Nifty cracks below 9800 mark; PSU Bank index at record low

The market crashed in mid-morning trade as selling continued unabated. The Nifty cracked below 9800 mark. Sentiment was affected after World Health Organization (WHO) declared coronavirus a pandemic. Markets have also been slammed this week by a plunge in oil prices, after oil exporters said they would increase output rather than cutting production.

At 11:32 IST, the barometer index, the S&P BSE Sensex, tanked 2327.16 points or 6.52% at 33,370.24. The Nifty 50 index slumped 717.20 points or 6.86% at 9741.20.

In the broader market, the S&P BSE Mid-Cap index slumped 7.99% and S&P BSE Small-Cap index tanked 8.87%.

Sellers outpaced buyers. On the BSE, 132 shares rose and 2021 shares fell. A total of 71 shares were unchanged. In Nifty 50 index, all 50 stocks declined.

Industrial production and manufacturing production data for January and inflation data for February will be announced today, 12 March 2020

Buzzing Index:

The Nifty PSU Bank index was down 10.09% at 1,470.90, extending its losing streak to fourth consecutive session. The index hit a record low of 1,455.30 in mid-morning trade. The index has slumped 22.43% in four days from its previous closing high of 1891.90 registered on 5 March 2020.

Canara Bank (down 13.42%), Syndicate Bank (down 12.98%), Bank of Baroda (down 11.38%), Oriental Bank of Commerce (down 11.34%), Punjab National Bank (down 11.3%), Bank of India (down 11.18%), Union Bank of India (down 10.79%), SBI (down 9.62%), Punjab & Sind Bank (down 7.43%), UCO Bank (down 5.57%) and Bank of Maharashtra (down 3.64%) were top losers in PSU Bank segment.

Stocks in Spotlight:

KPIT Technologies on Wednesday (11 March 2020) said it will acquire a majority stake in Vayavya Labs (VL), an embedded software company focused on hardware-software interface tools & methodologies. The proposed acquisition of VL will give KPIT a head start in the field of simulation and embedded software automation, across the focus practices of KPIT. It will also help in creating a differentiated positioning and a definite early mover advantage in newer opportunities in the areas of simulation. The total consideration for 100% stake will not exceed Rs 41.80 crore. Initially 78.47% stake is proposed to be purchased for a consideration of Rs 24.56 crore. The balance 21.53% stake is proposed to be acquired over a period of 2 years. Shares of KPIT Technologies were down 8% at Rs 71.85.

Mahindra & Mahindra signed a share purchase agreement for purchase of additional 34,249 equity shares of M.I.T.R.A. Agro Equipments (Mitra), an associate of the company, from its existing shareholders. The company currently holds 26% (on a fully diluted basis) of the equity share capital of Mitra, and post completion of the above transaction, the Company will hold approximately 39% of the equity share capital of Mitra on a fully diluted basis. Shares of M&M were down 10.51% at Rs 405.

Global Markets:

Asian markets tumbled on Thursday after US President Donald Trump said the United States will suspend all travel from Europe as he unveiled measures to contain the coronavirus epidemic that has extracted a heavy human and economic toll worldwide.

Traders also took their lead from a global rout as the World Health Organization declared the spread of the new virus was officially a pandemic.

In US, stocks slumped on Wednesday, with the Dow ending in bear-market territory for the first time in more than a decade, after the World Health Organization designated the global spread of COVID-19 a pandemic, unnerving investors already disappointed with the lack of an economic policy response from the Trump administration.

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