Rate cut fails to hold up markets; Sensex dips 1,310 pts from day's high

All that happened in the markets today

4:17 PM

MARKET COMMENT | Vinod Nair, Head of Research at Geojit Financial Services

Indices ended almost flat following the RBI measures to lessen the burden on borrowers and to increase liquidity in the system. The markets were up in the last 2 sessions on the expectations of these announcements from the Government and RBI. Now, since the 2 expected events are out of the way, focus comes back on the spread of the virus and its damage on the already reeling economy.

4:04 PM

SECTOR WATCH | Sectoral gainers and losers on the NSE

4:03 PM

MARKET AT CLOSE | Top losers and gainers on the S&P BSE Sensex

3:42 PM

CLOSING BELL

The S&P BSE Sensex slipped 131 points or 0.44 per cent to end at 29,816 while NSE's Nifty50 ended at 8,660, up 19 points or 0.22 per cent

3:27 PM

EXPERT COMMENT | Naveen Kulkarni, Chief Investment Officer, Axis Securities

Expectations from RBI were riding very high on rate cut, moratorium and liquidity measures. RBI has delivered on every count. This will provide significant support to the market and economy. The small finance banks will see significant liquidity free, which is critical to tide through the current challenges. While the measures were much needed but the markets will move now on how the Covid curve behaves in India. Longer shut downs will be detrimental to economy and the markets. Earlier recovery from lock down will mean a V-shaped market recovery

3:22 PM

MARKET CHECK

3:13 PM

Gold eases on profit-taking, but set for best week since Dec 2008: Reuters

Gold fell on Friday as investors booked profits, but was set for its best week since December 2008 as record high U.S. jobless claims due to the coronavirus fuelled hopes for more stimulus to stem the economic damage caused by the pandemic.

3:01 PM

Dr Reddy's board approves borrowing of Rs 2,000 cr through multiple routes

For the purpose, the company is allowed to pursue any of the multiple modes available such as issuance of commercial paper, debentures, bonds and/ or through bank credit lines, term loans including external commercial borrowings that it may deem fit, according to a stock exchange filing. READ MORE  

2:57 PM

Top losers on BSE today

COMPANY	LATEST	PREV CLOSE	LOSS(%)
MAH. SEAMLESS	208.65	245.40	-14.98
CRISIL	1260.10	1401.65	-10.10
JSW ENERGY	41.70	46.00	-9.35
JAMNA AUTO INDS.	24.60	27.10	-9.23
ADANI POWER	27.50	30.10	-8.64

2:51 PM

Coronavirus: ITC's Sanjiv Puri lines up Rs 150 crore contingency fund

According to the company’s chairman and managing director, Sanjiv Puri, this fund will be utilised primarily to provide relief to the vulnerable and most needy sections of society who are impacted by the pandemic and are facing significant disruption in their livelihoods. READ MORE

2:43 PM

NEWS ALERT | Tata Motor's Board gives in-principle approval to subsidiarize it's PV business (including EV): BSE filing

2:41 PM

STOCK ALERT :: Aptech surges 20% in 2 days

2:38 PM

Nifty sectoral indices at this hour

2:32 PM

EXPERT COMMENT | Navneet Munot, ED & CIO, SBI Mutual Fund on RBI announcement

"Reserve Bank of India announced a big monetary bazooka including 75 bps repo rate cut along with massive liquidity injection (first CRR cut In 7 years!) and relaxation in various measures to address the existing and potential financial stress in the economy. Measures targeted at giving relief to almost all borrowers to tide over these difficult times, relaxation on asset quality classification, capital adequacy, marginal standing facility and infusing massive liquidity to de-freeze the corporate bond and CP market will go a long way in easing financial stress. With today's actions, total liquidity injection by RBI sums to 3.2% of GDP. While India has limited fiscal space, monetary policy continues to do the heavy lifting at a time when growth is at a severe risk in the near term.

We need to explore unconventional measures on fiscal, administrative and regulatory fronts on the lines of lead taken by RBI today. Lower crude oil prices will be one of the silver linings for India. We can also explore the idea of creating a crude oil strategic reserves by using Forex reserves. We have been running relatively higher duration in anticipation of strong monetary measures. We expect yields to remain soft in the near term. These announcement will be taken positively by the equity market, however, its movements will continue to be dictated by the evolving situation on COVID-19 crisis and its implications on the economy and corporate profitability. As a house, our focus continues to remain on the bottom up stock picking

2:24 PM

EXPERT COMMENT | Umesh Revankar, MD and CEO, Shriram Transport Finance on RBI rate cut move

The rate cut of 75bps is in line with our expectations and will aid to bring down the cost of borrowing. The CRR cut of 100bps will help in infusing the desired liquidity requirement in the system. The three months moratorium announcement will reduce the repayment pressure on the borrower and give him buffer time to understand his income status and react to his repayment of the loan accordingly.”

 

Adding, “All in all, it is a very welcoming policy. The government have announced corrective measures to combat with current pandemic situation which would thereby help in bringing financial stability into the system"

2:21 PM

MARKET ALERT :: Sensex rebounds, up 300 pts now

2:17 PM

SECTOR UPDATE | Aviation sector outlook for FY21 by CARE Ratings

Even as the macros of the Indian aviation industry may be in favour of propelling its growth, the industry may not fully recover any time soon post the effects of the pandemic which has affected business operations, travel and tourism and economies world over. With most of the countries going under lockdown and banning/posing restriction on entry of foreign nationals, airline carriers world over are mulling their operations due to lack of demand and are grounding their fleet due to which the aviation industry is in a fragile financial position.

Going forward, there seems to be turbulence and stormy clouds for the Indian aviation industry as airlines will be operating on sub-par capacity which will result in low ticket booking, fall in revenues and low passenger load factor (PLF). Passenger growth of airlines is to fall sharply and register a negative 20%-25% growth for FY21. Passenger growth has been 13.7% during FY19 and 3.7% during FY20 (April-February).

2:11 PM

EXPERT COMMENT | Anuj Puri, Chairman - ANAROCK Property Consultants, on RBI rate cut move

RBI’s latest announcement of a massive repo rate cut of 75 bps coupled with three months moratorium of EMIs on all outstanding loans is the biggest move that India has so far made to counter the COVID-19 fallout. The move will push credit flow into all industries reeling under the impact of the coronavirus. 

 

The repo rate cut will I fuse cash flows into the system and ensure that consumption disruption is minimised. It will effectively benefit all sectors, including real estate.  Given this time period, RBI will ensure that the benefit of the rate cut is directly passed on to actual consumers, which could eventually translate into more home loan takers. Additionally, this move of the RBI encourage banks to lend more and also enable industries to borrow.

The moratorium of three months of EMIs on all outstanding loans will be a major relief to all concerned stakeholders, including home loan borrowers and developers. Developers now get breathing space to get their financial act together, at least for now. Moreover, the fact that non-payment of EMIs will not cause loans to turn bad is a major relief.

 

All in all, this big-bang announcement by the RBI will benefit all industries in the country, and is undoubtedly the most convincing intervention yet to tame a major economic crisis in the country.

2:08 PM

EXPERT COMMENT :: Gurpreet Sidana, Chief Operating Officer, Religare Broking

The announced cut of 75 bps in REPO rate is higher than the market expectation as the majority were anticipating 50bps and that too during the MPC meet in April. And to make sure that it translates into business, they cut the reverse REPO rate by 90bps, to encourage banks to lend and improve the credit flows in the system rather than parking the deposits with the RBI. Further, the RBI cut CRR by 100 bps to 3%. Above all, to directly touch the borrowers, they’ve gone for a 3-month moratorium to all the term loans and much-desired relief on interest on working capital.

 

It does not only save the urban middle class, industrial borrowers at large but also help the banks (scheduled and cooperative) and NBFCs which are already dealing with the stress of rising NPAs. And that, in turn, would reflect into their stock prices too. In short, it’s a win-win situation for all.

2:05 PM

NEWS ALERT | HDFC Life Insurance slips 8% to Rs 440

-- Around 50.45 million equity shares, representing 2.5 per cent of total equity, changed hands via block deals in morning trade 

2:04 PM

Coronavirus impact: Fitch cuts banks' score of operating environment

Faced with the adverse fallout of COVID-19 on the banking sector in India, Fitch on Thursday revised its mid-point score for banks’ operating environment to 'BB' from 'BB+' earlier.
 

Increasing challenges from the pandemic are expected to worsen an already difficult operating environment, it said. ICICI Bank and Axis Bank are susceptible to a downward viability rating pressure, even though they have better income and capital buffers than their peers.

2:03 PM

European stocks drop

1:53 PM

Contribution to the S&P BSE Sensex today

1:52 PM

This is not like a one-quarter hit; it will take time: PVR chief Ajay Bijli

The first salvo was when Jammu & Kashmir shut down theatres (March 11), then Kerala and Delhi followed suit. If social gathering propagates the disease then we are happy to meet public guidelines. It is not just a business issue. READ MORE

1:43 PM

Coronavirus impact: GDP likely to fall to a three-decade low, say analysts

With the nation under a lockdown because of the coronavirus disease (COVID-19) outbreak, analysts suggest that the impact on various Indian industries could cost the economy around 3 per cent of GDP.
 

There has been around 40 per cent decline in economic activity after the lockdown, as only essential manufacturing (food & pharma) and services (grocery trade, health & public services) are functioning. READ MORE

1:31 PM

RBI measures to improve returns of debt MF schemes, help liquid schemes

The liquidity-boosting measures taken by Reserve Bank of India (RBI) on Friday to mitigate the impact of the economic slowdown induced by coronavirus, is likely to improve returns of debt mutual fund (MF) schemes and help liquid schemes in handling redemption pressures. “The move will re-value the debt portfolios of existing investors as yields see softening,” said Dwijendra Srivastava, chief investment officer-fixed income, Sundaram MF. READ MORE

1:30 PM

Fewer hits than misses in FMCG as demand and supply concerns weigh

The fast-moving consumer goods (FMCG) sector is believed to be faring better, given the daily-use products it sells. Expected margin gains from lower input costs, following the sharp correction in oil prices, adds to the belief. However, the road ahead may be tough, as demand and supply-related issues are bound to take a toll on their overall performance till the next quarter. READ MORE

1:28 PM

RBI pulled out its bazooka to tackle Covid-19 slowdown: Experts on rate cut

Abheek Barua, Chief Economist, HDFC Bank, New Delhi

 

“In many ways the RBI’s measures went beyond the market’s expectation, particularly the magnitude of the policy rate cut and the CRR reduction. “The fact that unlike the ECB or the Fed, the RBI did not announce direct purchases of corporate bonds, leaving it to the banks instead, could be bothering markets. Besides there are no sectoral facilities for the worst hit like aviation, hospitality etc.” READ MORE

1:21 PM

How coronavirus has exposed the pain points of migration and globalisation

By one estimate, some 17 million Indians were living outside the country in 2017 and around 391,000 went abroad as unskilled migrants. According to the 2001 census, 259 million people migrated from one state to another and from village to village. READ MORE

1:20 PM

Bharti Airtel declines over 7%, top Sensex loser