Sensex tanks 1,448 pts on coronavirus jitters; worst weekly fall in 10 yrs

All that happened in stock market today

12:40 PM

MARKET COMMENT | Rusmik Oza, Sr. VP (Head of Fundamental Research-PCG), Kotak Securities

As the corona virus is spreading across the countries, the fear factor in markets is going up. Till the time the coronavirus was contained in Mainland China there was compliancy in global equity markets but now as more cases are getting reported in various countries the impact is sharper. The fall in Nifty-50 got accentuated after it broke the 200 DMA placed at 11,685 and since then it is following the developed markets. During past instances like coronavirus, markets fell gradually and recovered gradually. This time the fall has been vertical and that too in a matter of few days. Going by past precedencies, the recovery in markets (post containment of such epidemics) is equal or higher than the fall. As the fall has been too-fast-too-soon, markets have gone into oversold zone (i.e. RSI of Nifty-50 has gone to 25 level). Since the risk-reward ratio has turned favorable for the market, it is ideal to accumulate stocks keeping in mind the downside of 11,000 for Nifty-50.

12:28 PM

Nifty Bank index falls over 1,000 pts

12:25 PM

NEWS ALERT | Delhi Court defers hearing plea to probe Indiabulls to May 11: Bloomberg

12:19 PM

Sector watch | Nifty Metal index set for its biggest weekly fall since October 2008

12:17 PM

Broader markets underperform benchmarks

12:17 PM

MARKET COMMENT :: Umesh Mehta, head of research, Samco Securities

From extreme calmness to extreme pessimism, D-Street is also a victim of the virus outbreak in other countries. This pandemic led to indices across the globe to witness a sharp fall this week. However, when the entire world is blaming coronavirus for the fall, we feel that valuations have a big part to play in this bearishness. Back in 1918, during the outbreak of Spanish flu, Dow Jones didn’t correct instead it steadily moved up. This was only because before the epidemic broke out, World War I had already led to a massive decline in the markets. Due to the valuations being at reasonable levels, despite the epidemic, markets improved.

India is currently experiencing a similar yet opposite scenario. Indian bourses have been trading around higher valuations and hence a correction was needed to align the markets as per the mean reversion theory. Hence, this week’s fall is a valuation play with coronavirus as the scapegoat. Investors should not burn their hands by selling in this fall. Rather, they should slowly and steadily pick reasonably valued quality stocks in a SIP format as every dip becomes a good buying opportunity

12:06 PM

Rupee Alert | Currency trading near 6-month low

Source: Bloomberg

12:02 PM

MARKET UPDATE:: Sensex extends fall, down 1200 pts now

11:43 AM

Investors lose Rs 11.4 trillion in 6 days; selling overdone, say analysts

“Indian markets have been following the global trend and I don’t think there is any issue here right now as regards coronavirus. On the contrary, we are better-off with the energy and commodity prices falling. However, we will be hugely vulnerable if any such cases were reported in India. That said, there is no other catalyst as well that can hold up the markets. If one is convinced about the long-term prospects, this is the time to buy fundamentally sound companies,” says Jigar Shah, chief executive officer at Maybank Kim Eng Securities. READ MORE

11:34 AM

SBI Cards IPO: Why analysts suggest subscribing despite rich valuation

Valued at nearly 43x P/E (trailing) and 41x (based on H1FY20 annualised EPS), analysts see the valuation of the credit card issuer as aggressive when compared with peers. They, however, believe that the stock commands the premium valuation given its strong financial track record, goodwill associated with its parent company – State Bank of India (SBI), and strong distribution network. Nearly all of them have assigned it a ‘subscribe’ rating. READ MORE

11:24 AM

STOCK ALERT :: 28.5% equity of Adani Gas trade on NSE & BSE

>> 28.5% is 31.3 cr shares of Adani Gas

>> Shares trade for Rs 3,250 cr, at Rs 126.50/sh

 

>> Total likely to have bought stake in the gas co, reports CNBC TV18
 

11:20 AM

Amid economic slowdown, volume recovery key for pricey Page Industries

The Page Industries (Page) stock has lost 16 per cent in a month, compared to a 3-4 per cent decline in the Nifty FMCG and the Sensex during the same period. Concerns over volume recovery, after a feeble December quarter (Q3), has seen analysts cut their FY21 earnings estimates by 10-16 per cent. READ MORE

11:12 AM

Sebi wants MFs to be agile in stress events, warns industry on mis-selling

The Securities and Exchange Board of India’s (Sebi’s) whole-time member G Mahalingam on Thursday pointed out that the risk-management practices of the Rs 27-trillion mutual fund (MF) industry can improve further. He urged MFs to create a framework that makes them gauge liquidity risks in a timely manner and mitigate liquidity pressure during stress scenarios. READ MORE

11:03 AM

NEWS ALERT | Voda Idea moves Supreme Court on spectrum levy: Bloomberg

>> Apex court to hear plea next week

10:57 AM

Bloodbath on Dalal Street erodes nearly Rs 5 trillion investor wealth

Domestic investor wealth plummeted by nearly Rs 5 trillion on Friday as equity markets crashed tracking global equity selloff amid rising uncertainty over the economic impact of coronavirus outbreak. Market capitalisation (m-cap) of BSE-listed companies saw a massive decline after the 30-share index sank 1,100.27 points, or 2.77 per cent, to 38,645.39, and the NSE Nifty cracked 329.50 points, or 2.83 per cent, to 11,303.80. READ MORE