Equity indices off day's high as selling resumes

Key barometers pared gains in mid-morning trade with the Nifty 50 index sliding below 9300 mark. Shares advanced in early trade on bargain hunting. However, weak global sentiment due to fears of a global recession following the coronavirus outbreak, restricted gains.

At 11:31 IST, the barometer index, the S&P BSE Sensex, was down 14.68 points or 0.05% at 31,375.39. The Nifty 50 index was up 13.1 points or 0.14% at 9,210.50.

The broader market traded with losses. The S&P BSE Mid-Cap index was down 0.24% while the S&P BSE Small-Cap index was down 0.39%.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 967 shares rose and 1078 shares fell. A total of 134 shares were unchanged. In Nifty 50 index, 32 stocks advanced while 18 stocks declined.

Coronavirus Crisis:

A 64-year-old coronavirus patient died at Mumbai's Kasturba hospital on Tuesday (17 March), India's third reported death linked to Covid-19 infection. This is Maharashtra's first coronavirus death. Last week, India confirmed first coronavirus-linked death when a 76-year-old man from Karnataka's Kalburgi died. Second case was reported in Delhi when a 68-year-old woman from Janakpuri, succumbed to the virus.

Buzzing Index:

The Nifty PSU Bank index climbed 4.07% to 1,558.30, after slumping 4.82% yesterday.

Bank of Baroda (up 8.4%), Central Bank of India (up 5.02%), Canara Bank (up 4.87%), J&K Bank (up 4.26%), Bank of India (up 4.08%), Union Bank of India (up 4.05%), Punjab National Bank (up 3.07%), Indian Overseas Bank (up 2.68%), Punjab & Sindh Bank (up 2.52%), UCO Bank (up 1.86%), SBI (up 1.72%), Indian Bank (up 1.32%) and Bank of Maharashtra (up 0.52%) were top gainers in Nifty PSU Bank index.

Stocks in Spotlight:

RBL Bank rose 3.56% to Rs 168.70 after the bank reiterated that it is financially strong, well-capitalized, profitable, and a growing entity with a strong governance set-up. RBL Bank clarified during trading hours on Tuesday (17 March) that market rumours around financial health and stability of the bank are totally misplaced, motivated and not based on facts. It added that the bank is well capitalized with a capital adequacy ratio of 16.08% with Tier-1 at 15.02% (significantly higher than the prescribed regulatory requirement at 11.5% and 9.5%, respectively). There has been no material adverse change in the asset quality since we announced our Q3 financial results on Jan 22, 2020 and our guidance remains consistent. (This is after taking into consideration our exposures to the south based client).

Yes Bank surged 54.99% to Rs 57.50 after credit ratings agency, Moody's on Monday (16 March 2020) upgraded Yes Bank's long-term foreign currency issuer and foreign currency senior unsecured MTN program ratings to Caa1 from Caa3 and (P)Caa1 from (P)Caa3 respectively. In addition, Moody's has confirmed the bank's long-term foreign and local currency bank deposit ratings at Caa1. Moody's has also confirmed the bank's long-term domestic and foreign currency Counterparty Risk Rating (CRR) and long-term Counterparty Risk Assessment (CR Assessment) at Caa1 and Caa1(cr) respectively.

The upgrade takes into account the bailout of the bank's depositors and senior creditors under the Yes Bank Reconstruction Scheme, as approved by the Indian Government (Baa2 negative) on 13 March 2020. The rating action also takes into account the confirmation by the Indian authorities and Yes Bank that the moratorium on its depositors and creditors will be lifted on 18 March 2020.

Global Markets:

Most Asian markets were trading lower on Tuesday a day after Wall Street's historic market rout, as the coronavirus remained a major risk to economic growth.

The Philippine stock market was closed as of Tuesday after the government imposed restrictions on movement in the capital.

In US, the Dow ended nearly 3,000 points lower on Monday, capping an ugly session for Wall Street that saw circuit breakers temporarily halt trading for 15 minutes, amid rising fears that fresh Federal Reserve stimulus won't be enough to combat the threat of lost jobs and wages from the coronavirus outbreak.

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