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 failed to close above the 9000 mark.
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.
Larsen & Toubro (up 6.35%), Hindalco Industries (up 6%), Bharti Airtel (up 4.46%), Adani Ports and Special Economic Zone (up 4.41%) and UltraTech Cement (up 3.57%) were the top Nifty gainers.
Bajaj Finance (down 10.26%), Zee Entertainment Enterprises (down 8.44%), Bajaj Finserv (down 6.85%), Titan Company (down 4.68%) and Wipro (down 3.61%) were the major Nifty losers.
In the broader market, the S&P BSE Mid-Cap index fell 0.93% while the S&P BSE Small-Cap index shed 0.46%.
The market breadth favored the buyers. On the BSE, 1208 shares rose and 1182 shares fell. A total of 211 shares were unchanged. In Nifty 50 index, 20 stocks advanced while 30 stocks declined.
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Indian stock market will remain shut on Tuesday, 14 April 2020, on account of Dr. Baba Saheb Ambedkar Jayanti.
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%.
Buzzing Index:
The Nifty Auto index fell 2.53% to 5,427.60, amid some profit booking. The index surged 23.26% in previous three sessions.
TVS Motor Company (down 5.45%), Mahindra & Mahindra (down 5.04%), Hero MotoCorp (down 3.66%), Eicher Motors (down 2.48%), Bajaj Auto (down 0.79%), Maruti Suzuki India (down 0.59%), Tata Motors (down 0.34%) declined.
Escorts (up 1.28%) and Ashok Leyland (up 1.2%) advanced.
In its monthly report, the Society of Indian Automobile Manufacturers (SIAM) reportedly said passenger vehicle sales fell 51% to 1,43,014 units in March 2020, as against 2,91,861 units in the corresponding period a year ago. Sales of commercial vehicles - light, medium and heavy carriers of passengers and goods - declined by 88.05% to 13,027 units in March 2020 compared to 109,022 units in March 2019. Two-wheeler sales fell 39.83% to 866,849 units in March 2020 compared to 1,440,593 units in March 2019.
Stocks in Spotlight:
HDFC fell 2.93% to Rs 1652.05. 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.
Coal India (CIL) rose 3.62% to Rs 145.85. 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.
Tech Mahindra fell 3.20% to Rs 527.70. The IT firm said that it has changed some of the terms of its stake-acquisition deals with Zen3 Infosolutions (America) Inc and Cerium Systems. Company said that the Zen3 Infosolutions transaction is now expected to be closed by 15 April 2020, and $35 million will be paid at closing with a deferred payment of $4 million to be paid over two years. The balance $25 million will be paid over three years linked to financial performance, the filing added. Earlier, it had said the transaction is expected to close by 1 April 2020. Also, $42 million was to be paid at closing and the remaining $22 million was to be paid over three years linked to financial performance.
In the another development, company said that after modification, Tech Mahindra will acquire 51% of Cerium Systems upfront for enterprise value upto Rs 245 crore and balance 49% will be acquired over the next 3 years.
Dr Reddy's Laboratories jumped 3.21% to Rs 3734.20 after the company said its API manufacturing plant at Telangana received the Establishment Inspection Report (EIR) from the US drug regulator.
Cadila Healthcare added 0.70% to Rs 353.15 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 4.67% to Rs 824.55 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).
Avenue Supermarts hit a lower circuit of 5% at Rs 2287.90. The company on Friday (10 April) informed that nearly 50% of the company's stores remain closed for operations based on directive by the local authorities. The company has commenced e-commerce home delivery and bulk deliveries to large housing complexes across majority of its stores during the first week of April. "Customers who have used the service have deeply appreciated these initiatives, however, sales from these channels are inconsequential," the company said. E-commerce and bulk deliveries to societies are initiatives implemented to only manage the current lockdown situation, it added.
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.
Bandhan Bank added 0.62% to Rs 193.50. The Bank's loans & advances (on book + off book) surged 60% to Rs 71,825 crore (merged entity) in Q4 March 2020 as against Rs 44,776 crore (standalone) in Q4 March 2019. Total deposit stood at Rs 57,073 crore in Q4 March 2020, rising by 32% YoY as compared to Rs 43,232 crore posted in Q4 March 2019. Retail deposits grew at 34% YoY to Rs 44,760 crore in Q4 March 2020.
Max Financial Services shed 0.34% to Rs 350.85. Max Life Insurance, the company's subsidiary, and Yes Bank announced a five-year extension to their strategic bancassurance relationship. Through this renewal of their bancassurance partnership both the companies have reaffirmed their commitment to invest in building a digitally enabled ecosystem that will provide a seamless experience for customers in their financial planning and protection journey, Max Financial said in its BSE filing.
Global Markets:
European shares extended gains while most Asian stocks dipped on Monday after 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 as the U.S. Federal Reserve unleashed another program designed to buoy local governments and businesses crushed by massive closures to stem the coronavirus outbreak. The benchmark S&P 500 index posted its best weekly gain since 1974, in a holiday-shortened week, bolstered by early signs that the outbreak was hitting a peak as well as aggressive global stimulus.
Under the Fed's $2.3 trillion package, the U.S. central bank said it would work with banks to offer four-year loans to companies of up to 10,000 employees and directly buy bonds of states and more populous counties and cities. 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 U.S. 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.
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