The barometer index, S&P BSE Sensex closed 1709.58 points or 5.59% lower at 28,869.51 as per provisional closing data. The Nifty 50 index closed 425.55 points or 4.75% lower at 8,541.50 as per provisional closing data.
The broader market crashed with S&P BSE Mid-Cap index declining 4.88% while the S&P BSE Small-Cap index tanking 6.43%. The market breadth favoured the sellers. On the BSE, 346 shares rose and 2019 shares fell. A total of 145 shares were unchanged. In Nifty 50 index, 6 stocks advanced while 44 stocks declined.
Meanwhile, the total number of reported novel coronavirus cases in India has climbed to 148, with nine fresh cases reported from various parts of the country on Wednesday. The total cases in India include 25 foreign nationals and the three persons who died in Delhi, Karnataka and Maharashtra.
SC Verdict on AGR Dues:
The media reported that a bench of the Supreme Court of India on 18 March 2020 held that no further objections to its orders would be allowed against payable dues. Justice Arun Mishra reportedly questioned the telecom companies' (telcos) self-assessment. The bench further added that the Department of Telecommunications (DoT) demand was confirmed by the court and self-assessment cannot be allowed when Supreme Court (SC) order clearly spells out the dues. He reportedly added that some telcos have requested 8-10 months' time to corroborate numbers of self-assessment, but this cannot be allowed.
Economy:
S&P Global Ratings on Wednesday lowered India's economic growth forecast to 5.2% for 2020, saying the global economy is entering a recession amid the coronavirus pandemic. The agency had earlier projected a growth rate of 5.7% during the 2020 calendar.
Global Markets:
European markets traded with deep cuts while Asian markets closed in red on Wednesday, despite Western governments promising to unleash billions of dollars to help businesses and citizens get through the coronavirus pandemic.
Meanwhile, Japan's Deputy Prime Minister Taro Aso has said that even if Japan can control the COVID-19 outbreak, the 2020 Summer Olympics "would not make sense" if athletes from other countries cannot come, according to a media report. The 2020 Summer Olympics is set to take place in Tokyo in July.
In US, markets rebounded on Tuesday, helped by the White House which is seeking a stimulus package worth anywhere from $850 billion to more than $1 trillion as the Trump administration looked to battle the economic impact from the coronavirus outbreak.
Stocks in Spotlight:
IndusInd Bank crashed 24.54% on concerns over its telecom exposure. IndusInd Bank after market hours on Tuesday (17 March 2020) clarified that it is financially strong, well-capitalized, profitable and a growing entity with strong governance. The bank issued the clarified in wake of the significantly higher level of market rumors and speculation around IndusInd Bank stock.
Commenting on its exposure to telecom companies, the bank said relief measures for the telecom sector are under process of approval which is a significant positive step and the bank awaits further decisions/details in this matter.
Yes Bank was up 1.96% at Rs 59.8 as the RBI-imposed moratorium will be lifted today and the private lender will restore full banking services after 6 pm today.
Vodafone Idea slumped 35.26% to Rs 3.14. On Monday (16 March), Vodafone Idea said it filed its self-assessment of the AGR liabilities with the Department of Telecommunications (DoT) on 6 March 2020, in which AGR liability principal amount of Rs 6,854 crore was determined for the period from FY 2006-07 to FY 2018-19. The company had earlier paid a sum of Rs 2,500 crore on 17 February 2020 and a further sum of Rs 1,000 crore on 20 February 2020 towards this liability. The company has on 16 March 2020 paid a further amount of Rs 3,354 crore to the DoT, being the balance part of the principal amount towards AGR liability. With the payment of Rs 3354 crore to the DoT, the company has paid the full principal amount of Rs 6854 crore towards the AGR dues.
Larsen & Toubro announced that the company has approved an interim dividend of Rs 10 per equity share with a record date of 26 March 2020. Shares of L&T were down 5.59% at Rs 901.85.
Shares of KEC International were down 2.71% to Rs 253.25. The company in an exchange filing said that has secured new orders of Rs 1,047 crore across its various businesses. The company secured orders in Transmission & Distribution business, Civil segment, Solar space and Cables business. Commenting on order win, Vimal Kejriwal, MD & CEO, KEC International said, "We are delighted with the new order wins secured across our business verticals amidst the current market scenario. The orders in T&D will enable us to further strengthen our portfolio in the international markets. We are particularly encouraged by the second order in the Defence segment secured by our Civil business."
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