Business News›Sensex gives in to growth worries, ends 131 pts lower after 1,000-point surge; Nifty tops 8,650
Economic Times | 30 Mar, 2020 | 09.46AM IST
Sensex gives in to growth worries, ends 131 pts lower after 1,000-point surge; Nifty tops 8,650
Nifty inched higher on gains in Coal India, Axis Bank and Cipla. VIX eased further.
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The overall chart structure is still negative, but a pullback move of the ongoing corrective phase cannot be ruled out after the sharp decline of last six weeks. Till the time Nifty sustains above 8,300 level, it may bounce towards the next resistance at 9,000 and then 9,200 levels, while supports are now placed at 8,300 and 8,000 levels
Market had gained on expectations that RBI and the government will act. RBI did meet expectations, and it could not have done more than this. Dalal Street corrected after the expectations were met. People were also expecting interest waiver. The next trigger could be industry stimulus. Focus shifts to the impact on the economic growth from coronavirus, and the progress of the pandemic in our country. Next 4-5 days are crucial. We are on a good wicket compared with other countries
Market ended almost flat following the RBI measures to lessen the burden on borrowers and to increase liquidity in the system. The market was up in the last 2 sessions on the expectations of these announcements from the government and RBI. Now since the two expected events are out of the way, focus is back on the spread of the virus and its damage on the already reeling economy
- Vinod Nair, head of research at Geojit Financial Services
RBI’s steps will lead to a decline in lending rates, declogging credit flow at least to the mid and higher rated entities for now and keep the money markets well lubricated. Post the announcement, the short-end has outperformed, with the money market rates down by over 200 bps while mid and longer end bonds are down by 125-150 bps. G-secs reacted initially, but gave up gains on fears of expected expansion to the govt balance sheet and ability of the market to absorb the incremental supply
- Kumaresh Ramakrishnan, CIO Fixed Income, PGIM India MF
While India has limited fiscal space, monetary policy continues to do the heavy lifting at a time when growth is at a severe risk in the near term. We need to explore unconventional measures on fiscal, administrative and regulatory fronts on the lines of lead taken by RBI today. Lower crude oil prices will be one of the silver lining for India. We can also explore the idea of creating a crude oil strategic reserves by using forex reserves
Sensex erased early sharp gains to close lower by 131 points, snapping its three-day rising streak, as concerns over an impending recession heightened after RBI said the projected annual growth was at risk due to the Covid-19 outbreak.
RBI liquidity measures lead to fall in yields
The Reserve Bank of India (RBI) unleashed a Rs 3.74 lakh crore of liquidity on the Indian banking system as it vowed to whatever it takes to support financial markets hit by the spread of an unprecedented health emergency.
Five of Rakesh Jhunjhunwala's portfolio stocks gained 5-10 per cent on a day when BSE benchmark Sensex fell over 1,500 points from the day's high on worries that the economic growth for FY20 would be worse than anticipated.
RBI Governor Shaktikanta Das refrained to offer any estimate for GDP and inflation while announcing Rs 3.74 lakh crore in liquidity infusion via various measures.
Top 10 losers in today's session on NSE
Price as on 27 Mar, 2020 01:58 PM, Click on company names for their live prices.
Overall MPC gave more than what was expected and assured to resort to more measures if the situation worsens. The impact of these measures on the economic growth could take some time to fructify. Financials will get breathing space as far as recovery and NPA recognition is concerned. It could elevate sentiments temporarily but the main impact will be visible post the lifting of lockdown. In the interim softer yields could benefit investors in Gsec/other debt papers (including Banks) to book some MTM gains
RBI allows banks to trade in offshore rupee derivative market
Most tourism and hospitality stocks trade in the green; IRCTC up 5%.
Price as on 27 Mar, 2020 12:05 PM, Click on company names for their live prices.
RBI, very correctly so, announced a comprehensive bazooka covering all aspects of the economy by taking measures system-wide both through liquidity, rates and regulatory forbearance (retail as well as for industry) and also targeted measures to manage the corporate bond markets. The measures should help in tiding through the end of the year issues which many banks/institutions were fearing and will go a long way in cushioning the dislocations in various markets. We expect additional scope for 40-50bps of rate cut with any further easing and extension of measures depending on the nature of spread of COVID-19.
- Upasna Bhardwaj, Senior Economist, Kotak Mahindra Bank
The market slipped into the red soon after the RBI meet ended; Sensex down 200 points, Nifty tests 8,650. See how the markets fared in the morning session.
S&P BSE Telecom biggest sectoral loser, plunges 5%. Here is how the index stocks are faring.
Aviation stocks see some respite, up in today's trade.
Price as on 27 Mar, 2020 11:13 AM, Click on company names for their live prices.
Realty stocks mixed after RBI's massive rate cut
Price as on 27 Mar, 2020 11:04 AM, Click on company names for their live prices.
The RBI has surpassed expectations by delivering more than what the market anticipated, and its promise to 'do whatever it takes' has come good. The steps to ease working capital pain, reduce liquidity costs and provide moratorium on term loans will alleviate stress across various sectors. We continue to see rates dropping to 3.50% by August 2020.
- Rahul Bajoria, Chief India Economist, Barclays
Sensex pares gains, up over 400 over points, Nifty below 8,850. This is how the 30-pack Sensex is doing post the RBI meet.
Liquidity of Rs 2.8 lakh crore has been injected by the RBI via various instruments, which is equal to 1.4% of GDP since the last policy in February
RBI: The moratorium on term loans & deferring of interest payments on working capital will not lead to asset classification downgrade
In spite of challenging environment, I remain optimistic. The macro economic parameters are stronger than that at the aftermath of GFC. Covid-19 is upon us, but this too shall pass, says Shaktikant Das
RBI Governor: Indian banking system is safe and sound. It would be fallacious to link share prices to safety of deposits; depositors need not worry about safety of deposits.
RBI will continue to remain vigilant and will do whatever is necessary to mitigate the impact of Covid-19, says the RBI Guv
Liquidity distribution has been asymmetrical; it is important to mitigate the burden of debt servicing now, says the RBI Governor
Cash Reserve Ratio cut by 100bps to 3%
All banks may allow a three-month moratorium on all loans
CRR cut to unlock primary liquidity of Rs 1.37 lakh crore
Time has come for RBI to unleash array of measures. Economic outlook uncertain; it is certainly negative.
- RBI Governor Shaktikanta Das
This is how the banking stocks are doing after RBI cut rates
Price as on 27 Mar, 2020 10:22 AM, Click on company names for their live prices.
MPC refrains from giving inflation and growth forecast
RBI Rate Cut: MPC to maintain accommodative stance
Bank stocks rally up to 20% ahead of RBI Guv address
Price as on 27 Mar, 2020 09:49 AM, Click on company names for their live prices.
Moody's pegs India GDP growth at 2.5% in 2020 5.8% in 2021 (Source: Cogencis)
RBI is likely to announce measures to compliment the government's measures. The measures could include a repo rate cut, further OMOs, LTROs, CRR cut, cap on reverse repo, liquidity injection to MF and insurance companies, relief on retail EMIs, relaxation of provisioning norms.
- Abhishek Goenka, Founder & CEO, IFA
Vodafone Idea, YES Bank, ICICI Bank among most active stocks on NSE
Price as on 27 Mar, 2020 09:24 AM, Click on company names for their live prices.
OPENING BELL: Sensex climbs 1,000 points, Nifty above 8,950; bank stocks rally up to 10%
Pre-open session: Sensex jumps 750 points, Nifty tops 8,900; rupee trades at 74.65 against dollar
Singapore trading sets stage for negative start
Nifty futures on the Singapore Exchange traded 69.50 points or 0.78 per cent lower at 8,821.50, indicating a negative start for Dalal Street.
Tech view: Nifty resistance at 8,750
Nifty on Thursday climbed for the third straight session. The index formed a bullish candle on the daily chart, and analysts now believe that the ongoing rally may extend beyond 8,750. The immediate support for the NSE barometer is seen at the 8,300 level, they said.
Market-wide rollovers at 83%
The market-wide rollovers stood at 83 per cent. Stock futures rollovers stood at 90 per cent, which were in line with an average rollovers of last three F&O series. Nifty futures rollovers stood at 62 per cent which is a tad lower than the average rollovers of 71 per cent seen in the last three series, an Edelweiss report suggests.
RBI governor to hold media address today
RBI Governor Shaktikanta Das will address to the media at 10:00 am today. On Thursday, Suman Chowdhury of Acuité Ratings & Research said that special regulatory dispensation for NPA recognition or loan restructuring may need to be considered soon to address the challenges in the financial sector arising from the likely spurt in delinquencies from all asset classes in the short term, said.
Asian shares rise on more stimulus hopes
Asian stocks rose on Friday as investors wagered policymakers will roll out additional stimulus measures to combat the coronavirus pandemic after U.S. unemployment filings surged to a record. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1 per cent. Australian shares were up 2 per cent, while Japan’s Nikkei stock index rose 3.65 per cent. E-Mini futures for the S&P500 rose 0.81 per cent in Asia.
US stock indices jump 6% each
The Dow Jones Industrial Average index jumped 6.38 per cent to end at 22,552.17, while the S&P500 index surged 6.24 per cent to 2,630.07. The Nasdaq Composite index added 5.6 per cent to 7,797.54.
US House leaders look to clear $2.2 trillion bill
Leaders of the US House of Representatives are determined to pass a $2.2 trillion coronavirus relief bill on Friday, or at the very latest on Saturday, hoping to provide the quickest help possible as deaths mount and the economy reels.
FM announces Rs 1.7L crore stimulus
The government announced a ₹1.7 lakh crore relief package aimed at providing a safety net for those hit the hardest by the Covid-19 lockdown, along with insurance cover for frontline medical personnel. About 800 million people will get free cereals and cooking gas apart from cash through direct transfers for three months. The 21-day lockdown began on March 25.
Citi cuts Nifty target
Citigroup Global Markets has cut its March 2021 Nifty target to 10,100 from 11,400 as the three-week lockdown amid the coronavirus scare threatens to hit the economy sharply.
DIIs sell Rs 770 crore worth of stocks
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 484.78 crore on Thursday, data available with NSE suggested. DIIs were net sellers to the tune of Rs 769.93 crore, data suggests.
Sensex, Nifty on Thursday
Investor wealth rose for the third consecutive day on Thursday, gaining Rs 11,12,088.78 crore in three days, as equity markets continued their sharp rally. The BSE benchmark index Sensex advanced 1,410.99 points or 4.94 per cent to close at 29,946.77 on Thursday. In three days, the index has gained 3,965.53 points. The market capitalisation of BSE-listed companies zoomed Rs 11,12,088.78 crore to Rs 1,12,99,025.06 crore in three days.
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