President Donald Trump acknowledged Monday that the US economy "may be" heading toward a recession because of the coronavirus but predicted growth would bounce back strongly. Trump warned that the outbreak could last into July or August.
Selling was broad based. The S&P BSE Mid-Cap index fell 1.84% while the S&P BSE Small-Cap index fell 2.27%.
The market breadth was positive. On the BSE, 975 shares rose and 695 shares fell. A total of 75 shares were unchanged. In Nifty 50 index, 16 stocks advanced while 34 stocks declined.
Coronavirus Crisis:
A 64-year-old coronavirus patient died at Mumbai's Kasturba hospital on Tuesday (17 March), India's third reported death linked to Covid-19 infection. This is Maharashtra's first coronavirus death. Last week, India confirmed first coronavirus-linked death when a 76-year-old man from Karnataka's Kalburgi died. Second case was reported in Delhi when a 68-year-old woman from Janakpuri, succumbed to the virus.
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Global Markets:
Shares in Europe and Asia declined on Tuesday, following Wall Street's historic market rout on Monday, as the coronavirus remained a major risk to economic growth.
The Philippine stock market was closed as of Tuesday after the government imposed restrictions on movement in the capital.
Investors watched the rapidly evolving situation surrounding the global coronavirus outbreak, which has infected more than 168,000 across the world and taken at least 6,610 lives, according to the World Health Organization. Fears over the economic impact of the virus have triggered strong moves in global markets in recent days.
Meanwhile, Europe's lockdown over the coronavirus continues to dominate headlines. Italy and Spain remain the worst hit countries but France and Germany have also reported sharp rises in cases. The French president announced that the European Union would be closing its external borders on Tuesday.
The U.S. Federal Reserve announced on Sunday a massive monetary stimulus, in an emergency move. On Monday, several central banks in Asia also announced measures to combat the impact of the coronavirus.
In US, on Monday, President Donald said the country could be heading for a recession due to the coronavirus outbreak. The Dow ended nearly 3,000 points lower on Monday, capping an ugly session for Wall Street that saw circuit breakers temporarily halt trading for 15 minutes, amid rising fears that fresh Federal Reserve stimulus won't be enough to combat the threat of lost jobs and wages from the coronavirus outbreak.
Stocks in Spotlight:
Grasim Industries fell 3.56% to Rs 556. The company in a regulatory filing announced that the Competition Commission of India has passed an order under section 4 of the Competition Act 2002 imposing a penalty of Rs 301.61 crore on the company. The penalty imposed is in respect of its domestic Man-Made Fibre turnover.
Titagarh Wagons fell 4.46% to Rs 26.75. The company said that the operations of its Italian arm have been severely affected due to the Coronavirus outbreak. It has also temporarily suspended operations at the said plant for a period of 15 days.
Sun Pharmaceutical Industries rose 0.80% to Rs 371.75 after the company said its board approved a Rs 1,700 crore share buyback offer at a maximum price of Rs 425 per share.
RBL Bank slipped 0.52% to Rs 162.05. The bank reiterated that it is financially strong, well-capitalized, profitable, and a growing entity with a strong governance set-up.
Yes Bank surged 58.49% to Rs 58.80 after credit ratings agency, Moody's on Monday (16 March 2020) upgraded Yes Bank's long-term foreign currency issuer and foreign currency senior unsecured MTN program ratings to Caa1 from Caa3 and (P)Caa1 from (P)Caa3 respectively. In addition, Moody's has confirmed the bank's long-term foreign and local currency bank deposit ratings at Caa1. Moody's has also confirmed the bank's long-term domestic and foreign currency Counterparty Risk Rating (CRR) and long-term Counterparty Risk Assessment (CR Assessment) at Caa1 and Caa1(cr) respectively.
The upgrade takes into account the bailout of the bank's depositors and senior creditors under the Yes Bank Reconstruction Scheme, as approved by the Indian Government (Baa2 negative) on 13 March 2020. The rating action also takes into account the confirmation by the Indian authorities and Yes Bank that the moratorium on its depositors and creditors will be lifted on 18 March 2020.
Delta Corp fell 8.77% to Rs 78.50 after the company said its casinos in Goa will remain closed until 31 March, 2020, and will be reviewed thereafter for further course of action. The company said this I As a measure to prevent and contain corona virus (COVID-19) disease in Goa.
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