US equities fell, putting the S&P 500 on pace for its biggest four-day slump since December 2018, as investors weighed the latest coronavirus developments. Treasuries gained.
In terms of the Fibonacci retracement, the index is approaching the 78.6 per cent retracement of the post-Budget rise, which stood at 11,750. Thus the 11,783-11,749 range becomes the immediate support zone to watch out for. Once this support zone cracks, the index can swiftly roll down to test the low of 11,614. The near-term resistance is placed at 11,900-11,920
- Gaurav Ratnaparkhi, Sharekhan
Multiple supports are emerging on the downside at every 50 points. In case Nifty fails to hold the 11,749 level, it can head to test its 200-day simple moving average support placed at 11,684 level. On the upside, a mild strength can be expected if it sees a close above 11,900
- Mazhar Mohammad, Chartviewindia.in
At its current juncture, the index hovers around the previous gap area between 11,750 and 11,783 levels (gap of Feb 4). However, major support remains intact around the 200 EMA, which is placed around the 11,700 mark. As long as, Nifty sustains below 11,900, the structure would remain sideways to negative and we may see selling pressure on intraday bounces. Above the 11,900 mark, a major hurdle is placed in the 12,000 – 12,050 zone
The market continued to slide and exhibited volatility led by muted global cues. We expect the weak trend to continue for a while as coronavirus is still rattling sentiment across the globe. On the domestic front, weaker-than-expected Q3FY20 GDP (scheduled later this week) could further dampen the investor confidence at least in the near-term. We suggest ‘buy on dips’ approach in fundamentally sound stocks amid the prevailing uncertainty
- Ajit Mishra, VP - Research, Religare Broking
The market steadied after a steep selloff yesterday, as investors assessed the economic impact of coronavirus, which has spread to other nations. Trump-Modi meet failed to provide any sentiment boost for the domestic market as there were no key deals . Virus concerns could remain in the limelight as any further supply disruption could hurt global economic growth in 2020
- Vinod Nair, Head of Research, Geojit Financial Services
Sensex extends slide to third day, loses 82 points; Nifty slips below 11,850; Adani Gas, Lemon Tree drop 6% each
Liquidity is not about the financial crisis where the Fed and other central bankers cutting rates will help heal the problem. Coronavirus is very much a real-world problem that will affect supply chains and no amount of central bank tinkering is going to affect people’s willingness to travel or businesses as they have too secure a supply chain kind of raw materials or intermediate goods. There is a real economic effect and the impact on global growth is clearly going to be negative this year.
- Arvind Sanger
SBI Cards aims to keep non-performing assets at 2.4-2.5%: CEO
India's SBI Cards aims to keep the proportion of non-performing assets at 2.4%-2.5% of its total assets, Chief Executive Officer Hardayal Prasad said on Tuesday while addressing the media ahead of the company's initial public offering. Gross non-performing assets stood at 2.47% at the end of last year, down from around 2.9% in March 2018. SBI Cards and Payments Services Ltd, the credit card subsidiary of the country's largest lender State Bank of India (SBI), aims to raise nearly $1.25 billion via an initial public offering.
European shares steady as selling pressure eases
European shares bounced back on Tuesday after recording their worst losses since June 2016 in the previous session, with investors assessing the economic hit of a coronavirus outbreak that has spread far beyond China.
Market update: Sensex back in the red, down 100 pts, Nifty below 11,800; auto, pharma indices top losers
Top 5 losers in today's afternoon session
Price as on 25 Feb, 2020 02:03 PM, Click on company names for their live prices.
Silver futures fall over 3% on profit-booking
Silver futures on Tuesday fell by Rs 1,525 to Rs 47,880 per kg as investors trimmed their positions amid subdued demand tracking weak trend overseas. On the Multi Commodity Exchange, silver contracts for March delivery tumbled by Rs 1,525, or 3.09 per cent, to Rs 47,880 per kg in a business turnover of 9,004 lots. Besides, the white metal to be delivered in May fell by Rs 1,591, or 3.18 per cent, to Rs 48,424 per kg in 1,584 lots.
Nikkei closes at 4-month low as coronavirus spreads beyond Asia
Japan's Nikkei share average fell to a four-month low on Tuesday, as investors reduced their equity holdings on their first trade after a long weekend and as a spike in coronavirus cases beyond mainland China threatened the global economy.
The Nikkei share average tumbled 3.3% to 22,605.41, its biggest intraday drop in 14 months, and closed at its lowest since late October.
HUL shares gain nearly 3% after board gives nod for new unit
Shares of Hindustan Unilever (HUL) were trading nearly 3 per cent higher after the company said its board had approved a new manufacturing subsidiary which is expected to benefit from the new corporate tax rate. On the BSE, the stock opened at Rs 2,216.15 and went on to gain as much as 2.84 per cent to touch a high of Rs 2,279. It was quoting at Rs 2,249.60, up 1.52 per cent, at 1150 hours.
Hudco board to consider raising up to Rs 28,000 crore; stock down 1%
State-owned Housing and Urban Development Corporation (Hudco) on Tuesday said its board will meet this week to consider raising up to Rs 28,000 crore through issue of bonds. The shares of Hudco were trading at Rs 31.85 a piece on BSE, down 1.24 per cent. With an authorised capital of Rs 2,500 crore, as on date Hudco has a paid up equity of Rs 2,001.90 crore, according to its website.
Indian economic growth likely accelerated a touch in the October-December period after its weakest expansion in over six years in the previous quarter, a Reuters poll showed, with a small rebound in rural demand and private consumption expected. Annual gross domestic product growth likely rose to 4.7% in the last quarter of 2019 from 4.5% the previous quarter, when the growth rate appears to have bottomed out, a Feb. 18-24 Reuters poll found.
Top 10 NSE gainers in late morning session
Price as on 25 Feb, 2020 11:33 AM, Click on company names for their live prices.
Shares of Lumax Auto Technologies jumped 7 per cent in Tuesday’s trade after the company announced acquisition of OK Play Group's roto molded plastic business at an estimated enterprise value of around Rs 150 crore. Lumax Auto Technologies is a smallcap company with a market capitlisation of Rs 730 crore. Following the announcement, the scrip rose 7.45 per cent to hit a high of Rs 109.55 on BSE.
Bandhan Bank, HDFC Life & Info Edge gain on inclusion in F&O segment
Price as on 25 Feb, 2020 10:29 AM, Click on company names for their live prices.
Shares of TVS Motor Company cracked over 5 per cent in Tuesday’s early trade after the company on Monday said the coronavirus outbreak has impacted the supply of certain components thereby affecting about 10 per cent of its planned production for February. The scrip traded 5.58 per cent down at Rs 413.10. The novel coronavirus (COVID-19) pandemic has led to an impact on the supply of certain components for the production of BS-VI vehicles, TVS Motor said in a regulatory filing.
Foreign investors from Mauritius to continue being eligible for FPI registration: Sebi
Warren Buffett, the billionaire chairman of Berkshire Hathaway Inc, on Monday called the coronavirus outbreak "scary stuff" but said that it was no time to sell stocks despite the threat of a pandemic.
Buffett said investors with a 10- to 20-year time horizon and focused on companies' earnings power will fare well in stocks, and that the outbreak has "not changed" his long-term outlook.
"It is scary stuff," Buffett said. "I don't think it should affect what you do in stocks."
Top lender State Bank of India said the price band of initial public offering of SBI Cards and Payment Services has been fixed in the price range of Rs 750-755 per share. At the higher end of the price band, the SBI Cards IPO is expected to raise around Rs 9,000 crore, making it the fifth-largest IPO so far. The issue will open for subscription on March 2 and close on March 5.
Vodafone Idea, YES Bank, GMR Infra among most active stocks on NSE
Price as on 25 Feb, 2020 09:38 AM, Click on company names for their live prices.
OPENING BELL: Sensex jumps 100 pts, Nifty above 11,850; Lumax Auto climbs 7%, TVS Motor drops 5%
Singapore trading sets stage for strong start
Nifty futures on the Singapore Exchange traded 68 points, or 0.58 per cent, higher at 11,889, indicating a strong start for Dalal Street.
Tech view: Nifty resistance at 11,900-11,920
Nifty50 took a beating on Monday on global selloff and formed a Bearish Belt Hold pattern on the daily chart. The index faced selling pressure from the word go before barely holding the 11,800-mark at close. Analysts said the 11,900-11,920 zone will act as immediate resistance. On the downside, the index can potentially fall below the 11,700 level, they said.
Asia shares, S&P500 futures recover
E-Mini futures for the S&P 500 bounced 1 per cent to pare some of the steep 3.35 per cent loss the cash index suffered overnight. South Korea's hard-hit market edged up 0.8 per cent and helped MSCI's broadest index of Asia-Pacific shares outside Japan fight back to flat. Japan's Nikkei was still down 2.8 per cent, but just catching up to the global sell-off having been shut on Monday.
US stocks plunge 3 per cent in overnight trade
The Dow Jones Industrial Average fell 1,031.61 points, or 3.56 per cent, to 27,960.8, the S&P 500 lost 111.86 points, or 3.35 per cent, to 3,225.89 and the Nasdaq Composite dropped 355.31 points, or 3.71 per cent, to 9,221.28. All of the 11 major S&P sectors closed in the red, led by the energy sector's 4.7 per cent decline and followed by a 4.2 per cent drop in technology stocks.
Crude prices rebound after 4% fall
Oil rose on Tuesday as investors snapped up bargains after crude benchmarks dropped almost 4 per cent in the previous session, but fears that the spreading coronavirus could wreak far greater economic damage than initially thought capped gains. Brent crude rose 29 cents, or 0.5 per cent, to $56.59 a barrel.
South Korea reports 60 new virus cases
South Korea reported 60 new cases of the coronavirus, increasing the total number of infected patients in the country to 893, the Korea Centres for Disease Control and Prevention (KCDC) said on Tuesday.
Japan's FM says closely watching market move
Japan’s Finance Minister Taro Aso said on Friday he was closely monitoring market moves, as Asian shares sank on fears the coronavirus outbreak could wreak far greater economic damage than first thought. Aso said the government, however, was not considering taking additional economic policy measures in response to the widening coronavirus outbreak.
FIIs sell Rs 1,161 crore worth of stocks
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 1,160.90 crore on Monday, data available with NSE suggested. DIIs were net sellers to the tune of Rs 516 crore, data suggests.
Sensex on Monday
The 30-share index settled at 40,363.23, dropping 806.89 points or 1.96 per cent -- the second biggest one-day fall in 2020. The Sensex had plunged over 987 points on February 1 this year -- the day the Union Budget was presented. While, the broader NSE Nifty sank 251.45 points or 2.08 per cent to 11,829.40.
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