In the broader market, the S&P BSE Mid-Cap index rose 2.71% and the S&P BSE Small-Cap index gained 1.67%.
The market breadth was positive. On the BSE, 1261 shares rose and 1125 shares fell. A total of 163 shares were unchanged. In Nifty 50 index, 42 stocks advanced while 8 stocks declined.
Trading was halted in early session after benchmark indices dropped by 10% to hit the lower circuit. The market sharply recovered during the second pre-open session of the day. The market resumed at 10:05 IST for pre-opening session. Normal trading restarted from 10:20 IST.
A sharp rebound in US index futures eased investor concerns. Futures on the Dow Jones Industrial Average erased early losses and were up 836 points, implying a strong opening in the US market on Friday.
A clarification from the stock market regulator, Securities and Exchange Board of India (Sebi) also calmed investors. "Sebi and Stock Exchanges have a robust risk management framework in place which automatically gets triggered in response to movements in the indices (BSE Sensex and NSE Nifty) as well as individual stocks both in cash and derivatives market," it said.
The regulator further said that the positions of margin payments, margin utilization, adequacy of collaterals (securities deposited by the brokers with the clearing corporations) and the pay-in's obligations being met by the clearing members (brokers) are being continuously monitored. Similarly, the settlement and clearance of trades are also being constantly monitored. Sebi and stock exchanges are prepared to take suitable actions as may be required, it added.
Economy:
Consumer price inflation in India eased to 6.58% in February 2020 from 7.59% in January 2020. The fall was mainly due to easing food prices. Food inflation eased to 10.81% in February from 13.63% a month ago. The retail inflation was 2.57% in February 2019.
Industrial production in India jumped 2% year-on-year in January 2020, following a 0.3% drop in December. The indices of industrial production for the mining, manufacturing and electricity sectors for January 2020 stand at 124.3, 137.6 and 155.6 respectively, with the corresponding growth rates of 4.4%, 1.5% and 3.1% as compared to January 2019.
India's current account deficit (CAD) narrowed sharply to $1.4 billion (0.2% of GDP) in Q3 of 2019-20 from $17.7 billion (2.7% of GDP) in Q3 of 2018-19 and $6.5 billion (0.9% of GDP) in the preceding quarter Q2 of 2019-20. The contraction in the CAD was primarily on account of a lower trade deficit at $34.6 billion and a rise in net services receipts at $21.9 billion as compared with the corresponding period of last year.
The Reserve Bank of India on Thursday announced that it will undertake a 6-month US dollar sell/buy swaps to provide liquidity to the foreign exchange market. The swaps will be conducted through the auction route in multiple tranches. The central bank will conduct US dollar-rupee sell-buy swaps worth $2 billion on 16 March 2020.
COVID-19 Crisis:
India reported its first confirmed Covid-19 death and the number of positive cases in the country neared 80. COVID-19 has so far claimed 4,600 lives while more than 126,000 people have been infected globally.
Prime Minister Narendra Modi clamped down on foreign travel by his ministers. The government temporarily barred the entry of foreigners by cancelling most visas till 15 April. These measures came in wake of the World Health Organization (WHO) declaring the spread a pandemic.
Stocks in Spotlight:
The National Stock Exchange on Thursday notified that Bandhan Bank will be replace Yes Bank in Nifty Bank index with effect from 27 March 2020. The Nifty Bank index has a total of 12 stocks. NSE further said that ITC will replace Yes Bank in Nifty 50 Value 20 index.
Shares of Yes Bank rose 2% to Rs 25.55 while Bandhan Bank fell 0.24% to Rs 334.
State Bank of India jumped 13.25%. The bank's executive committee of central board (ECCB) approved purchase of 725 crore shares in Yes Bank at Rs 10 per share. SBI's shareholding in Yes Bank will remain within 49% of the paid up capital of Yes Bank.
Wipro informed that it has entered into an agreement with SAP SE to jointly go to market and co-develop solutions for the retail and fashion industry. The intent of this engagement is to co-develop new solutions, which will help retail and fashion companies effectively manage business processes and customer experience. Shares of Wipro were trading 1.28% lower at Rs 196.05.
Global Markets:
European markets were trading higher on Friday after a historic sell-off yesterday. Italy remains the worst affected coronavirus-hit nation with over 15,000 cases and 1,016 confirmed deaths as of Thursday, 12 March 2020.
Asian shares plunged in early trade, then recovered slightly to end with modest losses amid fears of economic fallout from the coronavirus crisis.
Meanwhile, UK Prime Minister Boris Johnson has said that up to 10,000 people in the UK may be infected with the COVID-19.
Back in Norway, Norges Bank, the central bank of the country, cut its key interest rate to 1% from 1.5% on Friday, 13 March 2020 in a surprise move, to counter the economic impact of the coronavirus pandemic.
In US, stocks tumbled on Thursday with both the Dow Jones Industrial Average and the S&P 500 index suffering their worst day since the 19 October, 1987 "Black Monday" crash. Stock prices plunged despite a move by the US Federal Reserve to offer some $1.5 trillion worth of funding to keep credit flowing through financial markets to businesses as governments move to restrict the movement of people in an attempt to contain the coronavirus pandemic.
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