Sensex sinks 355 points tracking global sell-off

4.00 pm - Closing bell

Benchmark Sensex spiralled lower for the second straight session and cracked below the key 38,000-mark, with banking and realty counters taking the biggest hit amid a global sell-off triggered by renewed fears of a recession.

The BSE Sensex tumbled 355.70 points to end at 37,808.91 while the wider NSE Nifty plunged 102.65 points to 11,354.25. The Sensex has now lost over 575 points in two sessions.

Investor sentiment dampened after weaker-than-expected economic data from the US and Europe last week stoked fears of a global slowdown. The trade worries between the US and China too added to the worries, brokers said.

Besides, investors preferred to keep their portfolios at a low ebb ahead of fiscal 2018-19 coming to an end, they added.

Worries over the health of the global economy heightened last week after cautious remarks by the US Federal Reserve sent 10-year treasury yields to the lowest since early 2018. Most other Asian markets too ended sharply down, while European shares were trading lower in their opening sessions.

The 30-share Sensex, after opening lower at 38,016.76, stayed in the negative territory through the session and slipped below the 38,000-mark to touch a low of 37,667.40 on mounting selling pressure in sync with the global sell-off.

However, fag-end buying at lower levels trimmed losses to some extent. The benchmark finally ended at 37,808.91 -- down by 355.70 points or 0.93 per cent. The 50-issue NSE Nifty too cracked below the 11,400-mark and hit a low of 11,311.60, before finishing 102.65 points, or 0.90 per cent down at 11,354.25.

Meanwhile, domestic institutional investors (DIIs) sold shares worth Rs 657.37 crore, while foreign funds remained net buyers, pumping in Rs 1,374.57 crore in Friday’s trade, provisional data showed.

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3.25 pm - Sensex, Nifty continue in negative

The 30-share BSE index Sensex was trading lower by 342.37 points or 0.90 per cent at 37,822.38. The stocks of Vedanta, Tata Motors, ICICI Bank, YES Bank and M&M were dragging the index down. The scrips trading in green were ONGC, Coal India, Power Grid, NTPC and Bajaj Finance.

Sectorally, the stocks of oil & gas index was trading higher by 1.73 per cent. The major losers were telecom and realty.

The 50-share NSE index Nifty was trading lower by 91.90 points or 0.8 per cent at 11,365. The top losers were Zee Entertainment, Infratel, UPL, Vedanta and YES Bank while the gainers were IOC, Power Grid, ONGC, Hindustan Petroleum and NTPC

3.10 pm - Congress manifesto

File photo of Rahul Gandhi, president of Congress party

In a big bang election promise, Congress President Rahul Gandhi announced that 20 per cent families belonging to the poorest category will be given Rs 72,000 annually as minimum income if his party comes to power. He said the Congress has studied the fiscal implications of the scheme and consulted renowned economists and experts before finalising the scheme. Click here to read more on Congress' poll promise of minimum income support

2.55 pm - Europe stocks

FTSE 100, FTSE 250 down 0.6 per cent. File Photo

Britain's main index slipped as growing fears of a recession in the United States and uncertainty over Brexit kept investors on the sidelines, while satellite operator Inmarsat jumped after agreeing to be bought out. The FTSE 100 fell 0.6 per cent by 0812 GMT amid a broader sell-off in global markets. The FTSE 250 was down 0.5 perc ent, hitting its lowest since February 15. Here's more on the European stock markets

2.40 pm - Broker's call

Motilal Oswal

Maruti Suzuki (Buy)

CMP: ₹6,558

Target: ₹8,131

Sales of MSI’s mini cars comprising Alto and WagonR were at 27,661

Maruti Suzuki shared further details on the evolving alliance between Suzuki and Toyota Japan. From the business perspective, we believe that volumes will remain muted till 1QFY20 and then recover from 2QFY20. Read the Broker's call on Maruti Suzuki here

2.25 pm - Stock Analysis: Motherson Sumi Systems

Triggered by a negative divergence in the daily relative strength index and price rate of change indicator, the stock changed direction recently. The short-term trend is down now. On Friday, the stock plunged 7 per cent, accompanied by extraordinary volume, conclusively breaking below a key support at ₹150. Investors with a medium-term perspective can sell the stock of Motherson Sumi Systems (₹146) at the current levels. Read the stock movement of Motherson Sumi Systems here

2.10 pm - NCLAT sets aside order to liquidate Jyoti Structures

The NCLAT has set aside an order to liquidate EPC firm Jyoti Structure. It has also asked the Mumbai Bench of the National Company Law Tribunal (NCLT) to consider the ₹4,000-crore resolution plan submitted by Sharad Sanghi and others. Last July, the NCLT had rejected the resolution plan submitted by Sanghi and passed an order to liquidate Jyoti Structure, which had a debt of ₹7,010.55 crore.

The stocks of Jyoti Structures touched the upper circuit at Rs 1.90, higher by 4.97 per cent.

1.55 pm - Sensex, Nifty continue to fall

The 30-share BSE index Sensex dropped 394.45 points or 1.03 per cent to trade at 37,770.16. The stocks of Vedanta Ltd, HDFC, ICICI Bank, Sun Pharma and Hero MotoCorp were the top losers.  The stocks trading in green were PowerGrid, NTPC, ONGC, Coal India and Bajaj Finance.

Sectorally, all the sector indices were trading in negative barring utilities, oil & gas and power. The biggest loser was the realty stocks, trading lower by 2.05 per cent.

The NSE index Nifty was trading lower by 1.01 per cent or 115.75 points at 11,341.15. The major losers were Zee Entertainment, Infratel, Vedanta, UPL and Hero MotoCorp. The gainers were IOC, Powergrid, ONGC, Hindustan Petroleum and NTPC.

1.40 pm - Tata Motors to hike prices

Tata Motors has announced that it would be increasing the prices of its passenger vehicles range by up to Rs 25,000, starting April 2019. This hike in price is due to rising input costs and external economic conditions, the company said in a statement. Here's more on the price hike announcement by Tata Motors

1.20 pm - Nifty Call

Tracking the bearish global cues, the domestic equity indices began the session with a gap-down open. The market breadth of the Nifty index is biased towards declines. Traders can make use of intra-day rallies to sell the contract while maintaining a stop-loss at 11,410. Read our Nifty Call for March Futures here

1.05 pm - Sensex slumps 400 points

The 30-share BSE index Sensex slumped 412.34 points or 1.08 per cent to 37,752.27. Most of the stocks were trading in red, except the scrips of NTPC, ONGC, PowerGrid and Coal India that led the positive pack. Top five losers were Vedanta, YES Bank, HDFC, Sun Pharma and ICICI Bank.

Among the sectoral indices, the biggest loser was the realty stock index, trading lower by 2.09 per cent. Only oil & Gas and power sectors were trading in the positive zone.

The 50-share NSE index Nifty was trading lower by 121.05 points or 1.06 per cent at 11,335.85. The top losers were Zee Entertainment, Vedanta, UPL, Hindalco and Infratel. The gainers were IOC, NTPC, Hindustan Petroleum, PowerGrid and Dr Reddy's.

12.50 pm - Stock Analysis: IndiGo & SpiceJet – Vultures circling?

IndiGo has more than 210 planes in its fleet. File Photo

The ongoing struggle for survival at Jet Airways seems to have given a leg-up to the stocks of its listed rivals — IndiGo Airlines and SpiceJet. Over the past week, the IndiGo stock was up 10 per cent while SpiceJet was up nearly 26 per cent. In contrast, the already beaten down Jet Airways stock lost a further 4 per cent. Here's the stock analysis of SpiceJet and IndiGo

12.35 pm - Bullion cues

Gold seems to be slowly gaining strength. The global spot gold prices surged over a per cent intra-week to make a high of $1,320 per ounce. Prices then came off slightly from the high and closed at $1,313.6 per ounce, up 0.87 per cent for the week.

Silver surged to test its resistance at $15.60 last week, but failed to sustain higher. The global spot silver prices surged over 2 per cent intra-week and made a high of $15.64 per ounce before closing the week at $15.42 per ounce. Read the bullion market outlook here

12.20 pm - WEF’s global Energy Transition index

Photo1-Energy transition-Handelsblatt

India has moved up two places to rank 76th on a global energy transition index, which has ranked 115 economies on how well they are able to balance energy security and access with environmental sustainability and affordability. The WEF said energy systems have globally become less affordable and less environmentally sustainable than they were five years ago, though access to energy has improved with less than 1 billion now living without access to electricity. Click here to read more on the WEF's Energy Transition index

12.05 pm - Indices join Asian sell-off

The shares fell tracking Asian peers, with banking stocks taking the brunt, as fears of recession in the United States intensified. Concerns about the health of the world economy heightened last week after cautious remarks by the US Federal Reserve sent 10-year treasury yields to the lowest since early 2018.

“The inversion in the US yield curve shows severe growth concerns with increasing possibility of a recession over the next 18 to 24 months,” said Upasna Bhardwaj, senior economist at Kotak Mahindra Bank. “A significant global economic slowdown may trigger a severe risk-off, which could spill over into our markets.”

The broader NSE index fell 114.15 points or 1 per cent to 11,342.75. The index slipped more than 1 per cent in its biggest daily loss since February 26 in early trade.

The benchmark BSE index also shed 376.39 points or 0.99 per cent to 37,788.22.

Nifty's bank index slipped for a second straight session, falling as much as 1.26 per cent, with ICICI bank and Housing Development Finance Corporation slipping 1.9 per cent and 1.5 per cent, respectively.

Nifty Realty index lost as much as 2.3 per cent, its steepest intraday loss since February 26.

Shares of Tata Motors Ltd declined for a third straight session, slipping as much 2.17 per cent.

Only 11 of 50 stocks on the NSE index were in the green. Fuel retailers like Indian Oil Corporation snapped three sessions of losses, rising as much as 2.9 per cent, while Hindustan Petroleum Corp added as much as 1.9 per cent.

Shares of Jet Airways Ltd rose as much as 3.87 per cent. The company's Chairman Naresh Goyal is expected to leave the board of the cash-strapped airline on Monday, a local television channel reported. - Reuters

11.50 am - Stock Analysis: Sun Pharma

Though the long-term trend remains weak for Sun Pharmaceutical Industries (₹473), in the short term, the stock may show some resilience. It finds immediate resistance at ₹525 and a major one at ₹597. Traders can aim for an initial target of ₹498 or even ₹525, with a trailing stop loss. This position can be held for at least two weeks. Read more on the stock activity of Sun Pharma here

11.35 am - Sensex, Nifty trade lower by over 1 per cent

The 30-share BSE index Sensex was trading lower by 397.58 points or 1.04 per cent at 37,767.03. The stocks of Vedanta dropped over 3 per cent, while the scrips of Yes Bank was trading lower by 2.34 per cent. The stocks of Tata Motors, HDFC, Kotak Mahindra Bank and ICICI Bank were trading lower up to 1.71 per cent.

The stocks trading in green were NTPC, ONGC, PowerGrid, Bharti Airtel and Coal India.

Sectorally, the biggest loser was the stock index of realty, trading lower by 1.87 per cent, followed by metal, basic materials, bank, FMCG, Industrials, Finance, auto and telecom. Power sector index was leading the positive zone pack, higher by 0.42 per cent.

The 50-share NSE index Nifty was trading lower by 118.95 points or 1.04 per cent at 11,337.95. The top loser were Vedanta, Hindalco, JSW Steel, Infratel and YES Bank while the positive zone was led by Hindustan Petroleum followed by IOC, BPCL, Dr Reddy's and NTPC

11.20 am - Broker's call

JMFL

Axis Bank (Buy)

CMP: ₹757.35

Target: ₹865

At its Analyst Day 2019, Axis Bank reiterated its three-year strategy of growth, profitability and sustainability (GPS) and elaborated on its aspirations to achieve 18 per cent RoE sustainably. The stock has rallied 24 per cent since our upgrade in October 2018 (outperformance of 15 per cent versus Nifty). We maintain our ‘buy’ rating on the stock. Read the Broker's call on the stock of Axis Bank here

11.05 am - Stock Analysis: Power Grid Corporation of India

The stock of public sector energy utilities major Power Grid Corporation of India (Power Grid) has been trading in a range for the past three years. The stock has been a solid defensive, given that it doesn’t correct steeply during falls, thanks to the steady revenue visibility that it gets by virtue of having a sound order book. Being a solid dividend payer, investors with a two-three-year horizon would find it an ideal bet, especially given the political and macro events over the next few quarters. Here's more on the stock analysis and stock activity of Power Grid

10.50 am - Sensex, Nifty in red

The 30-share BSE index Sensex dropped 306.97 points or 0.8 per cent and trading at 37,857.64. The scrips of HDFC, ICICI Bank, Reliance, ITC and Kotak Mahindra Bank were dragging the index down. However, the stocks trading in green were NPTC, Bharti Airtel, Bajaj Finance, Coal India and ONGC.

Among the sectoral indices, the stocks of metal was the top loser, trading lower by 1.69 per cent. It was followed by realty stocks, basic materials and bank stocks.

The broader 50-share index Nifty dropped 100.7 points or 0.88 per cent to trade at 11,356.20. The major losers were JSW Steel, Hindalco, Vedanta, Infratel and IBUL Housing Finance while the positive zone was led by Hindustan Petroleum, IOC, Dr Reddy's, BPCL and NTPC

10.35 am - Forex market

The dollar edged back from a six-week low against the yen, as a degree of calm returned to the market gripped by fears of a recession in the United States. The greenback had tumbled on Friday as the spread between 3-month Treasury bills and 10-year note yields inverted for the first time since 2007 following weak US manufacturing PMI data. Click here to read more on the forex market report

10.20 am - FPIs invest Rs 38,211 crore in March

File photo

Foreign investors have poured in a net amount of Rs 38,211 crore in the domestic capital markets in March so far, mainly on account of improved global liquidity. In February, foreign portfolio investors (FPIs) had put in a net amount of Rs 11,182 crore in the capital markets -- both debt and equity. Read more on the FPI inflow in capital market here

10.05 am - Sensex falls below 38,000 mark

The benchmark BSE Sensex plunged over 325 points and slipped below the 38,000-mark in early trade, in tandem with weak global cues and depreciating rupee.

The 30-share BSE index Sensex dropped 332.96 points or 0.87 per cent to 37,831.65. The stocks of Reliance Industries, ICICI Bank, HDFC, ITC and Kotak Mahindra Bank were the major losers that dragged the index down. While the gainers were Maruti, Coal India and NTPC.

Reflecting the bearish mood, all the sectoral indices, led by realty, metal and auto, were trading in the negative zone with losses of up to 1.57 per cent. The metal stocks were leading the pack, trading lower by 1.88 per cent. It was followed by basic materials (1.40%), telecom (1.1%) and Bank (1.07%).

The 50-share NSE index was trading lower by 96.45 points or 0.84 per cent at 11,630.45. The top losers were Hindalco, JSW Steel, Vedanta Ltd, Infratel and Tata Steel. While the positive pack consisted the stocks of Hindustan Petroleum, IOC, Dr Reddy's, BPCL and Maruti.

Brokers said, besides profit-booking in recent gainers, rupee’s fall below the 69-mark against the dollar and weak cues from global markets weighed on investor sentiments. Global cues turned weak tracking Friday’s sell-off on the Wall Street after a weak manufacturing data from the US and Europe raised fears of an economic slowdown.

Laggards in domestic equities were Vedanta Ltd, Sun Pharma, Tata Steel, Kotak Bank, SBI, Tata Motors, RIL, ICICI Bank, Yes Bank, HDFC Ltd, Axis Bank, M&M, L&T, IndusInd Bank, ITC Ltd, HCL Tech, Bajaj Auto, HDFC Bank and Infosys, falling by up to 2.16 per cent.

Bucking the trend, shares Coal India, Maruti Suzuki and Hero MotoCorp rose up to 0.84 per cent.

Meanwhile, domestic institutional investors (DIIs) sold shares worth Rs 657.37 crore, while foreign funds bought shares to the tune of Rs 1,374.57 core in Friday’s trade, provisional data showed. - With inputs from PTI

9.50 am - Currency market

Foreign investors put in Rs 751.92 crore on a net basis in capital markets on Tuesday. File Photo

The rupee depreciated 16 paise to 69.11 against the US dollar in opening trade on month-end demand for the American currency from importers amid a weak opening in domestic equity market. At the forex market, the domestic unit opened lower at 69.07 and slipped further to 69.14 but recovered partially to quote 16 paise down at 69.11 against the dollar. More on the local currency market here

9.40 am - Global markets

Investors ditched shares on Monday and fled to the safety of bonds while the Japanese yen hovered near a six-week high as risk assets fell out of favour on growing fears about a US recession, sending global yields plunging. US stocks futures fell, with E-minis for the S&P 500 skidding 0.5 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan dropped 1.4 per cent to a one-week trough in a broad sell-off in equities in the region. Click here to read more on the global stock markets report

9.25 am - Stocks in focus

GVK Power & Infrastructure on Friday said its step-down subsidiary GVK Airport Holdings will acquire 12 crore shares of Mumbai International Airport (MIAL) for ₹924 crore from ACSA Global. After the stake-buy, GVK group's shareholding in MIAL will increase to 74 per cent from the existing 50.5 per cent. Earlier, the company had acquired 13.5 per cent stake from Bidwest. Shareholders of GVK Power & Infrastructure will closely monitor further developments.

The ₹1,956-crore buyback offer of Tech Mahindra will open for subscription today and close on April 5. The tech major plans to buy back 2.058 crore shares at ₹950 a share. Since the offer is through the tender process on proportionate basis, shareholders whose names had appeared on the company’s books as of March 6 can only participate in the buyback. Shares of Tech Mahindra will remain in focus, as they are currently ruling around ₹790.

The board of Aurionpro Solutions will meet to conisder a buyback proposal. Shareholders would be keen to know the size and the price of the buyback, besides its promoters' interest. The mode of buyback - whether through open market or by tender process, will also be closely monitored. Meanwhile, the company on Friday said that it won an order worth over ₹20 crore from a leading bank in Singapore which will be completed by February 2020.

9.15 am - Opening bell

The 30-share BSE index Sensex opened 147.85 points lower at 38,016.76 against the previous close of 38,164.61. The 50-share NSE index Nifty opened 94.9 points lower at 11,362 against the previous close of 11,456.90

9.10 am - Weekly Trading Guide

SBI reverses lower from a key resistance (298.1)

SBI extended its upmove, as expected, last week to test the key resistance level of ₹305, but failed to sustain higher. The stock made a high of ₹306.3 and reversed sharply lower on Friday, giving back almost all the gains made during the week. An immediate support for the stock is at ₹295. A break below it can drag the stock lower to ₹288 or ₹286. A further fall below ₹286 looks less likely now. An upward reversal from the ₹288-286 support zone can take SBI higher to ₹295 and ₹300 levels again. Such a bounce will be a good opportunity to enter long positions again from a short-term perspective. A strong break and decisive close above ₹305 is needed for SBI to regain strength. Such a break can take the stock initially higher to ₹310 and ₹315 levels. A further break above ₹315 will then increase the likelihood of the stock extending its up-move to the level of ₹320. The region between ₹315 and ₹320 is a crucial medium-term resistance. Whether SBI surpasses this resistance zone or not will decide the direction of the next move.

Supports to limit the downside in ITC (₹297.7)

ITC sustained above its support at ₹288 and rallied over 2 per cent last week. The ₹300-302 resistance zone is capping the upside now. If ITC continues to trade below ₹300, a fall to ₹295 or even ₹290 cannot be ruled out. But a further fall below ₹290 looks less probable as the indicators on the charts are positive. The 21-day moving average has crossed the 200-day moving average — a bullish sign, indicating that the downside could be limited. As such, a bounce from ₹290 can take the stock higher to ₹300 again. In such a scenario, a range-bound move between ₹290 and ₹302 is possible for some time. An eventual decisive break above ₹303 will boost the momentum. Such a break will trigger a fresh rally, targeting ₹310. It will also keep the possibility high of the stock revisiting ₹320 levels over the medium term. Investors can continue to hold the long positions taken at ₹282, ₹278 and ₹272 with a revised stop-loss at ₹285. Move the stop-loss further higher to ₹297 as soon as the stock moves up to ₹303. Book profits at ₹310.

Infosys gears up for a fresh rally(₹742.15)

Infosys surged over 3 per cent last week, breaking above the crucial resistance level of ₹730. The strong rally in the past week indicates the end of the downtrend that has been in place since February. The weekly chart gives an early sign that a fresh leg of upmove could have just begun. This upmove could be strong as Infosys has risen after forming a strong base between ₹700 and ₹720. The short-term outlook is bullish. The ₹730-727 band will now act as a support and can limit the downside. An upmove to ₹750-₹755 is likely in the near term. A strong break and a decisive close above ₹755 will then increase the likelihood of the upmove extending to ₹780. The bullish outlook will get negated only if Infosys declines below ₹725. Such a break, though unlikely, can take the stock lower to ₹710 or ₹700. Medium-term traders can hold the long positions taken at ₹725, ₹720 and ₹715. Retain the stop-loss at ₹680 for the target of ₹790. Revise the stop-loss higher to ₹735 as soon as the stock moves up to the level of ₹755.

RIL may dip before going up (₹1,342.1)

RIL surged about 5 per cent intra-week but failed to sustain higher. After making an intra-week high of ₹1,386.6, the stock gave back most of the gains and closed 1.5 per cent higher for the week. A near-term support is at ₹1,316. As long as RIL trades below ₹1,350, a dip to test ₹1,316 cannot be ruled out. A break below ₹1,316 can drag RIL further lower to ₹1,300 or ₹1,290. A further fall below ₹1,290 looks less likely as fresh buyers are likely to emerge at lower levels and limit the downside. A bounce from ₹1,316 or the ₹1,300-₹1,290 support zone can take the stock higher to ₹1,350. A further break above ₹1,350 will then increase the likelihood of the stock targeting ₹1,380 and ₹1,400 levels thereafter. The bullish outlook will get negated if RIL declines decisively below ₹1,290. In such a scenario, RIL can fall to ₹1,250. Investors can hold the long positions taken at ₹1,260, ₹1,245 and ₹1,225 with a revised stop-loss at ₹1,320. Move the stop-loss further higher to ₹1,345 as soon as RIL touches the level of ₹1,375. Book profits at ₹1,420.

Tata Steel has a bullish bias(₹518.1)

Tata Steel continued to consolidate for the third consecutive week. The stock has been stuck in a narrow range between ₹505 and ₹532. A breakout on either side of ₹505 or ₹532 will determine the next move. The price action on the chart leaves the bias bullish. The stock is holding well above the 100-day moving average. Additionally, the 21-day moving average has just crossed over the 100-day moving average. This is a bullish signal, indicating that the downside could be limited. It also increases the possibility of the stock breaking the current range of ₹505-532 on the upper side. The ensuing target is ₹540. A further break above ₹540 will increase the likelihood of the stock targeting ₹560. But if Tata Steel declines below ₹505, it can fall to ₹495 or ₹490. Medium-term traders with high-risk appetite can go long at current levels and accumulate on dips at ₹512 and ₹505. Stop-loss can be placed at ₹487 for the target of ₹555. Revise the stop-loss higher to ₹515 as soon as the stock moves up to ₹525.

9.00 am - Index Outlook

The profit-booking and selling pressure can continue in the coming week and the indices could remain under pressure ahead of the March derivatives expiry. Investors should remain watchful in the coming week. On the global front, the Fed kept the interest rates unchanged and the Bank of England too kept rates on hold last week. The GDP numbers of the US and the UK can lend directions to the global indices. Read the complete Index Outlook for the coming week here

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