KEY HIGHLIGHTS
Closing Bell: Nifty, Sensex See Biggest Ever Points Drop
Indian markets saw a sharp correction in Thursday's trading session. Volatility also spiked on account of the weekly options expiry. The S&P BSE Sensex Index ended 8.18 percent lower at 32,778. This was its lowest closing level since March 23, 2018. 16 out of the 30 constituents of the index ended at a 52-week low.
The NSE Nifty 50 index fell 8.3 percent to close at 9,590. These levels on a closing basis were last seen in June 30, 2017. All 50 constituents ended with cuts while 27 of them ended at a 52-week low.
All sectoral indices at a 52-week low with the PSU Banking index being the top laggard, ending with cuts of over 12 percent and at an all-time low.
Market breadth was in favour of the declines. 1,489 stocks on the NSE ended with losses while only 94 saw gains at the close of trade.
All the 11 sectoral gauges compiled by the NSE ended lower, led by the NSE Nifty PSU Bank Index’s 12.5 percent fall.
BloombergQuint Market Wrap
Buzz In The Dealing Rooms
These are the stocks that are abuzz in the dealing room chatter:
- UPL: Concerns over the global business. The stock is down 13.5 percent, headed for its biggest one-day fall since October 2008.
- IndusInd Bank: Concerns over promoter pledge. The stock is down 7.1 percent, headed for its lowest closing level since January 2015.
- L&T: Concerns over falling crude prices & middle-eastern business. The stock is down 9.1 percent, headed for its worst one-day drop since October 2008 and lowest closing level since March 2017.
Markets At 3 PM
- Nifty down 8.9 percent to 9,533 after falling to an intra-day low of 9,508
- Sensex falls over 3,000 points to an intra-day low of 32,493
- Nifty Bank falls over 10 percent, the most in eight years to 23,536
- All sectoral indices trade at a 52-week low
- India Volatility Index crosses 40; highest since August 2009
Global Market Update
- European Benchmarks - CAC, DAX & FTSE fall over 6 percent each
- Futures of Both Dow Jones & S&P 500 At A Lower Circuit
- Brent and NYMEX Crude oil prices are down over 5 percent each
All Sectoral Indices At 52-Week Low
Sensex, Nifty Fall To The Day's Low
IRCTC: Longest Losing Streak Since Listing
Shares of IRCTC Ltd. are down for the sixth day in a row. This is its longest losing streak since listing. The stock has declined for 11 out of the last 13 trading sessions.
The stock had made a life-time high of Rs 1,995 on February 25, 2020. Since then, it has corrected over 40 percent.
F&O Update: Active Stock Options
Nifty: March 12 Expiry
- 10,000 Call: Premium falls 99.67 percent to Rs 1.55. The contract has added 37.4 lakh shares in open interest.
- 9,900 Call: Premium falls 98.83 percent to Rs 7.15. The contract has added 19.14 lakh shares in open interest.
- 9,800 Put: Premium rises 1,966 percent to Rs 57.85. The contract has added 4.48 lakh shares in open interest.
Nifty Bank: March 12 Expiry
- 25,000 Call: Premium falls 99.31 percent to Rs 10.45. The contract has added 10.19 lakh shares in open interest.
- 24,000 Put: Premium rises 251.2 percent to Rs 21.95. The contract has added 6.2 lakh shares in open interest.
- 25,500 Call: Premium falls 99.8 percent to Rs 2.10. The contract has added 7.36 lakh shares in open interest.
European Markets Open With Deep Cuts
European stocks tumbled as the global stock rout extended after U.S. President Donald Trump suspended travel from Europe and stopped short of offering a detailed U.S. economic rescue package.
Market Update
- Nifty futures add 4 percent in open interest and trade at a discount of 36 points. The spot trades 6.3 percent lower at 9,800.
- Nifty Bank futures add 15 percent in open interest and trade at a discount of 10 points. The spot trades 7 percent lower at 24,630.
- All sectoral indices trade with losses between 6 to 9.5 percent. PSU Bank index is the worst performer.
- 27 Nifty stocks including HDFC Bank, IndusInd Bank trade at a 52-week low
- All stocks of all major Nifty sectoral indices trade with losses
Nifty Pharma's Biggest One Day Fall
Nifty Auto's Biggest One-Day Fall
Large Trade Alert: ONGC
36.5 lakh shares of the upstream oil explorer changed hands in a large trade on the National Stock Exchange, as per Bloomberg data. Buyers and sellers were not immediately known.
The stock currently trades 6.9 percent lower at Rs 66.75. This is the lowest level for the stock since July 01, 2004.
Shankar Sharma Reacts To The Market Sell-Off
Expecting the markets to shrug off a problem as significant as this is 'foolhardy,' according to First Global's Shankar Sharma.
In an interaction with BloombergQuint, Sharma said that India is staring at a significant fundamental-driven bear market, similar to the ones seen in 2008 and 2000. “None of the previous two crises got over in two months,” he added.
Hear are some of the key takeaways from the interaction:
- Had said at the start of the year that we would be lucky if we start 2020 on a flat note.
- Markets can go down a long way since we had run up a lot in the last year
- This fall has started at a time when markets were at a high
- Global and Indian earnings were being driven by a select set of companies
- Earnings outlook has vanished for a large part of the market
Markets At Noon
- Nifty down 7.25 percent, the most since October 2012 to 9,700. It now trades at the lowest level since September 2017
- Nifty Bank down 8.45 percent, the most since October 2012 to 24,249. It is trading near a two-year low
- Nifty Midcap and Smallcap trade at their lowest level since December and March 2016 respectively
- Nifty Auto sees its biggest ever one-day drop. It now trades at the lowest level since May 2014.
- Nifty FMCG falls most since July 2017. It now trades at the lowest level since April 2018.
- Nifty Metal falls most since October 2012. The index is now down for the sixth straight day and trades at the lowest level since March 2016.
- Nifty Pharma sees its biggest ever one-day drop. It now trades at the lowest level since September 2013.
- Nifty Realty trades at a 52-week low
Rupee Pares Losses As PSU Banks Sell Dollars
The currency pared early morning losses as state-run banks sold dollars on behalf on the Reserve Bank of India, Bloomberg reports quoting two forex traders who did not want to be named. The currency had fallen to an intra-day low of 74.33.
Traders say that State banks have been selling dollars at levels of 74.20.
Vinay Khattar Of Edelweiss Reacts To Market Sell-Off
Fall In The Last Eight Trading Sessions
Biggest Point Drop Ever For Nifty, Sensex
HDFC Bank: Top Point Contributor To The Nifty Downside
Midcap, Smallcap Index At Lowest Level Since 2016
Markets At 11 AM
- Nifty down 6.7 percent, the most since October 2012 to 9,756
- Nifty Bank down 7.57 percent, the most since October 2012 to 24,483
- Sensex down 6.77 percent to 33,281
- Nifty Bank, Nifty Auto down 7 percent each
- Nifty Media, Nifty PSU Bank down over 9 percent each
- Nifty realty down 8.5 percent, most since November 9, 2016
- Nifty Metal index falls most since July 2012
- India VIX up 14.8 percent to 36.22
F&O Snapshot: Active Options Contracts
Nifty: March 12 Expiry
- 10,000 Call: Premium falls 93.5 percent to Rs 29.85. The contract has added 27.76 lakh shares in open interest.
- 10,000 Put: Premium rises 1,431 percent to Rs 113.35. The contract has shed 3.1 lakh shares in open interest.
- 10,100 Call: Premium falls 98 percent to Rs 7.25. The contract has added 21.38 lakh shares in open interest.
Nifty Bank: March 12 Expiry
- 25,500 Call: Premium falls 96.64 percent to Rs 34.70. The contract has added 7.9 lakh shares in open interest.
- 25,000 Put: Premium rises 873 percent to Rs 194.60. The contract has added 87,200 shares in open interest.
- 24,500 Put: Premium rises 348.19 percent to Rs 37.20. The contract has added 3.99 lakh shares in open interest
Indices Trading At Multi-Year Lows
Nifty Media Index Lowest Since September 2012
Nearly Half Of The Nifty Constituents At A 52-Week Low
Aviation Stocks Tank Post Interglobe Aviation's Warning
Interglobe Aviation Ltd. fell as much as 10.37 percent to Rs 1,040 on the National Stock Exchange, the lowest level since December 13, 2018.
The airline had warned of the Coronavirus having a 'material impact' on its quarterly earnings as bookings have fallen over the last 15 to 20 days.
Shares of Spicejet Ltd. too fell as much as 18.8 percent to Rs 49, the lowest level seen since November 2015.
Sectoral Performance This Morning
Saurabh Mukherjea Asks Clients To Buy More
Saurabh Mukherjea of Marcellus Investment Managers believes that lower oil prices along with cheaper money have resulted in good returns for Indian markets in the past and that this scenario is likely to play out this time around as well.
In a call with our clients last night, we have urged them to invest even more money currently. Historically cheap money and cheap oil have worked magic for Indian markets, and that scenario will play out for India now.Saurabh Mukherjea, Marcellus Investment Managers
Also Take A Look At What Some Of The Other Top Money Managers Had To Say
Stock Reaction: IndusInd Bank Lowest In Nearly Six Years
Shares of IndusInd Bank Ltd. fell as much as 10 percent to Rs 768.30. This was the lowest level for the stock since December 22, 2014. This was the fourth straight day of losses for the stock, during which it has lost as much as 25 percent.
The non-disposal undertaking of pledged shares was revoked. Promoters of the bank had pledged 3.43 percent stake in favour of Citibank.
Nifty PSU Bank Index Falls Most Since August 2015
Opening Bell: Sensex, Nifty Enter Bear Market
Sell-off resumed in India's equity markets after they took a brief pause in Wednesday's trading session. The S&P BSE Sensex opened 5.1 percent lower at 33,876, the lowest level since October 31, 2018.
The NSE Nifty 50 index too opened below the 10,000 mark. The index fell 5.1 percent to 9,916, the lowest level since March 26, 2018. All 50 constituents on the index opened with cuts.
All sectoral indices on the National Stock Exchange opened with losses.
Market breadth was firmly in favour of declines. 1,206 stocks opened in the red while only 51 stocks saw gains in opening trade.
Money Market Update: Rupee Opens Weaker
The Indian currency opened weaker compared to Wednesday. The rupee opened at 74.28 against the U.S. Dollar as compared to Wednesday's close of 73.64. The currency now trades at its lowest level since October 2018.
This Is A Serious Fear Environment, Says Seth Freeman
Seth Freeman of Glassratner Advisory was surprised by the U.S. blocking visitors from Europe to contain the Coronavirus outbreak. In an interview to BloombergQuint, Freeman said that it is a little too early to look at the markets today. “There is room for further decline,” he added.
The idea that this is about people and not trade is a misnomer. This is about trade because if people aren’t going out and travelling or buying, they are looking at losses. We are a 75 percent consumer economy and people are looking at their retirement funds and savings going down 20-25 percent in a very short time. It’s frightening.Seth Freeman, Glassratner Advisory & Group
Trading Ideas This Morning From Brijesh Singh Of StockAxis
- Sell SBI at Rs 244 for target of Rs 220 and stop loss of Rs 252
- Sell Apollo Tyre at Rs 114 for target of Rs 104 and stop loss of Rs 120
Mark Mobius Says Focus Remains On India
Veteran Emerging Markets investor Mark Mobius believes that the crash in oil prices is beneficial for oil importers like India and China.
“We are getting rid of stocks which we have not been too excited about and adding to stocks where we have fundamental confidence,” the founder of Mobius Capital Partners told Bloomberg television in an interview.
Your Trade Setup For The Day
Latest On Coronavirus
- Confirmed cases cross 1.24 lakh globally
- Death toll rises to 4,600 across the globe
- Angela Merkel says 60-70 percent of the German Population at risk
- NBA has suspended the current basketball season
- Hollywood actor Tom Hanks and wife Rita Wilson too have tested positive for the virus
The first two cases of the Coronavirus in Mumbai were also detected on Wednesday. Catch all the live updates HERE!
Key Stocks In Focus
- Interglobe Aviation: Bookings have declined 15-20 percent on a week-on-week basis.
- SBI: Waives minimum average monthly balance for all savings bank account and also waives off SMS charges levied on a quarterly basis
- SH Kelkar: Holds adequate inventory to support uninterrupted production till April 2020. Operations in Italian arm are unaffected while China's factory became operational in the first week of March.
- IndusInd Bank: Non-disposal undertaking of pledge shares has now been revoked.
- Larsen & Toubro: Moves Bombay High Court against Yes Bank and RBI. Court to hear the matter today.
- Syndicate Bank: Trading of shares to be suspended from March 20 due to amalgamation of Bank with Canara Bank.
- United Bank of India: Trading of shares to be suspended from March 23 due to amalgamation of Bank with Punjab National Bank.
- Hikal: Says Mahad unit operating normally and there is no closure yet.
- Canara Bank: Allots bonds worth Rs 3,000 crore on March 11.
- Cyient: Nippon India AMC raises stake to 5.04 percent from 4 percent.
Find out about all that you need to know in today’s trade HERE!
Indian American Depository Receipts Check
Dow Enters Bear Market
U.S. markets plunged on Wednesday with the Dow Jones closing after entering bear market territory. The index has collapsed over 20 percent from its all-time closing high made only in February.
Here are some of the key highlights from Wednesday's trading session:
- All 30 components of the Dow Jones ended with declines on Wednesday.
- The S&P 500 fell into bear market territory as well before ending 19 percent lower from its record close. All but eight stocks ended with losses.
- The Nasdaq composite index closed with cuts of 4.3 percent.
- CBOE Volatility Index ended 13.9 percent higher at 53.9.
SGX Nifty Drops 4% As Global Stock Rout Intensifies
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 4.5 percent to 9,946 as of 8 a.m.
Equities across Asia are deep in the red after the World Health Organisation called the spread of the Virus a 'pandemic.'
The Nikkei 225 index in Japan traded with cuts of over two percent while the Topix traded with similar cuts. The Kospi index in South Korea fell 0.9 percent while the S&P ASX 200 in Australia declined close to 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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