The benchmark indices continued trading lower in afternoon trade. The Nifty traded below its 100 days simple moving average placed at 11,956.77.
The equity benchmarks opened on a lower note on Monday, in line with global peers, as a spike in coronavirus cases beyond China renewed concerns surrounding the impact on global economy. Global sentiment took a beating following reports that South Korea put the country on high alert after the number of infections hit more than 700 and deaths rose to seven. In Italy, officials said the number of cases jumped to above 150 from just three last week.
At 13:26 IST, the S&P BSE Sensex, was down 405.10 points or 0.98% at 40,765.02. The Nifty 50 index was down 131.25 points or 1.09% at 11,949.60.
In the broader market, the S&P BSE Mid-Cap index was down 0.60% while the S&P BSE Small-Cap index fell 0.42%.
The market breadth favoured the sellers. On the BSE, 833 shares rose and 1509 shares fell. A total of 167 shares were unchanged. In Nifty 50 index, 6 stocks advanced while 44 stocks declined.
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US President Donald Trump and his wife Melania are in India on a 36-hour trip that will see them visiting Ahmedabad, Agra and New Delhi. It is Trump's first presidential visit to India and the fifth official visit by a serving US president to the country since 2000.
Stocks in Spotlight:
Bharti Infratel tumbled 3.74% to Rs 217.65. The company said it has received Foreign Direct Investment (FDI) approval for its proposed merger with Indus Towers. The company in a regulatory filing said, "Please be informed that FDI approval for merger of Indus Towers with Bharti Infratel has been received late evening yesterday (21 Feb). Bharti Infratel's board will meet on Monday (24 February) to take stock and decide the future course of action.
Shares of Max Financial Services surged 6.11% to Rs 599.60 while Axis Bank lost 0.97% to Rs 736.75. Axis Bank, Max Financial Services and its subsidiary Max Life Insurance Company on Thursday (20 February) signed a confidentiality and exclusivity arrangement to explore the possibility of the private lender entering into a long-term strategic partnership with Max Life. Max Life is currently the largest non-bank owned private life insurer in India. Max Financial Services presently holds a 72.5% stake in Max Life while Mitsui Sumitomo Insurance and Axis Bank hold 25.5% and 2% stake, respectively. Axis Bank and Max Life have had a successful bancassurace (banca) arrangement for nearly a decade. The new premium generated through this banca arrangement has aggregated to over Rs 12,000 crore over this period, while maintaining high persistency. Both companies have invested extensively in product and need-based sales training, thereby leading to consistent increase in productivity.
Dr Reddy's Laboratory fell 1.52% to Rs 3207.05. The drug maker said it has received the Establishment Inspection Report (EIR) from the USFDA, for its formulations manufacturing plant at Duvvada, Visakhapatnam, indicating closure of the audit. As intimated earlier, the facility has been classified as voluntary action indicated (VAI).
Mahindra & Mahindra fell 1.38% to Rs 517.50.The automaker said that its wholly-owned arm Mahindra Renewables will sell its entire stake in three subsidiaries to CLP India, a part of Hong Kong-based CLP Group, for nearly Rs340 crore. Mahindra Renewables (MRPL) has agreed to sell its entire stake aggregating 100% stake in Cleansolar Renewable Energy (CREPL), Divine Solren (DSPL) and Neo Solren (NSPL), wholly-owned subsidiaries of MRPL, to CLP India. In the fiscal ended 31 March 2019, CREPL had a turnover of Rs 39.15 crore, while DSPL's and NSPL's turnover stood at Rs 54.18 crore and Rs 42.68 crore, respectively. The transaction is expected to be completed by 31 May 2020.
Global Markets:
Shares in Europe and Asia tumbled on Monday as investors focus on the continuing spread of the coronavirus and watch as Italy grapples with the largest coronavirus outbreak outside of Asia.
Coronavirus concerns continued to dominate headlines in Europe. There are widespread apprehensions over the spread of the virus in northern Italy.
A third person infected with the coronavirus died in Italy on Sunday, a regional official has reportedly said, and more than 130 cases have been reported there since Friday. The government has placed a dozen towns in the north under quarantine and closed down schools, museums and cinemas while other public events, including soccer matches, have been cancelled and the Venice Carnival cut short.
Iran and South Korea have also seen a sharp rise in cases of the virus.
On Monday morning, the Korea Centers for Disease and Control and Prevention reported that seven people have died from COVID-19. The number of cases has risen to 161 new cases, bringing the total to 763 nationwide - the country with the most cases outside the mainland.
Meanwhile in China, the center of the epidemic, the National Health Commission reported an additional 150 deaths and 409 new confirmed cases as of Feb. 23.
In US, stocks slumped on Friday as the spread of the COVID-19 epidemic from China to neighboring countries amplified worries about the impact on supply chains and global economic growth.
Stocks also came under pressure after IHS Markit reportedly said business in the US contracted in February for the first time in four years owing to disruptions caused by the coronavirus and growing angst over the outcome of the 2020 presidential election.
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