Sensex slumps 674 points to 27,590; banking stocks slide

Closing bell

Equity benchmark Sensex tumbled 674 points on Friday, weighed by losses in banking stocks as an unabated spike in new Covid-19 cases fuelled uncertainty over the economic impact of the pandemic.

After hitting a low of 27,500.79 during the day, the 30-share BSE barometer ended 674.36 points or 2.39 per cent lower at 27,590.95. The NSE Nifty shed 170 points, or 2.06 per cent, to finish at 8,083.80.

Axis Bank was the top loser in the Sensex pack, cracking over 9 per cent, followed by IndusInd Bank, ICICI Bank, Titan, SBI, Maruti, HDFC and Asian Paints.

On the other hand, Sun Pharma, ITC, ONGC, M&M and Tech Mahindra were among the gainers.

With fresh cases of novel coronavirus mounting by the day, concerns over a looming economic recession kept investors on the edge, traders said. 

The Asian Development Bank warned on Friday that the Covid-19 pandemic could cost the global economy $4.1 trillion as it ravages US, Europe and other major economies.

It also said that India’s economic growth rate will slip to 4 per cent in the current fiscal.

The number of Covid-19 cases in India has crossed 2,300 while the death toll rose to 56, according to the Health Ministry.

The number of confirmed coronavirus cases around the world has soared past one million and fatalities have topped 50,000 as the US reported the highest daily death toll of any country so far.

Bourses in Shanghai and Hong Kong ended in the red, while those in Seoul and Tokyo closed with mild gains. Stocks in Europe were also trading with significant losses in early deals.

On the currency front, the rupee depreciated 55 paise to 76.15 against the US dollar in intra-day trade. Brent crude futures, the global oil benchmark, rallied 8.15 per cent to $32.36 per barrel amid hopes that Russia and Saudi Arabia will end a price war by slashing crude output. - PTI

Dollar resumes climb as investors bid for safety

The dollar resumed its climb versus major currencies on Friday as investors once again made safety bids, amid a worsening economic fallout from the coronavirus pandemic.

The greenback index is on course for a near 2.5 per cent gain over the week, after it whipsawed last month from highs on a scramble for cash, before slumping as the US Federal Reserve flooded the market with liquidity.

Indecision among euro zone governments about a rescue package for economies hit by the outbreak has weakened the euro in recent days, helping the dollar to its best day in two weeks against the single currency on Thursday. Click here to read more on the global forex markets .

Nippon India reopens small cap fund

Nippon India Mutual Fund has reopened its small cap fund for lumpsum investment and removed all restriction on investments which was imposed in 2018. Click here to read in full the report on Nippon India reopens small cap fund .

European shares dip on corporate pain from coronavirus; insurers take a hit

European stock markets headed lower on Friday, erasing meagre gains for the week, as more companies flagged a hit to business from the coronavirus pandemic, foreshadowing a deeper earnings recession ahead of the reporting season.

The pan-European STOXX 600 index fell 0.5 per cent, with insurers tumbling 3 per cent after a European Union regulator asked them to suspend dividends and share buybacks to shore up liquidity, as a halt in business activity crushes consumer demand and sparks mass layoffs. Click here to read the European markets report.

Covid-19 impact: Bonds drop on heavy government borrowing amid lockdown

Indian bonds dropped on concerns about a large government borrowing amid a nationwide lockdown that has diminished trading activity in Mumbai.

The benchmark 10-year bond yield surged as much as 17 basis points to 6.31 per cent on Friday, its biggest intra-day jump since September, with traders getting their first chance to react to the fundraising due to the holidays on Wednesday and Thursday. The rupee declined 0.5 per cent to 75.9125 per dollar. Click here to read in full the report on bonds .

Oil falls on scepticism over Trump's Saudi-Russia output deal

Oil prices fell on Friday, coming off their biggest one-day gains in the previous session, reflecting market scepticism about a deal US President Donald Trump said he had brokered between Saudi Arabia and Russia to cut output.

Brent crude futures fell 3.2 per cent, or 97 cents, to $28.97 per barrel as of 0636 GMT, after having soared 21 per cent on Thursday.

US West Texas Intermediate (WTI) crude futures fell 4.1 per cent, or $1.04, to $24.28 a barrel, after having surged 24.7 per cent on Thursday. Click here to read in full the oil markets report .

Oil, shares slip as investors doubtful over Saudi-Russia deal

Oil prices shed some of their massive gains on Friday taking stocks in Asia lower, as doubts grew over an oil price deal between Saudi Arabia and Russia that US President Donald Trump said he had brokered.

With the coronavirus pandemic raising the risk of a prolonged global downturn, investors continued to seek the safety of the US dollar and government bonds, pushing US Treasury yields near their lowest in three weeks.

European stocks are expected to drop, with Euro Stoxx 50 futures down 0.26 per cent while German DAX futures and FTSE futures both slipped about 0.3 per cent.

US West Texas Intermediate (WTI) crude lost $1.18, or 4.7 per cent, to $24.14 a barrel, having surged a record 24.7 per cent on Thursday. Brent futures dropped $1.37, or 4.6 per cent to $28.55. Clcik here to read more on the stocks markets .

Nifty call: Sell on rallies with fixed stop-loss at 8,200 levels

The Sensex and Nifty started the session with a gap-down open and have continued to trade in negative territory. The Asian markets are mixed, the Nikkei 225 was flat at 17,820 levels, while the Hang Seng index declined 0.5 per cent to 23,165 in today's sessions. Both the Sensex and the Nifty have slumped 2 per cent and 1.7 per cent so far. The market breadth of the Nifty is biased towards declines. The India VIX, the volatility index, has tumbled 4.8 per cent to 57 levels. The Nifty mid- and small-cap indices have declined 1.4 per cent and 1 per cent respectively. Nifty Pharma, the top gainer, has jumped 4.8 per cent. Nifty FMCG is also trading in positive territory, climbing 0.5 per cent. Other sectoral indices are trading in the red; the top loser is Nifty Bank, which has plunged 3.8 per cent.  Click here to read in full the Nifty call report .

Trading Call: Canara Bank (₹85.8): Sell

The Canara Bank stock has been in a long-term downtrend. In the last week of March, it breached a key support band between ₹165 and ₹170 and this has accelerated the downtrend. It went on to register a new one-year low of ₹73.65 in March.

After making 52-week low, the stock went up gradually. But it faced a substantial resistance at ₹95. Failing to breakout of that level, the stock was largely consolidating between ₹86.5 and ₹93. Click here to read more on the Trading Call on Canara Bank .

Sensex, Nifty maintain weak undertone

The Sensex and Nifty extended their losses by mid-session on Friday. The Sensex was at 27,781, down 483 points or 1.71 per cent lower, while the Nifty dropped 122 points or 1.48 per cent to 8,131,

The top gainers in the Sensex pack were Sun Pharma (up 10 per cent), ITC (4.81 per cent), M&M (4.55 per cent), ONGC (3.88 per cent) and Bajaj Finance (3.29 per cent). The laggards in the pack were Kotak Bank (down 6.64 per cent), IndusInd Bank (down 6.38 per cent), Titan (6.07 per cent), ICICI Bank (5.47 per cent) and HDFC (down 5.06 per cent).

Among the BSE sectoral indices, healthcare gained 3.85 per cent, oil and gas 1.18 per cent and utilities 1.11 per cent. Bankex was down over 4 per cent and finance 3.03 per cent lower.

Gujarat Alkalies shares zoom 18% as company begins partial operations

Shares of Gujarat Alkalies and Chemicals jumped 18 per cent in early trade after the company said it has resumed partial operations. After hitting a high of ₹262.20, the stock is currently hovering around ₹252, a gain of about 14 per cent over the previous close.

In a notice to the stock exchanges, Gujarat Alkalies said considering the requirements of various municipal corporations and other essential industries, and after obtaining necessary permissions, it has started partial operation of caustic soda, hydrochloric acid, phosphoric acid, sodium hypo and chlorine filling facilities at its Dahej complex and also caustic soda and KOH at its Vadodara complex.

Earlier, the company had completely shut down its manufacturing operations amid the nationwide lockdown.

The company also said it had witnessed record production last fiscal. “During the financial year 2019-20, in spite of challenging circumstance, the company could achieve the highest ever production of caustic soda lye, PAC-30, H2O2 and SBP at the Dahej complex and of caustic soda lye, caustic potash lye, chloromethanes, H2O2 and chlorine at the Vadodara complex,” it said in the notice.

The stock had hit a 52-week high of ₹595 and 52-week low of ₹180.10 on the NSE during the year. - Our Bureau

Hero MotoCorp falls nearly 6 per cent after March sales data  

A representative image.

Shares of Hero MotoCorp on Friday fell nearly 6 per cent after the company reported a 42.4 per cent decline in total sales for March. The scrip declined 5.74 per cent to Rs 1,544.90 at the BSE. On the NSE, it dropped 5.88 per cent to Rs 1,543.15.

The country’s largest two-wheeler maker HeroMotoCorp on Wednesday reported a 42.4 per cent decline in total sales at 3,34,647 units for March.The company had sold 5,81,279 units in the corresponding month of the previous year, Hero MotoCorp said in a statement. - PTI

Daily rupee call: Rally may not sustain

The rupee (INR) opened at 76.05 on Friday against the previous close of 76.3, and has moved above the important level of 76 against the dollar (USD). If the domestic currency manages to sustain above 76, it can rally towards 75.7 and 75.4, which are the resistance levels on the upside. But if the unit faces selling pressure and gives up the gains, 76.3 and 76.5 can act as support levels. Click here to read more on the Daily Rupee Call

Asian stocks slip as Trump warns of horrors to come

Asian equities fell for a second session on Thursday, after a dire warning about the US coronavirus death toll had investors looking to the safety of dollars and bonds and bracing for more bad news from US jobless figures.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.2 per cent. Japan's Nikkei extended Wednesday's heavy drop with a 1.5 per cent fall, and investors are beginning to worry that equities may re-test last month's lows.

Markets in Hong Kong, Sydney, Shanghai and Seoul fell, though futures for the S&P 500 bounced following Wall Street's 4 per cent plunge overnight. Click here to read in full the Asian markets report .

Rupee slips 48 paise to 76.08 against dollar in early trade

The Indian rupee fell 48 paise to 76.08 against the US dollar in opening trade on Friday, as investors braced for a prolonged period of uncertainty as coronavirus cases witnessed a sharp rise across the world and in India.

Forex traders said a weak opening in domestic equities dragged the local unit amid mounting fears of a coronavirus-led economic slowdown.

The rupee opened weak at 75.97 at the interbank forex market and then fell further to 76.08, down 48 paise over its last close. The rupee had settled at 75.60 against the US dollar on Tuesday.

Forex markets in India were closed on April 1 for the annual closing of banks and on April 2 on account of Ram Navami. Click here to read in full the rupee report .

Sensex, Nifty trade weak

Sensex and Nifty continued to trade in the red in the morning session on Friday. The Sensex was at 27,836, down 384 points or 1.36 per cent lower, while the Nifty was at 8,155, down 98 points or 1.19 per cent lower.

The top gainers in the Sensex pack were M&M, ONGC, Bajaj Finance, ITC and PowerGrid, while the laggards were IndusInd Bank, Kotak Bank, Tata Steel, Asian Paints and Titan.

According to a PTI report, Sensex tumbled over 400 points in early trade on Friday led by losses in banking and auto stocks as investor sentiment continued to be weighed down by uncertainty over the COVID-19 pandemic and its economic impact.

In the previous session on Wednesday, the 30-share BSE barometer Sensex slumped 1,203.18 points or 4.08 per cent to finish at 28,265.31. Similarly, the NSE Nifty tanked 343.95 points, or 4 per cent, to close at 8,253.80.

Foreign institutional investors (FIIs) were net sellers in the capital market, as they offloaded equity shares worth Rs 1,116.79 crore on Wednesday, according to provisional exchange data.

Market was closed on Thursday on account of ‘Ram Navami’

With fresh cases of novel coronavirus mounting by the day, concerns over a looming economic recession are keeping investors on edge, traders said. 

The number of COVID-19 cases in India stood at over 2,500, according to a Health Ministry log.

The global tally of infections has crossed one million, with over 53,000 deaths.

On the global front, bourses in Shanghai and Hong Kong were in the red, while those in Tokyo and Seoul were trading on a positive note. 

Benchmark exchanges on Wall Street ended significantly higher in overnight trade.

Meanwhile, the Indian rupee depreciated 47 paise to 76.07 against the US dollar in morning trade.

Brent crude futures, the global oil benchmark, fell 3.44 per cent to USD 28.91 per barrel.

Oil futures had rocketed over 30 per cent on Thursday after US President Donald Trump tweeted that he expected Russia and Saudi Arabia will end a price war by slashing crude output.

Opening bell:

Sensex drops 375.34 points to 27,889.97 in opening session; Nifty tumbles 105.35 points to 8,148.45.

Day Trading Guide for April 3, 2020

Given below are supports and resistances for Nifty 50 futures and seven key stocks that can help in your intra-day trading:

₹829 • HDFC Bank

₹602 • Infosys

₹166 • ITC

₹65 • ONGC

₹1080 • Reliance Ind.

₹186 • SBI

₹1708 • TCS

8257 • Nifty 50 Futures

S1, S2 : Support 1 & 2; R1, R2: Resistance 1 & 2.

Today's Pick: Nippon Life India Asset Management (₹258.5): Buy

Investors with a short-term perspective can buy the stock of Nippon Life India Asset Management at current levels. After recording a 52-week high at ₹452.9 in late February this year, the stock changed direction and started to decline. The stock has been in a short-term downtrend since then. But it found support at around ₹200 in late March and started to trend upwards triggered by positive divergence on the daily relative strength index.

Over the past one week, the stock has been in a corrective rally. On Wednesday, the stock gained almost 4 per cent accompanied by above average volume and managed to close above the near-term resistance level of ₹250. It has rallied 6.6 per cent this week with good volume. Click here to read in full Today's Pick on Nippon Life Asset Management .

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