The market declined for the fifth straight trading session on Thursday. Trading was volatile due to monthly expiry of the February series of derivatives contracts. The Nifty ended below its 200-day simple moving average placed at 11,685.62 due to concerns that the global economy could slow down as China struggles to contain the coronavirus outbreak.
The S&P BSE Sensex declined 143.30 points or 0.36% at 39,745.66, its lowest closing level since 1 February 2020.
The Nifty 50 index lost 45.20 points or 0.39% at 11,633.30, its lowest closing level since 27 October 2019.
The BSE Mid-Cap index fell 0.65% and the BSE Small-Cap index fell 0.83%. Both these indices underperformed the Sensex.
The market breadth was weak. On the BSE, 849 shares rose and 1578 shares fell. A total of 162 shares were unchanged.
The Nifty 50 index tumbled 4.06% and the Sensex plunged 3.82% in five sessions amid the coronavirus scare.
Sharp foreign fund outflow in the past few sessions also spoiled sentiment. Foreign portfolio investors (FPIs) offloaded Indian shares worth Rs 3018.19 crore on Wednesday, taking their total sales to Rs 5833 crore in three days.
Investors were also cautious ahead of the India's December quarter gross domestic product (GDP) numbers to be released on Friday, 28 February 2020. India's GDP grew 4.5% in Q2 September 2019, the lowest since Q4 March 2013.
Numbers to Watch:
The yield on 10-year benchmark federal paper rose to 6.379% at 16:50 IST compared with 6.346% at close in the previous trading session.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 71.58, compared with its close of 71.65 during the previous trading session.
In the commodities market, Brent crude for April 2020 settlement fell $1.10 to $52.33 a barrel. The contract fell $1.52 or 2.77% to settle at $53.43 a barrel in the previous trading session.
Foreign Markets:
Shares in Europe extended losses while most Asian markets declined on Thursday as the rapid global spread of the Coronavirus left investors on edge.
China's National Health Commission said there were 433 new confirmed cases and 29 additional deaths as of Feb. 26. South Korea, where there is the second largest outbreak after China, confirmed a surge of 334 more cases on Thursday morning, bringing the country's total to 1,595. In Japan, a woman has tested positive for the virus for a second time.
In Europe, attention remains focused on the escalation of cases in Italy; 424 people have the virus (up from an initial three people last Friday) and 12 people have died. US President Donald Trump said that the U.S. could consider restricting travel to Italy and South Korea but would not do so yet.
In US, markets finished mostly lower on Wednesday. The Dow and S&P 500 index fell for a fifth straight day, as investors digested reports on the spread of China's coronavirus to Europe and the South America.
Buzzing Indian Index:
The Nifty Pharma index rose 0.59% to 7,885.15 on bargain hunting. The index fell 6.43% in the past four sessions.
Sun Pharmaceutical Industries (up 3.68%), Aurobindo Pharma (up 1.80%), Strides Pharma Science (up 1.04%) and Divi's Laboratories (up 0.79%) edged higher.
Dr. Reddy's Laboratories fell 0.23%. The drug maker on Thursday announced the first generic launch of Naproxen and Esomeprazole Magnesium delayed-release tablets in the US market. The drug is a therapeutic equivalent generic version of Vimovo tablets, which had US sales of approximately $414 million for the most recent twelve months ending in December 2019.
In a separate announcement on Thursday, the drug maker announced that the USFDA completed the audit of Integrated Product Development Organization (IPDO) at Medchal-Malkajgiri, Telangana. No Form 483 was issued at the closure of inspection, the company said.
Stocks in Spotlight:
Among index majors, State Bank of India (down 1.92%), ICICI Bank (down 1.66%), TCS (down 0.90%), Infosys (down 0.75%) and Reliance Industries (down 0.40%) declined.
Larsen & Toubro (L&T) slipped 0.13%. L&T said its construction arm has secured orders from prestigious clients for its varied businesses in India and abroad. As per the L&T's classification, the valuation of the 'significant' order stands between Rs 1,000 crore and 2,500 crore.
Hindustan Unilever (HUL) informed that the National Company Law Tribunal (NCLT) Chandigarh has approved a scheme of amalgamation between GlaxoSmithKline Consumer Healthcare and the company. The FMCG major had announced on 6 November 2019 that the scheme of amalgamation was previously approved by the National Company Law Tribunal, Mumbai Bench vide its order dated 24 September 2019.
Shares of HUL added 0.31% while Glaxosmithkline Consumer Healthcare rose 1.68%.
Adani Ports and Special Economic Zone fell 1.24%. The company said that it has incorporated a wholly-owned subsidiary Adani Bangladesh Ports for an authorised capital of 1 crore taka and paid-up share capital of 55 lakh taka.
Alphageo (India) rose 3.63%. The provider of seismic services provider said it secured a Rs 184 crore contract from Vedanta for 2D and 3D seismic data acquisition services in Assam
Zuari Agro Chemicals jumped 4.93% after the company said its NPK-A plant in Goa has resumed production from 27 February 2020. The chemical maker had informed on 23 January 2020 that the NPK-A plant at Zuarinagar, Goa had been shut down due to non-availability of raw material.
NLC India spurted 10.22% to Rs 59.85 after the company said its board declared an interim dividend of Rs 7.06 per equity share for the Financial Year 2019-20. The interim dividend will be paid to shareholders on or before 13 March 2020, the company said in a statement issued during trading hours today, 27 February 2020.
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