Sensex slumped for a fourth session on Wednesday, down 392 pts, weighed down by the spread of coronavirus outside China.
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Nifty closing below its long-term average of 11,686 does not augur well for the bulls from a psychological perspective. An incremental breach of its swing low of 11,707 could drag the index towards 11,400
While Nifty has reached the daily lower Bollinger Band, the bands are in expansion mode. What this suggests is that the index can continue to slide along with the lower band. Nifty is now just a stone’s throw away from the February low of 11,614, which can act as a support in the near term
- Gaurav Ratnaparkhi, Sharekhan
Nifty continued to make lower highs and lows for the third consecutive day and concluded the session below the 11,700 mark. It filled the previous gap area between 11,750 and 11,783 (gap of Feb 4) levels and formed a bearish candle on the daily chart. At the current juncture, Nifty is hovering around its key cluster and 200-SMA on the daily scale. Till the time Nifty holds below its immediate resistance at 11,800 level, the bears will have an upper hand in the market and we may see further correction towards 11,615 and then 11,500 levels
The bears have hammered the market hard and Nifty is now closer to the important zone of 11,600. Globally too markets are nervous and have fallen sharply. There is a high level of nervousness globally on account of coronavirus. A breach below 11,600 will add to further pressure on the downside, however, if the market holds on to the support zone of 11,600, a bounce back is likely. Immediate resistance on the upside is near 11,800. Support: 11,600-11,500 & Resistance: 11,800-11,900
- Manav Chopra, Head Research - Equity, Indiabulls Securities
Market plunged sharply and shed over a per cent, in continuation of the prevailing corrective phase. The recent global developments indicate that the coronavirus could escalate into a pandemic, which is taking a toll on markets across the globe including ours. Nifty has breached its critical support of 11,700 and settled below the same. We advise continuing with the ‘sell on rise’ approach in the index. Stocks, on the other hand, are seeing erratic swings and the schedule derivative expiry of the February month contracts would further add to the volatility. Traders should focus more on stock selection and risk management until markets stabilise
- Ajit Mishra, VP - Research, Religare Broking
The near-term trend is negative and more weakness could be in store in the coming sessions. There is a possibility of an upside bounce attempt from near the lows of around 11,600-550 in the next few sessions
We believe Nifty has a strong support at 11,500 and the same should be held. On the higher side, 12,150-12,450 zone is possible. On the other hand, breach 11,500 could lead to further selling pressure. We advise investors to accumulate gradually while traders should keep leverage in control until a clear trend emerges
- Sahaj Agrawal, Head of Research- Derivatives, Kotak Securities
CLOSING BELL: Sensex catches global flu, falls 392 pts on Day 4 of losing streak; Nifty ends below 11,700
Navin Fluorine shares rally for 2nd day; soar 12% to hit 52-week high
Price as on 26 Feb, 2020 03:13 PM, Click on company names for their live prices.
Coronavirus spreading legs
Coronavirus is moving towards becoming a pandemic as it is swiftly spreading to countries beyond China. The US Centers for Disease Control and Prevention also urged Americans to prepare, saying that while the immediate risk there was low, the global situation suggested a pandemic was likely.
European markets tumble
After US and Asian stocks closed sharply down, European markets also tumbled in the opening trade. DAX and CAC were down by over 2 per cent while FTSE traded 1.8 per cent lower. The US market is staring at yet another opening in the red as Dow futures traded 0.79 per cent lower ar 26,903.
Volatility also rose ahead of the futures & options expiry which is on Thursday. India VIX, the measure of volatility in the market, rose 9.24 per cent to 18.46.
Disappointing GDP data in sight?
Expectation of another subdued quarter of GDP growth rate is also weighing on the markets. GDP growth is likely to show a marginal improvement to 4.6 per cent from 4.5 per cent in the previous quarter, said Nirmal Bang Institutional Equities.
FIIs on selling spree
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 2,315 crore on Tuesday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 1,565 crore, data suggests.
WTI crude below $50 as coronavirus fears deepen
Crude oil prices gave up early gains and slid for a fourth day on Wednesday as fears of a coronavirus pandemic deepened as the outbreak spread in several countries outside China. Brent crude fell 31 cents, or 0.6 per cent, to $54.64 a barrel by 0753 GMT, while US West Texas Intermediate crude dropped 16 cents, or 0.3 per cent, to $49.74.
Top Nifty losers
Price as on 26 Feb, 2020 02:42 PM, Click on company names for their live prices.
European shares fall as coronovirus fears rattle investors
European shares fell for a fifth straight session on Wednesday, as investors fretted over the growing impact of a fast-spreading coronavirus that has pushed companies world-wide to sound the alarm on earnings. Europe's main equity benchmark STOXX 600 fell 0.8% by 0813 GMT, marking its first five-day losing streak since July 2019.
Shilpa Medicare shares hit lower circuit after USFDA observations for Telangana unit
Price as on 26 Feb, 2020 01:37 PM, Click on company names for their live prices.
Fund management firms including Eastspring Investments and Northcape Capital are flagging the defensive qualities of India’s domestic-focused market amid softening energy prices and signs of an economic recovery.
Asian shares slump, bonds rally as virus fears grow
Asian shares fell on Wednesday as a U.S. warning to Americans to prepare for the possibility of a coronavirus pandemic drove another Wall Street tumble and pushed yields on safe-haven Treasuries to record lows, Reuters reported. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 1.28 per cent. Japan was among the worst-performing market in the region, weighed by growing concerns the virus could cancel the Tokyo Olympics.
Price as on 26 Feb, 2020 12:26 PM, Click on company names for their live prices.
122 stocks hit 52-week lows on NSE
Around 122 stocks fell to touch their 52-week lows on NSE in Wednesday's session.
Among the stocks that touched their 52-week lows were Hindalco Industries, LIC Housing Finance, ABB India, Bajaj Consumer Care and Oil India.
Bharat Heavy Electricals Limited, Gillette India, Canara Bank, Excel Industries and National Aluminium Company also featured among the stocks that touched their 52-week lows on NSE.
Aurobindo Pharma gets EIR with VAI status from USFDA for Hyderabad facility
Price as on 26 Feb, 2020 11:55 AM, Click on company names for their live prices.
Earnings estimates of more than half the top 300 Indian companies have been downgraded by analysts at brokerages in the last one month, according to an ET study based on Bloomberg estimates. Analysts said the downgrades have been led by companies in energy, healthcare, metals and financials after their earnings fell below estimates in the December quarter. Among 50 companies in the Nifty, 20 failed to meet earnings forecasts while 19 beat estimates.
Question facing US markets is not whether coronavirus will spread, but when will it spread
- Peter Cardillo, Spartan Capital Securities
USFDA issues warning letter to Cipla for Goa manufacturing facility
Price as on 26 Feb, 2020 11:19 AM, Click on company names for their live prices.
Shares of India Cements climbed 18 per cent in Wednesday’s trade after the brother of market veteran Radhakishan Damani, Gopikishan Damani, bought 2.75 per cent stake in the cement maker.
As per bulk deal data available on NSE, Damani’s brother bought 85,22,428 shares at Rs 82.7 per share.
Damani himself held 1,46,24,021 shares or 4.73 per cent stake in the cement maker as of December 31. Following the development, the scrip jumped 18.52 per cent to hit a high of Rs 103.35 on BSE.
I-Sec maintains 'hold' rating on Auro Pharma
Rescindment of the VAI status for Unit IV just three days after it was issued (February 18, 2020) is indeed a unique case with negative sentimental implications.
Unit IV is a critical plant for the company, given most of its pending injectables are filed from this plant.
Injectable segment is one of the key drivers for the company’s future growth and margins.
The lingering cGMP issues and, in particular, issues including some important plants like Unit IV and Unit VII are a major overhang in the near future.
Growing US scrutiny is the new normal, for a company like Aurobindo, which owns the largest infrastructure of US focused plants, the stakes are even higher.
In this backdrop, we expect this volatility to persist for some more time until the important plants come clear out of scrutiny.
Another key event to watch is the Sandoz acquisition, post which the contribution from the US will increase to ~58%, highest vis-à-vis most domestic pharma companies.
We maintain HOLD and arrive at a target price of Rs 555 (9x FY22E EPS of | 61.7).
Bandhan Bank shares gain 4% as RBI lifts ban on network expansion
Shares of Bandhan Bank gained over 4 per cent in Wednesday’s early trade after the Reserve Bank of India on Tuesday allowed the lender to expand its branch network after considering the efforts made by the bank to comply with the licensing conditions. The central bank in September 2018 had barred Bandhan Bank from expanding its network as the lender failed to reduce the promoters’ stake to 40 per cent from close to 82 per cent within the stipulated three-year time frame of commencing operations.
YES Bank, SBI, Tata Motors most active stocks on NSE
Price as on 26 Feb, 2020 09:36 AM, Click on company names for their live prices.
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OPENING BELL: Sensex tanks 385 points, Nifty slips below 11,700; Vodafone Idea tumbles 7%, Bandhan Bank jumps 4%
Pre-open session: Sensex down 50 points, Nifty tests 11,750; rupee trades at 71.76 against dollar
Singapore trading sets stage for gap-down start
Nifty futures on the Singapore Exchange traded 94 points, or 0.80 per cent, lower at 11,724, indicating a gap-down start for Dalal Street.
Tech view: Nifty support at 11,783-740
Nifty could not capitalise on a gap-up start on Tuesday, and closed below the 11,800 level. Analysts said the index put up a strong fight to defend its critical support in the 11,783-740 range despite testing the range twice in the last one-and-half hours of trade. Nifty must respect this range in the coming sessions in order to avoid a sharp fall. On the upside, it has resistance in the 11,900-11,920 zone.
Asian stocks mirror Wall Street losses
Asian shares fell on Wednesday as a US warning to Americans to prepare for the possibility of a coronavirus pandemic drove another Wall Street tumble and pushed yields on safe-haven Treasuries to record lows. That led MSCI's broadest index of Asia-Pacific shares outside Japan down 0.6 per cent. Australian shares were down 1.77 per cent, while Japan's Nikkei stock index slid 1.1 per cent.
US stocks tumble for 4th day
The Dow and the S&P500 tumbled 3 per cent on Tuesday in their fourth straight day of losses as the coronavirus spread further around the world and investors offloaded risky assets as they struggled to gauge the economic impact. The Dow Jones Industrial Average ended down 879.44 points, or 3.15 per cent at 27,081.36 and the S&P500 index lost 97.68 points, or 3.03 per cent, to finish at 3,128.21. The Nasdaq Composite dropped 255.67 points, or 2.77 per cent, to 8,965.61.
Crude prices rebound after 4% fall
Crude prices edged up on Wednesday as investors covered short positions after three sessions of losses, even as fears deepened that the rapid spread of the coronavirus will lead to a global pandemic. Brent crude rose 42 cents, or 0.8 per cent, to $55.37 a barrel, while US WTI crude gained 43 cents, or 0.9 per cent, to $50.33 a barrel. Still, both benchmarks are down nearly 7 per cent since last Thursday's close.
South Korea reports 169 new virus cases
South Korea has reported 169 more cases of a new virus, mostly in the southeast city of Daegu and nearby areas, bringing its total number of infections to 1,146. China on Wednesday reported another 406 cases of the new virus, along with 52 additional deaths, all of them in hard-hit Hubei province and all but 10 in the epicenter of the city of Wuhan.
US asks Americans to prepare for virus spread
The United States told Americans on Tuesday to begin preparing for coronavirus to spread within the country as outbreaks in Iran, South Korea and Italy escalated and fears that the epidemic would hurt global growth rattled markets.
FIIs sell Rs 2,315 crore worth of stocks
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 2,315 crore on Monday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 1,565 crore, data suggests.
Sensex on Wednesday
A day after taking a massive plunge due to concerns over Mauritius being added to the "grey list" of FATF, the market steadied in the opening deals on Tuesday, with regulator Sebi saying that foreign investors from the island nation will continue to be eligible for FPI registration. Sensex went through bouts of volatility during the session, before settling at 82.03 points, or 0.20 per cent, lower at 40,281.20. Nifty declined 31.50 points or 0.27 per cent to end at 11,797.90.
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