Closing bell
Tanking 939 points from the day’s high level, equity benchmark index Sensex closed 153.27 points lower at 38,144.02 on Monday as detection of fresh coronavirus cases in India spooked domestic investors.
Marking its seventh consecutive session of fall, the broader NSE Nifty fell 69 points or 0.62 per cent to end at 11,132.75.
Stock markets had rallied in the morning session due to value buying by investors following sharp losses in the previous sessions.
The Sensex rallied 786 points to touch the day’s high of 39,083.17. The Nifty scaled 11,433 in day trade.
However, the Health Ministry reporting two more positive cases of new coronavirus spooked domestic investors, with the Sensex crashing almost 1,300 points from the day’s high to touch 37,785.99. The Nifty also plunged to a low of 11,036.25.
Top losers in the Sensex pack included SBI, Tata Steel, Hero MotoCorp, Bajaj Auto, ONGC and IndusInd bank. On the other hand, HCL Tech, Nestle India, ICICI Bank and Infosys were among the gainers.
According to traders, news that two new coronavirus cases were confirmed in India turned investors jittery, reversing all of the day’s gains.
Bourses in Shanghai, Hong Kong, Seoul and Tokyo ended with significant gains as investors began value-buying in recently-hammered equities. Stock exchanges in Europe too turned positive in their morning sessions.
Brent crude oil futures fell 2.25 per cent to $50.79 per barrel.
On the currency front, the Indian rupee depreciated 12 paise to 72.36 per US dollar (intra-day). -PTI
Benchmark indices fall into the red
After opening in the green and trading in positive territory for the major part of the session, the benchmark indices dropped into the red ahead of the close.
The Sensex was at 38,195, down 102 points or 0.27 per cent lower ahead of the close. The Nifty fell to 11,147, down 54 points or 0.49 per cent lower. The top gainers in the Sensex pack were HCL Tech, Nestle India, ICICI Bank, Infosys and Power Grid, while the laggards were led by SBI, Tata Steel, HeroMotoCorp, ONGC and Bajaj Auto.
Manufacturing activity remained strong in February: PMI survey
The strong manufacturing sector expansion seen in India at the start of the year was maintained in February, with the growth rates for factory orders, exports and output dipping only marginally from January’s highs, a private survey said.
At 54.5 in February, the headline seasonally adjusted IHS Markit India Manufacturing PMI held close to January’s near-eight-year high of 55.3. This signalled robust improvement in operating conditions across sectors. Click here to read in full the report on manufacturing activity ,
European shares stabilise after worst week since 2008
European shares steadied on Monday after their worst weekly showing since the 2008 financial crisis, on rising hopes that major central banks will step in to counter the impact of the coronavirus epidemic on global growth.
The pan-European STOXX 600 index rose 1.8 per cent by 0818 GMT, after a 12 per cent slump last week, with miners and oil & gas companies leading the gains.
Sentiment firmed as bleak factory activity data out of China fuelled hopes of more stimulus, even as new infections in the country declined. Click here to read in full the European markets report .
Dollar takes a back seat as markets bet on Fed rate cuts
The dollar was on the back foot on Monday as growing expectations of US interest rate cuts to cushion the impact of the coronavirus stemmed some safety flows into the greenback.
After US shares were routed in recent days, Federal Reserve Chairman Jerome Powell said on Friday the central bank will “act as appropriate” to support the economy.
Investors took his comments as a hint the Fed will deliver a cut when it meets from March 17-18, and as an encouragement to central banks around the world to follow suit. Click here to read in full the forex markets report .
Oil rebounds over 4 per cent amid hopes for OPEC cut, stimulus to counter virus gloom
Oil prices jumped more than 4 per cent, up from multi-year lows hit earlier on Monday, as hopes of a deeper cut in output by OPEC and stimulus from central banks countered worries about damage to demand from the coronavirus outbreak.
Brent crude was at $51.91 a barrel, up $2.24 or 4.5 per cent, by 0812 GMT, off $48.40, the lowest since July 2017.
Across the Atlantic, US West Texas Intermediate crude hit a 14-month low of $43.32, before recovering to $46.65, up $1.89, or 4.2 per cent. Click here to read in full the global oil markets report .
Nifty call: Buy above 11,400, with stop-loss at 11,350
Markets across Asia are in the green. The Indian benchmarks, too, are up today. The Nifty spot and the Sensex spot have gained 1.6 per cent and 1.7 per cent, respectively. Major Asian indices such as the Nikkei and the Hang Seng are up by 0.9 per cent and 0.7 per cent, respectively.
The advances-declines ratio of the Nifty 50 index at 45-5 indicates a bullish bias. The mid-cap and small-cap indices, too, have gained more one per cent in today’s session. Likewise, all the sectoral indices have gone up; the Nifty IT index is the top gainer, up by a little over 3 per cent, followed by the Nifty metal index, up by 2 per cent. Volatility has dropped by more than 7 per cent today as shown by India VIX – the volatility index. It has come down to 21.6 levels. Click here to read in full the Nifty call report .
Asian shares rebound as markets bet on coordinated policy stimulus
Asian shares regained a measure of calm on Monday as markets bounced after a searing sell-off last week and as investors pinned hopes on a likely coordinated global monetary response to help soften the economic blow of the coronavirus outbreak.
European stock futures also showed a higher opening for European markets, tracking gains in Asia.
The positive turn came after global markets took a pounding last week as the virus spread across many countries. Pandemic fears wiped out more than $5 trillion from a major global equity index and stocks logged their biggest falls in more than a decade. Click here to read in full the Asian markets report .
Sensex, Nifty make further gains
The benchmark indices surged nearly 2 per cent by mid-session on Monday. The Sensex was up 656 points or 1.71 per cent at 38,953, while the Nifty gained 191 points or 1.71 per cent to trade at 11,392.
The top gainers in the Sensex pack were HCL Tech and Infosys, which rode up 4.35 per cent, followed by ICICI Bank (up 4.32 per cent), Nestle India (3.07 per cent) and TCS (2.59 per cent).
The laggards on the 30-share index were Bajaj Auto (down 3.60 per cent), HeroMotoCorp (1.22 per cent), Kotak Bank (0.78 per cent), and Axis Bank (0.04 per cent).
Among the BSE sectoral indices, the IT index was up over 3 per cent, followed by the TECK index that was up 2.9 per cent, lifted by gains in Tejasnet, ITI, NIIT Tech, Just Dial, HCL Tech, Infosys, and TV Today, among other stocks.
The metal index gained 2.4 per cent, while FMCG was up 2 per cent.
Reliance Jio seeks government approval to test self-designed 5G tech: Report
Reliance Jio, in a first, has sought government permission to conduct 5G trials based on design and technology developed by the company, Business Standard reported on Monday.
The telco giant had previously announced that it would broaden its 5G trial runs by partnering with Huawei, Ericsson and Nokia Networks, and not limit itself to Samsung.
The Korean electronics giant was earlier Jio’s core supplier for 4G equipment, it said. The two companies had presented new business opportunities through 5G use-cases at the India Mobile Congress 2019.
If the trials are successful, Jio could outsource design and technology for the equipment to third-party players, the report said. Click here to read in full the report on development of 5G tech by Reliance Jio .
Footwear-maker Neeman’s raises $1 million in pre-series A funding
Footwear-maker Neeman’s has raised $1 million in Pre Series A funding, led by Anicut Angel Fund.
Neeman’s is a footwear brand that makes shoes using Merino wool. With this investment, Anicut Angel Fund has made its maiden investment, along with AngelList and a clutch of serial entrepreneurs who participated in the current round. The current round of funding will be used to expand business operations, introduce new designs and segments, product development and to bolster marketing.
Founded in 2017 by Taran Chhabra and Amar Preet Singh, Neeman’s claims to make shoes for all-day wear, which rely on recyclable and chemical-free materials to reduce the carbon footprint. Lead investor Tushar Singh and Rohit Anand said: "Going forward, we believe this investment will support their journey, as they scale up in a growing footwear market in India, while targeting aware, responsible, comfort seeking and fashion-conscious customers.” - Our Bureau
Gulf bourses dive as coronavirus hits oil price
Stock markets in the oil-rich Gulf states plunged on Sunday over fears about the impact of the coronavirus which also battered global bourses last week. The crisis threatens to undercut Gulf economies, which are already battling a downturn and struggling to wean themselves from their decades-old addiction to energy revenues. Click here to read in full the article on Gulf bourses take a tumble on coronavirus fallout .
Why Nifty Next 50 index funds are the next big thing
Passive investing through index funds and exchange-traded funds (ETFs) have been on the rise over the past few years as many actively managed funds have underperformed their benchmarks. Click here to read in full the report on Nifty Next 50 index funds .
India Inc makes the most of corporate tax cut in Dec quarter
There has been a substantial increase in the number of companies with a tax rate lower than 25 per cent in the December 2019 quarter. This is largely due to the Centre’s decision to cut the corporate tax rate last September, in a bid to support India Inc through the ongoing slowdown. Click here to read in full the report on India Inc makes most of corporate tax cut .
Oil bounces from multi-year lows as hopes of OPEC+ cut, stimulus offset virus impact
Oil prices pared losses after earlier hitting multi-year lows on Monday as hopes that a bigger than expected production cut from OPEC and stimulus from central banks could offset economic gloom from the coronavirus outbreak.
Brent crude was at $50.32 a barrel, up 65 cents, or 1.3 per cent, by 0105 GMT, after earlier dropping to $48.40, the lowest since July 2017. US West Texas Intermediate crude hit a 14-month low of $43.32 a barrel, before recovering to $45.23, up 47 cents, or 1.1 per cent. Click here to read in full the oil markets report .
Rupee rises 20 paise to 74.04 against US dollar in early trade
The Indian rupee appreciated by 20 paise to 72.04 against the United States (US) dollar in early trade on Monday tracking positive opening in domestic equities and weakening of the American dollar in the overseas market.
At the interbank foreign exchange the rupee opened at 72.09, then gained further ground and touched a high of 72.04 against the US dollar, registering a rise of 20 paise over its previous close.
The domestic currency, however, could not hold on to the gains and was trading at 72.18 against the American unit at 0957 hrs. Click here to read in full the rupee report .
Yen, euro gain on dollar as markets bet Fed will cut rates this month
The yen and the euro were on the front foot against the dollar on Monday as traders raised their bets of an interest rate cut by the US Federal Reserve this month to shield the economy from the rapid spread of the coronavirus.
As US shares were routed in recent days, Federal Reserve Chair Jerome Powell said on Friday the central bank will “act as appropriate” to support the economy in the face of risks posed by the coronavirus epidemic. Investors took his comments as a hint that the Fed will cut interest rates by at least 0.25 percentage point at its next scheduled meeting on March 17-18. Click here to read in full the forex markets report .
Benchmark indices jump over 1 per cent
The Sensex and Nifty spurted over 1 per cent in early trade on Monday. After opening the session in the green, the benchmark indices extended their gains, taking cues from global markets.
The Sensex was up 500 points or 1.31 per cent at 38,797, while the Nifty gained 138 points or 1.24 per cent at 11,340.
The top gainers on the Sensex were ICICI Bank, which rose 4 per cent, HCL Tech (up 3.37 per cent), Nestle India (2.41 per cent), Titan (2.35 per cent) and Infosys (up 2.05 per cent). The laggards on the 30-share index were Kotak Bank (down 1.16 per cent), Bajaj Auto (0.88 per cent), Tech Mahindra (0.46 per cent) and HDFC Bank (0.02 per cent).
According to an agency report, the Sensex rebounded over 750 points in the opening session led by strong gains in Reliance Industries, ICICI Bank and HDFC, as global investors began bottom-fishing after last week’s sell-off.
Likewise, the NSE Nifty recovered 120.05 points, or 1.07 per cent, to 11,321.80.
In the previous session, the Sensex logged its second-biggest one-day fall in history as concerns over the coronavirus triggered a manic global sell-off. The 30-share index ended 1,448.37 points, or 3.64 per cent, lower at 38,297.29, while the Nifty sank 431.55 points or 3.71 per cent to end at 11,201.75.
Further, on a net basis, foreign institutional investors (FPIs) sold equities worth Rs 1,428.74 crore, while domestic institutional investors bought shares worth Rs 7,621.16 crore on Friday, data available with stock exchanges showed.
According to traders, following the recent sell-off in the global equity markets, investors are bottom-fishing recently-battered stocks.
Stock exchanges in Shanghai, Hong Kong, Seoul and Tokyo were also trading with firm gains.
Meanwhile, China has reported 42 new fatalities from the novel coronavirus outbreak, taking the death toll in the country to 2,912, Chinese health officials said on Monday, as the rapid spread of the epidemic wreaked havoc globally causing over 3,000 deaths and infecting more than 88,000 people.
On the domestic front, stocks are expected to react to the GDP growth numbers released after market hours on Friday.
India’s gross domestic product (GDP) growth slipped to a nearly 7-year low of 4.7 per cent in October-December 2019, weighed by a contraction in manufacturing sector output.
The rupee appreciated 15 paise to 72.09 against the US dollar in morning session.
Global oil benchmark Brent crude futures rose 3.50 per cent to $51.41 per barrel (with inputs from PTI).
Daily rupee call: Buy rupee on declines
The rupee (INR) registered a six-month low of 72.27 against the dollar (USD) on Friday. During the past week, the Indian currency has lost 0.75 per cent and the year-to-date loss against the dollar stands at one per cent. Barring the Indonesian rupiah, the rupee has been the weakest Asian currency in the past week.
The daily chart shows that the rupee has largely moved between 70.5 and 72.25 over the past seven months. Thus, last week’s closing price of 72.17 is near the support at 72.25. Click here to read the Daily Rupee Call in full.
Weekly trading guide: Infosys breaks below a key level
SBI (₹303)
SBI nears an important base
After consolidating during the first half of last week, the stock of SBI faced significant downward pressure in the latter half. The price could not sustain above ₹325. It closed at ₹303, below the important support of ₹310, where the 38.2 per cent Fibonacci retracement level lies. It has also fallen below both the 21- and 50-day moving averages, potentially turning the short-term trend negative.
Moreover, the daily relative strength index is now below the midpoint level of 50 and the moving average convergence divergence indicator in the daily chart is showing a fresh downtick. All these factors hint at further decline in price. But it has an immediate support at ₹298. The 50 per cent of the Fibonacci retracement level is at that level, making it a significant support.
Hence, traders can sell the stock with a stop-loss at ₹315 if the price breaks below ₹298. The support levels below ₹298 are at ₹285 and ₹273, which can be the near-term targets. Notably, ₹295.5 is the four-month low of the stock. Resistance from the current levels can be spotted at ₹310 and ₹325.
ITC (₹197.5)
ITC trades near a multi-year support
The stock of ITC continued to decline last week, extending the downtrend. By closing at ₹197.5, the stock lost nearly 16 per cent in February, its weakest monthly close since October 2008, when it lost around 17 per cent. It registered a new one-year low of ₹192.05 last Friday before closing the month at ₹197.5.
The stock thus seems to be in a bear grip, and the downtrend is likely to continue in the coming week. Corroborating the bearish outlook, the moving average convergence divergence indicator in the daily chart has further fallen into the bearish territory and the daily relative strength index (RSI) is showing a fresh downtick. But there are a couple of factors in favour of the stock.
The RSI is in the over-sold levels, and more importantly, the ₹195 level is a strong support from where the stock has bounced back on multiple occasions in the past. So, traders are recommended to initiate fresh short positions with a stop-loss at ₹210 only if the stock decisively breaks below ₹195. The support levels on the downside are at ₹183 and ₹179.
Infosys (₹731.7)
Infosys breaks below a key level
Unable to decisively break out of the critical resistance at ₹800, the stock of Infosys weakened last week. The price has slipped below the important support of ₹760 and has moved below both 21- and 50-day moving averages — a bearish indication. As the stock has broken below ₹760 — a level that coincides with the 50-day moving average and the 23.6 per cent Fibonacci retracement level of the prior upswing — the short-term outlook for the stock has turned negative.
Moreover, the daily relative strength index has fallen and is currently below the midpoint level of 50. Also, the moving average convergence divergence indicator in the daily chart is showing a fresh downtick and has inched down to the bear zone. These factors indicate that the downtrend might continue in the upcoming sessions.
Traders can thus short the stock on rallies with a stop-loss at ₹780. The immediate support is at ₹700, and at ₹690 lies the 61.8 per cent Fibonacci retracement level of the previous uptrend. Hence, the price band between ₹690 and ₹700 can be the potential short-term target.
RIL (₹1,328.6)
Outlook turns bearish for RIL
Facing the resistance of the 50-day moving average, the stock of Reliance Industries declined through the past week. It broke below the previous low at ₹1,363 last Friday, forming a fresh low of ₹1,325, before closing at ₹1,328. The stock has been forming lower peaks and lower troughs since the beginning of the year, indicating considerable bearish momentum.
Adding to the negative bias, the stock closed with a loss for a third consecutive month. The 21-day moving average remains below the 50-day moving average, re-iterating the bearish outlook. The oscillators hint at a further decline in price as the daily relative strength index is in the downward trajectory and lies below the midpoint level of 50; the moving average convergence divergence indicator in the daily chart shows a renewed bearish momentum.
Traders, rather than initiating fresh shorts at the current level, can sell with a stop-loss at ₹1,410 if the price rallies to ₹1,360. The nearest support from the current market price can be spotted at ₹1,300 and the subsequent support is at ₹1,250.
Tata Steel (₹381.7)
Tata Steel hovers around a support
The stock price of Tata Steel tumbled last week as it witnessed significant selling pressure. In the daily chart, it formed a fresh low of ₹375, breaking below ₹416.6, its prior low. As it has closed at ₹381.7, it has slipped below the support at ₹392 where the 61.8 per cent Fibonacci retracement level of the previous bull trend lies. The 21-day moving average has crossed below the 50-day moving average, turning the short-term outlook bearish.
Substantiating the weak outlook, the daily relative strength index is showing fresh downtick, and remains below the midpoint level of 50. On the other hand, the moving average convergence divergence indicator in the daily chart has moved further into the bear zone. Though the aforementioned factors indicate a clear downtrend, the stock has a considerable support at ₹380.
So, traders can go short in the stock with a stop-loss at ₹395 if the price breaches the support at ₹380. While the primary support is at ₹345, a break below that level can drag the stock to ₹325.
Asian stock markets reverse losses on global policy stimulus hopes
Asian shares steadied from early losses on Monday as investors placed their hopes on a coordinated global monetary policy response to weather the damaging economic impact of the coronavirus epidemic.
Pandemic fears pushed markets off a precipice last week, wiping more than $5 trillion from global share value as stocks cratered to their steepest slump in more than a decade. The sheer scale of losses prompted financial markets to price in policy responses from the US Federal Reserve to the Bank of Japan and the Reserve Bank of Australia. Click here to read in full the Asian markets report.
Opening bell
The benchmark indices, the BSE Sensex and the NSE Nifty, opened the session in the green.
The Sensex was at 38,959, up 662 points or 1.73 per cent higher. The Nifty was at 11,360, up 158 points or 1.41 per cent higher.
Big Story | How to build a debt fund portfolio
Retail investors in India, more often than not, look at equity funds to build their mutual fund portfolio. Lack of awareness or, possibly, the jargon used in debt mutual funds have kept retail investor interest fairly tepid in debt funds. Click here to read the Big Story on How to build a debt fund portfolio .
Index Outlook | Where is the floor for Sensex, Nifty 50?
It was absolute pandemonium across financial markets last week as fear about the rapidly spreading COVID-19 virus caused a wave of sell-off across global markets.
The selling onslaught was too powerful for bulls, who stampeded towards the exit door.
The 7 per cent decline in the Sensex and the Nifty, however, appear fairly benign compared with the 12 per cent cut in the Dow Jones Industrial Average and the S&P 500, or the 16 per cent crash in crude oil prices last week. Click here to read in full the Index Outlook for the week .