MARKET WRAP: Sensex slips 1,189 pts from day's high; financials, autos fall

All that happened in the markets today

After starting on a promising note, the benchmark indices slipped into the negative territory and ended with around a per cent loss on Wednesday as worries over economic downturn due to the extension of the nationwide lockdown weighed on the investor sentiment. Additionally, IMF's statement on Tuesday that the global economy faces the worst recession since the Great Depression in the 1930s due to the raging coronavirus pandemic also dented the investor confidence.  

The S&P BSE Sensex slipped 310 points or 1 per cent to settle at 30,380 levels. The index hit a high of 31,568.36 levels during the day. 
 

HDFC Bank, Reliance Industries (RIL), HDFC, and Bajaj Finance contributed the most to the index's fall. On the contrary, FMCG bellwether Hindustan Unilever (HUL) ended as the top gainer - up 6 per cent. 

On the NSE, the frontline index Nifty shed 68.55 points or 0.76 per cent to 8,925.30 levels. India VIX, the volatility index, fell around 4 per cent to 49.4025 levels. 

Sectorally, Nifty Bank declined over 2 per cent to 19,057 levels while Nifty Financial Services index dropped 2.75 per cent to 9,239 levels. 

On the other hand, Nifty Realty index gained nearly 2 per cent to 180 levels. 

Buzzing stocks

Among individual stocks, Bharti Airtel became the fifth most valuable listed company in terms of market capitalisation (m-cap) after the stock surged 16 per cent in the past three days on expectation of good Q4 earnings. The telecom service provider has surpassed mortgage lender Housing Development Finance Corporation (HDFC). The stock ended 0.29 per cent lower at Rs 510 apiece. READ MORE
 

Shares of Metropolis Healthcare slumped as much as 14 per cent to Rs 1,152 on the BSE on Wednesday after more than 13 per cent of the company's equity changed hands via block deals in early morning trade. The stick closed at Rs 1,258.95, down over 6 per cent. READ MORE
 

Shares of Motherson Sumi Systems (MSS) advanced 15 per cent to Rs 72.60 on the BSE on Wednesday after the company’s board gave in-principle approval to raise Rs 1,000 crore to enhance liquidity during the uncertain times of coronavirus pandemic (Covid-19). READ MORE
 

Global Markets 
 

Global share markets dipped into the red on Wednesday as warnings of the worst global recession since the 1930s underlined the economic damage done during the coronavirus panemdic even as some countries try to re-open for business.

MSCI’s All-Country World Index, which tracks shares across 49 countries, was 0.37 per cent down.

European stock markets opened lower, with the pan-European STOXX 600 index opening 0.8 per cent lower after five previous days of gains.

In the United States, E-Mini futures for the S&P 500 fell 0.5 per cent, following a 3 per cent rise in New York.

In commodity market, oil fell 4 per cent towards $28 a barrel on Wednesday, pressured by reports of persistent oversupply and collapsing demand due to global coronavirus-related lockdowns and a lack of coordinated oil purchases for strategic storage.

Brent crude fell $1.19, or 4 per cent, to $28.41 a barrel till the time of writing of this report, giving up earlier gains. US West Texas Intermediate crude slid 45 cents, or 2.2 per cent, to $19.66.  

(With inputs from Reuters)

3:51 PM

SECTOR WATCH | Here's how sectoral indices on NSE performed today

3:45 PM

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

3:39 PM

CLOSING BELL

The S&P BSE Sensex lost 310 points or 1 per cent to 30,380 levels while Nifty ended at 8,925 levels, down 68.55 points or 0.76 per cent. 

3:23 PM

Covid-19 crisis: PM, FM to finalise details of second stimulus package soon

The stimulus package is expected anytime this week and will be aimed at the urban and rural poor; disadvantaged sections of society; micro, small and medium enterprises (MSMEs); and some of the worst-affected sectors.
 

Late last month, Sitharaman had announced a Rs 1.7 trillion stimulus package, which included measures like free foodgrain and direct cash transfers for targeted beneficiaries, and an increase in wages under the employment guarantee programme. READ MORE

3:23 PM

MARKET UPDATE | As many as 349 stocks were locked in upper circuit on the BSE

-- The list includes names such as PVR, Info Edge India, Aavas Financials, HEG, Venky's India, Wockhardt, Graphite India and Heritage Foods

3:18 PM

Emkay Global's top bets in Engineering & Capital Goods sector

■    L&T: Despite worrying near-term outlook, we believe that the long-term outlook for L&T remains promising on strong balance sheet and technical competence across segments; past track record suggests that L&T often gains market share in a difficult macro environment as weaker players collapse.

 

■    Cummins India: We are structurally positive on domestic Powergen and Industrial segments, backed by the underpenetrated power back-up market, demand visibility from metro projects, airports and data centers.

 

■    KNR Constructions and PNC Infratech: KNR and PNC are among the few construction companies that have maintained an asset-light approach and yet a focused strategy to bid for projects in their geographical focus areas, thereby generating consistent OCF/FCF.

3:18 PM

MARKET VOICE

3:17 PM

ICICI Securities on agri sector

Top long-term trends in agriculture sector: (1) larger companies likely to gain market share from smaller players; (2) acceleration in mechanisation and higher usage of products that reduce dependence on labour; (3) lower consumption of meat products in India as well as lower exports of shrimp (organised players like Godrej Agrovet to gain market share); (4) farming of essentials (foodgrains) remains largely unaffected while perishables (horticulture) and non-essentials (cotton and jute) are negatively impacted; (5) opening-up of opportunity to export agrochemicals and gain market in the global agrochemical market; and (6) increase in costs due to additional safety measures (masks, hand gloves, sanitisers etc) for labour.

Beneficiaries: Kaveri, Godrej Agrovet

Potentially negatively impacted companies: Avanti

3:16 PM

HDFC Securities on FMCG sector

The impact from Covid-19 on the FMCG sector will be sharper on revenues for cos in 4Q, despite many essential categories have witnessed pre-buying at offtake level in Mar. Lockdown has impacted transportations and channel filling opportunities for the quarter. Trade inventory has reduced for most categories. Lockdown of the last 12 days will impact revenues by 13-15% for the qtr for most cos. Channel filling benefits will add to FY21 revenues (~3%).

3:15 PM

COMMENT :: CARE Ratings on WPI numbers

Food prices may remain high in April with supply shortages and stocking activities by the households during the lockdown period and are expected to remain at elevated levels during summer season. Future trajectory will be based on return of normalcy in the economic activities and arrival of monsoon.

3:11 PM

China's Wuhan to fully resume rail, flight and freight ops by end-April: reports Reuters

The vice mayor of Wuhan, epicentre of the coronavirus outbreak in China, said on Wednesday the city aimed to fully resume rail, flight and freight operations by the end of April after a more than two-month lockdown was lifted earlier this month.

3:04 PM

BROKERAGE VIEW:: ICICI Securities on Motherson Sumi

Going forward, over FY20-22E, we expect sales, EBITDA, PAT CAGR of 4.6%, 13.2% & 21.3%, respectively. We value MSSL at Rs 68 i.e. 12x P/E on FY22 EPS of Rs 5.7. We maintain our HOLD rating on the stock. We retain preference for domestic-facing businesses amid ongoing tough business conditions globally and remain cautious on MSSL courtesy the complexity of business operations in terms of geographical spread and forex risk.

3:03 PM

Germany plunges into recession; virus-induced slump may last until mid-year

Europe's economic powerhouse Germany plunged into recession in March, with the slump sparked by the coronavirus pandemic likely to last until the middle of the year, the economy ministry said Wednesday. "Falling global demand, interruption of supply chains, changes in consumers' behaviour and uncertainty among investors" had all made themselves felt in the export giant, the ministry said. READ MORE

2:50 PM

Stocks that hit 52-week high on BSE today

COMPANY	PRICE(rs)	52 WK HIGH	CHG(%)
CIPLA	582.10	614.05	-1.79
DR REDDY'S LABS	3824.55	3893.95	2.14
SANOFI INDIA	7615.00	8215.00	5.53
SUN PHARMA.INDS.	450.00	488.40	-2.62

2:46 PM

Contribution to the S&P BSE Sensex's fall