MARKET WRAP: Sensex slips 214 pts, Nifty ends at 11,251; pharma, IT advance

All that happened in markets today

8:43 AM

NEWS ALERT | US 10-year yields drop below 1% for first time ever: Reuters

>> US benchmark 10-year Treasury yields on Tuesday slid below 1% for the first time, after the Federal Reserve slashed interest rates by half a percentage point in an emergency move to ease the economic fallout from the fast-spreading coronavirus.

>> Investors expected the U.S. rate cut after the Fed issued a statement late on Friday. But they did not expect the central bank to move so quickly ahead of a scheduled monetary policy meeting later this month.

8:39 AM

China's services activity plummets in Feb as coronavirus wipes sales

The Caixin/Markit services purchasing managers' index (PMI) almost halved last month to just 26.5 from 51.8 in January. It was the first drop below the 50-point margin that separates growth from contraction on a monthly basis for the first time since the survey began almost 15 years ago in late 2005. READ MORE

8:37 AM

NEWS ALERT | China's central bank keeps short-term rates steady: Reuters

>> The People’s Bank of China skipped open market operations, it said in a statement on the website, leaving reverse repurchase agreements unchanged.

Alert: The decision by the PBOC comes hours after its US counterpart delivered an emergency 50-basis point rate cut to mitigate the widening economic fallout of the coronavirus.

8:35 AM

Weekly stock picks by Religare Broking: Buy Ajanta Pharma, Dabur India

Buy Indraprastha Gas Limited

 

Target: Rs 470

 

Stop loss: Rs 432

 

IGL has been witnessing profit taking for the last three weeks, after making a record high at 534.20 on February 7, 2020. READ MORE

8:34 AM

Ipca Lab, Ajanta Pharma: Two pharma stocks HDFC Securities is bullish on

BUY AJANTA PHARMA (1477.5): | TARGET: Rs 1,590 | STOP-LOSS: Rs 1,425

 

The stock price has closed at 2-year highs with rising volumes. It consolidated for a while, formed a pennant pattern on the daily chart and broke out on March 3, 2020. This is one of the best performing stocks in the pharma space in last three months. The stock is also placed above all important moving average parameters. READ MORE

8:33 AM

US Fed rate cut was expected; virus containment to drive markets: Analysts

The 50-basis point (bps) rate cut by the US Federal Reserve (US Fed) on Tuesday was in line with analyst expectations. The American central bank cut the interest rate in an emergency move designed to shield the world's largest economy from the impact of the coronavirus (COVID-19) outbreak. Expectations of such a move were gaining momentum amid the sudden escalation in coronavirus cases across the globe that threatened to derail global growth. READ MORE HERE

US Fed chief Jerome Powell

8:31 AM

MOSL on Essel Propack

We estimate a CAGR of 8% in revenue and 20% in PAT over FY19-22, driven by 11% revenue CAGR in the Americas, 5% in EAP, 3% in AMESA and 15% in Europe. We value the stock at 20x FY22E EPS of INR10.5, arriving at a target price of INR210. We initiate coverage with a Buy rating

8:30 AM

Edelweiss on Coal India

Coal India (CIL) reported the second successive month of robust production growth. Key highlights: i) Production/off-take jumped 14%/7% YoY. ii) Larger subsidiaries—SECL and MCL—sustained the turnaround in performance vis-a-vis last month. iii) Inventory rose further to 43mt, implying that the non-power sector would get a good allocation. In our view, production/off-take volume is off the lows it touched in September-19, and despite a likely dip of 3% YoY in FY20E off-take, FY21 is likely to be better for CIL. Maintain ‘BUY’ with a target price of Rs 250 

8:30 AM

Bulk deals on NSE as on Tuesday

Click here for complete list

8:29 AM

Maybank Kim Eng view :: Auto sector

We maintain negative view on the auto sector and SELL on BJAUT, HMCL, TTMT, MSIL and MNDA. Our preferred pick is M&M because tractors form 70% of its earnings and are not subjected to transition to BSVI. Moreover, the stock is cheap and there is a tailwind from the turnaround in tractor demand which is likely to extend to FY21.

8:27 AM

Bulk deals on BSE as on Tuesday

Click here for complete list

8:26 AM

FII/FPI & DII trading activity on NSE, BSE and MSEI

8:25 AM

Rupee Check

Source: Bloomberg

8:20 AM

Jefferies on Pharma sector

India has restricted exports of 13 APIs and formulations. While impact on companies is small it highlights supply concerns. Companies have inventories till Apr and if supplies do not normalize by then, there will be shortages across products. 2nd order impact is still uncertain as even for APIs made in India, materials are from China. ARBP, TRP, LAURUS have most inventory (till May/June) while other large caps till Apr. API players like Laurus could benefit

8:19 AM

Rabobank International on US Fed's rate cut

The FOMC decision was unanimous. Note the last time the FOMC made an emergency rate cut, it was October 2008, at the height of the financial crisis. That was also 50 bps. During his press conference Powell repeated the phrase that the Fed will continue to ‘act as appropriate’ to support the economy, so we are likely to see further rate cuts in the coming months.