Stock Market Today LATEST Updates: Sensex ends day's session tanking over 3,900 points, Nifty plunges 1,135 points; Axis Bank, IndusInd, Bajaj Finance among top losers

Market takeaways

Everything was in a shambles on Dalal Street on Monday, as if a hurricane had passed through its alleys in today’s session creating a havoc such as was never-seen before. The market ended down 13 percent down. said Shrey Gandhi, Fundamental Research Associate, Choice Broking.

After the opening session, the market resumed  after a  45-minute halt in trading after it hit the lower circuit in the first hour of trade.  Investors sentiments continued to remain sober amid fear of rising coronavirus cases and major companies announcing shutdown.

Investors feared that more such closures would bring economic activity to a grinding halt. Curbs imposed by SEBI in cash and F&O segment may prove insufficient to tame the volatility as it will affect only a limited number of stocks.

The rising number of  coronavirus cases worldwide  has rattled markets everywhere. Broad-based severe selling was witnessed in the market with all sectors ending deep in red. Investors at this point are panicking and waiting helplessly for more clarity on the coronavirus situation.

Sensex tanks over 3,900 points; Nifty plunges 1,135 points

Sensex ended 3,934.72 points or 13.15 percent in the red at 25981.24, and the Nifty plunged 1,135.20 points or 12.98 percent at 7610.25.

Axis Bank, IndusInd Bank and Bajaj Finance were the top losers. HDFC Bank, Reliance Industries, ICICI Bank, HDFC and TCS were the most active stocks.

Govt asks banks to provide liquidity support to corporates: Report

The government has asked all state-owned lenders to extend emergency credit lines to corporate borrowers, three government and banking sources said, as it rushes to tackle the fallout from the coronavirus outbreak that has grounded business across the globe.

Banks have been asked to make available an additional 10% in funds over and above sanctioned working capital loans, but not exceeding 2 billion rupees ($26.33 million) per loan account as part of the emergency measures, a senior government official, who did not want to be named, said.

State Bank of India has already rolled out this emergency credit line and the other state-owned lenders are also expected to follow suit shortly, industry officials said. None of the sources wanted to be named as the plan is not yet public, Reuters reported.

Sensex trades below 26,000

Europe stocks sharply down

Sensex plunges over 3,800 points, Nifty below 7,700-level

Sensex plunged over 3,900 points around 3 PM. The benchmark Sensex plunged 3,959.60 points or 13.24 percent down at   25,956.36

The Nifty was below 7,700-level. It nosedived 1,133..75 points or 12.96 percent down at  7,611.70 points.

BSE Midcap and Smallcap indices, too, were down 12 percent each around 14:50 hours.

Hang Seng ends at lowest levels since December 2016

Sensex crashes in mid-afternoon session

Both the Sensex and Nifty continued to trade in the negative in mid-session on the bourses today.

Sensex was trading 3600.98 points or 12.04 percent at 26,314.98.   

The Nifty again slipped below 7,800-mark. Nifty was trading 1,051.80 points or 12.03 percent down at 7,693.65.

Goldman Sachs sees 1% drop in global GDP due to ‘coronacrisis’

Goldman Sachs said it expected global real gross domestic product to contract by about 1% in 2020, a sharper economic decline than in the year following the 2008 global financial crisis. Global governments have been taking unprecedented measures to contain the coronavirus outbreak which is threatening to spark a worldwide economic contraction.

“The coronacrisis — or more precisely, the response to that crisis — represents a physical (as opposed to financial) constraint on economic activity that is unprecedented in postwar history,” the investment bank said in a note to its clients published late on Sunday.

It sees the real GDP in advanced economies contracting “very sharply” in the second quarter, including a 24% drop in the United States, a whopping two-and-a-half times as large as the previous postwar record.

Global central banks deploy record sums to break financial logjam

Central banks have offered trillions of dollars of support to markets in recent days to keep them from freezing up, as investors worried about the economic damage from the coronavirus and made a chaotic dash for the exits. While the intervention helped bring back some order to markets, policymakers may need to do more.

Investors, economists and bank strategists said they expect policymakers will have to step in with more support in the coming days to prop up both markets and the real economy – companies losing customers and workers thrown out of jobs.

There is a limit for now to how effective authorities can be, however, some said. Before investors calm down, these observers said, they will need to see a peak in new virus infection rates, an improvement in hospitals’ ability to cope with an influx of patients, and an end in sight to the economy-killing quarantines, travel bans and other restrictions being imposed to save lives.

“The best that economic and financial policymakers can do right now is limit the damage. They cannot turn the economy around because this is a health issue, not an economic or financial issue,” said Mohamed El-Erian, chief economic advisor to the German insurer Allianz SE in an interview to Reuters.

RBI advances OMO purchase auction

Reserve Bank of India (RBI) advances open market operations purchase auction of 30 March to 26 March. It had earlier announced OMO of Rs 30,000 crore in March in two tranches. First tranche OMO of Rs 15,000 crore will take place on 24 March and second on 26 March.

The RBI  to conduct variable rate term repos of Rs 1 lakh crore and provide Rs 50,000 crore via variable rate repo auctions today. RBI to conduct Rs 50,000 crore  variable rate repo on 24 March as well.

Standalone primary dealers can participate in these auctions, will calibrate operations to meet any need for additional liquidity support, it added.

Investor wealth plummets by over Rs 10 cr

Investor wealth plummeted by over Rs 10 lakh crore in the first hour of trade on Monday as the equity markets went into a tailspin and sank 10 percent. Rising cases of coronavirus (Covid-19) has hit market sentiment negatively, with the equity markets starting the week with a massive selloff.

The market capitalisation of BSE-listed firms dropped by Rs 10,29,847.17 crore to Rs 1,05,79,296.12 crore just before the trading was halted for 45 minutes. Markets took a heavy beating as the BSE benchmark index plunged 2,991.85 points or 10 percent — its lower circuit limit.

All the constituents from the BSE 30-share index witnessed selling led by Axis Bank, ICICI Bank, IndusInd Bank and Bajaj Finance, tanking up to 19.98 percent. All the sectoral indices too traded with heavy losses led by bank, realty and finance.

Auto majors shut down operations; stocks plunge

Maruti Suzuki down 14.52 percent, Bajaj Auto 13.35 percent, Hero MotoCorp 13.03 percent and M&M 11.78 percent. Besides Ashok Leyland  was down 18 percent, TVS Motor 14.86 percent, Tata Motors 9.95 percent.

The country’s leading automakers, including Maruti Suzuki India (MSI), Mahindra & Mahindra and Honda Cars, on Sunday announced suspension of manufacturing activities across plants in the wake of the coronavirus outbreak in the country.

The country’s largest car maker MSI halted production at its Gurgaon and Manesar plants with immediate effect, while Honda Cars India Ltd (HCIL) decided to suspend manufacturing at its two plants in the country till 31 March. Similarly, Mahindra & Mahindra (M&M) announced to suspend production at its manufacturing plants in Maharashtra.

Automaker Fiat also put brakes on production in the country till the end of this month.

In the two-wheeler segment, Hero MotoCorp and Honda Motorcycle and Scooter India (HMSI) suspended production across their manufacturing plants. MSI in a statement said, “The company will shut production and office operations at its facilities in Gurugram and Manesar (Haryana) with immediate effect till further notice.”

HCIL said production operations at both its manufacturing plants in Greater Noida (Uttar Pradesh) and Tapukara (Rajasthan) will be temporarily suspended from 23-31 March..

Market nosedives over 11%; what’s behind market meltdown

Trading in the stock markets resumed after 45 minute halt after market triggered a lower circuit within one hour of trade. The market currently is down by more than 11 percent and it is close to second trading halt, said Shrey Gandhi, Fundamental Research Associate, Choice Broking.

Investor sentiments continued to remain sober amid fear of rising corona virus cases and major manufacturing companies announcing shutdown. Investor feared that more such closures would bring economic activity to halt. Curbs imposed by Sebi in cash and F&O segment may prove insufficient to tame volatility as it will affect only limited number of stock which can help to reduce volatility to some extent not entirely.

The rising number of cases in US and Europe has rattled markets world wide. Broadbased severe selling is witnessed in the market with all sectors bleeding in red Investors at this point are panicking and waiting helplessly for more clarity on the coronavirus situation.

‘Govt should undertake expenditure without worrying about fiscal side’

Sensex, Nifty recovers; auto stocks bleed

Sensex recovered and was trading 3,209 points down or 10.73 percent dip at 26,706.78 .

Nifty is trading 906.80 points or 10.37 percent down at 7,838.65 

The Nifty Auto is down over 11 percent. Top losers included TVS Motor, Motherson Sumi, Bajaj Auto, Hero Moto, Maruti Suzuki and Bharat Forge.

Nifty breaches 7,700-level; at 4-year low

Aditya Birla Fashion to close retail stores

Aditya Birla Fashion and Retail Ltd (ABFRL) on Monday said it will shut all its retail stores across India till March 31, in order to ensure safety of its employees across all its establishments from the coronavirus pandemic.

The company has also stopped its factory operations in Karnataka, Tamil Nadu and Odisha till March 31, 2020, in line with the local guidelines, Aditya Birla Fashion and Retail said in a regulatory filing.

“In order to safeguard the risks to the health of our store employees & customers, as well as in line with the advisories from local, state and central government, the company has decided to shut all its retail stores until March 31, 2020,” it said.

The company had already moved to “work from home” policy for all its office employees.

Happy govt announced a lockdown: Aditya Puri

Banks to put in place business continuity plans

Uday Kotak asks employees to be ‘vigilant’

Sensex tanks 3,559 points, Nifty below 7,800-level

Sensex is trading 3599.09 points or 12.03 percent down at 26,316.87.   

Nifty is trading below 7,800-level.

Nifty is trading 1,035.20 points ot 11.84 percent down at 7,710.25.

Coronavirus threatens retail jobs; retailers see revenues plunge

The coronavirus pandemic amid an economic slowdown has hit revenue at Indian retailers selling non essential items like clothes and jewelry by 75% so far and is likely to cause widespread job losses,  industry body  Retailers Association of India (RAI)  said on Monday.

About 40 percent of the six million employees working in India’s modern, rather than traditional, retail sector could likely lose their jobs in the next four months if the government does not intervene, Kumar Rajgopalan, chief executive, RAI, told Reuters.

World is not coming to an end: Aditya Puri

Yes Bank’s new board to meet on 26 March

RBI war room to insulate financial system from virus pandemic

The Reserve Bank is virtually being run from a war-room at a city facility in Mumbai manned by just around 90 critical staff as the nation’s monetary authority works to insulate the financial system from disruptions due to the coronavirus pandemic.

The facility, operational from 19 March as part of the Business Contingency Plan (BCP), was up and running in 24 hours of the central bank taking a decision to this effect, according to an official.

The war-room is in fact manned by 90 most critical staff from the Reserve Bank, 60 key personnel from its 600-people strong workforce from its external vendors and around 70 facility staff.

The operation is so controlled for the sake of security and health of the personnel as also of the system that the BCP manual allows only half of the 90 staff to be present at any given time and the rest are on standby.

‘Wait for stock markets to calm down’

HDFC, ICICI Bank ask customers to go digital amid coronavirus outbreak

Private sector banks HDFC and ICICI have asked customers to use digital means for transactions and said they have reduced their staff in office as a precautionary measure against the spread of coronavirus.

HDFC Bank has changed its working hours and will function from 10 am to 2 pm till 31 March, except on Saturday. The private sector lender has also temporarily suspended passbook update and foreign currency purchase services.

ICICI Bank informed its customers through SMS that “our branches shall remain open with required hygiene steps and reduced staff”.

HDFC Bank has urged people to use cheque drop boxes to help reduce crowding in branches.

However, customers can go digital to avail passbook updation and forex card reload, it said. NEFT, RTGS, IMPS and UPI services are among the digital transactional modes.

It said customers can pay for their utility bills through UPI and PayZapp platforms.

“In the interest of public health and safety, we will be withdrawing the following services temporarily of passbook updates and foreign currency purchase,” it said in a communication sent to its customers on Sunday.

Global economy continues to slide as coronavirus outbreak worsens: Moody’s

The rapid spread of the coronavirus in the last two weeks, widespread  business closures and unprecedented  restrictions on social interactions will result in a permanent hit to global economic activity this year, according to Moody’s Investors Service.

A sharp contraction of the global economy, at least in the second quarter, appears imminent, it said in its latest special series ‘Credit Risks in Turbulent Times.’
 

Uncertainty will remain for at least several months as to how long it will take to contain the spread of the virus and how businesses and households will cope with the resulting financial losses.

Honda Cars suspends production till March-end

Honda Cars India Ltd (HCIL) on Sunday said it has decided to suspend production at its two manufacturing plants in the country till the end of this month in view of the coronavirus outbreak.  

Production operations at both its manufacturing plants in Greater Noida (Uttar Pradesh) and Tapukara (Rajasthan) will be temporarily suspended from March 23 till March 31, HCIL said in a statement.

The company’s associates working in corporate offices, including zonal and regional locations for all functions, will primarily work from home, except for those involved in running essential services that require physical presence or minimal staffing for a few critical activities while abiding by the government regulations, it added.

Gold falls as investors stockpile cash; strong dollar overrides stimulus

Gold prices fell on Monday as investors stockpiled cash, with a rising numbers of coronavirus-led national lockdowns threatening to overshadow stimulus measures from global central banks to combat the economic damage.

Spot gold slipped 0.2 percent to $1,494.63 per ounce, after rising as much as 3.1 percent in the previous session on a wave of stimulus.

US gold futures climbed 0.8 percent to $1,496.70 per ounce.

Sensex plunges 3,500 points; Nifty below 8,000-level

Sensex  is down over 3,000 points at 26,416.43; nosedives 3499.53 points or is down 11.70 percent.

Nifty is trading 977.25 points or 11.17 percent at  7,768.20 at 11.30 AM

Nifty tumbles further, down 991 points

Tough to say where market is headed

Vinay Pandit, Head – Institutional Equities, IndiaNivesh says: “It’s tough to say where the markets will stop. It’s all about what kind of Nifty earnings hit one is expecting and what multiple are you ready to give these markets.

“In the current scenario, it looks like investors are not willing to give a multiple of more than 11-13x and presuming overall earnings for FY21E will be down by 20 percent across the board, in which case the bottom is somewhere between 6800 and 8000 for the Nifty. But these are excellent times for long term value picks at cheap valuations.

“It’s time to pick and choose but focus should only be on quality businesses and companies which have stood the test of time. Any news of a cure or global recovery from the virus will send the index in a V shaped recovery. Hence investors are advised not to time the bottom.”

Rupee slipped further by 95 paise to 76.15

Amid a sharp rise in coronavirus cases in the country and heavy selling in domestic equities, the rupee plunged further.

Forex traders said market participants are concerned that the sharp rise in coronavirus cases, with nearly 400 cases in the country, could weigh on the economy.

The rupee which opened on a weak note at 75.90 at the interbank forex market, lost further ground and touched a low of 76.15 against the US dollar, registering a decline of over 95 paise over its last close. The local unit had settled at 75.20 against the US dollar on Friday.

Traders said there is a sense of anxiety among investors as they see the global, as well as domestic economy, plunging into a deep crisis due to coronavirus (Covid-19) pandemic that has killed over 14,000 and sickened lakhs of people around the globe.

Sensex slips below 3,000 points

Benchmark indices resumed trading after trading has been halted for 45 minutes post Sensex hit lower circuit. 

The Sensex is down 3,173.67 points or 10.61% at 26742.29, and the Nifty down 909.60 points or 10.40% at 7835.85.About 203 shares have advanced, 1436 shares declined, and 68 shares are unchanged.

Hyundai, Toyota halt manufacturing operations

Hyundai Motor and Toyota Kirloskar Motor (TKM) have announced the suspension of manufacturing operations at their respective plants amid coronavirus outbreak.

Hyundai has decided to halt production at its Chennai plant while TKM has put brakes on manufacturing at its Bidadi facility in Karnataka.

Key stocks decline

Sensex nosedives over 3,000 points

Sensex continued its free-fall and was trading 3256.68 points or 10.89 percent down at  26,659.28      

Nifty was trading 892.95 points or 10.21 percent at   7,852.50 at 11 AM.