Sensex, Nifty suffer biggest one-day fall amid global sell off

Benchmark indices end over 8 per cent lower

4.10 pm

Closing bell

The BSE Sensex plunged over 2,919 points in its biggest one-day fall in absolute terms as the coronavirus pandemic wreaked havoc on global markets. After nosediving over 3,204.30 points during the day, the 30-share index settled 2,919.26 points or 8.18 per cent lower at 32,778.14.

Likewise, the broader NSE Nifty gave up the 9,600 level, slumping 868.25 points or 8.30 per cent to close at 9,590.15.

All Sensex components ended in the red. SBI was the top loser, followed by ONGC, Axis Bank, ITC, Titan, Bajaj Auto, TCS and IndusInd Bank.

Global markets reeled after the World Health Organization (WHO) termed the coronavirus outbreak as a pandemic, and expressed deep concern over the “alarming levels of inaction“. US President Donald Trump suspended all travel from Europe, excluding the UK, to the US for the next 30 days to stop the spread of the virus.

Countries across the world are imposing travel restrictions, fuelling fears of a global economic recession, analysts said.

In line with the bearish trend in global markets, Indian stocks opened at significant lower levels as investors remained anxious about the economic impact of the coronavirus outbreak, said Narendra Solanki, Head Fundamental Research (Investment Services) - AVP Equity Research, Anand Rathi Shares & Stock Brokers. A selloff across sectors along with panic selling in the broader markets hurt investor sentiment, he said.

Besides a selloff in global equities, massive plunge in international oil prices and depreciating rupee added to the volatility, traders said.

The rupee depreciated 49 paise to 74.17 per US dollar (intra-day). Brent crude oil futures dropped 5.50 per cent to USD 33.82 per barrel.

Elsewhere in Asia, bourses in Shanghai dropped 1.52 per cent, Hong Kong 3.66 per cent, Seoul 3.87 per cent and Tokyo cracked 4.41 per cent. Markets in Europe crashed up to 6 per cent in early trade. In overnight trade, the Dow fell into a bear market and futures pointed Thursday to another rout in New York and Europe.

“Globally, a fall of 20 per cent from the recent peak is normally considered as a bear market. However, the definition does not hold good in India. Given its high beta, Indian markets have corrected by 25-30 per cent number of times and recovered quite quickly to resume the uptrend,” said Gaurav Dua, Senior Vp, Head - Capital Market Strategy & Investments, Sharekhan by BNP Paribas.

The number of coronavirus patients in India has risen to 73 with 13 fresh cases, including nine from Maharashtra and one each from Delhi, Ladakh, and Uttar Pradesh as well as one foreign national, the union Health Ministry has said.

Covid-19 has claimed over 4,200 lives and infected more than 117,330 people across 107 countries and territories. - PTI

3.55 pm

Bitcoin slumps

Bitcoin slumped to its lowest in more than two months, with traders citing a sell-off across global markets as fears of the economic damage from the coronavirus pandemic take hold.

The biggest cryptocurrency fell 8.5 per cent to $7,250, its lowest since January 3. It has lost nearly 20% of its value in the last five days, mirroring sharp losses for assets from stocks to oil. “We've seen de-risking across all asset markets,” said Jamie Farquhar, portfolio manager at London-based crypto firm NKB. ”Bitcoin is certainly not immune to that.” - Reuters

3.45 pm

Snapshot of circuit breaker

 

3.35 pm

Gulf stock markets slide

Stock markets in energy-rich Gulf states tumbled with Saudi shares down more than 4 per cent following worldwide losses amid fears over the coronavirus pandemic and an oil price war.

Dubai Financial Market dived more than 7 per cent at the open on the last trading day of the week. Abu Dhabi shares dropped 6 per cent. Stocks in gas-rich Qatar dropped 5.2 per cent, while bourses in Bahrain and Oman were down 3.5 per cent and 2.2 per cent, respectively.

The stock market in Kuwait was closed as authorities announced a shutdown of government offices for two weeks and cancelled international flights in a bid to prevent the spread of the coronavirus.

Oil prices, the mainstay of Gulf economies, fell sharply with Brent trading below USD 34 a barrel and WTI just above USD 31 a barrel.

Gulf stock markets have sustained heavy losses this week after OPEC and its allies, led by Russia, failed to reach an agreement on addition oil production cuts to support prices. That triggered a price war reminiscent to 2015 as Saudi Arabia, the world’s biggest exporter, and the UAE, OPEC’s fourth-largest producer, pledged to flood the market with crude.

The two Gulf nations said they will together boost supplies by at least 3.5 million barrels per day (bpd), to 16.3 million bpd, from April. Riyadh and Abu Dhabi, who like other Gulf states rely heavily on oil revenues, also unveiled plans to raise their production capacities by one million bpd each. - PTI

3.20 pm

European stock markets

Travel and leisure stocks shed 9.9 per cent to hit their lowest since 2013.   -  Reuters

 

European shares plummeted to their lowest in almost four years as investors were rattled by dramatic travel restrictions imposed by US President Donald Trump in an attempt to halt the fast-spreading coronavirus.

The benchmark STOXX 600 index fell 6.3 per cent, extending declines to a sixth straight day with all but one constituent trading in the red as the World Health Organisation declared the coronavirus outbreak an epidemic. Click here to read more on the European stock markets report

3.05 pm

Yes Bank shares tank

Shares of Yes Bank on Thursday gave up all gains made in recent sessions, plunging over 39 per cent to ₹17.45 on the NSE. The stock had surged over 77 per cent in the last two trading sessions.

On the NSE, the stock was quoting 12.67 per cent lower at ₹25.15. It hit a low of ₹17.45, shedding more than 39 per cent. On the BSE, it was trading at ₹25.10, lower by 12.85 per cent. It touched an intra-day low of ₹22.55, down 21.70 per cent. Read more on the share price of Yes Bank here

2.50 pm

Nifty Call

Tracking the bearish cues from the global markets, Sensex and Nifty began the session with a large-gap down open and continued to remain bearish.

The Sensex and Nifty have plummeted about 6.5 per cent each. The market breadth of Nifty index is negative, all the 50 index stock are in red. On the other hand, the India VIX has skyrocketed 17.7 per cent to record multi-year high of 37.3 levels. Read our Nifty Call for March futures here

2.35 pm

Tata Power puts off till March 20 plans to shut down Mundra plant

Centre promises amicable solution by that date

Read More  

2.20 pm

Outlook on base metals sector

Copper prices will be low due to the coronavirus outbreak, says Ind-Ra. File Photo   -  Reuters

 

India Ratings on Thursday revised its outlook on the country’s base metals sector to negative from stable for the coming fiscal, stressing that the coronavirus outbreak, continuing US-China trade dispute and subdued global demand would keep prices low in the near term.

Prices may gradually improve as the pandemic is contained and the second phase of US-China trade negotiations is concluded, the rating agency said in a statement. As part of its study, the agency has covered the copper, zinc, aluminium and coal sectors. Read more on the base metals sector's outlook by India Ratings

2.05 pm

Hong Kong stocks close at near 3-yr low

Hong Kong stocks plunged to close at a near three-year low, tracking a global selloff as worries deepened over the economic impact of the coronavirus after the US suspended travel from Europe.

The Hang Seng index fell 3.7 per cent, to 24,309.07, its lowest close since April 2017, while the China Enterprises Index lost 3.4 per cent to 9,725.72.

Markets are very nervous as this is a real black swan event. We are potentially looking at a global recession,” said Carlos Casanova, Asia Pacific economist at Coface. Losses on the island were steeper than their mainland peers which fell less than 2 per cent.

Hong Kong will always be affected by the US market, especially with such big movements,” said Steven Leung, executive director for institutional sales at UOB Kay Hian. “The A-share market is providing downside protection for Hong Kong.” Though mainland investors were not deterred, purchasing about 13 billion yuan ($1.86 billion) worth of Hong Kong equities via the Stock Connect on the day as they hunted for bargains.

Around the region, MSCI's Asia ex-Japan stock index was weaker by 4.6 per cent, while Japan's Nikkei index closed down 4.41 per cent. The yuan was quoted at 6.9856 per US dollar at 08:32 GMT, 0.36 per cent weaker than the previous close of 6.9603. Reuters

1.50 pm

RBI likely to announce liquidity-boosting steps

RBI may announce liquidity-boosting steps to soothe markets

India's central bank is likely to announce liquidity-boosting measures to help stabilise financial markets which have fallen sharply due to the ...

Read More  

1.35 pm

Afternoon session

Equity benchmark Sensex crashed over 2,700 points and the broader Nifty sank below 9,700 (intra-day), wiping off over Rs 9 lakh crore worth investor wealth, after WHO declared COVID-19 a pandemic, spiking fears of a global economic recession.

After opening around 1,200 points lower, equities continued their downward spiral, with domestic BSE Sensex plummeting 2,707.39 points to 32,990.01 in morning session. The 30-share index was trading 2,332.96 points, or 6.54 per cent, lower at 33,364.44. Similarly, the broader NSE Nifty hit a low of 9,648.65, cracking 809.75 points. It was trading 689.45 points, or 6.59 per cent, down at 9,768.95.

The rupee plunged up to 82 paise to 74.50 against US dollar in morning session. It, however, pared some losses, quoting 46 paise down at 74.14.

The carnage on Dalal Street eroded investor wealth worth Rs 9,15,113 crore, taking the total m-cap to Rs 1,27,98,444.93 crore on the BSE. The m-cap of BSE-listed companies stood at Rs 1,37,13,558.72 crore at the end of trading on Wednesday.

The day’s selloff was triggered after the World Health Organization (WHO), late Wednesday night, termed the the new coronavirus or COVID-19 outbreak as a pandemic, and expressed deep concern over the “alarming levels of inaction“. Following the announcement, US President Donald Trump suspended all travel from Europe, excluding the UK, to the US for the next 30 days to stop the spread of the virus.

Brent crude oil futures were around 4 per cent down at USD 34.37 per barrel, after the travel ban.

All Sensex components were trading in the red. Axis Bank was the top loser, tanking over 10 per cent, followed by SBI, Hero MotoCorp, ITC, M&M, Bajaj Auto and Titan.

According to traders, volatility peaked in global markets after WHO’s announcement describing the coronavirus outbreak as a pandemic. Besides selloff in global equities, massive plunge in international oil prices and depreciating rupee added to investor concerns, they added.

Incessant foreign fund outflow also spooked market participants, traders said. On a net basis, foreign institutional investors sold equities worth Rs 3,515.38 crore on Wednesday, data available with stock exchanges showed.

Elsewhere in Asia, bourses in Shanghai dropped over 1.50 per cent, Hong Kong 3.50 per cent, Seoul 3.80 per cent and Tokyo cracked up to 4.40 per cent. In overnight trade, the Dow fell into a bear market, and futures pointed Thursday to another rout in New York and Europe.

“Globally, a fall of 20 per cent from the recent peak is normally considered as a bear market. However, the definition does not hold good in India. Given its high beta, Indian markets have corrected by 25-30 per cent number of times as recovered quite quickly to resume the uptrend,” said Gaurav Dua, Sr Vp, Head — Capital Market Strategy & Investments, Sharekhan by BNP Paribas.

COVID-19 has claimed over 4,200 lives and infected more than 117,330 people across 107 countries and territories. China remains the hardest-hit with over 80,000 infections and 3,000 deaths. - PTI

1.20 pm

Aviation stocks plunge

Shares of IndiGo, SpiceJet and Jet Airways were deep in the red. Representative image   -  The Hindu

 

Airline stocks faced heavy headwinds as concerns over enhanced travel restrictions amid spreading of coronavirus infections rattled investor sentiment. Shares of IndiGo, SpiceJet and the defunct Jet Airways were deep in the red in the morning trade, with SpiceJet slumping over 18 per cent. Click here to read more on the impact of coronavirus outbreak on aviation stocks

1.05 pm

Forex market

 

The dollar slid in another seismic shift to price in more US interest rate cuts on Thursday, as President Donald Trump sapped market confidence with a coronavirus plan light on details.

The greenback dropped as far as 1 per cent to 103.32 yen, fell as much as 0.6 per cent to $1.1333 against the euro and lost 0.6 per cent to the safe-haven Swiss franc. Riskier currencies were punished as the fearful mood sent the Australian dollar down 0.6 per cent and the South Korean won skidding 1 per cent, and losing even more ground to the rising yen. Read the full global forex market report here

12.50 pm

Nifty 50 may fall below 8,000 mark

Blue-chip Nifty 50 stock index is likely to slip below the 10,000 level after the coronavirus outbreak was declared a pandemic and as the United States' suspension of all travel from Europe raised fears of further economic disruption.

Coronavirus impact: Nifty 50 may slip below 10,000 mark

Blue-chip Nifty 50 stock index is likely to slip below the 10,000 level on Thursday after the coronavirus outbreak was declared a pandemic and as the ...

Read More  

12.35 pm

Japanese shares tumble

Japanese shares tumbled, with major indexes at three-year lows after the United States rattled markets by imposing sweeping restrictions on travel from Europe and world health officials declared the coronavirus a pandemic.

The benchmark Nikkei average slumped 4.4 per cent to 18,559.63, its lowest closing level since April 2017. The fall was the second-biggest one-day decline in 15 months and dragged the index into bear market territory - 23 per cent off its January 17 peak.

The Nikkei's volatility index, a measure of investors' volatility expectations based on option pricing, jumped more than 10 per cent to 52.09, its highest since March 2011 when massive earthquakes and a tsunami struck Japan.

The Nikkei slid further below the estimated average cost of the Bank of Japan's stock purchases around 19,500, raising concerns about the central bank's credibility and the sustainability of its hyper-easy monetary policy.

“I think markets are sending a clear signal to the White House that the measures announced today were too little too late,” said Mick McCarthy, chief strategist at CMC Markets in Sydney.

The broader Topix plummeted 4.1 per cent to 1,327.88, its lowest closing since November 2016, sinking deeper into a bear market. All of the 33 sector sub-indexes on the Tokyo Stock Exchange traded lower, with sea transport, air transport and mining being the worst three performing sectors.

“Investors just want to pull out funds from every risk asset. It doesn't matter whether shares are defensive or which sector they belong to,” said Yasuo Sakuma, chief investment officer at Libra Investments in Tokyo. “Looking at bank and real estate shares, there appear to be worries this could lead to a financial crisis.”

Mitsubishi UFJ Financial Group Inc, Sumitomo Mitsui Financial Group Inc and Mitsubishi Estate Co Ltd shed 5.5 per cent each, while the TSE REIT index plunged 6.5 per cent. Among other major names, Toyota Motor Corp dropped 3.5 per cent, SoftBank Group Corp lost 6.3 per cent and Sony Corp declined 4.3 per cent.

Elsewhere, the index of Mothers start-up shares plunged 5.4 per cent to a seven-year trough. - Reuters

12.20 pm

Markets paying for the sins of central banks

 

With equity market rallies being flaunted as a symbol of economic health by leaders, central banks have been unable to effectively move towards monetary policy normalisation. This, along with other factors such as elevated equity prices despite poor growth, large speculative positions funded indirectly by central banks, threat of recession in many advanced economies and slowing growth in others, set the stage for the ongoing market crash. Read our Opinion piece on the current market crash

12.05 pm

Sensex, Nifty into bear territory

The stock market plunged into bear territory, with the blue-chip Nifty 50 sliding to its lowest in over 2-1/2 years, after the coronavirus outbreak was termed a pandemic and the United States suspended travel from Europe.

The NSE Nifty 50 index and S&P BSE Sensex fell over 7.5% each to 9,648.65 and 32,990.01, respectively. While the Nifty marked its biggest intraday drop since October 2012, the Sensex recorded its largest daily fall in over a decade.

“The very fact that the WHO (World Health Organization) has called the outbreak a pandemic is a cause for worry for investors, especially since this comes against a backdrop of a slowing Indian economy,” said Gaurav Dua, head of capital market strategy at Sharekhan.

The Indian economy expanded at its slowest pace in more than six years in the last three months of 2019, with the recent collapse of a big bank adding to complications. “India entered 2020 with a massive demand problem, and that has been worsened now. This is a wash-out year for markets,” said Yogesh Nagaonkar, chief executive of Rowan Capital Advisors in Mumbai.

The rupee weakened as much as 0.8 per cent to 74.35 against the dollar, its weakest level since October 2018, while the benchmark 10-year bond yield ticked up to 6.19%.

Markets around the world were stunned after US President Donald Trump suspended all travel to the United States from Europe, except from the United Kingdom, for 30 days starting Friday. US S&P 500 futures plunged as much as 4.9%, while Euro Stoxx 50 futures tumbled 8.3% to mid-2016 lows. MSCI's broadest index of Asia-Pacific shares outside Japan fell 3.2%.

India too said it would suspend a vast majority of visas to the country to contain the virus.

All stocks on the blue-chip indexes in Mumbai were trading in the red, dragged down mostly by large-cap energy and financial shares. Top private-sector lender HDFC Bank Ltd caused the biggest damage to the indexes, sliding 9.5 per cent to its lowest since Nov. 2018.

Oil-to-retail conglomerate Reliance Industries Ltd fell as much as 9.1 per cent to a more than 16-month low.

Fund managers and market analysts said the bulk of selling came from foreign institutional investors. “There has been some pullout of the easy money and liquidity that was driving markets higher so far,” said Mahesh Patil, co-chief investment officer at Aditya Birla Sun Life AMC in Mumbai, whose team manages some $12 billion in equities. “We don't know where the bottom is.”

India is set to release retail inflation data for February later in the day that is expected to fall to a three-month low due to moderating food prices. - Reuters

11.50  am

BPCL buys 2 million barrels extra Saudi oil

 

Bharat Petroleum Corporation has bought two million barrels of extra Saudi oil for loading in April, a company official said, after the Kingdom slashed the selling price and announced plans to raise output to record 12.3 million barrels per day (bpd).

“We will be taking two additional cargoes of Arab mix...we have got a mix of Arab light and Arab medium,” said R. Ramachandran head, of refineries of BPCL.

The stocks of BPCL were trading 13.19 per cent lower at Rs 351.30. Click here to read more

11.35 am

Daily rupee call

The rupee (INR) has opened considerably lower, at 74.28 versus its previous close of 73.64 against the dollar (USD); it has now marginally gained to 74.15. If it remains below 74, it can face more selling pressure which can possibly drag the local currency to its all-time low at 74.48. Currently, the year-to-date loss against the dollar stands at about 4 per cent.

Daily rupee call: Next support at 74.25

The rupee (INR) has opened considerably lower, at 74.28 versus its previous close of 73.64 against the dollar (USD); it has now marginally gained to ...

Read More

11.20 am

Investors wealth wiped off

2009083050791201

 

Investor wealth worth over ₹8 lakh crore was wiped off in early trade as equity markets crashed amid global equity sell off after World Health Organization termed the coronavirus outbreak a ‘pandemic’.

Amid intensifying rout in global financial markets, the 30-share BSE index plummeted 1,864.02 points or 5.22 per cent to 33,833.38. The carnage on Dalal Street eroded investor wealth worth ₹8,56,689.62 crore, taking the total m-cap to ₹1,28,56,869.10 crore on the BSE. Here's more on the impact of coronavirus outbreak on stock markets and investors wealth

11.05 am

US stock markets

Rate-sensitive US banks tumble.   -  Reuters

 

Wall Street stocks plunged on Wednesday, with the Dow confirming a bear market for the first time since the financial crisis after the World Health Organization called the coronavirus outbreak a pandemic.

All three major US stock averages ended the session sharply lower, with the benchmark S&P 500 and Nasdaq composite index both about 19 per cent below their February 19 record closing highs. A bear market is confirmed when an index closes 20 per cent or more below its most recent closing high.

Concerns over the fast-spreading virus have ravaged markets and hobbled supply chains as countries around the world grapple with how to contain both the virus and its economic impact. Read the US stock markets report

10.55 am

Currency market

Market participants turn jittery amid mounting fears of a coronavirus-led economic slowdown. File Photo   -  The Hindu

 

The Indian rupee plunged 82 paise to 74.50 against US dollar in opening trade after the World Health Organization (WHO) declared the new coronavirus (COVID-19) a pandemic. Forex traders said market participants turned jittery amid mounting fears of a coronavirus-led economic slowdown.

Weak opening in domestic equities and foreign fund outflows too dragged the local unit, they added. The rupee opened at 74.25 at the interbank forex market and then fell further to 74.50, down 82 paise over its last close. Click here to read the local currency market report

10.40 am

Commodities market

Brent crude was trading down $1.91, or 5.3 per cent   -  Bloomberg

 

Oil prices sank again along with the broader market after the United States banned travel from Europe following a World Health Organization delaration that the coronavirus outbreak is now a pandemic. Market worries were compounded by the threat of a flood of cheap supply as Saudi Arabia promised to raise oil output to a record high in its standoff with Russia.

The United Arab Emirates followed Saudi Arabia in announcing plans to boost oil output after the collapse last week of an agreement between OPEC, Russia and other producers, a grouping known as OPEC+, to withhold supply and buttress prices. Read more on the crude oil prices crash and commodities market report here

10.25 am

Indices nosedive over 5.3%

Equity benchmark Sensex plummeted over 1,800 points and the broader Nifty gave up the 10,000 level in morning session as worsening rout in world markets, after WHO declared coronavirus a pandemic, flared up fears of a global economic recession.

The rupee too plunged 82 paise to 74.50 against US dollar in morning session.

The sell-off picked pace after the World Health Organization (WHO), late Wednesday night, termed the the new coronavirus outbreak as a pandemic, and expressed deep concern over the “alarming levels of inaction“.

Following the announcement, US President Donald Trump suspended all travel from Europe, excluding the UK, to the US for the next 30 days to stop the spread of the virus. Brent crude oil futures plunged over 5 per cent to USD 34 per barrel, after the travel ban.

Continuing its downward spiral, domestic BSE Sensex sank 1,821.27 points at open. The 30-share index was trading 1,870.32 points, or 5.24 per cent, lower at 33,827.08 in morning session. Similarly, the NSE Nifty cracked 561.25 points, or 5.37 per cent, to 9,89715.

In the previous session, the 30-share BSE barometer settled 62.45 points or 0.18 per cent higher at 35,697.40, and the Nifty closed 6.95 points or 0.07 per cent up at 10,458.40.

On a net basis, foreign institutional investors sold equities worth Rs 3,515.38 crore, while domestic institutional investors bought shares worth Rs 2,835.46 crore on Wednesday, data available with stock exchanges showed.

All Sensex components were trading in the red. Tata Steel was the top loser, tanking up to 9 per cent, followed by ONGC, SBI, Titan, Axis Bank, M&M, UltraTech Cement, L&T and Reliance Industries.

According to traders, volatility peaked in global markets after WHO’s announcement describing the coronavirus outbreak as a pandemic. Besides selloff in global equities, massive plunge in international oil prices and depreciating rupee added to investor concerns, they added. Incessant foreign fund outflow also spooked market participants, traders said.

Elsewhere in Asia, bourses in Shanghai dropped over 1.34 per cent, Hong Kong 3.66 per cent, Seoul 4.29 per cent and Tokyo cracked up to 5.32 per cent.

In overnight trade, US equity benckmarks also plunged nearly 5 per cent, intensifying the global rout.

The new coronavirus that first originated in the Chinese city of Wuhan in December last year has claimed over 4,200 lives and infected more than 117,330 people across 107 countries and territories. China remains the hardest-hit with over 80,000 infections and 3,000 deaths. - PTI

10.20 am

Nifty 50 enters bear market

 

10.10 am

Global markets

 

Global shares crumbled after United States (US) President Donald Trump stunned investors by announcing a temporary travel ban from Europe in an effort to curb the spread of the coronavirus, threatening more disruptions to businesses and the world economy.

US S&P500 futures dived 4.7 per cent, a day after the S&P 500 lost 4.89 per cent, putting the index firmly in a bear market territory, defined as a 20 per cent fall from a recent top.

Euro Stoxx 50 futures sank 5.8 per cent to their lowest levels since mid-2016. MSCI's broadest index of Asia-Pacific shares outside Japan lost 4.1 per cent to its lowest level since early 2019, while Japan's Nikkei dropped 5.3 per cent. Read the complete world stock markets report here

9.55 am

Nifty dives 5% into bear territory

The stock market entered bear territory and the blue-chip Nifty 50 slipped below the 10,000 mark for the first time in two years, as the coronavirus outbreak was declared a pandemic and the United States suspended travel from Europe.

The NSE Nifty 50 index slid 4.9 per cent to 9,946 in early trading, while the benchmark S&P BSE Sensex dropped 4.78 per cent to 33,991.68. The Nifty 50 briefly entered bear territory on Thursday - a 20 per cent fall from its most recent peak in January.

The rupee weakened as much as 0.8 per cent to 74.35 against the dollar, its weakest level since October 2018, while the benchmark 10-year bond yield ticked up to 6.15 per cent.

“The very fact that the WHO (World Health Organization) has called the outbreak a pandemic is a cause for worry for investors, especially since this comes against a backdrop of a slowing Indian economy,” said Gaurav Dua, head of capital market strategy at Sharekhan.

US President Donald Trump stunned markets as he announced the suspension of all travel to the United States from Europe, except from the United Kingdom, for 30 days starting Friday in an effort to contain the spread of the virus.

Stock markets around the world crumbled after Trump's move, with U.S. stock index futures diving 4.7% and MSCI's broadest index of Asia-Pacific shares outside Japan tumbling 4.1% to its lowest level since early 2019.

India said on Wednesday it will suspend a vast majority of visas to the country to contain the virus, as cases across the region continued to rise.

The WHO declared the new coronavirus as a pandemic for the first time on Wednesday, adding that Italy and Iran were now on the frontline of the disease and other countries would soon join them.

All stocks on the blue-chip indexes in Mumbai were trading in the red, dragged down most by large-cap energy and financial shares.

Oil-to-retail conglomerate Reliance Industries Ltd caused the biggest damage to the indexes, falling as much as 9.1 per cent to an over 16-month low.

Top private-sector lender HDFC Bank Ltd slid 5.5 per cent to its lowest since March 2019. Interglobe Aviation Ltd, parent of India's biggest airline IndiGo, dropped 10 per cent after it said on Wednesday profit for the March quarter could be hit due to the virus outbreak. - Reuters

9.40 am

WHO calls Coronavirus a pandemic

 

It was just a matter of time before the World Health Organisation (WHO) defined the spread of the novel coronavirus (Covid-19) a pandemic.

The multilateral agency did just that, with WHO Director General Tedros Adhanom Ghebreyesus characterising Covid-19 a pandemic given its alarming spread, severity and “the alarming levels of inaction”. However, he added, this was a pandemic that can be controlled.

A vital statistic from the WHO chief is that, “Of the 118,000 cases reported globally in 114 countries, more than 90 per cent of cases are in just four countries, and two of those — China and the Republic of Korea — have significantly declining epidemics. Read more on the novel COVID-19 and impact of coronavirus

9.25 am

Stocks in focus

The board of Hindusthan National Glass will meet to consider a proposal for fund-raising through issuance of non-convertible debentures from Goldman Sachs, third-party financiers, members, promoters and their affiliates. It will also consider fund-raising through issue of shares via preferential allotment. Shareholders will closely monitor the amount the company plans to raise through the equity issue and the price at which the shares would be allotted.

The board of Supreme Petrochem will meet on Thursday to consider a proposal of buyback of equity shares of the company. Shareholders will closely monitor the total buyback size, number of shares to be bought back and the price of the issue. Also, of interest to them would be the mode of buyback, whether through open market purchase or tender offer route on proportionate basis. The intention of the promoters -- whether they will participate in the offer or not, will also be eyed.

Shares of Biocon may see buying interest, as the company won a major ruling for insulin drug in the US. According to Biocon, the US District Court of New Jersey invalidated Sanofi’s patent suit against Biocon-Mylan insulin glargine product. With the key legal hurdle now removed, the company is confident of commercialising Semglee, which is under review currently by the USFDA, by 2020. The market opportunity for insulin glargine is estimated at $2.2 billion, the company said.

9.15 am

Opening bell

The 30-share BSE index Sensex crashed 1,224.9 points to 34,472.50 in the opening trade against the previous close 35,697.40. The 50-share NSE index too opened 4.43 per cent lower at 10,039.95

9.10 am

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:

₹1112 • HDFC Bank

S1

S2

R1

R2

COMMENT

1098

1086

1125

1145

Initiate fresh long positions with a stiff stop-loss if the stock reverses higher from ₹1,098 levels

 

₹685 • Infosys

S1

S2

R1

R2

COMMENT

676

670

695

704

Fresh long positions can be initiated with a fixed stop-loss only if the stock rebounds up from ₹676 levels

 

₹175 • ITC

S1

S2

R1

R2

COMMENT

173

171

179

181

Make use of intra-day dips to buy the stock of ITC while maintaining a fixed stop-loss at ₹173 levels

 

₹71 • ONGC

S1

S2

R1

R2

COMMENT

69

66

74

77

Fresh long positions are recommended with a tight stop-loss only if the stock advances above ₹74 levels

 

₹1153 • Reliance Ind.

S1

S2

R1

R2

COMMENT

1140

1125

1166

1180

Consider initiating fresh long positions with a fixed stop-loss if the stock reverses higher from ₹1,140 levels

 

₹245 • SBI

S1

S2

R1

R2

COMMENT

240

235

253

260

Utilise intra-day dips to buy the stock of SBI while retaining a stiff stop-loss at ₹240 levels

 

₹1954 • TCS

S1

S2

R1

R2

COMMENT

1935

1915

1975

1995

Initiate fresh short positions with a fixed stop-loss if the stock of TCS moves beyond ₹1,975 levels

 

10450 • Nifty 50 Futures

S1

S2

R1

R2

COMMENT

10400

10350

10510

10575

Consider initiating fresh long positions with a tight stop-loss if the contract rallies above 10,510 levels

 

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

9.00 am

Today's Pick

BERGER_PAINTS   -  The Hindu

 

We recommend a sell in the stock of Berger Paints India at the current levels of Rs 502.4. After registering an all-time high at ₹597 in early February this year, the stock reversed direction triggered by negative divergence in the weekly RSI as well as the weekly price rate of change indicator. Since then, the stock has been in a short-term downtrend.

The short-term outlook for the stock is bearish. It can continue to trend downwards and reach the price targets of ₹482 and ₹472 in the upcoming trading session. Click here to read more on our stock recommendation and the stock activity of Berger Paints India

Published on March 12, 2020