Closing trade

Equity benchmark Sensex ended 62 points higher after a volatile session as risk sentiment remained subdued amid rising coronavirus cases in the country.

Despite rebounding over 386 points during the day, the 30-share index pared most gains to settle 62.45 points or 0.18 per cent higher at 35,697.40. On similar lines, the broader NSE Nifty closed 6.95 points or 0.07 per cent up at 10,458.40.

Top gainers in the Sensex pack included Hero MotoCorp, Reliance Industries, ICICI Bank and L&T, while Tata Steel, IndusInd Bank, ONGC, SBI and Infosys ended significantly lower.

According to analysts, equity benchmarks gave up most gains as nervousness heightened among investors amid rapidly increasing coronavirus cases in the country and mixed cues from global markets.

The number of confirmed cases of coronavirus in India has risen to 60. The coronavirus epidemic has wreaked havoc across the world, killing more than 4,000 people and leaving close to 120,000 infected.

Bourses in Shanghai, Hong Kong, Seoul and Tokyo ended with significant losses, while those in Europe rallied up to 2 per cent in early trade.

Brent crude oil futures slipped 2.02 per cent to USD 36.47 per barrel, after Saudi Arabia hiked production by one million barrels a day.

On the currency front, the Indian rupee appreciated 46 paise to 73.70 per US dollar (intra-day). - PTI

Vodafone Idea shares rally

Equity mutual funds inflows

Inflows into equity mutual funds surged to Rs 10,730 crore in February, the highest level in 11 months, even as the broader market witnessed heavy volatility amid concerns over the impact of coronavirus.

Overall, the mutual fund industry witnessed a net outflow of Rs 1,985 crore across all segments, mainly owing to withdrawal from liquid or money market category. Net inflows into equity and equity-linked schemes rose from Rs 7,547 crore in January to Rs 10,760 crore in February, data by the Association of Mutual Funds in India showed on Wednesday. Click here to read more on the equity mutual funds inflow here

Global markets

Stock futures in London and across Europe jumped on Wednesday after the Bank of England joined other major central banks in cutting interest rates to offset economic damage caused by the coronavirus outbreak.

FTSE futures were up 0.75 per cent. Euro Stoxx 50 futures were up 1.1 per cent at 2,946, German DAX futures rose 0.73 per cent, and France's CAC 40 futures were up 1.46 per cent.

In contrast, Asian shares and US stock futures both fell as growing scepticism about Washington's stimulus efforts to fight the coronavirus outbreak knocked the steam out of an earlier rally. Read the full global stock markets report here

Sensex, Nifty edge higher

The benchmark indices, after a choppy morning session, are trading over 0.70 per cent in the late afternoon session. The BSE index Sensex is rallying 286.51 points or 0.80 per cent higher higher at 35,921.46 while the NSE index Nifty is trading higher by 76.20 points or 0.73 per cent at 10,527.65.

The top stocks cushioning the Sensex pack are Reliance, Hero MotoCorp, ICICI Bank, HDFC and Hindustan Unilever while the laggards are Tata Steel, IndusInd Bank, Sun Pharma, ONGC and State Bank of India.

In the NSE index, the stocks of Yes Bank, Zee Entertainment, Coal India, Infratel, and Hero Motocorp were the leaders in the positive zone while the top scrips in the red were GAIL, Tata Steel, Tata Motors, BPCL and IndusInd Bank.

Sectorally, the energy index emerged top gainer trading higher by 3.04 per cent while the realty sector stocks were the biggest loser.

Bank of England cuts interest rate

Members of the Bank of England's Monetary Policy Committee voted to cut Bank Rate for the first time since August 2016.

The Bank of England unexpectedly cut interest rates by half a per cent in a shock move to bolster Britain's economy against disruption caused by the coronavirus outbreak.

Members of the BoE's Monetary Policy Committee voted to cut Bank Rate for the first time since August 2016, to 0.25 per cent from 0.75 per cent, the central bank said in a statement. “Although the magnitude of the economic shock from Covid-19 is highly uncertain, activity is likely to weaken materially in the United Kingdom over the coming months,” the BoE said. Read more on the monetary policy of Bank of England

RBL Bank says it is financially strong

“The management of RBL Bank wishes to address the prevailing concerns around the bank, which is based on misinformation, and warrants clarification,” it said in a statement.

India Inc's monthly ECB

The spike in overseas borrowing is propelled by two big ticket borrowings worth $1 billion each by telecom major Bharti Airtel and Export-Import Bank Of India (EXIM Bank) during the month. In contrast, Indian corporates raised $2.4 billion during the same month last year.

According to RBI data, Indian corporates collectively raised about $40.51 billion of overseas funding in the first 10 months of the current fiscal. The borrowing is tad lower than India Inc's historic high borrowing of $41.07 billion in FY19. Click here to read more on External Commercial Borrowings of Indian corporates.

Nifty Call

Taking weak cues from the Asian markets, the Sensex and the Nifty started the session in the negative territory and entered the positive territory.

The Nifty March month contract started the session with a gap-down open at 10,382. After marking an intra-day low at 10,335 the contract began to trend upwards and breached the key resistance at 10,450. Read the Nifty Call for March Futures here

Reliance Industries shares rally

Shares of Reliance Industries rebounded nearly 6 per cent after plunging over 12 per cent in the previous session. The stock was trading 3.49 per cent up at ₹1,152.05 on the BSE. In early trading hours the stock gained as much as 5.8 per cent to ₹1,178.40.

Afternoon session

The BSE index Sensex rallied over 300 points in the afternoon session while the NSE index breached the 11,500 mark in the afternoon session. The Sensex was trading higher by 342.30 points or 0.96 per cent at 35,977.25 while the Nifty was hovering at 10,543.55, higher by 92.10 points or 0.88 per cent.

The top gainers that lent support to the Sensex pack were Reliance, ICICI Bank, HDFC, HDFC Bank and Hindustan Unilever while the scrip dragging the index were Infosys, ITC, IndusInd Bank, Tata Steel and State Bank of India.

While the energy stocks emerged the biggest gainer among the sectoral indices, the realty stocks were the major loser.

In the broader index, Yes Bank, Zee Entertainment, Infratel, Hero Motocorp, and Reliance were the top stocks in the positive zone, the scrips of GAIL, Tata Steel, BPCL, Grasim, and Tata Motors were leading in the red.

Yes Bank share rally

Shares of Yes Bank continued to gain for the second consecutive session on Wednesday, rallying up to 28 per cent, as investor sentiment turned positive after SBI said it will buy a 49 per cent stake in the cash-strapped lender. The scrip spiked up to 28 per cent to ₹27.20 on the BSE. On the NSE, it jumped by similar margins to ₹27.20. Read more on the stock activity of Yes Bank here

AT-1 bonds are inherently risky

The Additional Tier-1 bonds (AT-1) issued by banks are inherently risky as they can be written down or converted into equity if the issuer bank runs into trouble. But investors have still flocked to these bonds misled by the relatively higher ratings they carry in India.

Even as YES Bank depositors wait for the cap on withdrawals to be lifted, holders of the bank’s AT-1 bonds have moved quickly to set things right.

Top events that could send ripples across the financial system in India

Investors will get crucial clarity in the coming days on the health of India’s financial sector. The nation’s biggest developer, Lodha Developers, is racing to refinance $324 million debt maturing March 13, and any stumble could lead to one of India’s largest offshore bond defaults. Then, a day later, Yes Bank is due to announce its results, which would shed light on what pushed authorities to seize the lender last week. Finally, March 17 is the deadline for Vodafone Group’s struggling Indian unit to pay $4 billion in overdue fees to the government — if it opts for bankruptcy instead, the impact will ripple across the financial system. Here's more on the major events that could change the health of India's financial system this week

Welspun Corp bags new order

Welspun Corp has secured a major offshore pipes supply contract in Australia for the Barossa offshore Development project from Allseas Marine Contractors Australia PTY Ltd, the company said in a filing to BSE. The contract scope comprises manufacturing and supply of pipes for critical offshore application.

The stocks of Welspun Corp were trading 8.36 per cent lower at Rs 114.

Indices bounce back

The benchmark indices after edging lower amid coronavirus fears bounced back in the mid-morning trade. The 30-share BSE index Sensex was trading 104.55 points or 0.29 per cent higher at 35,739.50 and the broader index Nifty was trading at 10,464.05, higher by 12.60 points or 0.12 per cent.

The Reliance Industries' stocks emerged the biggest gainer surging nearly 4.64 per cent. Among the sectoral indices, the energy stocks index zoomed 2.54 per cent to 3,951.85 while the IT stocks were among the major losers.

The top five stocks leading the positive pack were Hero Motocorp, Reliance, ICICI Bank, Bajaj Auto and Bajaj Finance while the scrips of Tata Steel, Infosys, Sun Pharma, IndusInd Bank and Ultratech Cement were the among the top losers in the Sensex pack.

In the 50-share NSE index, the stocks of Yes Bank, Zee Entertainment, Infratel, Hero Motocorp and Reliance were the top gainers while the laggards were GAIL, BPCL, Tata Steel, Indian Oil Corporation and Infosys.

SBI cuts MCLR

This is 10th consecutive cut in MCLR by State Bank of India in the current fiscal.

State Bank of India has cut interest rates on retail domestic term deposits (below ₹2 crore) of one year and above by 10 basis points (bps). It has also cut rates on domestic bulk term deposits (₹2 crore and above) of one year and above, and 180 days and above, by 15 bps, with effect from March 10.

India’s largest bank has also cut its marginal cost of fund-based lending rate (MCLR) across tenors by 10-15 bps with effect from February 10. This is the tenth consecutive MCLR cut by the bank in the current fiscal. One bp equals one-hundredth of a percentage point. Click here to read more on the SBI's interest rates and MCLR

Commodities market

File photo

Oil prices climbed for a second day as hopes US producers would cut output lent support, but gains were capped by growing doubts about Washington's stimulus package to fight the coronavirus, which continues to spread globally.

Brent crude futures rose $1.26, or 3.4 per cent, to $38.48 a barrel by 0418 GMT, while US West Texas Intermediate (WTI) crude gained $0.91, or 2.7 per cent to $35.27 a barrel. They have recouped nearly a half of the Monday's 25 per cent loss, which was triggered by the clash of oil titans Saudi Arabia and Russia.

Oil and equity markets staged solid rebounds on Tuesday after the previous day's pummelling, on signs of co-ordinated action by the world's biggest economies to cushion the economic impact of the epidemic. Click here to read the complete commodities market report here

Choppy trade as coronavirus fears linger

The shares edged lower in volatile trade, as conglomerate Reliance Industries Ltd gained on the back of a bounce in oil prices, although worries over the rapid global spread of the coronavirus capped gains.

The NSE Nifty 50 index was down 0.25 per cent or 25.90 points at 10,425.55, while the benchmark S&P BSE Sensex lost 0.13 per cent or 45.96 points to 35,588.99.

Reliance Industries climbed 5.8 per cent and was headed for its best session since mid-September, following a 12.3 per cent plunge on Monday, as oil prices climbed for a second day on hopes that US producers would cut output after Saudi Arabia and Russia triggered a price war.

“Markets have really nothing to look forward to, with Washington's stimulus package still awaited and virus cases on the rise,” said Neeraj Dewan, director at Quantum Securities.

US President Donald Trump said earlier this week he would take “major steps” to ease economic strains caused by the virus, but the lack of major announcements since then has left some investors unimpressed. “While the rebound in crude prices might provide some support, markets may not sustain gains unless European markets open higher or U.S. futures reverse,” Dewan said.

US stock futures were down 2.2 per cent and MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.29 per cent in early Asian trade as the virus rapidly spread outside China, claiming more than 4,000 lives and disrupting global supply chains.

In Mumbai trading, Yes Bank Ltd jumped nearly 40 per cent and was the top gainer in the Nifty 50. The stock was headed for its second session of sharp gains after plunging 56.1 per cent on Friday as the central bank took over its board and initiated a rescue plan.

IT stocks, meanwhile, took a beating, with the Nifty IT index dropping 3.4 per cent to an over one-year low. Infosys Ltd slid 5% to its lowest since October 31. - Reuters

Top hedge fund hoards cash as market sell-off rumbles on

Avendus Capital Public Markets Alternate Strategies LLP has been unwinding its investments to raise cash holdings to the highest in several years, Vaibhav Sanghavi, who helps oversee the firm's funds as co-chief executive officer, said.

Currency market

At the interbank foreign exchange the rupee opened at 73.88. File Photo

The Indian rupee recovered 33 paise to 73.84 against US dollar in early trade amid positive opening in domestic equities and weakening of the American dollar in the overseas market.

At the interbank foreign exchange the rupee opened at 73.88, then gained further ground and touched a high of 73.84 against the US dollar, registering a rise of 33 paise over its previous close. The domestic currency, however, could not hold on to the gains and was trading at 73.96 against the American unit. More on the local currency market report, read here

Stocks rally

Equity benchmark Sensex rallied over 300 points in opening session led by gains in Reliance Industries, ICICI Bank and HDFC amid mixed cues from global markets. However, it slipped into the red led by losses in metal and IT stocks.

After surging 308 points in highly volatile trade, the 30-share index was down 47.49 points, or 0.13 per cent, at 35,587.46, and the NSE Nifty rose 54.05 points, or 0.52 per cent, to 10,397.40.

Top gainers in the Sensex pack included Reliance Industries, Bharti Airtel, Hero MotoCorp, ICICI Bank and PowerGrid. On the other hand, ITC, Tata Steel, Tech Mahindra, Infosys and UltraTech Cement were among the laggards.

In the previous session on Monday, the BSE Sensex crashed over 1,941 points and the NSE Nifty tumbled 538 points, positing their biggest ever single-day drop in absolute terms.

On a net basis, foreign institutional investors (FPIs) sold equities worth Rs 6,595.56 crore, while domestic institutional investors bought shares worth Rs 4,974.80 crore on Monday, data available with stock exchanges showed.

Market remained closed on Tuesday on account of Holi. According to traders, domestic market rebounded from Monday’s lows, but turned increasingly volatile as no respite from the rapid spread of coronavirus seems in sight.

Global stocks too gave mixed signals with bourses in Shanghai and Hong Kong trading on a positive note, while those in Seoul and Tokyo dropping over 1 per cent. Stock exchanges in the US ended sharply higher on Tuesday on hopes of US economic stimulus efforts as the coronavirus continued to spread rapidly.

The rupee appreciated 23 paise to 73.93 against the US dollar in morning session.

Global oil benchmark Brent crude futures jumped 3.41 per cent to USD 38.49 per barrel. - PTI

Daily Rupee call

The rupee has opened higher at 73.86 compared to prior close of 74.08. However, the trend is bearish and so the recovery might be limited; 73.5 is a considerable hurdle. So, for intraday, traders can short rupee on rallies with 73.5 as the stop-loss. Read our daily rupee call here

US stock markets

All three major indexes jumped nearly 5 per cent.

Wall Street roared back to life on Tuesday, rebounding from the brink of bear market confirmation as bargain-hunting and hopes of government stimulus calmed investors' fears surrounding the coronavirus and growing signs of imminent recession.

All three major indexes jumped nearly 5 per cent the day after equities markets suffered their biggest one-day losses since the 2008 financial crisis. Still, the S&P 500 and the Nasdaq ended the session about 15 per cent below the record closing highs reached on February 19. Click here to read more on the US stock markets report

Choppy trade

After opening the session in red, the indices surged over 0.50 per cent in the opening trade. After trimming the gains, the Sensex and Nifty are trading marginally higher in the morning session.

The 30-share BSE index Sensex was trading 60.61 points or 0.17 per cent at 35,695.56 while the broader index Nifty was trading 5.70 points or 0.05 per cent at 10,457.15. The Nifty had briefly breached the 11,500 mark in the early session.

The IT stock emerged top loser, trading lower by 1.40 per cent, followed by metal and realty stocks. The top gainers in the Sensex pack were Reliance, Hero MotoCorp, PowerGrid, ICICI Bank and Bajaj Finance while the laggards were Infosys, ITC, Tata Steel, Hindustan Unilever and HCL Technologies.

In the NSE index, the top stocks in the positive pack were Yes Bank, Zee Entertainment, Infratel, Reliance and Hero MotoCorp while the scrips in red were GAIL, BPCL, JSW Steel, Cipla and Hindalco.

Asian markets

MSCI's broadest index of Asia-Pacific shares outside Japan down 0.29 per cent

Asian shares and Wall Street futures fell as growing scepticism about Washington's stimulus package to fight the coronavirus outbreak knocked the steam out of an earlier rally. Markets had been recovering from a brutal global selloff on Monday that was triggered by the double shock of an oil price crash and the worsening outbreak.

Those gains looked short-lived in early Asian trade, with US stock futures falling 2.2 per cent and MSCI's broadest index of Asia-Pacific shares outside Japan down 0.29 per cent. Read the Asian stock markets report here

Stocks in focus

Shares of Music Broadcast , owners of Radio City and a subsidiary of Jagran Prakashan, will turn ex-bonus on Thursday. (Markets are closed on Tuesday due to Holi festival). The company has declared one bonus share for every four held in the company for which it has fixed March 13 as the record date. Investors who wish to receive the bonus shares need to buy Music Broadcast shares by the end of Wednesday. According to BSE, it has not rewarded its shareholders with bonus shares so far.

Mangalam Organics , which had applied for settlement under “Sabka Sath Sabka Vikas” scheme for tax dues under the Central Excise Act, 1944, said the dues now are settled at ₹5.12 crore and it paid the settlement amount on Monday. For long, the case has been pending before the Mumbai High Court for ₹13.42 crore. Following this, the appeal pending with the Customs Excise and Service Tax Appellate Tribunal has also been settled with nil liability and penalty, it said.

The board of directors of ABB India on Monday approved a proposal to sell the solar inverter business as a going concern on slump sale basis to Marici Solar India Private Limited, a wholly-owned Indian subsidiary of Italian company FIMER S.p.A, for ₹100.6 crore. The business transfer will be effective April 1, 2020, it said, and added the deal is likely to be completed in ‘due course’ as per the Business Transfer Agreement. For FY-2019, the arm had contributed 9 per cent to its total turnover.

Opening bell

The 30-share BSE index Sensex opened 166.05 points lower at 35,468.90 against the previous close of 35,634.95. The 50-share NSE index Nifty opened at 10,334.30, 117.15 points lower against the previous close of 10,451.45.

Day Trading Guide

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

₹1100 • HDFC Bank

₹703 • Infosys

₹177 • ITC

₹74 • ONGC

₹1113 • Reliance Ind.

₹253 • SBI

₹1972 • TCS

10462 • Nifty 50 Futures

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

Today's Pick

We recommend a sell in the stock of Wockhardt at the current levels of Rs 271.4. The stock took support from its long-term base level of ₹233 in early January this year and started to trend upwards. After a short-term uptrend, the stock had encountered a key long-term resistance at ₹400 in early February.

The recent fall has conclusively breached the 50- and 200-Day Moving Averages and the stock trades well below these moving averages. Read our stock recommendation and stock activity of Wockhardt here

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