Sensex, Nifty end 0.16 per cent higher; FMCG stocks top gainer

Closing bell

After surging over 1 per cent in the morning trade, the benchmark indices ended 0.16 per cent higher. The Sensex closed at 38,470.61, up 61.13 points and the Nifty ended 18 points higher at 11,269.

The BSE index was led by FMCG stocks with the scrips Hindustan Unilever emerging the top gainer. It touched an intraday high at 38,887.80 and had briefly slipped into the red in afternoon trade. In the morning trade, the NSE index had breached the 11,300 mark.

The major gainers in the Sensex pack were Kotak Mahindra Bank, HCL Technologies, Hindustan Unilever, TCS, Bharati Airtel and Asian Paints while the laggards were Reliance, Tech Mahindra, ICICI Bank, Axis Bank and Power Grid.

In the broader index, the scrips of Yes Bank, Eicher Motors, Kotak Mahindra Bank, HCL Technologies, and Hindustan Unilever were lending support while the stocks leading the negative pack were Zee Entertainment, Hindalco, Infratel, Reliance and Cipla.

No communication on stake sale: Yes Bank

Yes Bank has said it has not received any communication of a potential stake purchase by a consortium led by State Bank of India.

“The Bank has not received any such communication from RBI or the government or regulatory authorities or from the SBI and we are unaware of any such decision,” it said in a clarification to the stock exchanges.

Yes Bank scrip, which surged by over 27 per cent in early morning trade, was still 22 per cent up on the Bombay Stock Exchange (BSE) and was trading at Rs 35.75 apiece.

Global markets

European markets snapped a three-day winning streak. Frankfurt and Paris fell 0.3 per cent and Milan , which is at the heart of Europe's coronavirus outbreak, and London slipped 0.5 per cent as evidence mounted of the damage the coronavirus outbreak was inflicting.

Futures for US stocks pointed to more pain ahead. E-Minis for the S&P 500 fell 0.6 per cent after California declared a state of emergency as coronavirus cases increased. Europe's losses came after MSCI's broadest index of Asia-Pacific shares outside Japan added 0.7 per cent for a fourth day of gains. The Dow and S&P 500 surged more than 5 per cent and the Nasdaq nearly matched their gains. - Reuters

MCX-Nickel

The March futures contract of Nickel on the Multi Commodity Exchange of India (MCX), which declined during the last week, has bounced after registering a low of ₹889.1 last Friday. Currently, the contract is trading near the 21-Day Moving Average.

Since the major trend of the metal is bearish and the contract has a significant resistance at ₹966, the likelihood of price declining from current levels looks higher. On the downside, the price might moderate to ₹900. A break below that level can drag the contract to ₹872.

European stocks

The main European equity benchmark rose 0.6 per cent. File Photo

European shares rose for a fourth straight session, as the action taken this week by several major central banks to ease the impact of the coronavirus outbreak on growth fed through into financial markets.

Analysts firmly expect the European Central Bank to cut interest rates by 10 basis points next month, joining the U.S. Federal Reserve and its peers in Canada and Australia in reducing borrowing costs.

London shares, however, were up just 0.06% as the Bank of England's next governor Andrew Bailey said it should wait for more clarity about the economic hit from the outbreak before making any decision to cut rates. Read more on the European stock markets here

Commercial papers listed on BSE

In just three months, commercial papers (CPs) worth more than ₹3.5 lakh crore have been listed on the BSE. The listing of commercial papers was allowed by SEBI in October when the regulator issued the framework.

In FY 2019-20 its debt platforms enabled corporate India to list debt instruments worth ₹5,48,664 crore ($ 74.97 billion) as on (March 4, 2020), BSE said.

Sensex, Nifty trim early gains

The benchmark indices, after surging over 1 per cent in the afternoon trade, trimmed gains and currently rallying around 0.25 per cent.

The 30-share BSE index Sensex was trading higher by 93.42 points or 0.24 per cent at 38,537.15 and the broader index Nifty was trading at 11,285.55, higher by 34.55 points or 0.31 per cent. The FMCG and IT stocks were cushioning the indices.

The top gainers leading the Sensex pack were HCL Technologies, Kotak Mahindra Bank, Hindustan Unilever, TCS and Bharti Airtel while the laggards were Reliance, ICICI Bank, Power Grid, Tech Mahindra and Sun Pharma.

In the Nifty 50, the scrips of Yes Bank, Eicher Motors, HCL Technologies, Kotak Mahindra Bank and Britannia were leading the positive zone while the stocks in the red were Zee Entertainment, Infratel, Hindalco, Reliance and Grasim.

NBFCs to face biggest funding test

While India’s credit crisis is showing some signs of easing with borrowing costs dropping for top-rated NBFCs, defaults remain a risk for weaker firms. More missed payments could undermine the Indian administration’s efforts to boost credit in an economy set to grow at its slowest pace in more than a decade.

Shadow banks are recovering from a prolonged cash crunch that began in 2018 with defaults at the IL&FS Group. They have been a key source of funding for everyone from India’s smaller businesses to its tycoons as the nation’s banking system battles the world’s worst bad loan ratios.

Forex reserve may arrest rupee’s panic drop

India’s foreign-exchange reserves rose by $64 billion in 2019, and the RBI added another $18 billion in 2020, taking holdings to a record $476 billion as of February 21. The Reserve Bank of India kept amassing dollars all through 2019, ending the year with Asia’s biggest jump in foreign-exchange reserves. That may come in handy now.

Authorities may deploy some of the stockpile to steady the rupee, which has tumbled more than 2 per cent over the past week as more locals are diagnosed with the coronavirus. The currency is the worst performer in Asia this month, after having escaped relatively unscathed in February when most regional peers were hit by the contagion. Click here to read more on India's forex reserve and how it will help rupee's free fall

Nifty Call

The Sensex and the Nifty began the session in green with a gap-up open, taking bullish cues from the global markets.

The market breadth of the Nifty is biased towards advances. On the other hand, the India VIX has tumbled 6.8 per cent to 22.5 levels. Both the Nifty mid and small-cap indices have advanced 0.6 per cent and 0.7 per cent respectively. The Nifty PSU Bank index is the top gainer among the sectoral indices which has surged 2.4 per cent. Read our Nifty Call for March futures here

Tech and Bank stocks shine

FMCG companies ramp up manufacturing and distribution

FMCG companies are either ramping up production or doubling down on distribution efforts to ensure availability of hygiene products such as handwash and hand sanitisers on retail shelves to meet the massive spike in demand, as India begins reporting an increase in the number of coronavirus cases.

Consumers in certain regions took to social media to report shortage of products such as hand sanitisers. But key FMCG players on Wednesday stated they have adequate stocks available for such products.

The stocks of FMCG companies were the top gainers in the BSE index, trading higher by 1.71 per cent

Trade impact of Coronavirus for India

The trade impact of the coronavirus epidemic for India is estimated to be about 348 million dollars and the country figures among the top 15 economies most affected as slowdown of manufacturing in China disrupts world trade, according to a UN report.

India is among the 15 most affected economies due to the coronavirus epidemic and slow down in production in China, with a trade impact of 348 million dollars. The trade impact for India is less as compared to other economies such as EU, the US, Japan and South Korea. Trade impact for Indonesia is 312 million dollars. Read more on the trade impact of Coronavirus epidemic for India

AllCargo Logistics gets SEBI nod for open offer

Allcargo Logistics said that it has received SEBI approval to hold an open offer to acquire approximately 3.17 crore shares or 26 per cent stake in Gati Ltd at ₹75 a share.

If the open offer is fully subscribed by the retail shareholders, it will take Allcargo’s stake in Gati to 46.83 per cent, helping it emerge as the controlling stake holder in Gati. The open offer is expected to be launched between March and April 2020.

The stocks of AllCargo Logistics were trading 1.86 per cent higher at Rs 112.45

Yes Bank shares surge 27%

Shares of Yes Bank shot up by over 27 per cent on the BSE amidst reports that a consortium led by State Bank of India will buy a stake in the troubled private sector lender. Yes Bank scrip gained 27.3 per cent during intraday trade to Rs 37 a piece on BSE.

Click here to read more the stock activity of Yes Bank

Podcast | Market watch

The emergency rate cut made by the central banks across the world and SBI Cards IPO were the major reasons for the global market rally. The coronavirus effect too played a major role in the stock markets. So what could be the next trigger.

KS Badrinarayanan, Senior Deputy Editor and our market analyst explains on the market reaction this week and how will the stock markets perform in the coming days, in this week's podcast

IT stocks support Sensex

The 30-share BSE index Sensex zooms 400.04 points or 1.04 per cent higher to 38,809.52 and the Nifty 50 index also surged over 1 per cent to 11,367.05, 116.05 points or 1.03 per cent higher led by the IT stocks. The scrips of Kotak Mahindra Bank, TCS, Hindustan Unilever, Infosys and HDFC Bank were lending support

The stocks of Kotak Mahindra Bank, HCL Technologies, Hindustan Unilever, TCS and State Bank of India were leading the gainers pack whereas the stock of NTPC was alone trading in red in the Sensex 30-pack.

Among the sectoral indices, the IT stocks emerged top gainer trading higher by 1.84 per cent, followed by TecK stocks (1.52 per cent) and FMCG (1.55 per cent).

In the broader index, the bank stocks were leading the gainers pack. The top scrips include Yes Bank, Kotak Mahindra Bank, Hindustan Unilever, HCL Technologies and UPL while the laggards were Zee Entertainment, Infratel, Coal India, Hindalco and Grasim.

Commodities market

US crude stocks rise modestly. File Photo

Oil prices rose more than 1 per cent ahead of an OPEC meeting in which Saudi Arabia is expected to push the group and its allies including Russia to agree to further output cuts to support the market.

Prices were also supported by a lower-than-expected rise in crude oil inventories in the United States, alleviating some concerns of oversupply in the world's biggest oil consumer. Read the full commodities market report here

Market outlook

Nervousness returned to Indian stock markets on Wednesday, with the Sensex and the Nifty 50 turning extremely volatile, as the number of people who have tested positive for the coronavirus infection in the country rose to 28. With social media in a flutter over the dos and don’ts to ward off the outbreak, panic is beginning to spread across the country and this was reflected in the sharp swings in the stock market.

The Sensex and the Nifty 50 have lost around 7 per cent since February 20, 2020. But developed market benchmarks such as the FTSE 100, CAC 40, DAX and Nikkei have lost between 9 and 12 per cent over the last couple of weeks.

As the COVID-19 scare spreads, what is the way ahead for stocks? Is valuation turning attractive? What should investors do? Read the analysis here

Forex market

Dollar claws back ground against euro. File Photo

The dollar struggled to make headway, as very low US yields and the prospect of even more monetary easing held back gains, while virus fears supported the safe-haven yen. With benchmark US 10-year yields just a tad above 1 per cent and futures markets pricing another 50 basis points of Federal Reserve cuts by July, the greenback failed to forge ahead in Asia, leaving the euro steady at $1.1136.

An emergency 50 basis point interest rate cut by the Fed on Tuesday had sent the dollar backwards against most Asian currencies and down to a five-month low of 106.84 yen. Read the global forex market report here

Sensex, Nifty surge

The 30-share BSE index Sensex surged 393.62 points or 1.02 per cent to 38,803.10. Similarly, the broader index Nifty jumped 1.01 per cent or 113.60 points to 11,364.60. The FMCG and TecK stock were cushioning the index.

The top gainers in the Sensex pack were Kotak Mahindra Bank, Hindustan Unilever, HCL Technologies, TCS and Hero MotoCorp while the laggards were Reliance, HDFC, State Bank of India and L&T.

In the Nifty index, the stocks leading the gainers pack were Yes Bank, Hindustan Unilever, Kotak Mahindra Bank, HCL Technologies and TCS while the scrips in the negative zone were Zee Entertainment, Infratel, Coal India, Hindalco and State Bank of India.

Daily Rupee Call

The rupee (INR) had to undergo a very volatile session. Despite this, the Indian currency closed marginally higher at 73.22 after making a low of 73.63 against the dollar (USD). The previous close was 73.3. The rupee continues to be the weakest Asian currency this week, losing 1.45 per cent against the dollar. Year-to-date, it has declined by 2.6 per cent.

With a close at 73.22 on Wednesday, the rupee remains below the important level of 73 and as long as it stays so, the likelihood of further decline will be more. Support levels can be found at 73.3 and 73.5 whereas resistances are at 72.9 and 72.46. Here is our daily rupee call

US stock markets

A screen displays the Dow Jones Industrial Average after the closing bell on the floor of the New York Stock Exchange (NYSE) in New York, US.

Wall Street roared back to life on Wednesday, with both the Dow and the S&P 500 surging more than 4 per cent, after former Vice President Joe Biden's strong showing in the Super Tuesday Democratic primary contests injected a dose of confidence.

After the S&P 500 reached an all-time high on Feb. 19, the stock market slid into a correction as the rapidly spreading COVID-19 sparked recession fears. The S&P 500 has recovered nearly 6 per cent from Friday's closing trough, but remains about 7.6 per cent below the all-time high reached on Feb 19.

The S&P 500 healthcare index had its best day since November 2008, advancing 5.8 per cent. Health insurers, in particular, gained ground, with the S&P 500 Managed Care index jumping 12.4 per cent. Click here to read more on the US stock markets report

Shares inch higher

The shares edged up, supported by a rise in Asian and US markets, but worries over a spike in coronavirus cases in the country kept gains in check.

The NSE Nifty 50 index marginally rose 0.2 per cent or 22.05 points to 11,273.05, while the benchmark S&P BSE Sensex was up 0.35 per cent or 133.56 points at 38,543.04.

The markets closed lower on Wednesday as the total number of known coronavirus cases rose sharply, fuelling concerns that a rapid spread could further hit an already slowing economy. “Markets will be volatile as virus fears persist, it is very difficult to say that the trend has changed right now,” said Siddharth Khemka, head of retail research at Motilal Oswal Securities.

India is pushing state-run banks to approve new loans amounting to Rs 500-600 billion by the end of March, two government sources told Reuters , in efforts to shore up a stuttering economy as the virus spreads.

Consumer goods company Hindustan Unilever Ltd was the top boost to the indexes, rising as much as 3.6 per cent to a one-week high. IT stocks also contributed, with Tata Consultancy Services Ltd up 1.4 per cent and HCL Technologies Ltd rising 3 per cent.

Large cap banks and energy firms were among the top drags. ICICI Bank Ltd fell 1.5 per cent, while Reliance Industries Ltd slipped 0.8 per cent. - Reuters

Rupee market

Rupee started the session on positive note but soon nervousness surrounding coronavirus gripped the forex market sentiment. File Photo

The Indian rupee continued its downward journey, sliding another 5 paise to trade at 73.44 against the US dollar. At the interbank foreign exchange, the local unit started the session on positive note but soon nervousness surrounding coronavirus gripped the forex market sentiment, pulling the rupee down to 73.44 against the previous day’s close of 73.39 a dollar.

Further weakening sentiment, foreign investors offloaded securities worth Rs 878.38 crore on Wednesday. Read the local currency market report here

Early session

Equity benchmark Sensex jumped nearly 300 points in early session tracking positive cues from global equities as central banks across the global prepare to combat the economic pressure of the coronavirus outbreak.

After surging 299 points in early trade, the 30-share index was up 137.60 points, or 0.36 per cent, at 38,547.08, and the NSE Nifty rose 73.25 points, or 0.65 per cent, to 11,324.25.

HUL, HCL Tech, Tata Steel, Nestle India, TCS and Asian Paints were among the top gainers, while ICICI Bank, L&T, PowerGrids, NTPC and Reliance Industries were trading in the red.

In the previous session, the 30-share BSE barometer settled 214.22 points or 0.55 per cent lower at 38,409.48, and the Nifty closed 52.30 points or 0.46 per cent down at 11,251.

On a net basis, foreign institutional investors (FPIs) sold equities worth Rs 878.38 crore, while domestic institutional investors bought shares worth Rs 764.13 crore on Wednesday, data available with stock exchanges showed.

According to traders, investors were hopeful that the collective efforts of global governments and central banks would cushion the economic fallout of coronavirus.

The IMF on Wednesday said will make available about USD 50 billion through its rapid-disbursing emergency financing facilities for low income and emerging market countries that could potentially seek support on account of coronavirus.

The rupee depreciated marginally to 73.45 against the US dollar in morning session. - PTI

Global markets

MSCI's broadest index of Asia-Pacific shares outside Japan added 0.7%, in its fourth day of gains. File Photo

Asian shares rallied for a fourth straight session as US markets swung sharply higher and another dose of central bank stimulus offered some salve for the global economic outlook.

MSCI's broadest index of Asia-Pacific shares outside Japan added 0.7 per cent, in its fourth day of gains. Japan's Nikkei rose 0.9 per cent and hard-hit Australian shares finally managed a bounce of 1.1 per cent. Shanghai blue chips put on 1.3 per cent. E-Mini futures for the S&P 500 dipped 0.6 per cent after its overnight jump, but EUROSTOXXX 50 futures rose 0.6 per cent and FTSE futures 0.4 per cent. Click here to read the global stock markets report

Stocks in focus

KSB India has bagged an order worth ₹100 crore for the supply of slurry re-circulation pumps to be installed across 10 NTPC sites in the country. The deliveries of the pumps begin this month and these will be installed in the Flue Gas Desulphurisation (FGD) units at power plants, which will have a total generation capacity of 166GW in the coming years, a PTI report quoting KSB’s Managing Director, Rajeev Jain, said. FGD helps lower emissions of gases known to cause lung diseases.

Shares of Strides Pharma Science may attract buying interest, as its wholly-owned subsidiary Strides Pharma Global Pte Ltd, Singapore, has received USFDA approval for tetracycline hydrochloride capsules USP 250 mg and 500 mg. The drug is an antibiotic used to treat various bacterial infections of the skin, intestines, respiratory tract, urinary tract, genitals and lymph nodes. According to IQVIA MAT data, the US market for tetracycline hydrochloride capsules USP is about $16 million.

A scheme of arrangement envisages merger of Gujarat Borosil, Vyline Glass Works and Fennel Investment & Finance into Borosil Glass Works and also demerger of the consumer and scientific businesses of Borosil Glass Works into Borosil. Accordingly, two shares of Gujarat Borosil will fetch one share each in Borosil Glass Works and Borosil. Borosil Glass Works, which will handle the solar glass business, will be renamed Borosil Renewables and will continue to be publicly traded.

Opening bell

The 30-share BSE index Sensex opened 194.77 points higher at 38,604.25 against the previous close of 38,409.48  The NSE index Nifty opened at 11,306.05.

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:

₹1148 • HDFC Bank

₹758 • Infosys

₹187 • ITC

₹92 • ONGC

₹1339 • Reliance Ind.

₹285 • SBI

₹2083 • TCS

11247 • Nifty 50 Futures

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

Today's Pick

We recommend a buy in the stock of Power Grid Corporation at the current levels of Rs 197.1.

Last week, the stock took support at this zone and began to trend upwards. Currently, the stock is in a near-term rally. Over the past two trading session it has gained 7 per cent and has decisively breached its 21- and 50-Day Moving Averages. The short-term targets are ₹205 and ₹209 in the ensuing trading sessions. Read more on our today's stock pick and the stock activity of Power Grid Corporation

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