Indices see biggest 1-day fall ever in absolute terms, Sensex dips 1942 pts
All that happened in markets today
 "Bear-market-1")
All the sectoral indices on the NSE ended in the red with metals taking the hardest knock. (Photo: Shutterstock.com)
Crash in crude oil price and Coronavirus (Covid-19) fears triggered another round of across-the-board selling in the equity market on Monday. Benchmark indices Sensex and Nifty slid over 6 per cent during the intra-day session before trimming some of their losses later. The indices witnessed their biggest one-day fall ever in absolute terms. Volatility index, India VIX, surged over 21 per cent to 31.05 levels.
The S&P BSE Sensex shed 1,942 points or over 5 per cent to settle at 35,635. Reliance Industries (RIL) tumbled around 14 per cent to hit its 52-week low of Rs 1,094.95 on the BSE. It was the biggest contributor to the index's fall. Other index stocks that witnessed heavy selling were ICICI Bank, HDFC, TCS, Infosys, and HDFC Bank.
On the NSE, the Nifty50 index slipped below 10,500-mark to end at 10,451, down 538 points or 5 per cent. All the sectoral indices on the NSE ended in the red with metals taking the hardest knock. Nifty Metal index slipped around 8 per cent to 2,015 levels while Nifty Media ended at 1,425, down over 6.5 per cent. Nifty Bank ended at 26,470, down 1,331 points or 4.8 per cent.
In the broader market, the S&P BSE MidCap index ended at 13,554, down 673 points or 4.73 per cent and the S&P BSE SmallCap index lost over 4 per cent to 12,771-mark.
Oil prices crash
In the broader market, the S&P BSE MidCap index ended at 13,554, down 673 points or 4.73 per cent and the S&P BSE SmallCap index lost over 4 per cent to 12,771-mark.
Oil prices crash
Losing more than a quarter of their value, oil prices were set on Monday for their biggest daily rout since the first Gulf War, after Saudi Arabia cut its official prices in a market already reeling from the impact of the coronavirus on global demand. Brent crude futures were down $11.38, or 25 per cent, at $33.89 a barrel by 0732 GMT, after earlier dropping to $31.02, their lowest since Feb. 12, 2016. Brent futures were on track for their biggest daily decline since Jan. 17, 1991, when prices dropped at the start of the first Gulf War.
U.S. West Texas Intermediate (WTI) crude fell by $11.12, or 27 per cent, to $30.16 a barrel, after touching $27.34, also the lowest since Feb. 12, 2016. The U.S. benchmark was potentially heading for its biggest decline on record, surpassing a 33 per cent fall in January 1991.
Global markets
Global stocks plunged on Monday and prices for crude oil tumbled as much as 33 per cent after Saudi Arabia launched a price war with Russia, sending investors already panicked by the coronavirus fleeing for the safety of bonds and the yen. European markets suffered hefty losses in early trade with London dropping more than 8 per cent, Frankfurt falling more than 7 per cent and Paris almost matching those losses.
In Asia, stocks and emerging market currencies with exposure to oil tumbled in volatile trade while the safe-haven yen surged. Heavy selling was set to continue on Wall Street with US futures hitting their down limit. MSCI’s broadest index of Asia-Pacific shares outside Japan lost 4.4 per cent in its worst day since August 2015, while Shanghai blue chips fell 2.9 per cent.
In Asia, stocks and emerging market currencies with exposure to oil tumbled in volatile trade while the safe-haven yen surged. Heavy selling was set to continue on Wall Street with US futures hitting their down limit. MSCI’s broadest index of Asia-Pacific shares outside Japan lost 4.4 per cent in its worst day since August 2015, while Shanghai blue chips fell 2.9 per cent.
(With inputs from Reuters)
4:03 PM
COMMENT :: Deepak Jasani, Head Retail Research, HDFC Securities
Indian markets are facing a deluge of negative triggers. Global markets are plunging after the break of an alliance between OPEC and Russia resulted in the worst one-day crash in crude prices (more than 30%) in nearly 30 years, fueling panic triggered by the escalation of the coronavirus epidemic.
The panic began after Saudi Arabia shocked oil markets by launching a price war. Italy placed nearly 16 million people under semi-lockdown and the number of confirmed cases in Europe continues to rise. China's exports fell 17% in the January-to-February period compared to a year before, according to data released over the weekend. Imports fell 4%.This data shows the slow recovery in China. All this while the local markets were recovering out of the Yes Bank issue.
The panic began after Saudi Arabia shocked oil markets by launching a price war. Italy placed nearly 16 million people under semi-lockdown and the number of confirmed cases in Europe continues to rise. China's exports fell 17% in the January-to-February period compared to a year before, according to data released over the weekend. Imports fell 4%.This data shows the slow recovery in China. All this while the local markets were recovering out of the Yes Bank issue.
Technically, with the Nifty moving down further, the short term trend remains down. The Nifty could test the recent lows of 10,295-10,138 in the coming sessions. Any pullback rallies could find resistances at 10,637-10,744.
3:55 PM
COMMENT :: Suman Chowdhury, President – Ratings at Acuité Ratings & Research
The sharp decline in the global oil prices not only reflects the deep underlying concerns on a global economic disruption brought about by the Corona Virus scare but also a lack of consensus among the OPEC nations regarding production cuts. This will benefit India since it is one of the largest importers of crude oil; we estimate the savings on oil imports to be around $30 billion in FY21 if there is no significant uptick in global demand. This will also arrest the rising inflation and facilitate the next round of rate cuts by RBI
3:52 PM
ALERT :: Market holiday
Indian markets will remain closed on Tuesday on account of Holi
3:51 PM
COMMENT :: Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking
The accelerating coronavirus outbreak which has sapped oil demand had already hammered down crude oil prices this year. Adding to the pain, Russia’s disapproval to deepen oil outputs cuts and Saudi Arabia plans to flood the markets with oil, triggering an all-out price war, has led to a carnage in oil prices.
Considering this supply shock and sinking demand, the pathway remains bearish going ahead too where after a minor relief rally, prices look to extend their downside towards lows seen in 2016, close to $28 per barrel for Brent crude. A breach of the said level, could even set up the energy counter for a further leg of downside towards $22 per barrel
Considering this supply shock and sinking demand, the pathway remains bearish going ahead too where after a minor relief rally, prices look to extend their downside towards lows seen in 2016, close to $28 per barrel for Brent crude. A breach of the said level, could even set up the energy counter for a further leg of downside towards $22 per barrel
3:43 PM
SECTOR WATCH | All sectoral indices on the NSE end in the negative territory
3:40 PM
MARKET AT CLOSE | ONGC ends as the biggest loser on S&P BSE Sensex
3:36 PM
CLOSING BELL
The S&P BSE Sensex shed 1,942 points or over 5 per cent to 35,635 levels while NSE's Nifty50 ended at 10,451, down 538 points or around 5 per cent.
3:29 PM
NEWS ALERT | Reliance Industries hits 52-week low of Rs 1094.95 on the BSE
- It was at its lowest level since January 14, 2019.
- The stock tanked 32 per cent from its record high level of Rs 1,618 on December 20, 2019
- The stock tanked 32 per cent from its record high level of Rs 1,618 on December 20, 2019
- TCS regains number one position, surpasses RIL in market-cap ranking
3:27 PM
MARKET CHECK
3:17 PM
MARKET COMMENT :: Chris Wood of Jefferies
Oil now looks set to re-test the 2016 low of $27.1/bbl. That is a credit market event because of the significant percentage of oil companies in the US high yield market - 11% of the Bloomberg Barclays US high-yield corporate bond index.
From a relative-return standpoint the collapsing oil price is clearly good news for Asia. Still the large Asian economy which should benefit the most from a collapsing oil price, namely India, has seen a worrying decline in its currency of late when it should be rallying on declining oil.
Chris Wood
3:13 PM
BROKERAGE RADAR | Centrum Broking on SBI
RBI came out with a Draft Scheme of arrangement to resolve YES Bank crisis, the scheme stating that SBI will invest 49% i.e. 2450 crs (at issue price of Rs.10) in Yes Bank initially. SBI will at most have to put in additional 93.1bn at Rs.10 per share. Although this is negative in the short to medium term for SBI shareholders, this can create value over the long term as the stress book of Yes Bank is resoloved and market confidence is restored. Additionally SBI has to maintain stake of atleast 26% for 3 years. Factoring in Yes Bank losses in FY21E, we cut our FY21 RoA/RoE estimates by 0.1%/2.0% and maintain BUY with TP of Rs.473 (earlier Rs.481)
3:06 PM
Expert Comment :: Aamar Deo Singh, Head Advisory, Angel Broking
Markets witness a major selloff today, with benchmark indices Nifty & Sensex, down by over 5%. Global markets too have collapsed today, as the fears of the coronavirus, held sway across the globe. Unprecedented action was seen in Crude Oil as well, with prices falling by over 30% in a single day after Saudi Arabia threatened to hike output after a disagreement with Russia. Markets should come around in the coming weeks, once the impact analysis of the extent of damage to the global economy due to the coronavirus is known. And looking back at history, markets also have had the tendency to overreact at times. Nifty is down by over 15% from its all-time high, with 10,000 to act as a crucial and psychological support level. However, don’t try to catch a falling knife, wait for the market to settle, before stepping in to buy value
3:06 PM
BROKERAGE RADAR :: Centrum Broking on SBI
RBI came out with a Draft Scheme of arrangement to resolve Yes Bank crises, the scheme stating that SBI will invest 49% i.e. 2450crs (at issue price of Rs.10) in Yes Bank initially. SBI will at most have to put in additional 93.1bn at Rs.10 per share. Although this is negative in the short to medium term for SBI shareholders, this can create value over the long term as the stress book of Yes Bank is resoloved and market confidence is restored. Additionally SBI has to maintain stake of atleast 26% for 3 years. Factoring in Yes Bank losses in FY21E, we cut our FY21 RoA/RoE estimates by 0.1%/2.0% and maintain BUY with TP of Rs.473 (earlier Rs.481) SBI to invest 24.5bn initially at Rs.10 per share; Max investment at Rs.117.6bn
3:04 PM
YES Bank insolvency may tighten credit markets, widen economic pain: S&P
The Reserve Bank last week imposed a moratorium on the capital-starved Yes Bank, capping withdrawals at Rs 50,000 per account and superseding the board of the private sector lender with immediate effect.
Following this, country's largest lender State Bank of India (SBI) on Saturday said it will invest Rs 2,450 crore in the troubled private sector bank against 245 crore shares. READ MORE
2:51 PM
RBL, Bandhan Bank fall below IPO price; stocks hit new lows
Individually, RBL Bank slipped 18 per cent to Rs 212 in the intra-day trade, to hit its lowest level since its listing on August 31, 2016. The stock of the private sector lender fell below its issue price of Rs 225 per share.
Bandhan Bank, on the other hand, too fell below its issue price of Rs 375 today, down 9 per cent at Rs 368 on the BSE. The stock was trading at its lowest level since its listing on March 27, 2018. READ MORE
Bandhan Bank, on the other hand, too fell below its issue price of Rs 375 today, down 9 per cent at Rs 368 on the BSE. The stock was trading at its lowest level since its listing on March 27, 2018. READ MORE
Topics : Markets MARKET WRAP
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First Published: Mar 09 2020 | 7:35 AM IST
