Sensex drops 143 points on coronavirus fears

Nifty ends 45 points lower at 11,633

 

 

3:45 pm

Closing bell

Extending its losses for the fifth consecutive session, equity benchmark Sensex declined 143 points on Thursday, tracking a global sell-off amid rising fears of the coronavirus outbreak turning into a pandemic and hitting the world economy.

The expiry of domestic derivatives contracts, too, kept the market volatile, traders said.

After plunging over 465.69 points during the day, the 30-share BSE barometer finally settled 143.30 points, or 0.36 per cent, lower at 39,745.66.

Similarly, the broader NSE Nifty fell 45.20 points or 0.39 per cent to end at 11,633.30.

ONGC was the top loser in the Sensex pack, followed by HCL Tech, SBI, ICICI Bank, IndusInd Bank, Hero MotoCorp and M&M.

On the other hand, Sun Pharma, Titan, Asian Paints and Axis Bank led the gainers’ chart.

The market opened in the negative, tracking its Asian peers as the rapid global spread of the coronavirus kept investors on the edge and made them seek safety in gold and bonds, said Narendra Solanki, Head Fundamental Research (Investment Services) - AVP Equity Research, Anand Rathi Shares & Stock Brokers.

India is at risk of getting severely impacted by the epidemic economically because of its high reliance on Chinese imports for various goods, he noted.

Benchmarks also remained volatile on account of monthly expiry of derivatives contracts, he said, adding that sentiment remained sluggish amid reports that GDP growth is likely to stay flat at 4.5 per cent in October-December 2019.

The government’s GDP estimate for the December quarter is scheduled to be released on Friday. Further, relentless selling by foreign portfolio investors (FPIs) spooked retail investors, traders said.

According to provisional data available with stock exchanges, so far this week, FPIs have offloaded stocks worth Rs 6,812.57 crore on a net basis.

Bourses in Seoul and Tokyo ended with significant losses, while Shanghai and Hong Kong closed with gains. Stock exchanges in Europe plunged up to 1.80 per cent in their morning sessions.

Brent crude oil futures fell 1.33 per cent to $52.11 per barrel. On the currency front, the Indian rupee appreciated marginally to 71.62 per US dollar (intra-day). - PTI

3:15 pm

European stocks slide again on pandemic fears

The pan-regional STOXX 600 index fell 2.2 per cent by 0817 GMT, bracing for its worst week since January 2016 when fears about a slowing Chinese economy and a rout in oil prices sent global markets in a tailspin. File Photo   -  Reuters

 

European shares fell again on Thursday, with travel stocks taking the biggest knock, as a jump in new coronavirus cases outside of China deepened fears of a pandemic that could dent global growth.

Multiple blue-chip companies issued profit warnings, with Standard Chartered tumbling 3.4 per cent after the Asia-focused bank said that a key earnings target would take longer to meet as the epidemic adds to headwinds in its main markets of China and Hong Kong. Click here to read in full the European markets report.

 

 

3:00 pm

Dollar retreats as coronavirus fallout raises expectations of rate cut

Risk aversion to remain a diver of currency markets. File Photo   -  Reuters

 

The dollar fell on Thursday as Treasury yields continued to plumb new lows and investors bet the Federal Reserve would cut interest rates to offset the impact of a spreading coronavirus, while the euro bounced half a per cent higher.

Money markets are now fully pricing in a 25 basis point cut in the Fed's rate by April and three by March next year. Click here to read in full the forex markets report.

2:50 pm

Oil falls for fifth day on demand concerns as coronavirus spreads

US crude stocks rise, gasoline inventories drop. File Photo   -  Reuters

 

Oil prices fell for a fifth day on Thursday to their lowest since January 2019 as a growing number of new coronavirus cases outside of China fuelled fears of a pandemic, which could slow the global economy and lower crude demand.

Brent crude was down 60 cents, or 1.1 per cent, at $52.83 a barrel at 0741 GMT. The contract earlier fell to as low as $52.53, the lowest since January 2, 2019. Click here to read in full the oil markets report.

 

2:35 pm

Indices trim losses

The Sensex and Nifty were down but off their morning lows in the afternoon session on Thursday.

The Sensex was at 39,627, down 261 points or 0.65 per cent, while the Nifty was at 11,592, down 86 points or 0.74 per cent lower.

Sun Pharma, Titan, Maruti, Kotak Bank, Hindustan Unilever, Asian Paints and Axis Bank made gains on the 30-share index, while ONGC, IndusInd Bank, ONGC, SBI and HCL Tech led the laggards.

2:25 pm

Pandemic fears pummel stocks, push bond rally to fresh heights

Japan's Nikkei fell 1.7 per cent to its lowest since October. File Photo   -  Reuters

 

Stocks sunk deeper into the red on Thursday, oil prices fell and US Treasuries rallied into record territory as more signs of the global spread of the coronavirus heightened fears of a pandemic.

Global markets have dropped for six straight days, wiping out more than $3.6 trillion in value. Much remains unknown about the virus that originated in China, but it is clear the ramifications of the world's second biggest economy in lockdown for a month or more are vast.

Analysts have sharply downgraded their China and global growth forecasts, while policymakers from Asia, Europe and the US have begun to prepare for a potentially steep economic downturn than initially anticipated. Click here to read in full the Asian markets report.

2:00 pm

Microfinance grows 24% in Q3; Tamil Nadu holds largest share in total loan portfolio

 

The microfinance sector grew 24.22 per cent year-on-year (YoY) in the third quarter ended December 31,2019, with a gross loan portfolio (GLP) of ₹2,11,302 crore. Click here to read more on the Microfinance sector.

1:20 pm

Nifty call: Initiate fresh short positions on rallies with stop-loss at 11,650

 

The global equity markets continue to face selling pressure. The Indian benchmarks have also extended their downtrend in today’s session. The Nifty spot and the Sensex spot indices are down by 0.9 per cent and 0.8 per cent respectively.

The major Asian indices such as the Nikkei and Hang Seng, too, are witnessing selling pressure. While the Nikkei closed today’s session with a 2.1 per cent loss, the Hang Seng is down by 0.4 per cent. On the contrary, the Chinese indices are marginally higher today. Click here to read more on the Nifty call report .

12:55 pm

The BSE Sensex pack

12:15 pm

Lodha group’s UK arm launches $225-million bond issue

Realty firm Lodha group’s UK subsidiary on Thursday launched a $225 million-bond issue in the Singapore market to refinance part of its outstanding debt.

The issue has been opened and the closing date will depend on market response, sources said. The bonds will be listed on Singapore exchanges. JP Morgan, UBS and CLSA are the merchant bankers for the issue. Click here to read more on bond issue by Lodha group's UK arm.

11:55 am

Benchmark indices down nearly 1 per cent

The benchmark indices were trading on a weak note at midsession on Thursday. The Sensex was quoted at 39,522, down 362 points or 0.91 per cent lower, while the Nifty was at 11568, down 110 points or 0.94 per cent softer.

The top gainers in the Sensex pack were Sun Pharma (up 1.72 per cent), Titan (1.43 per cent), Asian Paints (0.14 per cent) and Kotak Bank (0.13 per cent).

The laggards were led by IndusInd Bank (down 2.21 per cent), HCL Tech (2.04 per cent), M&M (1.87 per cent), NTPC (1.79 per cent) and Hindustan Unilever (1.75 per cent).

All the BSE sectoral indices were trading weaker. The realty index fell over 2 per cent, followed by power (down 1.88 per cent), utilities and metals (down 1.69 per cent each), industrials (1.48 per cent) and basic materials (down 1.24 per cent).

 

11:45 am

3 out of four Jan Dhan account holders now have RuPay cards

Three out of four Jan Dhan account holders now have a RuPay debit card, although anecdotal evidence suggests that many may not be using them. Click here to read in full the report on Jan Dhan account holders.

11:25 am

Wall St falls more slowly as investors parse coronavirus fears

 

The S&P 500 fell for a fifth straight day on Wednesday and while its decline was slower than the last few days, the session was volatile as investors reacted to headlines about coronavirus and sought to gauge its economic fallout. Click here to read in full the US markets report.

11:10 am

RITES offer-for-sale opens on bourses; stock slumps 5 per cent

 

The government’s offer-for-sale (OFS) for selling up to 10 per cent stake in railway PSU RITES opened on stock exchanges on Thursday.

The floor price for the OFS has been fixed at Rs 298, which is a discount of 6 per cent over Wednesday’s closing price of Rs 318.05.

The government is selling 5 per cent stake in the company, with an option to retain an over subscription of another 5 per cent, taking the total issue size to 10 per cent. Click here to read in full the report on RITES OFS.

11:00 am

Oil falls for fifth day on demand concerns as coronavirus spreads

 

Oil prices fell for a fifth day on Thursday to their lowest since January 2019 as a growing number of new coronavirus cases outside of China fuelled fears of a pandemic which could slow the global economy and lower crude demand. Click here to read in full the global oil markets report.

10:45 am

Daily Rupee Call: Buy the rupee if it declines to 71.9

Rupee started the day at weak note crossing beyond 71.50. File Photo   -  Reuters

 

Propped up by the support band between 71.88 and 72, the rupee (INR) gained against the dollar (USD) on Wednesday. It ended the session at 71.66 versus its previous close of 71.88. On the upside, 71.65 serves as a resistance. The domestic currency might oscillate between 71.65 and 72 for quite some time.

As long as the rupee stays above 72, the chances for further weakness are low. Hence, from the trading perspective, one can go long whenever the rupee slides to that level. Click here to read in full the Daily Rupee Call.

10:35 am

What to Watch: Focus on Q3 results of Technofab Engg, KSB

The boards of Technofab Engineering and KSB Ltd will meet on Thursday to announce quarterly results for the period ended December 31, 2019 and dividend. Technofab Engineering has been reporting losses; for Q1 and Q2 of FY20, it had posted losses of ₹57.29 crore and ₹10.44 crore respectively. KSB, on the other hand, reported profit of ₹23.80 crore for Q2 and ₹27.80 crore for Q1 of the current fiscal. Shareholders of these companies will closely monitor their performances.

10:25 am

Dollar holds advantage as coronavirus spread unsettles investors

Risk aversion to remain a diver of currency markets. File Photo   -  Reuters

 

The dollar held gains against the yen on Thursday as growing fears that a coronavirus outbreak is turning into a pandemic drove investors to the safety of US Treasuries. The dollar also traded near a three-month high versus the pound due to worries Britain's trade talks with the European Union were stalling and dashed expectations for big fiscal spending. Click here to read more on the global forex market report.

 

10:15 am

Rupee rises 5 paise to 71.60 against US dollar in early trade

 

The Indian rupee appreciated by 5 paise to 71.60 against the US dollar in early trade on Thursday amid easing crude oil prices and weakening of the greenback in the overseas market.

Forex traders said easing crude oil prices and weakening of the American currency vis-a-vis other currencies overseas supported the rupee, while a weak opening in domestic equities and sustained foreign fund outflows weighed on the local unit. Click here to read more on the rupee report.

10:05 am

SBI report suggests ‘statistical’ tailwind to GDP growth rate...

 

The statistical benefits of the steep downward revision in FY2019 growth to 6.1 per cent from 6.8 per cent could push up FY2020 GDP growth to 4.7 per cent from 4.6 per cent, says ‘Ecowrap’, State Bank of India’s economic research report. However, the report cautioned that the impact of coronavirus on India could happen with a lag. Click here to read more on the SBI report that suggests 'statistical' tailwind to GDP growth rate...

9:55 am

Sensex, Nifty edge lower

The Sensex and Nifty, which opened in the red, edged down further in early session on Thursday.

The Sensex was quoting at 39,619, down 269 points or 0.68 per cent lower. The Nifty was at 11,592, down 85 points or 0.73 per cent.

On the 30-share benchmark index, Titan, L&T, Sun Pharma and NTPC were the only stocks in the green. The laggards were led by M&M (down 2.54 per cent), HCL Tech (2 per cent), TCS (1.6 per cent), IndusInd Bank (1.55 per cent) and HDFC Bank (1.28 per cent lower).

According to an agency report, the Sensex dropped over 200 points in opening session as incessant foreign fund outflow and the coronavirus overhang weighed on global investor sentiment.

In the previous session, the Sensex settled with a loss of 392.24 points, or 0.97 per cent, at 39,888.96, and the Nifty plummeted 119.40 points or 1.01 per cent to end at 11,678.50.

According to analysts cited in the report, the intense spread of coronavirus is pushing investors away. There is sharp foreign fund outflow led by a strong dollar index, as investors reduce their exposure to emerging markets amid global uncertainty.

On a net basis, foreign institutional investors sold equities worth Rs 3,336.60 crore, while domestic institutional investors bought shares worth Rs 2,785.67 crore on Wednesday, data available with stock exchanges showed.

Stock exchanges in Hong Kong, Seoul and Tokyo were trading with losses, while bourses in Shanghai were positive. Equities on Wall Street, too, ended on a tepid note on Wednesday.

Brent crude oil futures fell 1.19 per cent to $52.18 per barrel. The rupee appreciated 2 paise to 71.63 against the US dollar in morning session (with inputs from PTI).

9:45 am

Asian stocks slide deeper as pandemic fears grow

Japan's Nikkei fell 1.7 per cent to its lowest since October. File Photo   -  Reuters

 

Oil and Asian share markets extended losses on Thursday as the rapid global spread of the coronavirus kept investors on edge and seeking safety in gold and bonds.

Rising fears of a pandemic, which US health authorities have warned is likely, had already wiped more than $3.6 trillion from global stock markets by Wednesday's close.

China accounts for about 96 per cent of cases and has instituted dire containment methods that have paralysed global supply chains. But most new infections are now being reported elsewhere, with news on Thursday of a jump in cases in South Korea accompanied by a warning that the virus may be spreading in California. South Korea reported 334 new cases on Thursday, its largest daily rise since its first case was confirmed on January 20. China reported 433 new infections. Click here to read more on the Asian markets.

 

9:30 am

Indian stocks likely to rise this year, depending on economic recovery: Poll

Indian stocks are likely to rise this year, but only by a bit more than half as much as in 2019, according to market strategists polled by Reuters poll, who said much will depend on whether the domestic economy recovers from its current slowdown. Click here to read in full the report on Indian stocks likely to rise this year.

 

9:15 am

Opening bell

The benchmark indices, the BSE Sensex and the NSE Nifty, opened in the red on Thursday. The Sensex was quoting at 39,726, down 133 points or 0.33 per cent lower. The Nifty opened at 11,638, down 39 points or 0.34 per cent lower.

 

9:10 am

Day Trading Guide for February 27, 2020

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

₹1199 • HDFC Bank

S1

S2

R1

R2

COMMENT

1186

1170

1213

1225

Fresh long positions are recommended with a stiff stop-loss only if the stock rallies above ₹1,213 levels

 

₹782 • Infosys

S1

S2

R1

R2

COMMENT

774

776

790

800

Initiate fresh short positions with a fixed stop-loss if the stock of Infosys reverses down from ₹790 levels

 

₹198 • ITC

S1

S2

R1

R2

COMMENT

196

193

201

204

Fresh short positions can be initiated with a tight stop-loss if the stock of ITC fails to move beyond ₹201 levels

 

₹95 • ONGC

S1

S2

R1

R2

COMMENT

93

91

98

101

Fresh long positions are recommended with a stiff stop-loss only if the stock climbs above ₹98 levels

 

₹1391 • Reliance Ind.

S1

S2

R1

R2

COMMENT

1375

1360

1405

1420

Near-term stance is bearish for the stock of RIL. Make use of intra-day rallies to go short with a stop-loss at ₹1,405

 

₹328 • SBI

S1

S2

R1

R2

COMMENT

322

315

333

340

Fresh long positions are recommended with a fixed stop-loss only if the stock of SBI move above ₹333 levels

 

₹2123 • TCS

S1

S2

R1

R2

COMMENT

2100

2080

2145

2165

Make use of intra-day rallies to initiate fresh short positions while maintaining a stop-loss at ₹2,145 levels

 

11695 • Nifty 50 Futures

S1

S2

R1

R2

COMMENT

11650

11600

11745

11800

The contract tests a key support at current levels. Go long with tight stop-loss on a strong rally above 11,745 levels

 

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

9:00 am

Today's Pick: CSB Bank (₹176.8): Buy

 

Investors with a short-term horizon with a contrarian view can buy the stock of CSB Bank at current levels. The stock has been in a medium-term downtrend since recording a 52-week high at ₹314 in early December 2019. Click here to read in full Today's Pick on CSB Bank.

 

Published on February 27, 2020