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Closing Bell
Equity benchmark Sensex plummeted over 2,000 points on Monday dragged by sell-off in index-heavyweights HDFC, HDFC Bank, IndusInd Bank, ICICI Bank, TCS and Infosys amid negative cues from global markets.
The latest flare up in US-China tensions, and extension of the nationwide lock-down for another two weeks amid continuous selling by foreign investors also weighed on the investor sentiment.
The weak PMI report that came in during the market hours, also battered the sentiment further. PMI showed contraction in the manufacturing sector with the index slipping to 27.4 in April as against 51.8 in March. This is the sharpest deceleration in the index since the beginning of data collection for PMI.
The 30-share index ended at 31,715.35 points, down by 2,002.27 points, or 5.94 per cent, and the NSE Nifty plunged 551.35 points, or 5.59 per cent, to 9,308.55.
ICICI Bank was the top laggard in the Sensex pack, sinking 11 per cent, followed by Bajaj Finance, HDFC, IndusInd Bank, Axis Bank, Maruti, Tata Steel and Titan.
Shares of Reliance Industries fell over 2 per cent after the oil-to-telecom conglomerate on Thursday posted its biggest ever drop in quarterly net profit. Its net profit in January-March slipped 37 per cent to Rs 6,546 crore, the lowest in three years.
Reliance Industries shares fall after Q4 earnings
Shares of Reliance Industries (RIL) on Monday fell over 3 per cent initially after the company posted its biggest drop in quarterly net profit.
Shares of breweries on a high as many States ease lockdown curbs
The share prices of breweries and distilleries witnessed a huge surge on Monday, after several States relaxed norms for the Covid-19-triggered lockdown. The stock of Associated Alcohols & Breweries surged 10 per cent; GM Breweries gained 8.15 per cent; Globus Spirits, Khoday, Jagatjit Industries, Pioneer Distilleries, Radico Khaitan, United Breweries and United Spirits jumped between 2 and 5 per cent.
Hindustan Unilever under pressure as Q4 disappoints
After opening weak at ₹2,108 post results, shares of Hindustan Unilever bounced back partly on Monday. Currently, HUL shares are hovering around ₹2,126.30, down 2.25 per cent, even as benchmark indices BSE Sensex and Nifty 50 tumbled almost 5 per cent.
Manufacturing PMI slips to unprecedented 27.4 in April
The Covid-19 pandemic brought about unprecedented contraction in the manufacturing sector, as Purchasing Managers Index (PMI) slipped to 27.4 in April as against 51.8 in March. This is the sharpest deceleration in the index since the beginning of data collection for PMI.
NIFTY METAL STOCKS
NIFTY METAL INDEX
Prominent Gainers in 'B' Group stocks on BSE
Apollo Micro, Oswal Agro Mills Ltd, Associated Alcohols & Breweries Ltd, are among the top gainers in the BSE 'B' group today.
Apollo Micro Systems Ltd spiked 13% to Rs 80.05 on the BSE today. The stock was the biggest gainer in the BSE's 'B' group. On the BSE, 96,0001 shares were traded on the counter so far.
Oswal Agro Mills Ltd surged 18.25% to Rs 6.85. The stock was the second biggest gainer in 'B' group. On the BSE, 51410 shares were traded on the counter so far as against the two-week average daily quantity of 5057 shares
Associated Alcohols & Breweries Ltd soared 14.25% to Rs 194.25. On the BSE, 71,000 shares were traded on the counter so far.
NIFTY SECTORAL INDICES
BANK NIFTY STOCKS
Mid-session
The benchmark indices are seen hovering near the day's low. The Nifty was trading below the 9,400 mark. Markets tumbled on the back of FII selling, PMI report reflecting sharp fall in business activities amid worries over US-China trade tensions.
At 12.50 pm, the barometer index, the S&P BSE Sensex, was down 1,734.98 points or 5.15% at 31,982.64. The Nifty 50 index was down 495.10 points or 5.02%, at 9,364.80.
The IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) fell to 27.4 in April, from 51.8 in March, reflecting the sharpest deterioration in business conditions across the sector since data collection began over 15 years ago.
Global cues were weak following the latest flare up in US-China tensions. The extension of the nation-wide lock-down for another two-weeks and continuous selling by foreign investors also weighed on the investors sentiment.
The market breadth, indicating the overall strength of the market, was weak. On the BSE, 425 shares have advanced and 1,696 shares have declined. A total of 144 shares were unchanged.
Centre must put economic growth first
Even before the Centre made its decision to extend its 40-day lockdown by a further two weeks, economists had been stressing the need for an urgent fiscal stimulus package. The voices calling for stimulus ranged from former Chief Economic Adviser Subramanian, who argued for a pre-emptive stimulus to lift the economy from a likely contraction, to former RBI Deputy Governor Rakesh Mohan, who underlined that India today has the ability to sustain high fiscal deficits for short periods, and must use this to provide relief to workers and small businessmen hit by this enforced standstill.
Nifty call: Short on rallies with stop-loss at 9,420
The Indian benchmarks today witnessed a huge gap-down open and the Nifty spot and the Sensex spot indices are down for the day by 4.9 per cent and 5.2 per cent, respectively. The Asian markets too are under pressure where the Hang Seng is down by a little over 4 per cent, and the Kospi is down by 2.8 per cent.
India’s manufacturing sector activity hits record low in April amid lockdown: PMI
The country’s manufacturing sector activity witnessed an unprecedented contraction in April amid national lockdown restrictions, following which new business orders collapsed at a record pace and firms sharply reduced their staff numbers, a monthly survey said on Monday.
SENSEX STOCKS
NSE SECTORAL INDICES
NSE SECTORAL INDICES
Gold Rates
How sovereign gold bonds outshine other asset classes
Those who have invested in the sovereign gold bonds (SGBs) issued over the past five years have a reason to smile. The prices of these SGBs have grown significantly and delivered handsome returns to investors.
Rupee plunges 67 paise to 75.76 against US dollar
The rupee depreciated 71 paise to 75.80 against the US dollar in opening trade on Monday tracking selloff in domestic equities and strengthening American currency overseas.
Silver Lake to invest Rs 5,655 crore in Jio Platforms
Global private equity major Silver Lake Partners has entered into an agreement to acquire to invest Rs 5,655.75 crore in Jio Platforms, a wholly-owned subsidiary of Reliance Industries Ltd, in lieu of 1.5 per cent.
Daily Rupee call: INR expected to descend
For the week, the rupee (INR) has opened with a substantial gap-down, at 75.71 versus previous week’s close of 75.1 against the dollar (USD)
Banking stocks react on BSE; Index down 8%
The S&P BSE Banking Index has lost 8% today 22,987 in the late morning session. The index moved up 12 % over the last one month.
Among the constituents of the index, ICICI Bank Ltd declined 9 per cent today to trade at Rs 346.05. IndusInd Bank lost 8.70% to Rs 427.25 and RBL Bank lost 8.6%. The S&P BSE Banking index went down 23 % over last one year compared to the 17 fall in benchmark Sensex.
BSE BANKEX CHART
Metal index plunges 8 per cent on BSE
The S&P BSE Metal index is down 8.60% at 6,194.22 in the late morning session. The index moved up 14 % over the last one month.
Among the constituents of the index, Jindal Steel & Power Ltd tumbled over 10 per cent today to trade at Rs 84.75. Hindalco Industries Ltd declined 10% and Vedanta Ltd lost 9.6%. The S&P BSE Metal index went down 45.77 % over last one year compared to the 17.43% fall in benchmark Sensex.
Jindal Steel & Power Ltd has risen 34.1% over last one month compared to 14.02% gain in S&P BSE Metal index. On the BSE, 3.14 lakh shares were traded in the counter so far compared with average daily volumes of 16.88 lakh shares in the past one month. The stock hit a record high of Rs 202.4 on Feb 11, 2020. The stock hit a 52-week low of Rs 62.1 on Apr 03 this year.
Crude oil crash: High frequency firms saw large profits
Tech-driven high frequency trading (HFT) firms earned lion’s share of profit from their crude oil bets on the Multi Commodity Exchange (MCX) on April 20, when oil prices turned negative.
Dollar firm but stocks, oil under pressure as US-China tensions rise
The dollar rose, oil fell and stock markets were poised to slip on Monday as rising United States (US)-China tensions over the coronavirus - and growing unease at the gulf between asset prices and grim economic reality - turned investors cautious.
SENSEX STOCKS
Opening session
Key stock indices plunged in the red in the opening session on Monday tracking weaking across other Asian markets. Nikkei and Hang Seng fell 3 per cent in today's session. Markets turned extremely negative reacting to a report that quoted Donald Trump saying that the US would impose fresh tariffs on China for Covid19.
Markets turned weak following sell-off in heavyweights such as Indus Ind Bank, ICICI Bank, Bajaj Finance, Tata Steel, Tech Mahindra, ONGC, HDFC Bank and Bajaj Auto which fell between 6 per cent and 9 per cent in early trades. However, Cipla and Sun Pharma were the gainers today rising up to 1.50 per cent.
The 30-share BSE barometer registered 1,450 points loss, or 4.30%, to 32,267.95. It ended on Friday 33,717.62.
Similarly, the NSE Nifty plunged 426.85 points, or 4.33 per cent, to 9,433.05 from its previous close.
Oil prices lower on US-China trade tension
Oil prices fell in early trade on Monday, paring last week's gains, on worries the global oil glut may persist as United States (US)-China trade tension could hold back an economic recovery even as coronavirus pandemic lockdowns start to ease
Consider a plain vanilla call on ITC
The long-term outlook for ITC (Rs 182) remains negative. The stock finds crucial support at Rs 166 and the major one at Rs 147. ITC finds immediate resistance at Rs 191 and a crucial one at Rs 207. A conclusive close above latter has the potential to lift the stock towards Rs 238. The long-term outlook will turn positive on closing above Rs 255.
HNIs cash in on market crash to raise stake in BSE 500 stocks in March quarter
The sharp decline of over 30 per cent in most stock prices in the March quarter may have rattled many, but high networth individuals (HNIs) seem to have been on a buying spree in that period.
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