Sensex dives 1,375 points to 28,440, Bajaj Finance skids 12 per cent

Closing bell

Equity benchmark Sensex plummeted over 1,375 points on Monday, tracking heavy losses in banking and auto stocks, amid an unsettling spike in Covid-19 cases.

After plunging over 1,500 points during the day, the 30-share BSE barometer ended 1,375.27 points or 4.61 per cent lower at 28,440.32.

Similarly, the NSE Nifty fell 379.15 points, or 4.38 per cent, to close at 8,281.10.

Bajaj Finance was the top laggard in the Sensex pack, tanking nearly 12 per cent, followed by HDFC twins, Tata Steel, ICICI bank, Kotak Bank and Maruti.

On the other hand, Nestle India, Tech Mahindra, HUL and Axis Bank were the top gainers.

“Indian markets started the week on a negative note tracking volatile global cues in Asian markets as coronavirus-fuelled volatility gripped global equities and other financial markets, with oil prices seen plunging,” said Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi.

The selloff intensified in the second half of the session after multiple ratings agencies cut India’s growth outlook, despite the RBI’s massive actions to spur the economy, he added.

Fitch Solutions slashed its estimate for India’s GDP growth in the fiscal starting April 1 to 4.6 per cent due to weaker private consumption and contraction in investment amid the coronavirus outbreak, costing economies around the globe.

India Ratings and Research too revised its FY21 GDP growth forecast down to 3.6 per cent from 5.5 per cent.

On the global front, the International Monetary Fund (IMF) on Friday said the world has entered a recession as bad or worse than in 2009.

Bourses in Shanghai, Hong Kong, Tokyo and Seoul ended in the red. Benchmarks in Europe were also trading on a negative note.

International oil benchmark Brent crude fell 4.47 per cent to $26.70 per barrel in futures trade.

On the currency front, the rupee depreciated 65 paise to 75.54 against the US dollar in intra-day trade.

The number of Covid-19 cases climbed to 1,071 in India on Monday, while the death toll rose to 29, according to the Health Ministry.

Deaths around the world linked to the pandemic crossed 30,000 over the weekend. - PTI

To tap market sell-off, DSP MF reopens small-cap scheme after 3 years

After a break of nearly three years, DSP Mutual Fund (MF) is accepting investor money in its small-cap scheme.

In 2017, citing steep valuations, the fund house had stopped accepting money in the DSP Small-cap Fund, which had managed assets of roughly ₹5,045 crore. Click here to read in full the story on DSP MF small-cap scheme

IDBI Bank offers uniform three-month moratorium to all borrowers

IDBI Bank has said it will offer a uniform three-month moratorium on standard term loan repayments to all its borrowers. Click here to read in full the report on IDBI Bank moratiorium .

Sensex, Nifty extend losses

The benchmark indices, the Sensex and Nifty, extended their losses in afternoon session on Monday.

The Sensex dropped 1,021 points or 3.42 per cent to 28,794, while the Nifty tanked 268 points or 3 per cent to 8,391.

The top gainers in the Sensex pack were Tech Mahindra (up 5 per cet), Nestle India (3.72 per cent), Hindustan Unilever (3 per cent), Axis Bank (1.63 per cent) and ONGC (1.32 per cent).

The laggards on the 30-share benchmark were Bajaj Finance, which slumped over 10 per cent, HDFC (down 9.5 per cent), M&M (8.37 per cent), Tata Steel (7.43 per cent) and Maruti (6.88 per cent).

European shares dip as virus fears intensify

European shares fell for the second straight session on Monday, as fears about the economic hit from the coronavirus pandemic intensified with several nations extending near-total lockdowns to curtail the spread of the flu-like disease.

The pan-European STOXX 600 index was down 0.8 per cent at 0714 GMT, with energy, industrials and travel and leisure stocks leading declines.

The banking sector tumbled another 2.5 per cent, bringing its monthly losses to more than 28 per cent, with UniCredit, ING and ABN Amro among the first set of lenders to comply with the ECB's appeal to freeze dividends in a bid to shore up credit.

In fresh signs of the business impact from the outbreak, Swiss engineering group ABB fell 5.7 per cent after issuing a profit warning and saying all of its businesses would suffer in the first quarter.

Dollar on firmer footing as investors seek safety

File Photo

The dollar snapped a week of declines and the safe-haven yen found support on Monday, as coronavirus lockdowns tightened across the world and investors braced for a prolonged period of uncertainty.

After its worst week since 2009, the greenback climbed against the pound, euro, kiwi and the Australian dollar in a cautious Asian session.

Sterling was last 0.8 per cent softer at $1.2357, the Aussie down 0.5 per cent at $0.6134, while the euro fell by the same margin to $1.1077. Click here to read in full the forex report .

Nifty call: Sell on rallies with fixed stop-loss

A security guard walks past the logo of the National Stock Exchange (NSE) inside its building in Mumbai, India, May 28, 2019. REUTERS/Francis Mascarenhas

The April month contract commenced the session with a gap-down open at 8,440 and registered an intra-day low at 8,395. But, the contract staged an initial rally and marked an intra-day high at 8,640 levels. Click here to read more on the Nifty call.

Crude oil futures slide as coronavirus pandemic darkens demand outlook

Crude oil benchmarks fell sharply on Monday, with Brent hitting its lowest since November 2002, as fears grew over the coronavirus pandemic eroding demand and the Saudi Arabia-Russia price war threatened to overload the market.

Brent futures were down 5.8 per cent, or $1.45, to $23.48 a barrel as of 0623 GMT, after earlier dropping to $23.03, the lowest since November 2002.

US West Texas Intermediate (WTI) crude futures fell as far as $19.92, near an 18-year low hit earlier this month, and was last trading down 3.8 per cent, or $0.82, at $20.69 a barrel. Click here to read in full the oil markets report .

Asian shares suffer virus chills

sian shares slid on Monday as fears mounted that the global coronavirus shutdown could last for months although markets regained some lost ground late in the session with Australia posting a stand-out jump.

US and European futures also turned upwards in the Asian afternoon, with E-Mini futures for the S&P 500 up 1.1 per cent, again after earlier losses, EUROSTOXX 50 futures rallying 2 per cent and FTSE futures 1.5 per cent. Click here to read in full the Asian markets report .

Sensex, Nifty edge down

The benchmark indices edge were weak but off their early lows at midsession.

The Sensex was quoting at 29,045, down 770 points or 2.46 per cent lower. The Nifty was at 8,451, down 208.45 points or 2.41 per cent.

The top gainers on the Sensex were Tech Mahindra (up 4.6 per cent), Axis Bank (2.04 per cent), TCS (1.35 per cent), Nestle India (0.80 per cent) and Hindustan Unilever (0.67 per cent).

The laggards were Bajaj Finance (down 9 per cent), HDFC (-8.26 per cent), Tata Steel (-6.92 per cent), M&M (-5.77 per cent) and Maruti (-5.07 per cent).

Gold futures fall 0.81 per cent on weak global cues

Gold (999 purity) has lost ₹1,997 in the last one week

Gold futures on Monday fell 0.81 per cent to Rs 43,217 per 10 gram as participants offloaded their holdings tracking a weak global trend.

On the Multi Commodity Exchange, gold prices for April delivery fell by Rs 354, or 0.81 per cent, to Rs 43,217 per 10 gram in a business turnover of 85 lots. Click here to read in full the gold markets report .

Lockdown will not be extended: Centre

An official statement released by the Centre on Monday states that the 21-day lockdown will not be extended.

"There are rumours and media reports claiming that the Government will extend the 21-day lockdown when it expires. The Cabinet Secretary has denied these reports, and stated that they are baseless," the statement said. Read more on the Government decides not to extend lockdown beyond 21 days .

Rupee slips 32 paise to 75.21 against US dollar in early trade

The Indian rupee fell 32 paise to 75.21 against the US dollar in opening trade on Monday, as investors braced for a prolonged period of uncertainty as coronavirus-induced lockdowns tightened 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 75.17 at the interbank forex market and then fell further to 75.21, down 32 paise over its last close. The rupee had settled at 74.89 against the US dollar on Friday. Click here to read in full the rupee report .

Big Story | Six mutual fund schemes to counter Covid-19 volatility

The stock market has crashed and turned highly volatile over the past month as the coronavirus storm gained strength. The sharp fall has opened up good buying opportunities for investors with a long-term horizon. But there is no saying how long the pain will continue and whether it can go deeper. In such manic markets, fundamentally strong large-cap stocks — with their advantages of size, market leadership and financial muscle — may be better placed than smaller stocks to both weather the storm and stage a recovery. Investors seeking exposure to equities but also wanting to play it relatively safe at this juncture can consider buying large-cap funds with a strong track record. Axis Bluechip is a fine choice in this category. Click here to read more on Six MF schemes to counter Covid-19 volatility

Daily rupee call: Sharp fall in forex reserves shows mounting pressure on rupee

The rupee (INR) opened weaker against the dollar (USD) at 75.3 today versus 74.85, after posting a marginal gain last week. The local currency has a support at 75.3 and until it trades above that level, it can be bullish. But on the upside, 75 can act as a resistance. Below 75.3, the support is at 75.7 whereas above 75, the resistance is at 74.6. Click here to read in full the daily rupee call report.

Crude oil futures slide as coronavirus pandemic darkens demand outlook

Crude oil benchmarks dropped on Monday, extending last week’s losses as the global coronavirus pandemic worsened and the Saudi Arabia-Russia price war showed no signs of abating.

US West Texas Intermediate (WTI) crude futures hit a low of $19.92 in early trading and last traded down 5.2 per cent, or $1.12, at $20.39 a barrel as of 2332 GMT, while Brent futures fell 5.6 per cent, or $1.40, to $23.53 a barrel.

The oil markets are enduring a twin shock of demand destruction caused by the coronavirus pandemic and the Saudi-Russia price war that is flooding markets with extra supply. Click here to read in full the oil markets report .

Benchmark indices off early lows

The Sensex and Nifty trimmed their opening losses in the morning session on Monday.

The Sensex was down 612 points or 2.05 per cent at 29,202. The Nifty was at 8,513, down 146 points or 1.69 per cent lower.

The top gainers on the Sensex were Tech Mahindra (up nearly 3 per cent), Axis Bank (2.35 per cent), TCS, Hindustan Unilever (up over 1 per cent), and Nestle India (0.84 per cent higher). The laggards were Bajaj Finance (down 8.5 per cent), M&M (5.89 per cent), Tata Steel (4.52 per cent), HDFC (4.28 per cent) and ONGC (4.2 per cent).

According to a PTI report the Sensex plunged over 1,100 points in opening session tracking losses in global equities as the growing number of COVID-19 cases across the world hammered economic growth, sending the world into an economic recession.

 The International Monetary Fund (IMF) has said the world is in the face of a devastating impact due to the coronavirus pandemic and has clearly entered a recession.

 In the previous session, the 30-share BSE barometer ended 131.18 points or 0.44 per cent lower at 29,815.59, while the broad-based Nifty closed 18.80 points, or 0.22 per cent, higher at 8,660.25.

 Foreign institutional investors (FIIs) turned net buyers in the capital market, as they purchased equity shares worth Rs 355.78 crore on Friday, according to provisional exchange data.

 According to the report, traders said investors across the globe are jittery over the rising number of COVID-19 cases and the economic fallout of the worldwide lockdowns.

 The IMF on Friday said it has reassessed the prospects for growth for 2020 and 2021.

 "It is now clear that we have entered a recession as bad or worse than in 2009. We do project recovery in 2021,” IMF Managing Director Kristalina Georgieva stated.

 Analysts said the stimulus package announced by the Indian government and RBI will have limited effect, until the actual impact of the contagion is known - both economically and with the number of infections.

 On the global front, bourses in Shanghai, Hong Kong, Tokyo and Seoul were trading significantly lower.

 Meanwhile, the rupee depreciated 28 paise to 75.18 against the US dollar in morning trade.

 Brent crude futures, the global oil benchmark, fell 4.44 per cent to USD 26.71 per barrel. (with inputs from PTI)

 The number of COVID-19 cases in India surged past 1,000 over the weekend, according to health ministry log. 

 Deaths around the world linked to the pandemic crossed 30,000 over the weekend.

Dollar slows slide as investors seek shelter amid pandemic crisis

File Photo

The dollar slowed its descent after a week of declines and the safe-haven yen edged ahead on Monday, as coronavirus lockdowns tightened across the world, and investors braced for a prolonged period of uncertainty.

In bumpy trade the dollar ran ahead early before settling back against the pound, euro, kiwi and the Australian dollar. Sterling was last 0.1 per cent softer at $1.2449, the Aussie flat at $0.6158 and the euro stable at $1.1132. Click here to read in full the forex markets report .

Asian shares suffer virus chills, central banks offer what they can

Asian shares slid on Monday and oil prices took another tumble as fears mounted that the global shutdown for the coronavirus could last for months, doing untold harm to economies despite central banks’ best efforts. Click here to read the Asian markets report in full

Index Outlook | Sensex, Nifty 50 test vital barriers

Taking cues from bearish global markets, the Sensex and the Nifty commenced the past week in the negative territory and hit the lower circuit breaker last Monday. The trading was closed for a while in that session.

But a global market rally, which was in anticipation of an US stimulus package, led domestic markets higher.

However, following the RBI’s 75 bps rate cut and other measures taken by it on Friday, key indices pared the Friday’s gains to close the week in the negative for six consecutive weeks in a row. Click here to read more on the Index Outlook .

Opening bell

The benchmark indices opened the week on a weak note. The Sensex was down 1,029 points or 3.45 per cent at 28,786. The Nifty opened at 8,435, down 224 points or 2.60 per cent lower than its previous close.

Weekly trading guide for week beginning March 30, 2020: Infosys can be bullish in near term

SBI (₹195.9)

The stock of SBI opened with a gap-down and was trading flat during the past week. It registered a fresh 52-week low of ₹173.5 last Tuesday. Towards the end of the week, the stock attempted to recover, but was unable to close above the important level of ₹200.

On the upside, there is a resistance band between ₹210 — the 23.6 per cent Fibonacci retracement level — and ₹215. For the stock to reverse the trend, it should breach this resistance band. Notably, the price remains below both the 21- and 50-day moving averages. But there are indications that the downtrend is losing its momentum.

The moving average convergence divergence indicator in the daily chart, though in the negative territory, is showing a loss in bearish momentum. The daily relative strength indicator is hovering near the over-sold level and unlike the price, it did not register new lows.

Given that the resistance band between ₹210 and ₹215 is key, traders can initiate long positions with a tight stop-loss if the stock decisively breaks out of that level.

ITC (₹163.2)

The stock of ITC closed lower than its previous weekly close, and the price remains below the 21- and 50-day moving averages. However, ₹140 has been acting as a significant support, limiting the downside for the past two weeks.

The daily relative strength indicator is in an upward trajectory and its sharp rise hints at considerable bullish momentum. Also, the moving average convergence divergence indicator in the daily chart is indicating that the momentum is shifting in favour of the bulls.

However, there is a resistance at ₹170 — the 21-day moving average. In the daily chart, the price action shows that the stock has been oscillating between two key levels of ₹140 and ₹170 for the past two weeks and the next leg of trend can be confirmed only if the stock breaches either of these levels.

So, traders can remain on the sidelines until then. A daily close above ₹170 can turn the trend bullish where the stock can rally to ₹187 — the 50 per cent Fibonacci retracement level.

But if the bear trend resumes, a break below ₹140 can drag the stock to ₹125.

Infosys (₹652.7)

After a gap-down open last Monday, the stock of Infosys immediately started recovering by taking the support at ₹520. The stock then rallied throughout the week and closed at ₹652.7 on Friday after registering an intra-week high of ₹674.9; it currently faces the 21-day moving average resistance at ₹654.

The daily relative strength indicator has come up in tandem with the price and is now hovering around the mid-point level of 50. The moving average convergence divergence indicator suggests that the bulls are gaining traction. Since the major trend remains bearish, a close above the resistance at ₹654 increases the possibility of further rise.

Traders can initiate fresh long positions in the stock with a stop-loss at ₹610 if it rallies above ₹654. On the upside, the stock has a resistance band between ₹690 and ₹700. This level coincides with the 61.8 per cent Fibonacci retracement level.

A breakout of that level can lift the stock to ₹730. But if the stock declines, ₹618 will act as a support and until the stock stays above that level, further decline is less likely.

RIL (₹1,065.6)

The stock of Reliance Industries opened on a weak note last week and it registered a fresh one-year low of ₹875.6 on Monday; but the stock reversed immediately. Thus, it has formed a support band between ₹875 and ₹900, and as long as the stock stays above that level, the possibility of further decline is low.

The stock extended the rally till ₹1,120 but was unable to advance beyond that level. The 38.2 per cent Fibonacci retracement level and the 21-day moving average coincide at ₹1,120, making it a substantial resistance. Following the recent rally, the daily relative strength indicator is showing a fresh uptick, whereas the moving average convergence divergence indicator in the daily chart is indicating a reversal in trend.

Since the stock is facing a strong resistance, traders can go long in the stock with a stop-loss at ₹1,040 if it rallies past ₹1,120. Above that level, the resistance levels can be spotted at ₹1,215 and ₹1,250, which can be the potential short-term targets.

If the stock price moderates, ₹1,040 can act as a support.

Tata Steel (₹277.2)

Despite closing marginally lower, the daily chart shows that the stock of Tata Steel was in a sideways trend for the past two weeks, fluctuating between ₹255 and ₹310. After opening lower, it traded flat throughout the week. At ₹310 is the 23.6 per cent Fibonacci retracement level, making it a considerable hurdle.

So, for the stock to establish a sustainable rally, it has to break out of that level. The daily relative strength indicator stays flat, but remains below the mid-point level of 50. The moving average convergence divergence in the daily chart, though in the bearish zone, is indicating that the momentum is shifting in favour of the stock.

However, unless the stock breaches either ₹255 or ₹310, the next leg of the trend cannot be confirmed. Until then, traders can stay on the side lines. A breakout of ₹310 can lift the stock price to ₹325 and ₹340 — the 38.2 per cent Fibonacci retracement level..

Whereas, if the price moderates and breaches ₹255, the stock might decline to ₹240.

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