Markets At Close
Nifty ends 6.4 percent higher at 8,297.
- 8 Nifty stocks end with gains of over 10 percent (RIL, HDFC Bank, Kotak Bank, UPL, Maruti, Grasim, Adani Ports, HDFC)
- RIL, HDFC Bank, Kotak Bank, Grasim gain the most since 2009
- Maruti gains the most since 2006
- UPL gains the most since 2018
- 11 Nifty stocks (Axis Bank, Bajaj Finserv, Larsen and Toubro, Titan, Nestle, Hindalco, ICICI Bank, Tata Steel, Bharti Infratel, Bharti Airtel and Bajaj Finance) end with gains between 5-10 percent
- Axis Bank, Hindalco gain the most since 2018
- Titan, ICICI Bank, Larsen and Toubro gain the most since September 2019
- Nifty Bank gains the most since September 2013; ends with gains of 8.4 percent
- Nifty Midcap and Smallcap index gain 3.3 percent each
- All other sectoral indices end with gains
- FMCG, I.T., Metal and PSU Banking index gained 2 percent each
- Auto index ended with gains of over 4 percent while realty index gained 3 percent
- India Volatility Index down 8 percent to 76.96
- 1,063 stocks ended with gains while 703 stocks ended with cuts
What Aided The Nifty Gains
- Top 5 contributors form 41 percent of the Nifty weightage
- Reliance, HDFC Bank, Kotak Bank see biggest one-day gain since 2009
- ICICI Bank gains the most in six months
- Reliance Industries contributes 22 percent of the Nifty gains
How Did The Sectoral Indices Fare
Closing Bell: Sensex, Nifty Stage A Strong Rebound
Indian equity markets staged a strong rally in the second half of trade to post their best one-day gain since 2009.
The S&P BSE Sensex ended with gains of 7 percent, the most in a single day since May 2009 at 28,535. 27 out of the 30 stocks of the index ended with gains.
The NSE Nifty 50 index too saw its best single-day jump since 2009, ending 6.62 percent higher at 8,317. 38 out of the 50 stocks on the index ended with gains. This is also the first time in seven weeks that the index has posted two successive days of gains.
All sectoral indices ended the day with gains, led by the Nifty Bank, which witnessed its biggest one-day gain since September 2013.
Market breadth was in favour of the advances with 1,063 stocks ending with gains while 703 stocks ended with losses.
Full Impact Of Covid-19 To Be Seen In Q1FY20, Says Axis Bank
The impact of the 21-day lockdown imposed by the Indian government to combat the spreading of the Coronavirus is difficult to predict, Axis Bank MD and CEO Amitabh Chaudhry told BloombergQuint in an interaction.
While Chaudhry was hopeful of a pickup in economic activity by late April or early May, he expects stressed companies to get further squeezed, some even to the verge of being shut down.
Some of the other highlights of the conversation were:
- Banks will continue to handhold good corporates
- Liquidity is not an issue for most banks
- Pressure is with Mutual Funds seeing redemption pressure
- Deposit trends likely to remain similar as in the past
- Extending additional credit line to select customers
The lender snapped a seven-day losing streak and is now trading 7.5 percent higher at Rs 325.70 on the National Stock Exchange.
Outcome Of Cabinet Meeting
F&O Snapshot: Active Options Contracts
- Nifty March futures add 8 percent in open interest and 7.2 lakh shares
- Nifty April futures add 22.8 percent in open interest and 13.9 lakh shares
- Nifty Bank March futures add 16.3 percent in open interest and 1.51 lakh shares
- Nifty Bank April futures add 38 percent in open interest and 1.3 lakh shares
Nifty: March 26 Expiry
- 8,500 Call: Premium rises 140 percent to Rs 139.25. The contract has added 1.93 lakh shares in open interest.
- 8,000 Call: Premium up 117.6 percent to Rs 464.80. The contract has shed 3.1 lakh shares in open interest.
- 9,000 Call: Premium falls 15.1 percent to Rs 15.95. The contract has added 3.7 lakh shares in open interest.
Nifty Bank: March 26 Expiry
- 20,000 Call: Premium falls 4.8 percent to Rs 100. The contract has added 49,680 shares in open interest.
- 19,000 Call: Premium up 47.63 percent to Rs 300.20. The contract has added 71,100 shares in open interest.
- 18,000 Call: Premium rises 109 percent to Rs 868.85. The contract has shed 63,820 shares in open interest.
Sensex Gains Most Since 2009; Up 2,000 Points
European Markets Open With Gains
Markets At 2 P.M.
- Nifty up 6.28 percent at 8,290; biggest one-day move since 2009
- Nifty futures trade at a premium of 28 points
- Sensex up 6.75 percent at 28,472; biggest one-day move since 2009
- Nifty Bank up 7.6 percent at 18,420
- Nifty Midcap and Smallcap index gain over 2.5 percent each
- All sectoral indices trade with gains
- Nifty Media and Pharma see subdued gains (0.5 percent each)
- Nifty I.T., Nifty Auto index up over 4 percent each
- Nifty Metal, Nifty Realty up over 2.5 percent each
- India Volatility Index down 7.3 percent at 77.47
- Reliance Industries - top Nifty gainer with 15 percent gains; most since 2009
- IndusInd Bank remains top Nifty loser, down 3 percent
- 982 stocks trade with gains while 744 stocks decline
Private Banks Lead The Rebound
Contributors To Nifty's Gains
AU Small Finance Bank: All-Time Low
Shares of the Jaipur-based commercial bank have fallen from an all-time high to an all-time low in just 16 trading sessions.
The stock had made an all-time high of Rs 1,218 on March 2. Since then, prices have fallen over 60 percent to an all time low of Rs 472.
The stock has only gained on four instances in the last 16 sessions. Today's lower circuit of 10 percent marks the third straight lower circuit for the stock.
What Is Differentiating HUL From Peers
Market At Day's High
Markets At Noon
- Nifty up 1.44 percent at 7,912
- Nifty March futures trade at a premium of 17 points
- Sensex up 1.45 percent at 27,061
- Nifty Bank up 0.7 percent at 17,226
- Nifty Midcap gains 0.7 percent; Nifty Smallcap up 0.2 percent
- India Volatility Index down 4.5 percent at 79.87
- Nifty Auto the top sectoral gainer, up 2.2 percent
- Nifty FMCG, Metal, Pharma trade with gains
- Nifty Media, I.T. and PSU Bank index decline
- Maruti Suzuki top Nifty gainer; up 8.5 percent
- IndusInd Bank top Nifty loser; down 5 percent
- 726 stocks trade with gains while 933 stocks are declining
Impact Of The 21-Day Lockdown On India's Growth
Stock Update: ACC Near 10-Year Low
Shares of the cement maker are down for the third-straight day. The stock has fallen 20 percent during this period.
The company has decided to suspend operations at its plants till March 31 to combat the Coronavirus outbreak.
The stock currently trades at Rs 911 on the National Stock Exchange, down 4 percent. These are the lowest levels seen since September 2010.
30 out of the 43 analysts tracking the stock have a 'buy' recommendation on the stock, according to Bloomberg data. It was recently upgraded to ‘Add’ by IIFL securities and ‘Buy’ by Kotak Securities.
The return potential for ACC as per Bloomberg is now 84.8 percent.
How Has Indian I.T. Fared Vs The 2008 Financial Crisis
Stock Update: DCB Bank Trades At Four-Year Low
The mid-sized private sector lender is down for the third straight day today. The stock has fallen for nine out of the last ten trading sessions, during which it has fallen 50 percent.
On June 25, 2019, the stock made a 52-week high of Rs 244.65. Since then, prices have corrected over 70 percent.
The bank hosted a conference call where it clarified that no disbursals have taken place over the last 7-10 days. Some of the other highlights of the conference call were:
- Deposits remain largely the same before the Yes Bank issue
- Cannot disburse until we completely re-think our credit risk model
- Bank's corporate loan book is pretty small
- 8-12 percent of the loans are short-term loans
- Some disbursements taking place for gold loans
The stock currently trades 5.5 percent lower at Rs 76.30, the lowest since March 30, 2016.
HSBC's Stock Recommendations In A Volatile Market
Brokerage firm HSBC has highlighted certain stocks that can act as good opportunities in a volatile market.
Defensive Plays: HUL, Avenue Supermarts, Nestle, Dr Reddy's and Bharti Airtel are the five stocks highlighted by the brokerage house which can act as a defensive bet. Infosys too forms part of the list.
Dividend Yield Plays: ITC, Power Grid and NTPC are the stocks recommended by HSBC among those offering higher dividend yield and better revenue resilience.
Impacted Winning Businesses: The stocks recommended by HSBC in this category are Reliance Industries, Bajaj Finance, Titan, ICICI Bank, HDFC Bank and ICICI Prudential.
F&O Snapshot: Active Options Contracts
- Nifty April futures add 6 percent in open interest and 3.6 lakh shares
- Nifty Bank April Futures add 8 percent in open interest and 26,000 shares
Nifty: March 26 Expiry
- 8,000 Call: Premium falls 16.7 percent to Rs 178. The contract has added 3.4 lakh shares in open interest.
- 8,500 Call: Premium falls 22.9 percent to Rs 44.7. The contract has added 4.75 lakh shares in open interest.
- 7,000 Put: Premium falls 45.1 percent to Rs 63.3. The contract has added 3.9 lakh shares in open interest.
Nifty Bank: March 26 Expiry
- 20,000 Call: Premium falls 55.2 percent to Rs 47. The contract has added 1.72 lakh shares in open interest.
- 14,000 Put: Premium falls 63 percent to Rs 77.8. The contract has added 95,580 shares in open interest.
- 18,000 Call: Premium falls 13.4 percent to Rs 360. The contract has added 71,520 shares in open interest.
Markets At 10:20 A.M.
- Benchmark indices fluctuate between gains and losses
- Nifty down 0.33 percent at 7,775
- Sensex down 0.41 percent at 26,563
- Nifty Bank down 1.2 percent at 16,905
- Nifty Midcap and Smallcap index down 1 and 1.2 percent respectively
- India Volatility index down 1.1 percent at 82.67
- Nifty Metal, Pharma and Realty see muted gains; other sectoral indices decline
- Reliance Industries remains top Nifty gainer; up 6 percent but off the day's high
- IndusInd Bank remains the top Nifty loser; Down 8 percent, for the eighth day in a row and trades at the lowest level in eight years.
- 505 stocks trade with gains while 1,094 stocks trade with losses
L&T Falls To Lowest Since 2014
Shares of Larsen and Toubro Ltd. are down for seven out of the last eight trading sessions. During this period, prices have corrected by over 35 percent.
The stock now trades at Rs 670.55 on the National Stock Exchange, the lowest level since February 18, 2014.
38 out of the 42 analysts tracking the stock, have a ‘Buy’ recommendation, as per Bloomberg data. The upside potential for the stock, as per Bloomberg now stands at 129.4 percent.
Stocks Dragging The Nifty Lower
Nifty Gives Up Early Gains To Turn Negative
How Are Sectoral Indices Faring
Stock Reaction: Reliance Industries
Shares of the petrochemical conglomerate gained as much as 9.61 percent to Rs 1,034 on the National Stock Exchange.
The Financial times reported that Facebook is in talks with the company to buy a multi-billion dollar stake in Reliance Jio. However, talks stalled due to the Coronavirus outbreak and the subsequent travel bans.
The stock trades higher for the second straight day and is the top point contributor to the Nifty upside.
Opening Bell: Indian Markets Gain After Weak Open
Indian equity markets opened with a negative bias but turned positive within the first few trades. Prime Minister Narendra Modi announced a 21-day lockdown starting midnight on Tuesday, which may keep investor sentiment on the edge.
The S&P BSE Sensex gains as much as 1.6 percent to 27,102. 16 out of the 30 stocks on the index opened with gains.
The NSE Nifty 50 index opened 1.83 percent higher at 7,943. The 50-stock gauge had 29 stocks opening with gains.
All sectoral indices barring the Media and PSU Banking index opened with gains.
Market breadth was 1:1 with 714 stocks trading with gains while 698 stocks declined.
Large Trade Alert: Reliance Industries
11.6 crore shares of the company have changed hands in a pre-market block at Rs 949 per share on the Bombay Stock Exchange, as per Bloomberg data. Buyers and sellers of the trade were not immediately known.
Trading Ideas From LKP's Gaurav Bissa
- Buy Nifty around 7,600 for target of 7,900 and stop loss of 7,495
- Buy ICICI Bank for target of Rs 315 and stop loss of Rs 285
- Sell Mahindra & Mahindra for target of Rs 255 and stop loss of Rs 280
Money Market Update
Currency derivatives market on the National Stock Exchange will remain closed today on account of Gudi Padva. Bond markets too will remain closed.
Trading Ideas From Motilal Oswal's Chandan Taparia
- Buy Infosys for target of Rs 635 and stop loss of Rs 560
- Sell Vedanta for target of Rs 56 and stop loss of Rs 67
Key Stocks In Focus
- Reliance Industries: Facebook in talks to buy a multi-billion dollar stake in the company, as reported in the Financial Times.
- Indiabulls Housing Finance: Moody's Investors Services downgrades corporate family rating and foreign currency senior secured rating to B3 from B2. Outlook on all the ratings remains negative.
- ONGC: Moody's investors services downgrades local and foreign currency issuer rating to Baa2 from Baa1. The outlook on all the ratings remains negative.
- India Grid Trust: Executed a share purchase agreement for complete acquisition of shareholding and management control in East-North Interconnection Company for an enterprise value of Rs 1,020 crore.
- IRCON International: Record date for 5:1 share split set as April 7
Find out all that you need to know going into today’s trading session and the companies impacted due to the Covid-19 outbreak HERE!
Your Trade Setup For The Day
U.S. Markets On Tuesday
- Benchmarks on wall street had their best trading day in at least 12 years.
- The S&P 500 rebounded from its 2016 lows, gaining for the third straight Tuesday and seeing its biggest one-day gain since October 2008.
- The 11 percent surge in Dow Jones was the highest since 1933
- Lawmakers are negotiating a $2 trillion stimulus package to help the U.S. economy get through the Coronavirus pandemic.
- CBOE VIX falls from record highs to levels of 61.67
Indian Markets May See Selling Pressure
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 2.2 percent to 7,680 as of 8:10 a.m.
Asian markets are trading with gains after Wall Street saw its best trading day in over a decade. Indices in South Korea, Hong Kong and Australia trade with gains of over 3 percent while Japanese indices are up 5 percent.
The dollar is down for the second straight day as against other Emerging Market currencies while treasuries are flat. Oil prices are higher on stimulus hopes from the U.S.
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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