KEY HIGHLIGHTS
Closing Bell: Sensex, Nifty Halt Two-Day Rout As RIL, ICICI Bank Lead
Indian equity benchmarks ended marginally higher after a topsy-turvy session, thus, recovering slightly from the worst single-day rout in nearly five years.
The S&P BSE Sensex and the NSE Nifty 50 ended little changed at 35,697.40 and 10,458.40 respectively.
Earlier today, the 30-stock index swung from a fall of as much as 1.05 percent and rose as much as 1.08 percent, while the 50-share gauge swung from a fall of as much as 1.12 percent and rose as much as 0.9 percent.
The market breadth was tilted in favour of sellers. About 1,036 stocks declined and 774 shares advanced on National Stock Exchange.
Six out of 11 sectoral gauges compiled by the NSE ended lower, led by the NSE Nifty PSU Bank Index’s 3.1 percent fall. On the flipside, the NSE Nifty Media Index was the top sectoral gainer, up 2 percent.
Large Trade Alert: HDFC Bank
About 16 lakh shares of HDFC Bank changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.
Fab Four Stocks Of The Day
RBL Bank
- Stock rose as much as 14.9 percent to Rs 239.20.
- Management clarified rumors around financial health and stability are misplaced
- Bank says no adverse change in asset quality and guidance remains constant.
Pidilite Industries
- Stock rose as much as 3.6 percent to Rs 1,699.
- Fresh longs seen with high open interest of 21 percent.
Lakshmi Vilas Bank
- Stock rose as much as 4.7 percent to Rs 14.60.
- The lender plans to raise $250-$300mn from overseas investors via sale of 49-60 percent stake in the bank, according to Economic Times report.
IRB Infra Developers
- Stock rose as much as 14.1 percent to Rs 77.90.
- Shares were the top performer on the NSE Nifty SmallCap 100 Index.
- Scrip snapped three-day losing streak.
Stocks Moving On Heavy Volumes
Triveni Turbine
- Stock rose as much as 3.3 percent to Rs 81.50.
- Trading volume was more than 17 times its 20-day average.
KPR Mill
- Stock swung from a gain of as much as 2.5 percent to fall as much as 1.8 percent.
- Trading volume was more than eight times its 20-day average.
Mahindra CIE Automotive
- Stock rose as much as 5.9 percent to Rs 128.
- Trading volume was more than six times its 20-day average.
Future Retail
- Stock fell as much as 19.9 percent to Rs 228.30.
- Trading volume was almost six times its 20-day average.
Welspun Corp
- Stock fell as much as 18.8 percent to Rs 101.
- Trading volume was almost five times its 20-day average.
F&O Check: Nifty 10,500 Call Option Premium Drops 37%
Nifty’s 10,500 call option contract was among the most active Nifty option contracts on National Stock Exchange.
Premium on the contract, which is set to expire on March 12, fell 36.57 percent to Rs 85.35. About 9.66 lakh shares were added to the open interest which stood at over 15.69 lakh shares.
Global Markets Update: U.S. Futures Drop With Dollar; Treasuries Rise
Wednesday brought another day of reversals in many major markets, with U.S. stock futures dropping, the dollar weakening and Treasury yields falling after surging a day earlier.
- The Stoxx Europe 600 Index gained 1.9 percent as of 8:09 a.m. London time.
- Futures on the S&P 500 Index declined 1.9 percent.
- The MSCI All-Country World Index was little changed.
- The U.K.’s FTSE 100 Index rose 1.9 percent.
Get your daily fix of global markets here.
Source: Bloomberg
PNC Infatech Wins Orders Worth Rs 2,052 Crore From NHAI
PNC Infratech received Letters of Award from National Highways Authority of India for worth Rs 2,052 crore for two projects, according to its media statement to the exchanges.
The construction of this project is to be completed in 30 months, the statement added.
Trading Strategies From Angel Broking's Amar Singh
- Buy Hindustan Unilever at Rs 2,135 for target of Rs 2,280 and stop loss of Rs 2,048
- Sell DLF at Rs 183 for target of Rs 168 and stop loss of Rs 193
Top Nifty Loser: GAIL
GAIL India Ltd. is the top loser on the Nifty 50 index today. The stock fell as much as 9.16 percent to Rs 91.25 on the National Stock Exchange. This is the lowest level for the gas player since March 2016.
The stock has declined for nine out of the last 13 trading sessions, during which it has declined almost 24 percent. The last 13 sessions has also seen an erosion of Rs 12,561 crore in terms of market capitalisation.
Inflows Into Equity MFs Rise To The Highest In 11 Months
Reliance Industries: Top Contributor To Nifty Upside
Government Invites EoI For BPCL
Bank Of England Cuts Interest Rates
The Monetary Policy Committee of England's central bank voted unanimously to cut interest rates by 50 basis points to 0.25 percent, according to Bloomberg News.
The central bank in its statement said that the magnitude of the economic shock from the Coronavirus outbreak is 'highly uncertain.'
The Bank has also introduced a new Term Funding Scheme with additional incentives for Small and Medium-Sized enterprises which will be financed by the issuance of central bank reserves.
The Pound Sterling fell as much as 0.6 percent against the U.S. dollar to 1.2832. It has since pared losses and now trades at 1.2888.
BQ Spotted: Raymond
Shares of Raymond Ltd. have declined for the fourth straight day today. Prices have fallen for 18 out of the last 21 trading sessions.
The decline has seen the shares fall to their lowest level since August 2016. The 35 percent drop in the last 21 sessions has seen a market-cap erosion of Rs 1,478 crore for the company.
The stock trades in oversold territory with its Relative Strength Index (RSI) at 10.5. The current return potential as per Bloomberg is at 127.7 percent.
Markets At Noon
- Nifty trades 0.33 percent higher at 10,486
- Sensex trades 0.52 percent higher to 35,823
- Nifty Bank outperforms; trades 0.75 percent higher at 26,657
- Nifty open interest up 8.3 percent; futures trade at a discount of 32 points
- Nifty Bank open interest up 27.8 percent; futures trade at a discount of 23.5 points
- Stocks advancing on NSE: 769
- Stocks declining on NSE: 761
- Sectoral Gainers: Nifty Bank, Nifty Media, Nifty Financial Services
- Sectoral Laggards: Nifty I.T., Nifty Metal, Nifty Pharma, Nifty Realty
Markets Face Near-Term Challenges, Says Kenneth Andrade
Old Bridge Capital's Kenneth Andrade believes that Indian markets will see near-term challenges and it will be a little expensive to navigate through it.
“But it remains unclear how this will emerge in the medium-term,” Andrade told BloombergQuint on our special series Navigating Through Uncertainty.
Here are some of the other key highlights from the interview:
- We may probably not go back to the way businesses were done in the past
- Falling crude prices good for certain segments of the economy
- Need transmission of interest rates to the end user
- There is very little underlying growth in the recovery and that is not a quantifiable or predictable number
- Will carefully deploy cash in the markets
Coronavirus Has Potential To Create 2008-Like Situation, Says Mark Matthews
Some key highlights from the conversation the Head of Asia Research at Julius Baer had with BloombergQuint:
- Expect more downside for markets
- Expect the virus to ramp-up in Europe & United States
- Coronavirus has the potential to create a 2008-like situation
- India to benefit a great deal from fall in crude oil prices
Mutual Fund Data For February
- Equity inflows in February rise 37 percent (MoM) to Rs 10,795 crore
- Total MF industry sees outflows of Rs 1,985.5 crore Vs an inflow of Rs 1,20,148 crore
- Liquid Funds see outflows of Rs 43,825 crore Vs inflow of Rs 59,682 crore
- Balanced Funds see outflows of Rs 1,182 crore Vs outflow of Rs 1,260 crore
- Small Cap funds see highest inflow since April 2019
- Large Cap schemes see highest inflow since August 2019
- SIP contribution in February at Rs 8,512.93 crore
F&O Snapshot: Active Options Contract
Nifty: March 12 Expiry
- 10,700 Call: Premium is down 69 percent to Rs 14.85. The contract has added 5.2 lakh shares in open interest.
- 10,600 Call: Premium is down 60.7 percent to Rs 33.35. The contract has added 8.44 lakh shares in open interest.
- 10,500 Call: Premium is down 49 percent to Rs 68.55. The contract has added 9.39 lakh shares in open interest.
Nifty Bank: March 12 Expiry
- 27,000 Call: Premium is down 51.1 percent to Rs 118.30. The contract has added 3.92 lakh shares in open interest.
- 26,000 Put: Premium is down 25.76 percent to Rs 219.70. The contract has added 2.47 lakh shares in open interest.
- 27,500 Call: Premium is down 65.65 percent to Rs 36.50. The contract has added 2.14 lakh shares in open interest.
Most Sectoral Indices Trade With Losses
Will the Fed Cut Rates Again? Richard Harris Does Not Think So
The sentiment coming out of the White House to tackle the Coronavirus outbreak is ‘very poor,’ according to Richard Harris of Port Shelter Investment Management.
In an interaction with BloombergQuint, Harris said that he is not convinced about the Fed cutting interest rates again after an emergency rate cut on March 3.
Here are some of the other highlights from the conversation:
- Today's trading session very crucial after Tuesday's rebound
- Odds of markets falling today are high but may bottom-out this week
- Further rate cuts will only mean the Fed has limited ammunition in the future
- Markets seem to be convinced that the Fed will cut rates on March 18
Welspun Corp Wins Contract In Australia
The company won a major offshore pipes supply contract in Australia for the Barossa offshore Development project. The contract comprises manufacturing and supply of 270 kilometers of pipes for critical offshore application.
The current order book for the company is now at 1,139 KMT after considering order execution up to February 2020, as per the company's press statement.
The stock fell as much 18.84 percent to Rs 101. This is the third straight day of declines for the company. The stock has declined 40 percent in the last three days.
RBL Bank Says Remain Financially Strong, Well-Capitalised
RBL Bank Ltd., in a statement to the exchanges stated that it remains a financially strong, well-capitalised and a growing entity.
- The private lender also said that it has Capital Adequacy Ratio of 16.08 percent with a tier-1 ratio of 15.02 percent
- The bank has also maintained its asset quality guidance, saying there has been no adverse change to the NPAs since Q3 results were announced.
- Liquidity Coverage Ratio of the bank was 145 percent of statutory requirements at the end of last week.
The stock surged as much as 14.89 percent, the most since September 2019 to Rs 239.20 on the National Stock Exchange.
Large Trade Alert: ITC At Eight-Year Low
10 lakh shares of the FMCG company changed hands in a single large trade on the National Stock Exchange, as per Bloomberg data. Buyers and sellers were not immediately known.
Post this trade, another 14.3 lakh shares of the company changed hands in a second large trade.
The stock currently trades at Rs 173.85, down 1.9 percent on the National Stock Exchange. This is the lowest level for the stock since October 2012.
Large Trade Alert: Reliance Industries
10 lakh shares of Reliance Industries Ltd. changed hands in a single large trade on the National Stock Exchange, as per Bloomberg data. Buyers and sellers were not immediately known.
Post the large trade, another 15 lakh shares of the company changed hands in a single large trade, as per Bloomberg data.
The stock currently trades 5 percent higher at Rs 1,170, snapping a four-day losing streak. It is also contributing 51 points to the Nifty upside.
Opening Bell
Indian equity markets opened lower for the third day in a row. The NSE Nifty 50 index fell as much as 1.12 percent to 10,334. It has managed to recover from the opening lows.
The S&P BSE Sensex index too opened 1.05 percent lower to 35,261 and managed to recover post that.
The Nifty Bank index was the outperformer, trading in the green with Yes Bank, RBL Bank and SBI leading the gains.
Among sectoral indices, I.T. remained the top laggard while the Nifty Bank, PSU Bank & Private Bank index traded with gains.
Market breadth was in favour of the advances with 834 stocks trading with gains while 493 stocks traded with losses.
Trading Ideas From Motilal Oswal's Chandan Taparia
- Sell Petronet LNG for target of Rs 210 and stop loss of Rs 230
- Sell RBL Bank for target of Rs 190 and stop loss of Rs 217
The Latest On The Coronavirus
- Global cases surpass 1.17 lakh
- Death toll rises to 4,200
- Infections in Italy cross 10,000, Austria stops entry of Italians
- 242 new cases reported in South Korea; China reports 24 new cases
- Cases in the United States near 1,000
Get the latest updates on the Coronavirus cases in India, HERE!
Key Stocks In Focus
- Yes Bank: Nippon MF & Axis Trustee file petitions against the decision to write-down the bank's AT-1 bonds under its reconstruction plan. The petitions will be heard on March 11.
- Biocon: U.S. FDA accepts the biologics license application for Mylan's Avastin which is used in the treatment of cancer, as per a Bloomberg report.
- ABB India: Board approves proposal to sell its solar inverter business to its wholly-owned Italian arm 'Fimer' for Rs 100.6 crore. The transfer is effective from April 1.
- Max Financial: To seek Shareholder nod for restructuring the business with Mitsui Sumitomo Insurance and Max Life Insurance on April 2
- Wonderla Holidays: To temporarily close Kochi park between March 11-20 in view of emerging Coronavirus cases in Kerala
- Future Retail Strategic Update: Break-even for small stores to be achieved by September 2020 and will open first 7 Eleven stores by April 2020.
- Firstsource Solutions: HDFC MF raises stake to 7.03 percent from 5.03 percent
Get all that you need to know in today’s trade HERE!
Your Trade Setup For The Day
Indian ADRs On Tuesday
U.S. Market Check
Markets on Wall Street ended higher on Tuesday. The gains restored about half of the losses seen on Monday, which was the biggest one-day drop since the 2008 financial crisis.
Here are some of the key highlights of Tuesday's session:
- The rebound was fuelled by President Donald Trump's statement that he will announce a major economic package to tackle the Coronavirus impact. However, the press conference never happened, leading to S&P 500 futures dropping as much as 2.1 percent post the close of trade.
- CBOE Volatility Index fell 13.1 percent to 47.3.
- The 10-year Treasury yield topped 0.75 percent
- Oil prices extended Monday's rebound with WTI surging 11 percent to climb above $34 per barrel.
Markets Brace For Further Downside
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 1.03 percent to 10,406 as of 7:20 a.m.
Asian markets are off to a negative start. S&P 500 futures fell as much as 2.6 percent, following a strong rebound on Wall Street after Monday’s plunge.
The yen clawed back some of a steep overnight retreat. Shares in Japan and Hong Kong saw modest losses, with larger declines in South Korea and Australia. Oil extended its rally on the back of Monday’s crash.
Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.
RECOMMENDED FOR YOU
POPULAR