Weak oil, global cues trigger 1,011-pt Sensex slide; financials worst hit
All that happened in the markets today
 "BSE, NSE, Nifty, Sensex, Stock market")
Photo: Kamlesh Pednekar
The benchmark indices ended over 3 per cent lower on Tuesday amid collapse in crude oil prices and weak global markets. The session witnessed heavy selling in financial, metal, energy, and auto stocks.
The S&P BSE Sensex tanked 1,011 points or 3.2 per cent to settle at 30,637 while NSE's Nifty slipped 280 points or 3 per cent to 8,981 levels. Volatility index, India VIX, jumped over 4 per cent to 45.34 levels.
The S&P BSE Sensex tanked 1,011 points or 3.2 per cent to settle at 30,637 while NSE's Nifty slipped 280 points or 3 per cent to 8,981 levels. Volatility index, India VIX, jumped over 4 per cent to 45.34 levels.
In the Sensex pack, 27 out of 30 stocks ended in the red. IndusInd Bank (down 12 per cent) emerged as the biggest loser on the index, followed by Bajaj Finance (down 9 per cent), ICICI Bank (down over 8 per cent), and Axis Bank (down 7.6 per cent).
Buzzing stocks
Financial stocks plunged during the session. The Nifty Bank ended nearly 5.5 per cent lower at 19,409 levels. Among individual names, ICICI Bank slipped nearly 9 per cent to Rs 329.80 apiece on the NSE after the bank clarified it has exposure to Ocean Tankers, a unit of Singapore oil-trading firm Hin Leong Trading (HLT), that has filed for bankruptcy in Singapore. The firm owes nearly $100 million -- or nearly Rs 760 crore -- to the lender. READ MORE
That apart, Bajaj Finance declined over 9 per cent to Rs 2,099 after foreign brokerage firm UBS downgraded the stock to "sell". READ MORE
Oil & gas stocks slid during the day after the US crude oil futures collapsed below $0 on Monday for the first time in history, amid a coronavirus-induced supply glut, ending the day at a stunning minus $37.63 a barrel as desperate traders paid to get rid of oil. READ MORE
Meanwhile, IT stocks took a beating after US President Donald Trump announced a temporary suspension of immigration into the country. The Nifty IT index slipped nearly 3.5 per cent to 12,409 levels, with all the 10 constituents ending in the red.
Buzzing stocks
Financial stocks plunged during the session. The Nifty Bank ended nearly 5.5 per cent lower at 19,409 levels. Among individual names, ICICI Bank slipped nearly 9 per cent to Rs 329.80 apiece on the NSE after the bank clarified it has exposure to Ocean Tankers, a unit of Singapore oil-trading firm Hin Leong Trading (HLT), that has filed for bankruptcy in Singapore. The firm owes nearly $100 million -- or nearly Rs 760 crore -- to the lender. READ MORE
That apart, Bajaj Finance declined over 9 per cent to Rs 2,099 after foreign brokerage firm UBS downgraded the stock to "sell". READ MORE
Oil & gas stocks slid during the day after the US crude oil futures collapsed below $0 on Monday for the first time in history, amid a coronavirus-induced supply glut, ending the day at a stunning minus $37.63 a barrel as desperate traders paid to get rid of oil. READ MORE
Meanwhile, IT stocks took a beating after US President Donald Trump announced a temporary suspension of immigration into the country. The Nifty IT index slipped nearly 3.5 per cent to 12,409 levels, with all the 10 constituents ending in the red.
Metal stocks, too, tumbled on concerns of weak demand due to the Covid-19 outbreak. The NIfty Metal Index declined over 5 per cent to 1,667 levels.
On the upside, Aurobindo Pharma rallied 20 per cent to Rs 649 after US drug regulator USFDA classified the company's Unit IV of Hyderabad plant as VAI (voluntary action indicated). READ MORE
In the broader market, the S&P BSE MidCap index fell nearly 3 per cent to 11,477 levels while the S&P BSE SmallCap ended at 10,565, down 3 per cent.
Global markets
Global stocks fell on Tuesday, a day after US crude oil prices turned negative for the first time, as dismal company earnings reports underlined worries about economic damage from the coronavirus pandemic.
MSCI’s All Country World Index, which tracks stocks across 49 countries, was down 0.8 per cent. European stock markets followed their Asian counterparts lower, with the pan-European STOXX 600 index down nearly 2 per cent in early deals.
In commodity market, Brent Crude futures slipped below $20 a barrel, a day after WTI Crude futures slipped into the negative zone amid fears that the sector will run out of storage for a glut caused by the coronavirus lockdown. At the time of writing of this report, US West Texas Intermediate (WTI) crude for May delivery traded at minus $2.58 a barrel, up $35.05 from Monday’s close when the contract settled at a discount of $37.63 a barrel.
(With inputs from Reuters)
4:03 PM
MARKET COMMENT | Vinod Nair, Head of Research at Geojit Financial Services
"After the US crude oil crash, Indian markets, in sync with global markets traded negatively, as the extent of the impact of lockdowns and the global slowdown is becoming evident. Corporate earnings have also been impacted by the pandemic related shutdowns. Post earnings management guidance has also not given clear indication about the recovery path. Earnings results will be in focus for the future course of the company business."
3:47 PM
SECTOR WATCH | Here's how sectoral indices on NSE performed today
3:43 PM
MARKET AT CLOSE | Top losers and gainers on the S&P BSE Sensex
3:39 PM
CLOSING BELL
The S&P BSE Sensex ended at 30,636.71, down 1,011 points or over 3 per cent while NSE's Nifty settled at 8,981.45, down 280 points or 3 per cent.
3:29 PM
Dr Reddy's Labs hits over 4-year high, surges 62% from March low
With today’s rally, the share price of Dr Reddy’s Laboratories has surged 62 per cent from its previous month low of Rs 2,498, touched on March 19, 2020 in the intra-day trade. READ MORE
3:22 PM
BROKERAGE VIEW:: ICICI Securities on Aurobindo Pharma
Whilst four plants continuing to be under USFDA scrutiny [Unit XI has warning letter, Unit VII, Unit I, Unit IX have official action indicated (OAI) status from the USFDA], re-assignment of VAI status for Unit IV despite 14 observations (that too for an injectable plant where cGMP requirements are even more stringent) came in as a huge positive surprise to us. Unit IV is a critical plant for the company, given most of its pending injectables are filed from this plant. Injectable segment is one of the key drivers for the company’s future growth and margins. We expect the US injectable segment to grow at 22% CAGR in FY19-22E to US$385 million. This is likely to provide much needed sentimental boost to the stock, which is getting valued at commodity multiple. The now defunct Sandoz deal also had its share of negative sentiments for having foregone one of the cheapest M&A bargains in the US generics space. While the recent chain of setbacks on the cGMP front will continue to weigh, a positive outcome like this is likely to provide a silver lining to a stock that is available at ~11x FY22E (~30-40% discount to its historical band and ~50% discount to Nifty Pharma). We ascribe a target price of Rs 770 valuing it 13x FY22E EPS of Rs 59.4. We upgrade the stock from HOLD to BUY to incorporate the significant booster.
3:12 PM
NEWS ALERT :: ICICI Bank confirms exposure to Singapore based oil trader
>> We confirm that the Bank, in the normal course of its business, has exposure to the borrower group in question, is taking due steps to protect its interests, and will appropriately reflect the same in its financial statements, as it would do in respect of all its banking exposures.
(Via BSE Filing)
(Via BSE Filing)
3:08 PM
NEWS ALERT
3:02 PM
» More on 52 Week Low
Stocks that hit 52-week low on BSE today
| COMPANY | PRICE(rs) | 52 WK LOW | CHG(%) |
|---|---|---|---|
| ADITYA BIR. FAS. | 131.00 | 129.10 | -6.26 |
| GE POWER | 429.00 | 416.05 | -2.40 |
| INOX LEISURE | 219.30 | 213.00 | -1.99 |
| MAH. SEAMLESS | 188.75 | 185.45 | -3.08 |
2:58 PM
STOCK ALERT | Bajaj Finance nears 52-week low of Rs 2,083 hit on April 7
-- Stock down 9% at Rs 2,088 on the BSE
2:52 PM
BROKERAGE VIEW:: ICICI Securities on Himadri Speciality Chemical
Building in the prevailing muted demand prospects both domestically as well as globally in its base business and delay in commissioning of new projects, we expect HSCL to clock sales, PAT CAGR of 7.0%, 14.3%, respectively, in FY20E-22E. With a decline in margin profile, return ratios matrix has reduced to ~10% RoE, which significantly limits our ability to assign a higher valuation multiple to HSCL. Consequently, we value HSCL at | 50 i.e. 10x P/E on FY22E EPS of | 5.0. We derive some comfort from consistent CFO generation with controlled leverage on B/S (debt: equity at ~0.3x). We downgrade the stock from BUY to HOLD.
2:48 PM
Contribution to the S&P BSE Sensex's fall today
2:35 PM
Gold can rise further if China diverts some of its forex: Nilesh Shah
Nilesh shah, the MD & CEO of Kotak AMC, is quite optimistic about mutual funds in general even durimg these difficult time. In an interaction with Rajesh Bhayani, he says that investors in systematic investment plans, or SIPs, ought to continue investing as the current market volatility represents an opportunity for averaging out the acquisition cost. But he also warns that this is leverage can be fatal at this moment. READ MORE
2:28 PM
This small-cap company has found its watershed moment in Covid-19 pandemic
“Our agro chemicals business was running in an auto-pilot mode for decades. It was never a cash-churning business. Agriculture in India is monsoon-dependent and a bad monsoon season can easily ruin your business for next two years at least. We were also never in the big league with no patented molecule, but we somehow managed to survive and diversy,” says Dhirendra Dubey, a whole-time director at Kilpest India. READ MORE
2:22 PM
MARKET CHECK | L&T slips 4.5%
Topics : Coronavirus Markets US crude oil Infosys MARKET WRAP
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First Published: Apr 21 2020 | 7:35 AM IST
