10 each of Andhra Bank
- To issue 330 shares of Rs 10 each for every 1,000 shares of Rs 2 each to Corporation Bank
- Record date set for March 23
Canara Bank's Share Swap Ratio
- To issue 158 shares of Rs 10 for every 1,000 shares each of Syndicate Bank
- Record date set for March 23
Your Trade Setup For The Day
A Check On Indian ADRs
Latest Update On Coronavirus
- Global cases at 97,426; death toll at 3,345
- Seattle, New York report 20 and 11 new cases respectively
- New York Mayor urges self-quarantine for citizens returning from China, Iran, Italy, South Korea or Japan
- U.K. reports its first death with total cases at 115
- U.S. senators say the Trump administration may not be able to meet its goal of conducting one million tests by the end of this week.
Catch all the latest updates on the Coronavirus in India HERE.
U.S. Markets Tank On Virus Fears
- Benchmark indices fell on wall street as wild intra-day swings continued. Here are the five key highlights from Thursday's trading session in the U.S.:
- The S&P 500, Dow Jones and Nasdaq fell between 3 and 3.5 percent each, giving up most of the gains on Wednesday.
- The S&P 500 has swung more than 3 percent, six times in the last nine sessions
- Airline stocks plunged after the IATA warned that the Coronavirus outbreak can cost the airlines as much as $113 billion in lost revenue
- The pound, yen gained strength, the dollar weakened along with oil while gold saw gains.
Indian Markets Likely To Resume Sell-Off
Good Morning!
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 3.4 percent to 10,849 as of 8:30 a.m.
The sell-off in Asian markets has resumed. The Nikkei 225 fell over 2 percent in early trade. Australian shares too have retreated along with the country's bond yield. The topix index has fallen 2 percent while the South Korean Kospi has declined 1.8 percent.
Chinese markets too have opened lower with cuts of 1 to 1.5 percent.
Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.
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