MARKET WRAP: Sensex slips 674 pts, financials hit; Nifty settles at 8,084

All that happened in the markets today.

Continuing their downward trend, the benchmark indices settled with over 2 per cent loss on Friday as coronavirus (Covid-19) cases showed no signs of abating. Global confirmed cases surpassed 1 million on Thursday with more than 52,000 deaths. Back home, an ongoing 21- day lockdown has already brought the economy to a standstill.

The S&P BSE Sensex ended at 27,591, down 674 points or 2.39 per cent amid heavy selling in financial stocks such as ICICI Bank (down 7.5 per cent), HDFC (over 5 per cent), HDFC Bank (down 2 per cent), and Axis Bank (down over 9 per cent). The other major contributors to the index's loss were Infosys, TCS, and Asian Paints. They all fell in the range of 3-5 per cent. 

India VIX cooled-off over 8 per cent to 55.01 levels. On the other hand, the Nifty50 index ended at 8,084, down 170 points or over 2 per cent. In the broader market, the S&P BSE MidCap index declined over 1 per cent lower at 10,219 whereas the S&P BSE SmallCap closed at 9,409, down over 1 per cent.

Among sectors, pharma stocks continued to rally. The Nifty Pharma index rose around 5 per cent to 7,362 levels with 8 out of 10 constituents advancing. Nifty FMCG index, too, ended in the green - up 0.7 per cent at 26,538 levels. 

On a weekly basis, the S&P BSE Sensex lost 7.46 per cent, while the Nifty50 slipped 6.65 per cent.

RBI cuts money market timing

Meanwhile, the Reserve Bank of India (RBI) has cut timing for money market operations from 9am to 5pm to 10am till 2pm. Truncated hours will be in operational till April 14.
 

Global markets

European stock markets slipped on Friday, erasing meagre gains for the week, as more companies flagged a hit to business from the coronavirus pandemic while oil prices extended their previous day's gains on hopes of a global supply cut. With virus-fighting lockdowns raising the risk of a prolonged global downturn, investors continued to seek the safety of the US dollar and government bonds, pushing US Treasury yields near their lowest in three weeks.

With over a million people infected worldwide, there were more signs the pandemic would take a massive toll on economic growth. Morgan Stanley said the US economy will shrink 5.5% in 2020, the steepest drop since 1946, with a huge 38% contraction predicted for the second quarter.

The pan-European STOXX 600 index was down 0.4%, taking MSCI'S All Country World Index down 0.3%. MSCI's Asia-Pacific index outside Japan dipped 0.6% while Japan's Nikkei erased earlier gains to end flat. US stock futures sank nearly 1 per cent.

Brent crude futures gained 3.64% to $31.03, extending Thursday's record 24.7% surge , while US West Texas Intermediate (WTI) crude fell 0.83% to $25.11.

(With inputs from Reuters)

4:04 PM

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

The Indian markets opened and stayed negative, with reduced volatility. A ratings downgrade for the Banking sector, due to the impact of Covid-19 and ensuing stressed asset concerns, impacted the financial stocks. FIIs were net sellers to the tune of Rs 1,100 crore, on April 1, and show no signs of reversal. Markets are trading uncertainty, regarding the spread of the virus in India, as hope emerged of infections peaking in some of the worst affected global markets.

4:03 PM

Sectoral losers and gainers on the NSE

4:03 PM

MARKET AT CLOSE | Top losers and gainers on the S&P BSE Sensex

3:41 PM

CLOSING BELL

The S&P BSE Sensex ended at 27,591, down 674 points or 2.39 per cent while NSE's Nifty50 ended at 8,084, down 170 points or over 2 per cent.

3:23 PM

MARKET CHECK

3:09 PM

NEWS ALERT | OPEC+ producers debate possible oil cuts of 10 million barrels per day: Reuters quoting sources

The OPEC+ crude oil exporter group is debating cutting global supply by 10 million barrels per day (bpd), an OPEC source said on Friday, adding that any further cuts must include producers from outside the alliance. US President Donald Trump on Thursday said he had brokered a deal that could result in Russia and Saudi Arabia cutting output by 10 million to 15 million bpd, representing 10-15% of global supply. Trump said he made no offer to cut US output. 

3:08 PM

Rupee trades near day's low

3:06 PM

Nifty Energy Index trades in the green

3:00 PM

ALERT :: Market holiday

Stock market will remain closed on Monday, April 6, on account of Mahavir Jayanti

2:59 PM

STOCK ALERT :: Maruti Suzuki declines for sixth straight session

2:46 PM

Nifty Bank index tumbles over 1,000 pts

2:44 PM

NEWS ALERT | IndusInd Bank promoters have applied to RBI for increasing holdings to 26%: CNBC TV18

2:42 PM

BROKERAGE RADAR | ICICI Securities on Aurobindo Pharma

Due to Sandoz deal deal being called off, we cut our EPS estimates by 11-12% for FY21E, FY22E. Broadly, besides losing out on one of the cheapest M&A bargains in the US generics space (~1x sales, ~5x EBITDA), the company will be losing the manufacturing base in US that could have been critical in the current scenario when some key facilities in India are facing cGMP issues. On the margins front, there will not be much difference as according to the management (going by the assertion in some earlier conference calls), the margin profile of this portfolio was more or less similar. There will be some solace on the balance sheet front though as debt level was expected to double post this deal, which will not happen now. Overall, as the anxiety has been put to rest, focus will now shift to the business front, especially the lingering cGMP issues. Regarding Covid-19, as of now there is no material impact on the business, according to the management. We maintain HOLD on the stock and arrive at a target price of Rs 435 (8x FY22E EPS of Rs 54.4).

2:36 PM

Nifty FMCG index trades over 1% higher in an otherwise weak market

2:34 PM

Index contributors at this hour