Market updates: Sensex, Nifty close 5% lower; troubled Yes Bank gains 30%

Closing Bell:

The benchmark indices today ended on a negative note. The two started off with the shock from the oil market. Thus taking cues from world markets, the Indian indices dropped drastically. The coronavirus fear had a tight grip on the markets.

The broader benchmark NSE Nifty ended at 10,451.45, a drop of 538 points or 4.90 per cent. All the sectoral indices also ended in red. The list was led by Nifty Metal (7.72% drop), Media (6.67%) and PSU Bank (6.07%). Yes Bank and BPCL were top gainers with 30.96 and 4.55 per cent increase, respectively. ONGC and Vedanta were the top laggards with over 15 per cent change.

The 30-pack indice BSE Sensex closed at 35,634.95, dropping 1941.67 points or 5.17 per cent. All the stocks in this indice were in red, starting with ONGC falling 16.26 per cent and Reliance dropping 12.35 per cent. About 360 stocks advanced, 2193 declined and 172 remained unchanged. All the sectoral indices were in negative with BSE Energy dropping the maximum.

Coronavirus impact to peak in April-May, says Morgan Stanley

The impact on the global economy from coronavirus could peaks in April-May, and growth will recover from third quarter of 2020, according to analysts at Morgan Stanley. “We expect that the effects from disruption will fade and global growth will recover from 3Q20, rising to an average of 3.1 per cent in 2H20,” Morgan Stanley said in a research report.

However, the global GDP growth will decelerate to 2.3 per cent in 1H20 – the weakest since the global financial crisis. “The outbreak has already prompted a policy response, and we expect more easing in the coming months. The global monetary easing cycle will be extended as the Fed delivers 75 bp of cuts by 2Q20, while the ECB and BoJ temporarily increase asset purchases,” the report said. Read more on Morgan Stanley's view on coronavirus impact

NSE 52 week-low stocks:

Around 646 securities touched their 52-low today on NSE.

NSE Nifty sectoral trends:

Tata Steel directors approve raising  ₹670 cr via NCDs

Tata Steel said the committee of directors has approved raising  ₹670 crore through issuance of debt securities.

The decision was taken at a meeting of the Committee of Directors, which is constituted by the board, on March 9, the company said in a BSE filing.

A total of 6,700 non convertible debentures (NCDs) of face value ₹10,00,000 each would be issued aggregating to  ₹670 crore, the filing added.

Yes Bank scam: CBI searches 7 locations in Mumbai; Rana Kapoor’s family named as accused

The CBI carried out searches at seven locations on Monday in connection with the Yes Bank scam case pertaining to the ₹600 crore alleged bribe to the family of its co-founder Rana Kapoor by DHFL, officials said.

The CBI has named in the FIR five companies, seven individuals, including Kapoor’s wife and three daughters, and unidentified people.

Besides Rana Kapoor, the agency has booked his wife Bindu, daughters Roshini, Raakhe and Radha.

Kapil Wadhawan, promoter of Dewan Housing Finance Corporation Limited (DHFL) and Dheeraj Rajesh Kumar Wadhawan, Director of RKW Developers Private Limited, a company linked to DHFL have also been named as accused, the officials said. - PTI

Why you should accumulate Bajaj Auto

Though the worst of the auto slowdown seems to be behind us, domestic auto sales may take some time to recover. In this context, Bajaj Auto, which gets a chunk of its revenues from the international markets, is in a relatively comfortable position. Exports bring in higher margins than domestic sales on account of greater pricing power for the company in this segment. A stable business outlook for its international market places Bajaj Auto in a sweet spot. The company will begin to fire on all cylinders once domestic two-wheeler sales pick up.  Read about the technicals of Bajaj Auto here.

Bonds reach new high since 2009 as crude oil prices fall

Sovereign bonds in India rose to their highest since 2009, amid rising risks to the nation’s financial system and as a slide in global crude prices added to hopes that the Reserve Bank of India will soon resume its rate cuts and take measures to bolster liquidity. However, stocks and the rupee fell.

The yield on the benchmark 10-year debt slid as much as 13 basis points to 6.05 per cent, a level last seen in 2009. The main equity index, S&P BSE Sensex, was down more than 4 per cent, while the rupee weakened 0.1 per cent. Read  more about the bonds' boom over oil crash

Noon round-up:

The benchmark indices have been in a downward spiral since the opening senssion. The fear of coronavirus has been impacting markets since past week, but today's oil price cut added extra pressure on the world market.

The 30-pack Sensex on dropped over 2,000 points, trading at 35,547. All the stocks in this pack have been in red since the open, with ONGC and Reliance losing the most. About 273 stocks advanced, 2080 declined and 135 remained unchanged.

The broader indice NSE Nifty was at 10,436.05, dropped 553.40 or 5.04 per cent. All the sectoral indices are in red, led by metal and private banks dropping over seven and six per cent, respectively. Nifty 100 and small cap 50 shed around five per cent.

Indiabulls Housing Finance shares plunge over 13%

Shares of Indiabulls Housing Finance on Monday tripped over 13 per cent after the company said it had an exposure of ₹662 crore in the form of bonds to Yes Bank and it has no term loans outstanding from the lender.

On the BSE, the stock plunged 12.85 per cent to ₹221.70. It fell 13.18 per cent to ₹220.95 on the NSE.

“Yes Bank owes to Indiabulls Housing Finance ₹662 crore via additional tier 1 (AT-1) bonds,” according to a regulatory filing.

The investments in AT-1 bonds of Yes Bank were made in 2017, as part of its treasury management of over ₹20,000 crore of cash and when the bank was worth over $10 billion in value, the filing said.

BSE Sensex: All in red

Bank recast possible by week's end, says Yes Bank admin

According to Reuters updates, Yes Bank Administrator Prashant Kumar said to a media house, that the bank is likely to release quarterly results on March 14. He also said that there is absolutely no question of merger with State Bank of India.

The update also reads that if the bank is not confident of raising capital, then there is a contingency of merger. Kumar also said that the new board will decide the fate of CEO Ravneet Gill.

Reconstruction of bank could be possible as early as end of this week, Kumar added. - Reuters

It’s a jackpot: At $32/barrel of crude, government will save whopping $52 billion in crude import bill

The oil market is in a tailspin. Brent crude prices have cracked to $32/barrel today, down 25 per cent from Friday’s close, following Saudi Arabia starting a price war with Russia by dropping its selling prices sharply. Goldman Sachs is now predicting the price to fall to $20/barrel if the war between OPEC members exacerbates and it fails to reach a deal on production cuts.

 According to a Reuters report, Saudi Arabia is preparing to increase its production above the 10 million barrels per day mark; the current production is 9.7 million barrels per day and there is capacity to ramp it up to 12.5 million barrels per day.

Oil prices have been falling following slump in demand due to shutdown in China on the coronavirus outbreak.

This, however, has come as good news for India that has been struggling to manage its current account deficit. Click here to read more on how drop in oil prices is good news for India

DLF board approves issue of NCDs

DLF Ltd's  board of directors has approved the issuance of listed, secured, redeemable, non-convertible debentures (NCDs), with an aggregate principal amount up to ₹1,000 crore, on a private placement basis.

Ahluwalia Contracts  receives orders worth ₹661 crore

Ahluwalia Contracts (India) Ltd  secured new orders aggregating to ₹129 crores (approx.) for Electrical Works of Medical College in Haryana, awarded from Haryana PWD, B&R. It also receives order of ₹532 crores for Construction of Steel and Structure non-resident building in New Delhi. It was  awarded by CPWD, New Delhi.

The total order inflow during the FY 2019- 20 stands at Rs.3900.96 Crores.

IndusInd Bank scraps proposal for bond issue

The bank scrapped the proposal for issue of debt securities because of  the current market conditions. The board also felt that the bank is adequately capitalised at present.

NSE Nifty gainers and losers:

Opening round-up:

Equity benchmark Sensex plummeted over 1,500 points in opening session on Monday led by deepening rout in global markets amid volatility due to rapidly-spreading coronavirus and free falling oil prices.

Global oil benchmark Brent crude futures plunged nearly 30 per cent to USD 32.11 per barrel after top exporter Saudi Arabia launched a price war in response to a failure by leading producers to strike a deal to support energy markets.

Continuing its downward spiral, the 30-share index was plunged 1515.01 points, or 4.03 per cent, to 36,061.61. The NSE Nifty too cracked 417.05 points, or 3.80 per cent, to 10,572.40.

In the previous session, the 30-share BSE barometer settled 893.99 points or 2.32 per cent lower at 37,576.62. Likewise, the Nifty tanked 279.55 points or 2.48 per cent to close at 10,989.45.

On a net basis, foreign institutional investors sold equities worth Rs 3,594.84 crore, while domestic institutional investors bought shares worth Rs 2,543.78 crore on Friday, data available with stock exchanges showed.

ONGC was the top laggard in the Sensex pack, nosediving up to 11 per cent, followed by IndusInd Bank, RIL, PowerGrid, Tata Steel, L&T, SBI and Tech Mahindra.

Sun Pharma was the sole gainer.

According to traders, investor sentiment took fresh beating as oil prices plunged nearly 30 per cent, adding to the heightened volatility in global markets amid concerns over the rapidly-spreading coronavirus. - PTI

Yen and euro soar as investors eye safety amid coronavirus worries

The safe-haven yen soared, the euro jumped after US treasury yields dropped and export sensitive currencies fell to multi-year lows on Monday as coronavirus fears routed global markets.

The yen jumped more than 3 per cent to a day high of 101.69 per dollar, its highest in three years and the sharpest daily jump since mid-2016.

The euro rose more than 1.4 per cent to an almost two-year peak of $1.1452. The Australian and New Zealand dollars both lost more than 2 per cent, with the Aussie hitting a fresh 11-year low. Against the yen, the Aussie and Kiwi lost more than 5 per cent. Read more on the forex market here

Sensex falls over 1362.74 or 3.63 per cent, is now at 36,213.88.

World shares trampled in coronavirus panic, oil prices plunge

Global share markets tumbled on Monday as panicked investors fled to bonds to hedge the economic shock of the coronavirus, and oil plunged more than 20 per cent after Saudi Arabia slashed its official selling price.

Investors drove 30-year US bond yields beneath 1per cent as they wagered the Federal Reserve would be forced to cut interest rates by at least 75 basis points at its March 18 meeting, despite only just having delivered an emergency easing.

The safe-haven yen surged across the board as emerging market currencies with exposure to oil, including the Russian rouble and Mexican peso, tumbled.

Saudi Arabia had stunned markets with plans to raise its production significantly after the collapse of OPEC's supply cut agreement with Russia, a grab for market share reminiscent of a drive in 2014 that sent prices down by about two thirds. Click here to read more on world markets

Opening Bell:

The benchmark indices open on a strong negative note. The 30-share BSE Sensex opened at 36,452.87, a dropping 1123.75 or 2.99 per cent.

The broader benchmark indice opened at 10,663.60, falling 325.85 or 2.97 per cent.

All the sectoral indices are under pressure.

Weekly Trading Guide: SBI might extend the decline

SBI (₹270.5)

The stock of SBI tumbled throughout the past week, and on Friday it registered a five-month low of ₹253.95. The trend during the preceding week was already on the downside and the price remained below both the 21- and 50-day moving averages as the stock continued to exhibit a bearish bias. The stock has thus closed with a loss for the second consecutive week hinting that the bears are gaining traction. Substantiating the downtrend are the oscillators in the daily chart. The relative strength index has come down sharply along with the price, showing considerable strength in the bearish trend. On the other hand, the moving average convergence divergence indicator has extended further into the bear zone, indicating a significant downward momentum. Since the overall trend is bearish and there are no signs of a reversal, traders can continue to take bearish view and short the stock on rallies. Place stop-loss at ₹295. On the downside, the supports are identified at ₹260 and ₹248, which can be the potential targets. The nearest resistances from the current market price are at ₹283.5 and ₹292.

For more on the trading guide or other stocks read here.

Oil prices drop by 30 per cent

Oil fell by the most since 1991 on Monday after Saudi Arabia started a price war with Russia by slashing its selling prices and pledging to unleash its pent-up supply onto a market reeling from falling demand because of the coronavirus outbreak.

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