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Market sinks on global woes; Nifty ends below 10,500

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Last Updated : Mar 09 2020 | 4:05 PM IST
Domestic shares plummeted on Monday (9 March 2020) as panic gripped financial markets amid the double threat of a coronavirus-driven global recession and an oil-price war. The barometer index, the S&P BSE Sensex, tanked 1941.67 points or 5.17% at 35,634.95. The Nifty 50 index slumped 538 points or 4.90% at 10,451.45.

The Nifty is down 15.92% from its record high of 12,430.50 hit on 20 January 2020.

Global stock markets witnessed a selloff amid a plunge in crude oil prices after OPEC failed to strike a deal with its allies on production cuts, adding to volatility already brought about by fears surrounding the coronavirus spread. Oil price crash is a worrying sign for the health of the world economy. Investor sentiments also turned weak amid the ongoing crisis at Yes Bank, which can impact the financial sector as a whole.

Meanwhile, the media reported that the number of coronavirus cases in India rose to 43 on Monday with four people, including a three-year-old child in Kerala who had returned from Italy, testing positive for the disease.

In the broader market, the S&P BSE Mid-Cap index was down 4.73% and the S&P BSE Small-Cap index was down 4.20%. The fall in both these indices was lesser than the fall in the Sensex.

Sellers outpaced buyers. On the BSE, 360 shares rose and 2193 shares fell. A total of 172 shares were unchanged. In Nifty 50 index, 4 stocks advanced while 46 stocks declined.

Domestic stock markets will remain closed on Tuesday, 10 March 2020 on account of Holi.

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Buzzing Index:

The Nifty Metal index tumbled 7.42% to 2,021.90, declining the most among the other sectoral indices on the NSE.

Vedanta (down 14.31%), NMDC (down 10.65%), Jindal Steel & Power (down 10.22%), Steel Authority of India (down 9.71%), Tata Steel (down 8.3%), National Aluminium Company (down 6.2%), Hindustan Copper (down 4.48%), JSW Steel (down 4.33%), Hindalco Industries (down 4.16%) and Hindustan Zinc (down 2.63%) declined.

Stocks in Spotlight:

As many as 836 stocks hit fresh 52-week lows on the BSE, which included names like Adani Ports And Special Economic Zone (down 5.27%), ACC (down 5.04%), Axis Bank (down 5.56%), Bandhan Bank (down 6.67%), Coal India (down 6.72%), Force Motors (down 4.64%), Grasim Industries (down 4.56%), Hero Motocorp (down 3.93%), Hindalco Industries (down 5%), JSW Energy (down 11.58%), Kalpataru Power Transmission (down 11.06%), Larsen & Toubro (down 5%), Reliance Industries (down 13%), Tata Motors (down 8.18%), Thermax (up 0.03%) and Welspun India (down 7.61%).

State Bank of India (SBI) tanked 6.88% to Rs 251.85. The RBI released the draft of Scheme of Reconstruction of Yes Bank. Accordingly, SBI will be issued 245 crore shares at a price of Rs 10 per share for Rs 2450 crore. This will be 49% of the share capital of the reconstructed bank. SBI shall not reduce its holding below 26% before completion of three years from the date of infusion of the capital.

Bharat Petroleum Corporation (BPCL) soared 4.29% to Rs 420.15 after the Government of India (GOI) invited bids for its entire 52.98% stake. The GOI has set firms with a minimum net worth of $10 billion as one of the primary criterias in its Expression of Interest (EoI) for BPCL. An expression of interest is an informal offer made by a strategic or financial buyer for the purchase of a business.

IndusInd Bank dived 11.96% to Rs 893. The bank deferred its plan to raise funds through additional tier-1 (AT-1) and / or tier 2 capital (T2 Bonds) of the bank.

Biocon fell 3.18% to Rs 299.95. The company informed that the U.S. Food and Drug Administration has accepted Mylan's biologics license application for MYL-1402O, a proposed biosimilar to Avastin (bevacizumab), for review. The FDA goal date set under the Biosimilar User Fee Act (BsUFA) is 27 December 2020. Biocon and Mylan's proposed biosimilar bevacizumab is expected to be the third biosimilar from the partnered portfolio for the cancer patients in the U.S. It is currently available in India and other developing markets.

PNB Housing Finance (PNBHF) tanked 14% to Rs 258. India Ratings and Research downgraded the company's non-convertible debentures (NCDs) rating to IND AA from IND AA. The rating agency has maintained stable outlook on the housing financier's NCDs worth Rs 218.97 crore (reduced from Rs 280 crore).

Hikal shed 6.78% to Rs 108. The company received a notice from the Maharashtra Pollution Control Board for closure of its Mahad Unit based on a complaint from the local community in Taloja. The company has filed a writ petition for staying the order in the Bombay High Court , but warned of a possibility of some impact on its operations at Mahad site until the matter is resolved.

Global Markets:

Shares in Europe and Asia plunged on Monday as S&P, Dow and Nasdaq futures entered a free fall amid a dramatic oil market crash and concerns over the coronavirus-hit global economy slowdown.

Wall Street is set to continue last week's slump as Dow futures pointed to 1256 point opening drop on Monday.

Oil prices plunged more than 30% after OPEC's failure to strike a deal with its allies regarding production cuts caused Saudi Arabia to slash its prices as it gets set to ramp up production. That's led to fears of an all-out price war.

Coronavirus continues to dominate market sentiment too. More than 106,000 people have now been infected by the virus and more than 3,600 have died globally, according to the latest figures from the World Health Organization. U.S. cases have now topped 500 and at least 21 deaths have been reported.

Meanwhile, the number of confirmed cases in Germany jumped by more than 100 over the weekend and is now up to nearly 800. Italy remains the European country with the worst outbreak, with over 7,000 cases. The U.K. government is holding an emergency meeting Monday to discuss further measures to halt the spread of the virus.

China reported Saturday that its exports fell 17% and imports were off 4% from a year earlier in January and February combined after Beijing shut factories, offices and shops in the most severe anti-disease measures ever imposed.

Investors are looking ahead to a meeting Thursday of the European Central Bank, which is widely expected to announce new stimulus measures.

In US, stocks fell on Friday as fears of economic damage from the spread of the coronavirus intensified.

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First Published: Mar 09 2020 | 3:41 PM IST

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