Market recovers from day's low; Nifty regains 9000 mark

The market swiftly pared losses after re-opening in morning trade. Trading on BSE and NSE was halted after Nifty hit a lower circuit limit in opening deals. At 10:29 IST, the barometer index, the S&P BSE Sensex, was down 1604.19 points or 4.89% at 31,173.95. The Nifty 50 index was down 531.3 points or 5.57% at 9,058.85.

Sell off was broad based. The S&P BSE Mid-Cap index fell 6.64%. The S&P BSE Small-Cap index fell 7.26%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 202 shares rose and 1,358 shares fell. A total of 52 shares were unchanged. In Nifty 50 index, 1 stocks advanced while 49 stocks declined.

Economy:

Consumer price inflation in India eased to 6.58% in February 2020 from 7.59% in January 2020. The fall was mainly due to easing food prices. Food inflation eased to 10.81% in February from 13.63% a month ago. The retail inflation was 2.57% in February 2019.

Industrial production in India jumped 2% year-on-year in January 2020, following a 0.3% drop in December. The quick estimates of Index of Industrial Production (IIP) with base 2011-12 for the month of January 2020 stands at 137.1, which is 2% higher as compared to the level in January 2019. The Indices of industrial production for the mining, manufacturing and electricity sectors for January 2020 stand at 124.3, 137.6 and 155.6 respectively, with the corresponding growth rates of 4.4%, 1.5% and 3.1% as compared to January 2019. The cumulative growth in these three sectors during April-January 2019-20 over the corresponding period of 2018-19 has been 1%, 0.3% and 0.9%, respectively.

Buzzing Index:

The Nifty metal index crashed 11.83% to 1,587.65 as benchmark indices were locked in a 10% lower circuit. The metal index extended its losing streak to seventh consecutive. The index has now lost 31.59% in last seven trading days.

Prices of industrial metals continued to remain under pressure as countries failed to contain COVID 19 virus which can heighten worries of a slowdown in global economic growth. China is reportedly the largest producer and consumer of industrial metals. Given such a dominant market share any slowdown in the Chinese economy has a major impact on metal prices and global markets.

Coal India (down 14.59%), Hindustan Zinc (down 13.14%), Vedanta (down 12.15%), Hindalco Industries (down 12%), Tata Steel (down 10.7%), Jindal Steel & Power (down 10%), NMDC (down 9.98%), Steel Authority of India (down 9.9%), JSW Steel (down 9.04%) and National Aluminium Company (down 8.86%) were top losers in metal segment.

Stocks in Spotlight:

Tasty Bite Eatables informed that ICRA had reaffirmed the long-term outstanding rating at [ICRA] A with stable outlook and the short-term outstanding rating at [ICRA] A1. The credit ratings agency ICRA said that the ratings reaffirmation continues to factor in the significant experience of the promoters of Tasty Bite Eatables (TBEL) in the food industry; and the majority stake acquisition at holding company level (PBI Inc.) by Mars Incorporated, USA, which is expected to impart wider global footprint and research and development (R&D) knowhow for the company. Shares of Tasty Bite Eatables were trading 9.94% lower at Rs 9350.

Wipro informed that it has entered into an agreement with SAP SE to jointly go to market and co-develop solutions for the retail and fashion industry. The intent of this engagement is to co-develop new solutions, which will help retail and fashion companies effectively manage business processes and customer experience. Shares of Wipro were trading 12.15% lower at Rs 175.

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