KEY HIGHLIGHTS
Markets At Close
- Nifty ends 2.42 percent lower at 8,263, lowest since January 2017
- Nifty March futures see 5.9 percent in open interest and end with discount of 52.4 points
- Nifty Bank ends 2.41 percent lower at 20,083, the lowest since February 2017
- Nifty Bank March futures see open interest shedding of 4 percent and end at discount of 123.5 points
- All sectoral indices end with losses
- Midcap and Smallcap index end with losses of 4.3 percent
- India Volatility Index ends 12.5 percent higher at 71.95, highest since November 2008
- 319 stocks end with gains while 1,245 stocks end with losses
BloombergQuint Market Wrap
The Sectoral Picture
Closing Bell: Fourth Day Of Losses Benchmarks
Indian equity markets saw no respite from the selling pressure and ended with declines for the fourth day in a row, although witnessing a minor recovery from the lowest point of the day.
The S&P BSE Sensex ended with cuts of 2 percent at 28,288. 23 out of the 30 constituents ended the day with losses.
The NSE Nifty 50 index ended 2.42 percent lower at 8,263, the lowest level since January 9, 2017. The index recovered nearly 400 points from the day's low of 7,832. 40 out of the 50 stocks ended with declines while 27 stocks ended at a 52-week low.
All Sectoral Indices ended with losses, with Nifty Auto index being the top laggard.
Market breadth remained adverse with 1,245 stocks ending with losses and only 319 stocks ending the day with gains.
Godrej Group Stocks At 52-Week Low
Godrej Industries
- Down for seven out of last nine trading sessions
- Down 25 percent in last nine sessions
- Trades at lowest level since March 2016
- Market cap erosion of Rs 3,651 crore in nine sessions
Godrej Properties
- Down for 10 out of last 12 trading sessions
- Down 35 percent in last 12 sessions
- Trades at lowest since January 2019
- Market cap erosion of Rs 9,040 crore in last nine sessions
Godrej Consumer Products
- Down for 8 out of last 9 trading sessions
- Down 26 percent in last 9 sessions
- Trades at lowest since December 2016
- Market cap erosion of Rs 17,024 crore in last nine sessions
Godrej Agrovet
- Down for 8 out of last 9 trading sessions
- Trades at all-time low
- Down 34 percent in last nine sessions
- Market cap erosion of Rs 3,066 crore
Emami Approves Buyback, Declares Dividend
Emami Ltd. approved a share buyback of 64.69 lakh shares for a total amount not exceeding Rs 194 crore, as per an exchange fling. The buyback will be carried out at a price not exceeding Rs 300 per equity share, a substantial premium to the current price.
The Maximum Buyback size represents 10 percent and 9.8 percent of the aggregate of the total paid up capital and free reserves of the company.
The board has also declared a second interim dividend of Rs 2 per share. Record date for the same has been set as March 27, 2020.
The stock currently trades 3 percent lower at Rs 183.50 on the National Stock Exchange.
F&O Snapshot: Active Options Contracts
Nifty: March 19 Expiry
- 8,500 Call: Premium falls 87.6 percent to Rs 18.95. The contract has added 8.77 lakh shares in open interest.
- 8,000 Put: Premium falls 48.8 percent to Rs 6.40. The contract has added 16.59 lakh shares in open interest.
- 9,000 Call: Premium falls 98.4 percent to Rs 0.35. The contract has added 9.42 lakh shares in open interest.
Nifty Bank: March 19 Expiry
- 21,000 Call: Premium falls 94.05 percent to Rs 19.80. The contract has added 1.68 lakh shares in open interest.
- 22,000 Call: Premium falls 96.89 percent to Rs 2.25. The contract has added 2.94 lakh shares in open interest.
- 20,500 Call: Premium falls 78.52 percent to Rs 132.70. The contract has added 1.73 lakh shares in open interest.
IndiGo Turns Positive After CEO Announces Pay Cut
Interglobe Aviation pared losses and is now trading with gains after CEO Ronojoy Dutta announced a paycut for all its employees, according to PTI.
“With a precipitous drop in revenue, the very survival of the airline industry is now at stake,” the CEO of the largest budget carrier in Asia by market value said while making the announcement.
The CEO added that Senior Vice Presidents and above will take a 20 percent pay cut while cockpit crew will take a 15 percent pay cut. The CEO himself will take a 25 percent pay cut.
The stock pared losses to gain as much as 3.91 percent to Rs 987 on the National Stock Exchange.
What Is Leading The Recovery
European Markets Open With Gains
Markets Turn Positive
- Nifty down 0.2 percent, off the day's low at 8,454
- Nifty futures add 8.5 percent in open interest, trade with discount of 25 points
- Nifty Bank up 0.45 percent, off the day's low at 20,670
- Nifty Bank add 7 percent in open interest, trade with discount of 4 points
- Nifty Midcap and Smallcap index down 2.3 and 3.58 percent respectively
- India Volatility Index up 13 percent at 72.27
- 385 stocks are advancing while 1,163 stocks are declining
- Pharma, PSU Bank index gain two percent each
Nifty PSU Bank: Only Sectoral Gainer
Coal India Falls For Ninth Out Of Last 11 Sessions
SEBI Relaxes Norms For Companies
- SEBI allows listed companies to report their Q4FY20 & FY20 numbers by end of June.
- SEBI says spread of coronavirus warrants need for temporary relaxations.
Alert: Earlier deadline for March-quarter results was May 30.
Large Trade Alert: Bharti Infratel
45.3 lakh shares of Bharti Infratel Ltd. exchanged hands in two large trades on the National Stock Exchange, as per Bloomberg data. Buyers and sellers of the trade were not immediately known.
The stock fell as much as 20 percent to an all-time low of Rs 120 on the National Stock Exchange.
Markets At Noon
- Nifty down 3.74 percent at 8,151
- Nifty March futures add 8 percent in open interest and trade at a discount of 47 points
- Sensex down 3.8 percent at 27,777
- Nifty Bank down 4 percent at 19,742
- Nifty Bank March futures add 4 percent in open interest and trade at a discount of 15 points
- Midcap and Smallcap index off day's low but down 4.5 and 5.5 percent respectively
- India Volatility Index up 13.5 percent at 72.63
- 232 stocks advance while 1,304 stocks trade with losses
- Nifty PSU Bank the only sectoral index trading with marginal gains
- Rupee trades at a record low of 75.09 against the U.S. dollar
L&T Declines Along With Group Stocks
Larsen & Toubro
- Down for the fourth straight day
- Down 18 percent in the last four days
- Trades at lowest level since December 2016
- Market cap erosion of Rs 26,000 crore in last four days
L&T Finance Holdings
- Down for the fourth straight day
- Down 27 percent in the last four days
- Trades at the lowest level since March 2016
- Market cap erosion of Rs 4,651 crore in last four days
L&T Infotech
- Down for seven out of the last eight days
- Down 34 percent in eight days
- Trades at the lowest level since February 2018
- Market cap erosion of Rs 11,323 crore in last eight days
L&T Technology Services
- Down for the sixth straight day
- Longest losing streak since March 2019
- Down 32 percent in the last six days
- Market cap erosion of Rs 5,103 crore in six days
Stock Reaction: ITC Up For Third Straight Day
ITC Ltd. said it will offer higher dividend payouts for the ongoing financial year compared to the previous three fiscals.
India’s largest cigarette manufacturer, in a statement on its website, said its dividend payout policy from financial year ending March 2020 over the next few fiscal years is expected to be 80-85 percent of its net profit—higher than the nearly 69 percent average over last three years.
Shares are up for the third straight day, rising as much as 5 percent to Rs 158.30 on the National Stock Exchange.
Nifty Auto: Lowest Since February 2014
Nifty Auto Constituents At Multi-Year Low:
- Maruti Suzuki - Lowest since July 29, 2016
- Bharat Forge - Lowest since July 10, 2014
- Mahindra & Mahindra - Lowest since February 28, 2011
- Amara Raja Batteries - Lowest since June 09, 2014
- Bosch - Lowest since March 19, 2014
- Tata Motors - Lowest since July 27, 2009
- Apollo Tyres - Lowest since December 20, 2013
F&O Snapshot: Active Options Contract
Nifty: March 19 Expiry
- 8,000 Put: Premium rises 254.89 percent to Rs 195.90. The contract has added 2.7 lakh shares in open interest.
- 8,500 Call: Premium falls 92.86 percent to Rs 10.90. The contract has added 8.43 lakh shares in open interest.
- 8,200 Call: Premium falls 88.71 percent to Rs 38.70. The contract has added 8.9 lakh shares in open interest.
Nifty Bank: March 19 Expiry
- 20,000 Call: Premium falls 85 percent to Rs 138.8. The contract has added 3.11 lakh shares in open interest.
- 20,500 Call: Premium falls 93.53 percent to Rs 40. The contract has added 1.18 lakh shares in open interest.
- 21,000 Call: Premium falls 94.29 percent to Rs 19. The contract has added 2.24 lakh shares in Oopen interest.
Bajaj Finance Falls 50 Percent From Record High
Shares of Bajaj Finance Ltd. are down for the fourth day in a row. The stock fell to its 52-week low of Rs 2,484.7, a 50 percent drop from its all-time high of Rs 4,923.4 that it made on February 20, 2020.
35 percent of the fall has occoured in the last four trading sessions. From its record high, Rs 1.37 lakh crore of Bajaj Finance's market cap has been eroded.
In technical terms, the stock trades with a Relative Strength Index (RSI) of 16. A reading below 30 indicates the stock to be in oversold territory.
Markets At 10:10 AM
- Nifty down 6.2 percent at 7,947, the lowest since December 27, 2016.
- Nifty March futures add 5 percent in open interest, trade at a discount of 37.6 points.
- Sensex down 6.2 percent to 27,084, the lowest since January 23, 2017.
- Nifty Bank down 7.8 percent at 18,961.
- Nifty Bank March futures shed 2.1 percent in open interest, trade at a discount of 39.5 points.
- Nifty Midcap and Smallcap index down 7 and 8 percent respectively
- Nifty Smallcap index trades at lowest level since April 1, 2014
- India Volatility Index up 10.1 percent at 70.46, the highest since November 2008.
- NTPC & Power Grid are the only two Nifty stock trading with gains.
- 24 Nifty stocks trade at a 52-week low.
- 221 stocks of the Nifty 500 trade at a 52-week low.
Shree Cement Falls 15% On Nifty Debut
Shares of the cement maker fell as much as 15.1 percent to Rs 16,380, the lowest since February 2019. The stock is the newest entrant to the Nifty 50, replacing Yes Bank.
The stock is down for the fourth straight day today, falling as much as 16 percent during the period. The stock had made a 52-week high on February 7 this year. It has fallen 35 percent since then.
Volatility Remains Near 12-Year High
Aviation Stocks Hit An Air Pocket
Shares of Interglobe Aviation Ltd. & Spicejet Ltd. were down for the seventh day today. Bloomberg News reported on Wednesday that IndiGo and Vistara may consider grounding planes as the number of Coronavirus cases continue to rise in India.
IndiGo, Asia's biggest budget airline by market value has seen traffic fall by almost 30 percent domestically. The stock has fallen 25 percent in the last seven sessions, its longest losing streak since January 2019.
Spicejet too is down for the seventh day, locked in lower circuit of 10 percent for the second day in a row. The stock has moved into an ASM framework from today. Prices are down almost 50 percent in the last seven sessions.
Nifty Bank Leads Sectoral Laggards
Opening Bell: Selloff Continues In Indian Markets
India's equity markets opened lower for the fourth straight day as positive cues remain absent from global markets.
The S&P BSE Sensex fell as much as 6.3 percent lower at 27,050, the lowest level since January 2017.
The NSE Nifty 50 fell as much as 6.28 percent lower at 7,937, the lowest level since December 2016. 48 out of the 50 constituents opened with losses.
All of the sectoral indices on the NSE opened with losses.
Market breadth remained adverse with 1,138 stocks opening with losses while 102 stocks opened with gains.
Money Market Update
The Indian currency opened with losses, tracking weak cues from its global peers. The rupee opened at an all-time low of 74.96 as compared to Wednesday's close of 74.26 against the U.S. Dollar.
Yield on the 10-year treasury opened at 6.35 as compared to Wednesday's close of 6.26. The Reserve Bank of India on Wednesday said that it will buy government bonds worth Rs 10,000 crore under the Open Market Operations.
Key Stocks In Focus
- Yes Bank: Promoter Madhu Kapur sold 2.48 crore shares at Rs 65.07 per share for Rs 161.4 crore. Branch operations to open an hour earlier till March 21.
- ITC: Dividend payout ratio in the medium-term seen at 80-85 percent in the medium-term. Average dividend payout in the last three years was 69 percent.
- Interglobe Aviation: IndiGo, Vistara may ground jets as virus cases rise in India, as reported by Bloomberg News.
- Motherson Sumi: Operations in Germany, Spain affected due to the shutdowns. Plants in U.S. running normally. Indian operations running smoothly.
- Equitas Holdings: The company has delayed the IPO of its Small Finance Bank
- Motilal Oswal Financial Services: To consider share buyback on March 21
- Dalmia Bharat to consider Share buyback on March 21
- NLC India: Board approved raising up to Rs 5,000 crore via debentures
- Alphageo: Gets contract worth Rs 76.67 crore for data services from Oil India
Your Trade Setup For The Day
Prime Minister To Address The Nation At 8 P.M.
Global Markets On Wednesday
- Markets on Wall Street fell to their sessions low before trimming losses.
- S&P 500 ended 5.2 percent lower at 2,398 while the NASDAQ composite fell 4.7 percent.
- MSCI All-Country World Index fell 7 percent to the lowest in over three years
- The Bloomberg Dollar Spot Index gained 2.1 percent, hitting the highest in more than three years. This was the seventh straight day of gains.
- Yield on the 10-year treasuries rose 14 basis points to 1.21 percent
- West Texas Intermediate Crude fell 17 percent to $22.52 per barrel.
SGX Nifty Indicates Further Stock Declines
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 4.18 percent to 8,139 as of 8:15 a.m.
The dollar extended its gains as investors questioned the effectiveness of a rapidly strengthening set of economic and financial support measures by global central banks.
Asian markets are weak in early trade. Japanese markets have given up gains while South Korean markets trade with sharp losses. Global currencies too traded with sharp losses. Australian dollar falls 4 percent while South Korean Won fell 3 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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