Market tumbles in early trade

Local stocks opened on a weak note on negative Asian stocks. At 9:18 IST, the barometer index, the S&P BSE Sensex, was down 452.34 points or 1.42% at 31,410.74. The Nifty 50 index was down 123.75 points or 1.33% at 9,190.15.

Sentiment was impacted after Franklin Templeton Mutual Fund announced shutting six of its open-ended debt funds, effective April 23.

The near term trend of market is likely to remain volatile due to reaction to March 2020 quarterly corporate earnings, trends in the number of coronavirus cases, crude oil prices, currency movements and global events.

The S&P BSE Mid-Cap index was down 1.29%. The S&P BSE Small-Cap index was down 0.56%.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 421 shares rose and 673 shares fell. A total of 45 shares were unchanged.

Meanwhile as per reports, Prime Minister Narendra Modi will today meet Finance Minister Nirmala Sitharaman. The meeting between the two leaders is expected to finalise a second stimulus package for industry, the poor and farmers at this time of coronavirus crisis.

Market regulator Securities and Exchange Board of India (Sebi) on Thursday relaxed period of restriction to six months for raising further capital through buyback from the current one year amid the coronavirus pandemic. This relaxation will be applicable till 31 December 2020.

Stocks in news:

Axis Bank lost 3.01%. Axis Bank said its board will consider borrowing / raising funds in Indian Currency / Foreign Currency by issue of debt instruments including but not limited to Bonds and Non-Convertible Debentures on 28 April 2020.

Mahindra & Mahindra (M&M) fell 1.03%. M&M said that the Loans & Investment Committee has approved issuance and offer of 6.78%, 10,000 nos. of Rated, Listed, Unsecured, Redeemable Non-convertible Debentures of Rs 10 lakh each aggregating Rs 1,000 crore for cash at par, (NCDs) on private placement basis.

Bharti Infratel lost 2.44%. Bharti Infratel reported 6.9% rise in consolidated net profit to Rs 649.50 crore on 0.35% rise in total income to Rs 1,965.20 crore in Q4 March 2020 over Q4 March 2019.

Ashok Leyland dropped 2.14%. Ashok Leyland said that the company has in tranches, acquired 15796406 shares of Rs 10/- each, constituting 3.36% of the paid-up equity share capital of Hinduja Leyland Finance (HLFL), a subsidiary of the company. Consequent to the aforesaid acquisition, the company's shareholding in HLFL stands increased from 65.45% to 68.81%.

Mahindra CIE Automotive lost 4.9%. Mahindra CIE Automotive reported 86.36% fall in consolidated net profit to Rs 20.79 crore on 23.83% fall in total income to Rs 1,667.59 crore in Q1 March 2020 over Q1 March 2019.

Goa Carbon lost 4.99%. Goa Carbon said the company has resumed operations at its Paradeep Unit located at Vill. Udayabata, Paradeepgarh, Dist. Jagatsinghpur, Odisha, after taking necessary health and safety measures given the ongoing COVID-19 crisis.

Global Markets:

Overseas, Asian stocks were trading lower after an overnight report raised doubts over a potential coronavirus treatment.

In US, stocks ended near flat line on Thursday after a report that an experimental antiviral drug for the coronavirus flopped in its first randomized clinical trial.

The US House of Representatives overwhelmingly approved a $484 billion coronavirus relief bill on Thursday, funding small businesses and hospitals and pushing the total spending response to the crisis to an unprecedented near $3 trillion. The measure passed the Democratic-led House by a vote of 388-5, with one member voting present. House members were meeting for the first time in weeks because of the coronavirus pandemic.

The IHS Market flash purchasing managers index for the service sector fell to a record low in April, while the manufacturing PMI weakened to the lowest level in 11 years, as business activity has slumped due to the lockdowns to combat the coronavirus pandemic.

The flash services PMI fell to 27 from 39.8 in March while the manufacturing PMI dropped to 36.9 from 48.5.

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