KEY HIGHLIGHTS
Closing Bell: Indices Post Weekly Loss Despite 5,381-Point Swing
India's equity markets saw an intraday recovery of 1,500 to 5,000 points from the lowest point of the day to report their biggest single-day gain since September 20, 2019 - the day of the announcement of the Corporate Tax Cut.
The S&P BSE Sensex ended with gains of 4 percent at 34,103. 26 out of the 30 index constituents ended with gains. For the week, the index reported a decline of 9.24 percent - the worst since 2009.
The NSE Nifty 50 recovered 1,500 points from the lowest point of the day. The index ended with gains of 3.81 percent at 9,955. The 50-stock index was down 9.41 percent for the week.
Market breadth was in favour of the advances. 889 stocks ended the day with gains while 673 stocks ended the session with cuts.
The Fab Four Stocks Of The Day
Sun Pharma
- Biggest one-day gain since 2011
- Snaps five-day losing streak
- To consider share buyback on March 17
Balkrishna Industries
- Commences trial production of Carbon Black Project
- Has capacity of 80,000 MT per annum at Gujarat Plant
- Snaps six-day losing streak
HDFC Life
- Open interest up 39 percent towards fresh longs
- Volumes are 3 times its 20-day average
Welspun India
- Biggest gainer in Nifty Small Cap Index
- Biggest one-day gain in three months
Role Of Private Players In Curbing The Coronavirus Outbreak
Views From Kiran Mazumdar-Shaw, CMD of Biocon
- Indian government has taken good preemptive steps
- Government should reach out to private hospitals & diagnostic centres
- Will need to screen a larger population to be ahead of the crisis
- Extremely important for government and private sector to work closely and not put in place some knee-jerk reactions
- Biotech companies can quickly increase capacity for rapid screening facilities
Views From Ameera Shah, MD of Metropolis Healthcare
- Too soon for governments to get validated testing kits for COVID-19
- Can carry out sufficient number of tests if India engages with the private sector
- The more India delays involving the private sector, the resource crunch will get worse
- Private sector infrastructure is ready; need government approval to begin
- Around seven companies are producing kits to test for COVID-19 which are available in India
Views from Sangita Reddy, Joint MD of Apollo Hospitals
- Discussing with the government on how can the private sector contribute
- Confident of government coming out with a clear policy
- Only ventilatory care or advanced care, happening to less than 20 percent of the people is costly
Trading Strategies From Sacchitanand Uttekar Of Tradebulls
- Buy Bharti Infratel Futures around Rs 233 for target of Rs 260 and stop loss of Rs 225
- Sell Jubilant Foodworks Futures around Rs 1,453 for target of Rs 1,360 and stop loss of Rs 1,477
F&O Snapshot: Most Active Contracts
Nifty: March 19 Expiry
- 9,000 Put: Premium falls 23.3 percent to Rs 126.25. The contract has added 9.75 lakh shares in open interest.
- 10,000 Call: Premium rises 151.76 percent to Rs 304. The contract has added 61,725 shares in open interest.
- 10,500 Call: Premium rises 314 percent to Rs 112. The contract has added 1.98 lakh shares in open interest
Nifty Bank: March 19 Expiry
- 26,000 Call: Premium rises 268 percent to Rs 510. The contract has added 36,660 shares in open interest.
- 27,000 Call: Premium rises 369 percent to Rs 242.1. The contract has added 1.77 lakh shares in open interest.
- 28,000 Call: Premium rises 406 percent to Rs 106.9. The contract has added 70,180 shares in open interest
Steps Taken By The RBI To Curb Market Volatility
European Markets Open With Gains
All Sectoral Indices Trade With Gains
Stock Reaction: Sun Pharma Surges On Buyback Announcement
Sun Pharma Ltd. is among the top gainers on the NSE Nifty 50 after the company announced that it will consider a share buyback at its board meeting on March 17.
The stock has snapped a five-day losing streak today. The stock had its biggest one-day fall in Thursday's trading session, ending at the lowest level since September 2013.
Large Trade Alert: BPCL, ONGC
- BPCL: About 12.6 lask shares changed hands in a large trade.
- ONGC: About 10 lakh shares changed hands in a large trade.
Buyers and sellers were not known immediately.
Source: Bloomberg
Markets At Noon
Indian markets continue to swing between gains and losses with the India Volatility Index holding above the mark of 50. Here are the latest trends:
- Nifty 50 up 1.1 percent to 9,700
- S&P BSE Sensex up 1.2 percent to 33,216
- Nifty Bank up 2.9 percent to 24,659
- Nifty Midcap up 0.76 percent to 3,804
- Nifty Smallcap down 1.65 percent to 3,976
- Nifty Auto, Nifty Metal, Nifty PSU bank & Nifty Realty trade with gains
- India Volatility index up 34 percent at 55.14
Chief Economic Adviser Looks To Assuage Market Fears
The Government and the Reserve Bank of India will work and take measures together, according to India's Chief Economic Adviser Krishnamurthy Subramanian.
Speaking to reporters, the CEA said that the decline in the stock markets is due to global factors and that the government and regulator will respond when necessary.
Other key highlights from the CEA's statement:
- Forex reserves adequate to cover number of months of imports, debt servicing
- Other central banks have responded by cutting rates
- Indian inflation data shows moderation; scope for RBI to consider these aspects
- Government seriously considering all aspects of the emerging situation
- Government & RBI will take a holistic view of the situation
Stay Invested, Says S Krishna Kumar of Sundaram MF
Lower energy prices, interest rates and more liquidity are positives for the Indian economy, according to S Krishna Kumar of Sundaram Mutual Fund. A anti-virus drug discovery or peaking off the virus spread is a binary event and investors should not look to time it, he added.
Stay invested and keep adding to your equity mutual fund positions. I believe that today a panic bottom has been created, though a rebound could be slow as markets may consolidate. Valuations are attractive and should be an enabler.S Krishna Kumar, CIO - Equity, Sundaram MF
India Volatility Index At 11-Year High
India VIX - an index based on the Nifty 50 Index option prices is nearing levels of 60, last seen in February 2009.
The index is up for the fifth straight day, the longest gaining streak since May 2009.
The index closed at 23.24 on Thursday, March 5, 2020. Since then, it has seen gains of 10 percent, 20 percent, 2.5 percent, 30.45 percent and 44 percent respectively in the next five trading sessions.
Top Market Experts On The Road Ahead For Indian Equities
F&O Snapshot: Active Options Contracts
Nifty: March 19 Expiry
- 10,000 Call: Premium rises 113.66 percent to Rs 258. The contract has added 14,025 shares in open interest.
- 11,000 Call: Premium rises 565.49 percent to Rs 37.60. The contract has added 3.5 lakh shares in open interest.
- 9,000 Put: Premium rises 74.49 percent to Rs 286.95. The contract has added 3.2 lakh shares in open interest.
Nifty Bank: March 19 Expiry
- 23,500 Call: Premium rises 49 percent to Rs 1,039.90. The contract has shed 7,780 shares in open interest.
- 25,000 Call: Premium rises 69.55 percent to Rs 558.15. The contract has added 26,760 shares in open interest.
- 24,000 Call: Premium falls 65.52 percent to Rs 259.75. The contract has added 10,340 shares in open interest.
What Is Leading The Market Recovery?
Market Update
- Nifty up 0.9 percent to 9,672
- Sensex up 0.9 percent to 33,040
- Nifty Bank up 1.6 percent 24,311
- Nifty Midcap down 0.76 percent to 3,746
- Nifty Smallcap down 2.74 percent to 3,932
- Nifty Auto, Nifty Metal, Nifty Pharma & Nifty PSU Bank trade with gains
Stock Update: IndusInd Bank Extends Rout
Shares of the private sector lender are down for the fifth straight day today. The stock fell as much as 30 percent intra-day, to stage its biggest ever fall to Rs 550 on the National Stock Exchange.
It currently trades 9.42 percent lower at Rs 705. The stock has fallen 35 percent over the last five days. 24,612 crore of its market cap has been eroded in the last five days.
The stock currently trades at an Relative Strength Index of 12, which is in oversold territory.
Ready To Take Suitable Actions When Required, Says SEBI
Market regulator Securities And Exchange Board of India or SEBI put out a statement on the market decline, saying that it along with the stock exchanges are prepared to take suitable action as may be required.
The positions of margin payments, margin utilisation, adequacy of collateral and the pay-in’s obligations being met by the clearing members (Brokers) are being continuously monitored. Similarly, the settlement and clearance of trades are also being constantly monitored.SEBI Statement
Opening Bell: Sensex, Nifty Look To Stage A Recovery
Indian equity markets staged a sharp rebound from the lower circuit limit of 10 percent. The S&P BSE Sensex currently trades 1,440 points lower at 31,300.
The NSE Nifty 50 is back above the mark of 9,000. The index now six percent of the circuit limit of 10 percent, down 4.5 percent to 9,160.
Market breadth, though in favour of the decline is seeing a rise in the number of stocks advancing. 103 stocks currently trade with gains as compared to 1,345 stocks trading with losses.
U.S. Stock Futures In The Green
Decoding Nifty's Previous One-Day Falls
The Sectoral Picture
- Nifty Auto: Biggest one-day drop ever
- Nifty I.T.: Biggest one-day drop since May 17, 2004
- Nifty FMCG: Biggest one-day drop ever
- Nifty Metal: Biggest one-day drop ever
- Nifty Realty: Biggest one-day drop since November 9, 2016
Other indices like Nifty Bank, Nifty Pharma, Nifty Media, Nifty PSU Bank have declined lesser than Thursday’s fall.
Market Update At 9:35 AM
- Nifty: Lowest since February 01, 2017
- Sensex: Lowest since April 24, 2017
- Nifty Bank: Lowest since April 21, 2017
- Nifty Midcap: Lowest since June 24, 2016
- Nifty Smallcap: Lowest since May 15, 2014
Heavyweights Drag The Nifty Lower
Nifty Hits Lower Circuit
Opening Bell: Benchmarks Extend Thursday's Sell-Off
Indian equity markets continued to plunge after markets on Wall Street saw their worst one-day fall since 1987 and an equally poor sentiment across Asian Markets.
The S&P BSE Sensex opened 7.6 percent lower at 30,281. This was the lowest level seen since May 24, 2017. All of the 30 index constituents opened with losses.
The NSE Nifty 50 opened sharply lower at 8,821, down 8 percent. This was the level last seen in February 20, 2017. All the 50 constituents opened with losses.
All the sectoral indices opened with cuts.
Market breadth remained firmly in favour of the declines. 1,301 stocks opened with losses while only 45 counters opened with gains.
Money Market Update: Rupee At Record Low
The Indian rupee hit an all-time low of Rs 74.50 against the U.S. dollar. The earlier record low for the home currency was Rs 74.48, seen on October 11, 2018.
The currency had depreciated as much as 0.28 percent to 74.42 against the greenback in opening trade.
Trading Ideas From Kotak Securities' Shrikant Chouhan
- Sell Bharat Forge for target of Rs 350 and stop loss of Rs 380
- Sell UPL for target of Rs 400 and stop loss of Rs 470
Levels For Circuit Filters
Latest On The Coronavirus
- Confirmed global cases: 1,28,393
- Death toll rises to 4,742
- Play suspended in NBA, Baseball & NHL
- Death toll surges in Italy despite nationwide lockdown
- U.S. reports cases in 44 states
- India reports its first death due to the virus
Parag Milk: Update On Pledged Shares
In an update to the exchanges, Parag Milk Foods ltd. has clarified that the promoters have repaid Rs 12.15 crore, which was 36 percent of the earlier outstanding loan.
The outstanding loan amount as of today stands at Rs 20.85 crore. The statement mentions that the outstanding amount will be repaid at the earliest and the entire lot of pledged shares will be released.
Your Trade Setup For The Day
Key Stocks To Watch
- Sun Pharma: To consider share buyback on March 17.
- Yes Bank: To be excluded from Nifty Bank index on from March 27.
- Bandhan Bank: To be included in Nifty Bank index from March 27.
- Gayatri Projects: To be replaced by Shilpa Medicare in the NSE Nifty 500 index from March 27 due to non-compliance of SEBI portfolio concentration norms.
- Coal India: To pay interim dividend of Rs 12 per share. Record date of March 20.
- BPCL: To pay interim dividend of Rs 16.5 per share. Record date of March 24.
- IIFL Finance: Gets NBFC licence from RBI on March 11
- Supreme Petrochem: Approves buyback of up to 41 lakh shares at Rs 185 per share. Price is at a 31 percent premium to Thursday's closing.
Find out all that you know in today’s trade HERE!
Indian American Depository Receipts Check
U.S. Markets See Worst Day Since Black Monday
Here are some of the key highlights from Thursday's trading session on Wall Street:
- S&P 500 and Dow Jones fell deeper into the bear market with losses from February extending to at least 23 percent.
- Benchmark indices saw their worst one-day fall since the Black Monday in 1987.
- Yield on the 10-year treasury fell 20 basis points to 0.67 percent.
- CBOE Volatility Index now at 75 - the highest level since November 20, 2008.
- WTI Crude fell 6.3 percent to $30.89 per barrel while gold prices fell below the $1,600 mark.
SGX Nifty Falls 7% As Sell-Off Continues In Global Markets
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell nearly 7.5 percent to 8,795 as of 7:55 a.m.
Japanese equities plunged 10 percent and Korean stocks sank more than 7 percent, triggering a trading halt, with global equities heading for the worst week since 2008 as investors price in a severely weaker outlook due to the hit from the coronavirus pandemic.
Futures on the S&P 500 dropped after the index lost 9.5 percent on Thursday. South Korea’s won sank 1.5 percent and bonds in Australia and Japan declined as investors rushed towards cash.
The MSCI All-Country World Index extended losses to enter the bear-market territory and is now down 24 percent this year.
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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