Indices see biggest 1-day fall ever in absolute terms, Sensex dips 1942 pts

All that happened in markets today

4:03 PM

COMMENT :: Deepak Jasani, Head Retail Research, HDFC Securities

Indian markets are facing a deluge of negative triggers. Global markets are plunging after the break of an alliance between OPEC and Russia resulted in the worst one-day crash in crude prices (more than 30%) in nearly 30 years, fueling panic triggered by the escalation of the coronavirus epidemic.

The panic began after Saudi Arabia shocked oil markets by launching a price war. Italy placed nearly 16 million people under semi-lockdown and the number of confirmed cases in Europe continues to rise. China's exports fell 17% in the January-to-February period compared to a year before, according to data released over the weekend. Imports fell 4%.This data shows the slow recovery in China. All this while the local markets were recovering out of the Yes Bank issue.

 

Technically, with the Nifty moving down further, the short term trend remains down. The Nifty could test the recent lows of 10,295-10,138 in the coming sessions. Any pullback rallies could find resistances at 10,637-10,744.

3:55 PM

COMMENT :: Suman Chowdhury, President – Ratings at Acuité Ratings & Research

The sharp decline in the global oil prices not only reflects the deep underlying concerns on a global economic disruption brought about by the Corona Virus scare but also a lack of consensus among the OPEC nations regarding production cuts. This will benefit India since it is one of the largest importers of crude oil; we estimate the savings on oil imports to be around $30 billion in FY21 if there is no significant uptick in global demand. This will also arrest the rising inflation and facilitate the next round of rate cuts by RBI

3:52 PM

ALERT :: Market holiday

Indian markets will remain closed on Tuesday on account of Holi

3:51 PM

COMMENT :: Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking

The accelerating coronavirus outbreak which has sapped oil demand had already hammered down crude oil prices this year. Adding to the pain, Russia’s disapproval to deepen oil outputs cuts and Saudi Arabia plans to flood the markets with oil, triggering an all-out price war, has led to a carnage in oil prices.

Considering this supply shock and sinking demand, the pathway remains bearish going ahead too where after a minor relief rally, prices look to extend their downside towards lows seen in 2016, close to $28 per barrel for Brent crude. A breach of the said level, could even set up the energy counter for a further leg of downside towards $22 per barrel

3:43 PM

SECTOR WATCH | All sectoral indices on the NSE end in the negative territory

3:40 PM

MARKET AT CLOSE | ONGC ends as the biggest loser on S&P BSE Sensex

3:36 PM

CLOSING BELL

The S&P BSE Sensex shed 1,942 points or over 5 per cent to 35,635 levels while NSE's Nifty50 ended at 10,451, down 538 points or around 5 per cent.

3:29 PM

NEWS ALERT | Reliance Industries hits 52-week low of Rs 1094.95 on the BSE

- It was at its lowest level since January 14, 2019.
- The stock tanked 32 per cent from its record high level of Rs 1,618 on December 20, 2019 

- TCS regains number one position, surpasses RIL in market-cap ranking

3:27 PM

MARKET CHECK

3:17 PM

MARKET COMMENT :: Chris Wood of Jefferies

Oil now looks set to re-test the 2016 low of $27.1/bbl. That is a credit market event because of the significant percentage of oil companies in the US high yield market - 11% of the Bloomberg Barclays US high-yield corporate bond index.

 

From a relative-return standpoint the collapsing oil price is clearly good news for Asia. Still the large Asian economy which should benefit the most from a collapsing oil price, namely India, has seen a worrying decline in its currency of late when it should be rallying on declining oil.

Chris Wood

3:13 PM

BROKERAGE RADAR | Centrum Broking on SBI

RBI came out with a Draft Scheme of arrangement to resolve YES Bank crisis, the scheme stating that SBI will invest 49% i.e. 2450 crs (at issue price of Rs.10) in Yes Bank initially. SBI will at most have to put in additional 93.1bn at Rs.10 per share. Although this is negative in the short to medium term for SBI shareholders, this can create value over the long term as the stress book of Yes Bank is resoloved and market confidence is restored. Additionally SBI has to maintain stake of atleast 26% for 3 years. Factoring in Yes Bank losses in FY21E, we cut our FY21 RoA/RoE estimates by 0.1%/2.0% and maintain BUY with TP of Rs.473 (earlier Rs.481)

3:06 PM

Expert Comment :: Aamar Deo Singh, Head Advisory, Angel Broking

Markets witness a major selloff today, with benchmark indices Nifty & Sensex, down by over 5%. Global markets too have collapsed today, as the fears of the coronavirus, held sway across the globe. Unprecedented action was seen in Crude Oil as well, with prices falling by over 30% in a single day after Saudi Arabia threatened to hike output after a disagreement with Russia. Markets should come around in the coming weeks, once the impact analysis of the extent of damage to the global economy due to the coronavirus is known. And looking back at history, markets also have had the tendency to overreact at times. Nifty is down by over 15% from its all-time high, with 10,000 to act as a crucial and psychological support level. However, don’t try to catch a falling knife, wait for the market to settle, before stepping in to buy value

3:06 PM

BROKERAGE RADAR :: Centrum Broking on SBI

RBI came out with a Draft Scheme of arrangement to resolve Yes Bank crises, the scheme stating that SBI will invest 49% i.e. 2450crs (at issue price of Rs.10) in Yes Bank initially. SBI will at most have to put in additional 93.1bn at Rs.10 per share. Although this is negative in the short to medium term for SBI shareholders, this can create value over the long term as the stress book of Yes Bank is resoloved and market confidence is restored. Additionally SBI has to maintain stake of atleast 26% for 3 years. Factoring in Yes Bank losses in FY21E, we cut our FY21 RoA/RoE estimates by 0.1%/2.0% and maintain BUY with TP of Rs.473 (earlier Rs.481) SBI to invest 24.5bn initially at Rs.10 per share; Max investment at Rs.117.6bn

3:04 PM

YES Bank insolvency may tighten credit markets, widen economic pain: S&P

The Reserve Bank last week imposed a moratorium on the capital-starved Yes Bank, capping withdrawals at Rs 50,000 per account and superseding the board of the private sector lender with immediate effect.

 

Following this, country's largest lender State Bank of India (SBI) on Saturday said it will invest Rs 2,450 crore in the troubled private sector bank against 245 crore shares.  READ MORE

2:51 PM

RBL, Bandhan Bank fall below IPO price; stocks hit new lows

Individually, RBL Bank slipped 18 per cent to Rs 212 in the intra-day trade, to hit its lowest level since its listing on August 31, 2016. The stock of the private sector lender fell below its issue price of Rs 225 per share.

Bandhan Bank, on the other hand, too fell below its issue price of Rs 375 today, down 9 per cent at Rs 368 on the BSE. The stock was trading at its lowest level since its listing on March 27, 2018. READ MORE

2:40 PM

Nifty reclaims 10,450

2:32 PM

Index Contributors at this hour

2:21 PM

MARKET UPDATE:: Marginal recovery in Sensex

2:18 PM

BSE500 stocks that hit 52-week low today

COMPANY	PRICE(rs)	52 WK LOW	CHG(%)
ACC	1245.00	1228.70	-4.32
ADANI PORTS	323.50	317.00	-5.23
ADITYA BIRLA CAP	68.00	66.05	-8.29
ADVANCE. ENZYME.	137.15	132.00	-5.64
ALLAHABAD BANK	9.15	8.96	-14.73

2:15 PM

Black Monday for commodities across the board as crude sheds 31%

The fall was triggered by the crash in global crude following the price war between Russia and Saudi Arabia. Brent fell to $31 a barrel in the morning, down over 30 per cent from Friday’s close after Russia backtracked from the Opec production deal and instead increased production further to make US shale oil production unviable. READ MORE

2:04 PM

Rupee check

2:00 PM

Nifty sectoral indices at this hour

1:50 PM

GLOBAL MARKETS :: Stock-markets in France and Germany plunge by over 7%

>> Spain's IBEX 35 falls by 6.8%

>> UK's FTSE 100 plunges by 8%

>> Norway's stockmarket has fallen by over 12%

1:46 PM

3 reasons why the fall in crude oil prices may not be good news for India

“Indeed, we are reminded of the episode between mid-2014 to early 2016, when oil prices declined significantly, and led to the widening of corporate credit spreads, which impacted the high yield credit space due to its sector composition,” wrote Chetan Ahya, chief economist and global head of economics at Morgan Stanley in a recent co-authored note with Derrick Y Kam, Nora Wassermann and Frank Zhao, their economists. READ MORE

1:44 PM

NEWS ALERT | European stock futures slip 10% as oil tumbles

European futures tumbled 10% on Monday as the launch of a price war between Saudi Arabia and Russia sent oil prices crashing, adding to fears the world was sliding into recession on the back of the coronavirus epidemic. FTSE futures FFIc1 tumbled 9.1%, while German DAX futures FDXc1 were off 9%.

1:38 PM

NEWS ALERT | CBI files FIR against Kapil Wadhwadan and Rana Kapoor: CNBC TV18

-- CBI says Rana Kapoor got into conspiracy with Kapil Wadhwadan: CNBC TV18

1:35 PM

NEWS ALERT | US 10-year treasury yield drops to a new record low of 0.347: CNBC TV18

1:28 PM

NEWS ALERT | Sensex, Nifty set for the biggest single-day fall ever

1:23 PM

NEWS ALERT | Nippon MF moves court against RBI’s decision to write-down YES Bank’s AT1 Capital: CNBC TV18

>> Bombay HC to next hear plea On Wednesday (March 11)

1:20 PM

Banking stocks slide to 13-month low amid fallout from YES Bank crisis

"The main contagion effect would be on the depositor base of private sector banks," Macquarie analyst Suresh Ganapathy said in a note to clients on Monday.

 

Noting the collapse of YES Bank comes close on the heels of a string of other collapses, Ganapathy said it was shaking "depositor confidence in the financial system."  READ MORE