Local market opened sharply lower, down by over 9%, but recovered marginally from the lower levels. At 9:24 IST, the barometer index, the S&P BSE Sensex, was down 2400.66 points or 8.02% at 27,515.96. The Nifty 50 index was down 687.80 points or 7.86% at 8,057.65.
The S&P BSE Mid-Cap index was down 6.39%. The S&P BSE Small-Cap index was down 6.14%.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 103 shares rose and 987 shares fell. A total of 46 shares were unchanged.
Taking note of the continued abnormally high volatility in the market due to coronavirus scare, Sebi has come up with various measures, including revision of market wide position limit, to ensure orderly trading and settlement, effective risk management, price discovery and maintenance of market integrity.
These measures will kick-in from the beginning of trading today, 23 March 2020 and will be in effect for a period of one month. The position would be reviewed thereafter and appropriate view taken thereon.
Sebi has revised market wide position limit (MWPL). For stocks in F&O segment meeting certain criteria, MWPL may be revised to 50% of the existing levels.
The margin for stocks meeting specific criteria will be increased, apart from having revised position limits in equity index derivatives (futures and options).
Sebi also proposed to raise margin for non-F&O stocks in cash market to 40% in a phased manner. The proposed margins would only be applied in the cash market and may be applicable for a period of one month.
The regulator also proposed flexing of dynamic price bands for F&O stocks. Currently, the bands are relaxed in the event of market trends in either direction. In addition to the existing requirements, the dynamic price bands may be flexed only after a cooling-off period of 15 minutes from the time of meeting the existing criteria specified by stock exchanges for flexing.
Sebi and stock exchanges will continuously monitor the market developments and review the position and take any further suitable actions as may be required.
Stocks in news:
Hero MotoCorp dived 8.84%. Hero MotoCorp has decided to halt operations at all its global manufacturing facilities - including in India, Colombia and Bangladesh ‐ and the Global Parts Centre (GPC) at Neemrana with immediate effect until 31 March 2020. This is considering the safety and wellbeing of its employees as top priority in view of the escalating COVID‐19 situation.
Mahindra & Mahindra crashed 10.00%. Mahindra & Mahindra said in light of heightened concern on spread of CoronaVirus in the State of Maharashtra, the company decided to suspend the manufacturing operations at Nagpur Plant with immediate effect and Chakan (Pune) and Kandivali (Mumbai) from Monday, 23 March 2020 night onwards.
Tata Motors dropped 8.27%. Tata Motors said in light of the ongoing coronavirus situation, Jaguar Land Rover has confirmed that it will temporarily suspend production at its UK manufacturing facilities over the course of next week. The company's intention is to resume in the week of 20 April 2020, subject to review of the rapidly-changing circumstances.
Escorts slumped 8.35%. Escorts informed that Kubota Corporation (Kubota), will acquire 10% equity stake at Rs 850 per share. Kubota's investment will constitute 9. 1% of the equity stake on a pre capital reduction or 10% on a post capital reduction basis for a total investment of Rs 10, 419, 034, 800.
Lupin was down 3.36%. Lupin announced the launch of Betamethasone Dipropionate Ointment USP (Augmented), 0.05%, having received an approval from the United States Food and Drug Administration (USFDA) earlier. The product would be manufactured at Lupin's Pithampur (Unit Ill) facility, India.
Overseas, Asian markets were trading sharply lower on Monday on growing anxiety over the fallout from the Covid-19 coronavirus as no certainty was in sight on how long it would continue.
Stocks were hammered as a rising tide of national lockdowns threatened to overwhelm policymakers' frantic efforts to cushion what is likely to be a deep global recession.
In US, stock indexes finished another bruising week with sharp losses as panic over the coronavirus outbreak refused to abate, amid the acceleration of the global death toll. Investors haven't yet been comforted by the government's response to limit the economic impact of COVID-19 pandemic, whose severity and duration is unclear.
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