Nifty gives up 9000 mark on profit selling

Domestic barometers ended with significant cuts on Monday, as India looked set to extend the 21-day lockdown to contain the spread of the coronavirus. The Nifty slipped below the 9,000 mark as investors locked profits after the index rallied almost 13% last week.

The barometer index, the S&P BSE Sensex, fell 469.60 points or 1.51% at 30,690.02. The Nifty 50 index lost 118.05 points or 1.30% at 8,993.85.

In the broader market, the BSE Mid-Cap index fell 0.93% and the BSE Small-Cap index dropped 0.46%.

The market breadth was positive. On the BSE, 1179 shares rose and 1213 shares fell. A total of 209 shares were unchanged.

Indian stock market will remain shut on Tuesday, 14 April 2020, on account of Dr. Baba Saheb Ambedkar Jayanti. Prime Minister Narendra Modi will address the nation tomorrow at 10 am.

Economy:

The Reserve Bank of India in its Monetary Policy Report said, "Prior to the outbreak of COVID-19, the outlook for growth for 2020-21 was looking up. The COVID-19 pandemic has drastically altered this outlook. The global economy is expected to slump into recession in 2020, as post-COVID projections indicate."

Meanwhile, India's economy was showing some signs of recovery, before the Covid-19 outbreak brought economic activity to a near standstill. India's Index of Industrial Production (IIP) rose 4.5% in February 2020 over last year, compared to an increase of 2% in January. Industrial production in February was the highest since July 2019. Mining and manufacturing grew at 10% and 3.2%, respectively during the month, while electricity generation rose 8.1%.

Numbers to Watch:

The yield on 10-year benchmark federal paper rose to 6.5% as compared with 6.490% at close in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 76.24, compared with its close of 76.28 during the previous trading session.

In the commodities market, Brent crude for June 2020 settlement fell 19 cents at $31.67 a barrel. The contract fell $1.36, or 4.14% to settle at $31.48 a barrel in the previous trading session.

Foreign Markets:

European shares extended gains while most Asian stocks dipped on Monday. A landmark agreement by OPEC and its allies to slash output by a record amount failed to give investors any cause for lasting optimism as stay-at-home restrictions and closures tied to the coronavirus pandemic still weigh on the global economy.

Saudi Arabia and Russia reached agreement with other oil-producing nations on Sunday to cut output by 9.7 million barrels per day for the next two months, in an effort to stem a plunge in oil prices brought on by the coronavirus pandemic. OPEC+, a group that includes OPEC members as well as allied non-members like Russia and Mexico, finalized the deal on Sunday after days of marathon negotiations.

In US, stock markets were closed on Friday, 10 April 2020 on account of Good Friday. US indices closed out the trading week on a high note on Thursday after the Federal Reserve announced another series of financing facilities to provide $2.3 trillion to support the US economy amid the coronavirus pandemic.

The European Union also followed the US with its own rescue package worth 500 billion euros ($550 billion) to ease the impact of Covid-19 in the 27-nation bloc.

Investors appeared to shrug off another 6.6 million jobless claims, to focus on the Federal Reserve's announcement of new efforts to help fix parts of the financial market and economy debilitated by the coronavirus shutdowns.

In other US data, the preliminary reading of the consumer-sentiment survey sank to 71 in early April from 89.1, marking the biggest-ever one-month decline and putting the index at lowest level since 2011, the University of Michigan said Thursday.

Buzzing Indian Index:

The Nifty Metal index rose 1.93% to 1,738.40. The index rose 6.99% in two sessions.

Hindalco Industries (up 5.81%), NMDC (up 4.14%), Vedanta (up 2.02%), Hindustan Copper (up 1.82%), JSW Steel (up 0.78%) and Jindal Steel & Power (up 0.11%), advanced.

Shares in Spotlight:

HDFC fell 2.79% to Rs 1654.45. People's Bank of China (PBOC) raised its stake in HDFC to 1.01% from 0.8%. The stake comprises 1.74 crore shares of the mortgage lender.

HDFC Bank (down 3.12%), ICICI Bank (3.44%) and Reliance Industries (down 2.46%), were some of the major losers.

Media and entertainment company Zee Entertainment Enterprises (ZEEL) fell 8.57% to Rs 137.10 after the company said it will invest Rs 522 crore in Margo Networks (SugarBox), a tech startup it bought three years ago. SugarBox enables internet services to work in areas of bad or no network. ZEEL owns 80% stake in SugarBox and the additional investment will be used for operational and financial support.

Bandhan Bank rose 0.36%. The bank's loans & advances (on book + off book) rose 10% to Rs 71,825 crore in Q4 March 2020 as against Rs 65,456 crore in Q3 December 2019. Total deposit stood at Rs 57,073 crore in Q4 March 2020, rising 4% quarter on quarter (QoQ) compared with Rs 54,908 crore in Q3 December 2019. Retail deposits grew at 7% QoQ to Rs 44,760 crore in Q4 March 2020. CASA deposit rose 12% QoQ to Rs 21,028 crore in Q4 March 2020 compared with Rs 18,839 crore in Q3 December 2019. The bank's CASA Ratio rose to 36.8% in Q4 March 2020 from 34.3% in Q3 December 2019.

Godrej Consumer Products slumped 6.38% after the company in its March quarter update stated that it will report a revenue decline of high teens during the quarter. Meanwhile, the International business is expected to record around mid-single digit sales decline in rupee terms resulting in consolidated sales declining around low double digit in rupee terms for the quarter.

Avenue Supermarts (DMart) hit a lower circuit of 5% at Rs 2,287.90 after the supermarket chain said that nearly 50% of its stores remained closed for operations based on the directives issued by the local government.

ITI was locked in an upper circuit of 20% at Rs 87.35 after the company informed that it will team up with the Defence Research and Development Organisation (DRDO) to manufacture portable ventilators to combat the Covid-19 outbreak.

Coal India (CIL) rose 3.66%. Coal Minister Pralhad Joshi has reportedly written to chief ministers of all states asking them to not import the dry fuel and take domestic supply of fuel from state-owned CIL, which has the fossil fuel in abundance. The development comes at a time when there is a drop in power demand in the country in the wake of the lockdown imposed to contain the deadly coronavirus.

Dr Reddy's Laboratories jumped 3.60% after the company said its API manufacturing plant at Telangana received the Establishment Inspection Report (EIR) from the US drug regulator.

Cadila Healthcare added 0.84% after Zydus Cadila received tentative approval from the US drug regulator to market Empagliflozin tablets, in the strengths of 10 mg and 25 mg. The medication is used together with diet and exercise to improve blood sugar control in adults with Type 2 diabetes mellitus. It is also used to reduce the risk of cardiovascular death in adult patients with Type 2 diabetes mellitus and established cardiovascular disease.

Lupin surged 4.85% after the pharmaceutical major announced that it has received Establishment Inspection Report (EIR) from the US FDA inspection for its Nagpur facility. The inspection for the facility was carried out between 6 January and 10 January 2020, the drug maker said in an exchange filing made during market hours today (13 April 2020).

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