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MARKETS: Sensex slumps 2,919 pts, Nifty at 33-mth low in biggest 1-day fall

All that happened in the markets today

Image SI Reporter New Delhi
A broker reacts while trading at his computer terminal at a stock brokerage firm in Mumbai (pic: Reuters)

A broker reacts while trading at his computer terminal at a stock brokerage firm in Mumbai (pic: Reuters)

Indian equity markets went on a free-fall on Thursday as investors pressed and held the 'sell' button after the World Health Organisation declared the novel coronavirus outbreak a "pandemic" and the United States suspended travel from Europe. The carnage on the Dalal Street today eroded investor wealth worth Rs 10.9 trillion. Overall, the Indian headline indices Sensex and Nifty both slipped over 9 per cent each in intra-day and posted their biggest one-day fall in absolute terms. READ MORE

The S&P BSE Sensex which ended the session 2,919 points lower at two-year low level of 32,778 dropped as low as 32,493.10. Index-heavyweights HDFC Bank (down 9%), Reliance Industries, and HDFC (down over 7%) contributed the most to the Sensex's fall. Besides, State Bank of India, Axis Bank, ITC, and ONGC all slid over 13 per cent each.

The broader Nifty50 index opened below the psychological level of 10,000 for the first time since March 26, 2018 and slid as low as 9,508 levels. The index closed the day at 32-month low level of 9,633, down 825 points, or 7.89 per cent. The index has now entered bear market after falling over 20 per cent from the recent high. All the Nifty sectoral indices hit their 52-week lows during the session. Nifty PSU Bank index, down over 13 per cent, bled the most.

The volitality index, India VIX, surged 35 per cent to hit a 12-year high of 42.32 levels.

In the broader market, the S&P BSE MidCap index slumped over 1,100 points intra-day, ending the session 7.7 per cent lower at 12,380.36 while the Nifty Smallcap index slipped over 9 per cent 

GLOBAL MARKETS

Global stocks plunged into a bear market and oil slumped on Thursday after US President Donald Trump banned travel from Europe to stem the coronavirus, threatening more disruption to the world economy.

European shares plummeted to their lowest in almost four years, with the benchmark STOXX 600 index falling 4.9 per cent in early deals.

In Asia, Japan's Nikkei crumbled 4.4 per cent to a trough last seen almost three years ago while MSCI's broadest index of Asia-Pacific shares outside Japan fell 4.7 per cent. Australian shares plunged 7.4 per cent to the lowest level in more than three years while Seoul's Kospi fell 4.8 per cent to 4-1/2-year lows with massive selling prompting a brief trade halt.

(With inputs from Reuters)

4:21 PM

COMMENT :: Barclays on RBI rate cut possibility

Amid heightened uncertainty and rising fears of a greater than expected impact on global growth than we currently estimate, the Reserve Bank of India is increasingly staring at an unexpected conflict with its official mandate of keeping CPI inflation around 4% with a 2% band: growth risks have risen dramatically, while CPI inflation remains outside its target band.

However, given the evolving macroeconomic situation and deteriorating global backdrop, we believe risks of an intermeeting cut of 25-40bp have increased materially. Even if the RBI does not make an intermeeting move, we see them cutting by at least 65bp by June, with risks biased towards more easing than this
4:19 PM

MARKET TECHNICALS :: Manav Chopra, CMT, Head Research - Equity, Indiabulls Securities

Coronavirus has created uncertainty and panic across globe. Next meaningful support on the downside for the Nifty50 is is placed between 8,900-9,100 levels. So far, important support levels have been breached easily on gap downs. Investors should refrain from catching the falling knife.

Support: 9,400-9,100 & Resistance: 9,850-10,000   
4:17 PM

COMMENT :: S&P Global Platts on oil

The “pandemic” oil demand growth scenario shows a very deep contraction, particularly in the first half of the year. March and April demand would be brutally curtailed, even more so than February, as we would have most of the regions in the world being under the virus siege, at the same time.  We assume this global pandemic to be over by August of this year.

At a product level, gasoline and jet fuel would suffer the most, as they are the fuels of discretionary travel, which gets cut both by people’s fears and governments once the outbreak occurs. Global trade would be severely impacted and therefore fuel oil would also suffer. Gasoil/diesel on the other hand should be more resilient

-- Claudio Galimberti, head of demand, refining and agriculture analytics, S&P Global Platts
4:09 PM

MARKET COMMENT | Siddharth Mehta, Founder & CIO, Bay Capital

While markets may well go down further, investing when terrified is one of the hardest things to do. It is through this terror that one must think rationally and look to buy great businesses which are unleveraged, which are stellar capital allocators with the highest governance standards and which will not just survive but come out stronger over the next 5 to 10 years and thus potentially provide outsized returns to the intrepid investor.
4:07 PM

Don't stay on the sidelines; time to buy now as per risk appetite

In the last 10 years, markets have not been as volatile as has been in the last 10 days. There have been a number of factors at play over the last week or so. Coronavirus (COVID-19), unprecedented fall in crude oil prices and the YES Bank reconstruction proposal have all contributed to the fall. READ MORE  

Aditya-Khemani-Motilal Oswal AMC
Aditya Khemani, Motilal Oswal AMC


4:05 PM

MARKET COMMENT | Vinod Nair, Head of Research at Geojit Financial Services

Recession fears increased after WHO declared coronavirus a pandemic which forced investors to sell off risky assets. Fresh travel bans across nations is contributing to the fears that economic impact will be much larger than earlier estimates. RBI is expected to cut interest rate and announce additional liquidity before the scheduled meeting which is due next month
3:54 PM

MARKET ALERT :: BSE lose m-cap of Rs 10.9 trillion

3:49 PM

STOCK ALERT | Indiabulls Housing Finance tanked 29% today

>> Stock has fallen 51% in four days after the company said Yes Bank owes Rs 662 crore via AT-1 bonds 

3:41 PM

STOCK ALERT | Avenue Supermarts, IRCTC, SpiceJet hit lower circuits today

Shares of Avenue Supermarts, the parent company of supermarket chain D-Mart, state owned travel support services firm Indian Railway Catering and Tourism Corporation and the country’s low cost airline SpiceJet among total 516 stocks that frozen lower circuit on the BSE on Thursday with no buyers were seen in these counters
3:39 PM

NEWS ALERT | SBI approves purchase of 725 cr shares of YES Bank: BSE filing

3:37 PM

Sectoral trends at NSE at close; Nifty PSB index worst performer

3:37 PM

MARKET COMMENT :: UBS

While the number of reported COVID-19 cases in India is still modest (50 confirmed cases), we believe the fear and uncertainty over its impact could worsen near-term consumer sentiment and hence domestic demand. The impact on production due to shortages of inputs (in a few sectors including electronics, pharma, automobiles) or reduced external demand (on slowing global growth) would also have a bearing on India's growth outlook. This together with weak credit impulse domestically could constrain growth notably over the next two quarters. In our base case, we expect India's real GDP growth to slip further to 4-4.5% YoY in the March and June 2020 quarters from the 4.7% YoY growth in the December 2019 quarter

UBS
Switzerland's national flag flies under the logo of Swiss bank UBS in Zurich

3:36 PM

Bloodbath on D-Street; SBI top drag on Sensex, plunges 13%

3:34 PM

Closing Bell | Indices post biggest one-day fall in absolute terms

>> The S&P BSE Sensex closed at 32,778.14 level, down 2,919.26 points or 8,18 per cent

>> NSE's Nifty50 settled 868.25 points, or 8.30 per cent lower, at 9,590.15.

3:31 PM

NEWS ALERT | Telcos asked to make payment on the basis of self-assessment: DoT to Rajya Sabha

>> DoT to carry out re-assessment later

(As reported by CNBC TV18)

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First Published: Mar 12 2020 | 7:26 AM IST

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